Dealer Tactics Explained: How to Protect Yourself
Common dealer tactics used during lease negotiations and how to counter each one effectively.
Understanding dealer tactics is essential to protecting yourself during lease negotiations. Here are the most common ones.
Tactic 1: Payment Packing
The dealer quotes a monthly payment that includes undisclosed add-ons like extended warranties or protection packages.
**Counter**: Always negotiate the selling price first, then calculate what your payment should be independently.
Tactic 2: Money Factor Markup
Dealers can mark up the manufacturer's base money factor for additional profit.
**Counter**: Research the current manufacturer buy rate and ask for it specifically.
Tactic 3: The Four Square
A worksheet that confuses the negotiation by mixing purchase price, down payment, trade-in, and monthly payment.
**Counter**: Refuse to use it. Negotiate each element separately.
Tactic 4: Pressure to Buy Now
"This deal expires today" or "Someone else is looking at this car."
**Counter**: Real deals don't expire in a day. Walk away and come back.
The Bottom Line
The best defense against dealer tactics is education. When you understand the numbers, you can't be manipulated.