Preface: While these questions can be classified as “Car Buying Tips,” they are really more suited for your car buying entertainment. If you are a hard-core negotiator, these questions will benefit you by putting your salesperson on-guard and off-balanced.

If you prefer a less confrontational approach to car buying, these questions can be fun, but they may create an atmosphere that will not be beneficial.

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

General Questions for New or Used Buying

--- “How much as your dealership’s pack?” ---

99 out of 100 dealerships have a Pack. It is a value added to the cost of every vehicle that covers dealer expenses and overhead. They normally range from $500-$1,200, but some dealerships will pack their cars $2,000 or more.

Please keep in mind, this amount is non-negotiable (by law in most states). It is not to be confused with dealer “holdback” on new cars, which often is negotiable. If a car is traded in and valued at $10,000 and the pack is $1,000, the vehicle cost is $11,000 plus make-ready, inspection, and reconditioning costs.

--- “Is this an old-aged unit?” ---

Most dealers set a cut-off point when a vehicle is considered aged. It is normally at 60, 90, or 120 days. These questions will make your salesperson wonder why you are asking and how their answer will affect your opinion of the vehicle, because answering either way can be a positive or a negative.

If it is an old-aged unit the final price will probably be closer to cost with a reduced profit margin to move it. That is good. But then again, there is a reason it has been on the lot for an extended period. A Chevy Tahoe at a Chevrolet lot in a big city should sell before it becomes aged. A Chevy Tahoe at a Hyundai lot in a small town might be a great vehicle that didn’t have the right buyers looking at it.

--- “How many heads have you knocked off this month?” ---

When a salesperson “knocks their head off,” they have made a large commission selling a vehicle at $3,000 or higher over cost. These “high gross” deals put $500 or more in the salesperson’s pocket.

While their response is irrelevant (if you get a response), it is interesting to watch how they handle the question.

--- “Do the salespeople here make spiffs or commission on back-end profits?” ---

Most or all of the money that a salesperson makes comes from their front-end commission. This is normally calculated as a percentage of the front end gross profit of the vehicle.

Some dealerships pay a little money to the salesperson 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 signs up for any other paid services in finance, the salesperson may or may not receive a little compensation for planting the seed.

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