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What Is The Raise And The Lowball In The Car Business?

Aug 17, 2007
There are so many tactics used in the car sales industry that they cannot all be covered in one article. What we want to look at here are a couple of methods used so that you will be aware when they try to pull them on you.

The first thing we want to cover is the raise. All sales systems use the raise in some form and if you have ever shopped for a car you have definitely seen it. There is one reason for and one reason only, to get more money from the customer even if the customer cannot afford it. The key to their success is to ask for way more than they think they will get. For example if they want another $350 in profit they may start asking at $1,000 and sometimes with a weak customer they may get it all!

You know how the game is played. The salesman tells you that he has to go talk to the manager, but he really doesn't. He goes and gets a coke or goes and plays a round of liar's poker real quick with the other salesmen then he comes back and says, "Folk, we are so close all I need is a little help. All I need is another $247.56 and we have a deal" then he reaches out his hand and shuts up.

This is the oldest trick in the book. They use odd numbered amounts of money to trick you into thinking the deal is so close they have to have that much to the penny to keep from losing money. Trust me, it doesn't matter if they have made $2,000 profit they are going to try to bump you up and get more profit.

The next step is a really common trick that is used in the car business to make sure that you come back if you don't make a deal. They want to be sure you don't buy from someone else, it is called the lowball and this is how it works.

You haven't been able to get them to your price so before you leave the salesman tells you If you come back tomorrow I will try to get it for you for $500 less or I will try to shop your trade some while you are gone and get you $500 more for your trade.

Don't go out and celebrate just yet. This is the lowball. You will go out to other dealerships and try to buy at the lowball price only to be told it is impossible. Then when you return to the original dealer they tell you they sold that car or we had someone that we could have sold your trade in to but they bought something else.

Take the bull by the horns when they offer you a lowball price. Take the salesman by the arm and go to the sales manager and tell them you will buy the car at that price today but if they can't sell it at that price you will NEVER come to their dealership again.
About the Author
Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida with his 16 year old son. Get car care products from http://www.carcarewizards.com
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