WHAT OTHERS MAKE

Your first encounter with buying a car is the salesperson. Remember, the salesperson is working for a commission. This means that he gets a percentage of the dealer's profits. The higher the price you pay, the more expensive car you buy, the more options the salesperson sells - the more money he makes. Also, the salesperson has a weekly quota to meet. His job is at stake. This is why the pressure is so high on a car lot.

Also, the finance and insurance (F&I) people get paid a percentage of the amount of money the salesperson makes on the "back end," or financing part of the sale. That's why it is not surprising the salesperson tries so very hard to sell you an upgraded stereo system, long-term warranties, or anti-theft packages.

There are a lot of people being paid off whenever a car is sold - it isn't just the dealer.