What Not to Tell a Car Dealership When Financing a Car

Walking into a car dealership with excitement is natural. You’ve picked the model, checked the color, and maybe even dreamed about the sound of the engine. But if you’re planning to finance the car on-site, you’re walking into a high-stakes conversation-one where the dealer’s goal isn’t to help you, but to maximize their profit. The truth? Most buyers give away too much information before they even sit down. And that information becomes leverage in the hands of a skilled salesperson. Here’s what not to say, why it matters, and how to protect your wallet.

Don’t Say, ‘I Need a Car This Week’

Telling a dealer you’re in a hurry is like waving a red flag at a bull. Dealers know that urgency equals weak negotiation power. If you need a car by Friday, they’ll push you toward a higher monthly payment, longer loan term, or inflated add-ons like extended warranties or paint protection. They’ll make you feel like you’re missing out if you don’t sign today.

Instead, act like you have time. Say something like, ‘I’m just gathering info right now,’ or ‘I’m comparing a few options.’ Even if you’re desperate, pretend you’re not. Dealers work on pressure. Remove that pressure, and you gain control. Studies from the Consumer Financial Protection Bureau show that buyers who negotiate over multiple days save an average of $2,100 compared to those who sign on the first visit.

Never Reveal Your Monthly Budget

Saying, ‘I can only afford $400 a month,’ is the biggest mistake most buyers make. That number becomes the ceiling, not the starting point. Dealers will work backward from that number to stretch the loan term, inflate the price, or bury fees in the fine print. A $400 monthly payment might sound reasonable-but if they stretch it over 72 months instead of 48, you end up paying thousands more in interest.

Instead, focus on the total price of the car. Ask for the out-the-door price, including taxes and fees, before they mention payments. Once you know the total cost, you can calculate the real monthly payment using your own loan calculator. If the dealer insists on talking monthly, respond with, ‘I’m not ready to discuss payments yet. Let’s lock in the vehicle price first.’

Avoid Saying, ‘I’ve Already Been Approved’

This one sounds smart-you’ve done your homework, right? But saying you’ve been pre-approved by a bank or credit union often backfires. Dealers will try to undercut your rate with a ‘better’ offer, even if it’s not. They’ll say, ‘We can get you 2.9%,’ when your bank already gave you 3.5%. What they won’t tell you is that the lower rate comes with a longer term or hidden fees.

Worse, some dealers use your pre-approval as a way to justify pushing you into a more expensive car. If you’re approved for $30,000, they’ll show you $32,000 models and say, ‘You can afford this.’ You didn’t need that car-you just needed a reliable ride.

Instead, keep your pre-approval quiet. Let them quote you first. If they ask, say, ‘I’m exploring options,’ and don’t volunteer details. Only reveal your approval if they make a solid offer that beats your bank rate. And even then, ask for the APR in writing before you commit.

Don’t Admit You’re Trading In a Car

Trading in your old car feels like a convenience. But dealers make more money on trade-ins than on new car sales. They’ll lowball your trade value to offset the price of the new car, making the deal look better than it is. You think you’re getting $8,000 for your 2020 Honda Civic, but they’re really only worth $6,200. Then they roll the $1,800 difference into your new loan.

That’s called negative equity. And it’s how people end up owing more on their car than it’s worth for years.

Get your trade-in value from a third party first. Use Kelley Blue Book, Edmunds, or CarMax’s online offer. If they give you $7,500, that’s your benchmark. Bring that number with you. If the dealer offers less, say, ‘I’ve got a written offer for $7,500. Can you match it?’ If they can’t, walk away and sell it yourself. You’ll make more money and keep full control of the transaction.

Never Say, ‘I Don’t Know Much About Cars’

This sounds harmless, but it signals weakness. Dealers assume you’re an easy target. They’ll use confusing terms like ‘MSRP,’ ‘APR,’ ‘residual value,’ or ‘finance charge’ to overwhelm you. They’ll push you toward a longer-term loan because ‘it’s easier on your budget.’ They’ll upsell you on gap insurance, tire protection, or service contracts you don’t need.

Instead, learn three things before you go: the car’s invoice price (not MSRP), the average market price in your area, and the typical interest rate for your credit score. Websites like TrueCar and Edmunds show real transaction prices. If you know the average price paid for the model you want, you’ll know when they’re trying to overcharge you.

And if you’re unsure about a term, say, ‘Can you explain that in plain English?’ Most dealers will back off when they realize you’re not easily fooled.

Don’t Mention Your Credit Score

Your credit score is private. Telling a dealer you have a 620 or a 780 gives them a roadmap to how much they can charge you. If your score is low, they’ll push you into subprime financing with rates over 10%. If your score is high, they’ll try to upsell you on premium packages or longer loans to maximize their commission.

Dealers don’t need your score to start the process. They’ll run a credit check themselves once you’re ready to apply. Until then, keep it to yourself. If they ask, say, ‘I’d prefer to let your finance manager pull my credit directly.’ That puts the ball in their court and prevents them from tailoring their pitch to your score.

Don’t Say, ‘I’m Fine With Whatever Color’

This seems like a small thing, but it’s a negotiation killer. Dealers make more profit on cars with popular colors-black, white, silver-because they sell faster. If you say you’re fine with any color, they’ll push you toward a high-demand model that’s already priced higher.

Instead, ask for the least popular color in stock. A dark green or burgundy SUV might sit on the lot for months. That car has more room for negotiation. You might save $1,500 or more just by picking a color no one else wants.

Don’t Sign Anything Until You’ve Read Every Line

The final paperwork is where most buyers get trapped. Dealers will slip in add-ons you didn’t agree to-extended warranties, credit insurance, or dealer fees labeled as ‘documentation’ or ‘processing.’ Some states allow dealers to charge $800+ just for paperwork. That’s not legal everywhere, but it happens.

Before you sign, ask for every document in writing. Read the contract line by line. If you see a fee you don’t recognize, ask, ‘What is this for?’ and ‘Can you remove it?’ If they say no, walk away. No deal is worth being pressured into.

What to Say Instead

You don’t need to be rude. You just need to be clear. Here are a few phrases that work:

• ‘I’m comparing offers from multiple dealerships.’
• ‘I’ve done my research. This is the market price for this model.’
• ‘Let me see the total out-the-door price before we talk about payments.’
• ‘I’m not signing today. I’ll come back with a written offer.’
• ‘I’d like to see the finance terms in writing before I make a decision.’

These phrases don’t sound aggressive. They sound informed. And that’s exactly what dealers fear most.

Final Tip: Walk Away Often

The most powerful tool in car financing isn’t a calculator or a spreadsheet. It’s your feet. If the deal feels off, if they’re pushing too hard, if you’re getting pressured-walk out. Don’t say anything. Just leave.

Dealers hate when buyers walk away. It means they lose control. And often, within 24 hours, you’ll get a call: ‘We can do better.’ That’s when you’re in charge.

Car buying isn’t about finding the best car. It’s about finding the best deal. And the best deal only comes when you stop giving away your power.