Closing the Deal

Once you’ve agreed on a sales price, the negotiating process doesn’t necessarily end. Car dealers generally divide the overall profits on any given vehicle into front-end profits — or what they make on the sales price — and back-end profits. The back-end profits are based on additional money the dealer makes on the transaction, from financing and extra services like extended warranties, insurance, roadside assistance agreements, safety kits and service agreements.

During the excitement you feel about your new car purchase, a salesperson might try to sell you such extras after settling on a price. Or some disreputable car dealerships might even add these things to your paperwork when you’re finalizing financing arrangements. Throughout the deal, it’s smart to watch the numbers on the bill of sale.

Changing your mind

As you make a down payment, be sure to ask if it’s refundable in case you change your mind before picking up the vehicle. In many states, vehicle deposits are fully refundable by law, no questions asked. But in some court cases, car dealers have won the right to keep deposits when customers cancelled deals.