You’ve done your research and just negotiated a terrific price on the car of your dreams. Now that you’ve shaken hands with the salesman, you’re done, right? Wrong. Soon, he’s going to usher you over to the finance and insurance desk (more commonly known as F&I in the car biz) most likely with a seemingly innocuous comment about "drawing up the paperwork" or "finalizing the financing."
While it’s possible for this to be a straightforward process, this is usually the time that dealers try to make some extra money on the sale, sometimes in a not-so-gentle way. Here are four ways to avoid getting fleeced at a dealership’s F&I desk.
Watch out for excess fees.
There are numerous charges associated with buying any car, such as the manufacturer’s destination fee and your state’s title and registration fees, along with various taxes, so expect your negotiated price to change slightly. Make sure though that you aren’t getting stuck with other fees that dealers sometimes add on to the final paperwork, like administrative and document preparation fees. If you find them, point them out: They can either be removed or negotiated downward before signing on the dotted line.
Be wary of buying extras.
The F&I desk will almost assuredly offer you an array of extras, ranging from car-security systems to extended warranties and prepaid service plans. You may even be told that some of these items are required or that you must purchase them because they are already on the car you’ve selected. This is simply not true. Be wary of letting yourself get talked into any of these extras unless it’s something that really interests you; even then, negotiate the price.
If you are tired, hungry or in a hurry, postpone your visit.
Chances are that by the time you’ve been brought over to the F&I desk, you’ve been at the dealership for a while — perhaps even longer than you’d planned. You may be tired or hungry or have people expecting you at home or work. If that’s the case, seriously consider postponing your visit to the desk. It’s rare that a visit to the F&I desk is short, and in some cases, dealers actually extend the time it takes hoping to wear you out so they’ll be able to get you to buy more extras.
Simply tell the dealer that you have another appointment (or some other plausible excuse) and that you will stop in later or even tomorrow to finalize things, then coordinate a specific time. They may tell you they can’t hold the car for you or create some other sense of urgency, but it’s highly unlikely anything will change if you wait a few hours or even until the following day to finalize your car purchase; be wary of a dealer who rushes you.
If you are uncomfortable, don’t hesitate to walk away.
It’s not unusual for car buyers to feel pressure — sometimes subtle, sometimes strong — while they are at the F&I desk. If this happens to you, don’t hesitate to walk away. Make an excuse that you need to get somewhere quickly and make an appointment to return, or walk away from the deal entirely. While the dealer will try to create a sense of urgency to keep you there, if you walk away you will end up with the upper hand, since you’ll communicate that you are not afraid to lose the deal. Unless you are buying a car that is in very high demand or very limited production, you’ll most likely be able to find what you want at another dealer if necessary, though it’s unlikely it will come down to that.
Above all else, remember that you are in charge of your money. If a particular fee seems suspicious, get clarification or get the dealer to remove it.
