Preface: While these questions can be categorized as “Car Buying Tips”, they are actually better suited for your car buying entertainment. If you’re a die-hard negotiator, these questions will work to your advantage by putting your salesperson off guard and off guard.

If you prefer a less confrontational approach to car shopping, these questions can be fun, but they can create an atmosphere that won’t be beneficial.

Either way, your salesperson will remember you as the customer who “knew too much” about the car business.

General questions for new or used purchases

“How much is the package from your dealer?”

99 out of 100 dealers have Pack. It is a value added to the cost of each vehicle that covers the general expenses of the dealer. They normally range from $500 to $1,200, but some dealerships will package their cars at $2,000 or more.

Please note that this amount is non-negotiable (by law in most states). Not to be confused with dealer “hold” on new cars, which is often negotiable. If a car is traded in and is valued at $10,000 and the package is $1,000, the cost of the vehicle is $11,000 plus preparation, inspection, and reconditioning costs.

“Is this an old unit?”

Most dealerships set a cutoff point when a vehicle is considered to be aged. Normally it is at 60, 90 or 120 days. These questions will make your salesperson wonder why he is asking and how his answer will affect his opinion of the vehicle, because answering either way can be positive or negative.

If it’s an older unit, the final price will likely be closer to cost with a slim markup to move it. It’s okay. But then again, there’s a reason it’s been in the lot for such a long period. A Chevy Tahoe on a Chevrolet lot in a big city should sell before it gets old. A Chevy Tahoe on a small-town Hyundai lot could be a great vehicle that didn’t have the right buyers to see it.

“How many heads have you knocked over this month?”

When a salesperson “breaks his head,” he has earned a large commission selling a vehicle for $3,000 or more above cost. These “very gross” offers put $500 or more in the seller’s pocket.

While your answer is irrelevant (if you get an answer), it’s interesting to watch how they handle the question.

“Do sellers here take spiffs or commissions on final profits?”

Most or all of the money a seller makes comes from their initial commission. This is normally calculated as a percentage of the vehicle’s gross front-end gain.

Some dealerships pay a little money to the seller if their customer finances or purchases products on the “back-end” while they are in the finance department. If the customer finances through one of the dealership’s lenders, buys a warranty, or contracts for any other paid finance service, the seller may or may not receive a small compensation for planting the seed.

The best time to ask this question is if/when the seller asks if you plan to finance or recommend a warranty.

“Taboo” Questions About Buying New Cars

“Do you negotiate part of your withholding?”

The answer will almost always be “no.” If not, they will say “sometimes” or “rarely”. Either way, it’s a good way to set the tone for negotiations.

Withholding is the amount of money the dealer receives from the manufacturer when they sell a new vehicle. It’s “advertising” or “overhead” or “cost of sale” money as described, but in reality, it’s a profit buffer that most dealerships aren’t willing to part with. The market is so competitive and profits are dwindling so unless the hold is considerable you are often untouchable.

“Do you get a draft for selling this car?”

This is an empty question, but it will let your salesperson know that you know too much. Many manufacturers offer “gifts” to salespeople and managers for selling particular new vehicles. This is bonus money offered to encourage dealers to sell new vehicles instead of trying to switch their customers to a more profitable used vehicle. Depending on the vehicle and manufacturer, swings typically cost $50 or more and are paid directly from the manufacturer.

Used Car Buying Questions That Will Drive Your Salesperson Crazy

“Can we call the previous owner or have them contact me before I make up my mind?”

We use car, it’s kind of a reasonable request. The problem is that the seller doesn’t want to get in trouble and the previous owner probably doesn’t want to talk to you. Still, it sometimes wonders and sellers hate it.

If you can talk to the previous owner, find out if there were any recurring problems, any accidents, and any reasons why you shouldn’t buy the car.

“Can we get the vehicle history report?”

If he tells you no, go away, because he is either lying or incompetent. Again, this is a minor annoyance that can hinder a car deal, so sellers generally don’t like it.

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“What is your minimum dollar?”

Most people ask their salesperson this question at some point. Most salespeople can’t answer the question without their manager. It’s usually awkward for new sellers and annoying for experienced ones.

Don’t say “cash price.” At most reputable dealerships, they make more money if you finance with them than if you pay cash. It’s no longer attractive to get cash or a check for a vehicle because the lenders the dealer uses pay all the money up front anyway, plus a little more for using them. By saying “cash price” you are telling the dealer that they won’t be making any money on the rear end so they need to make as much as they can on the vehicle itself.

Again, let me emphasize that most of these questions will not help you buy a vehicle at a better price unless you are a confrontational negotiator. They can help you have a little fun by buying a car, which many people rank just above “root canal” on their list of least favorite activities.

I hope that helps.