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I got hosed on a deal

I got hosed on a deal

(2 min read) Three negotiation lessons from a humbling car dealership experience that can you can learn from

Avi Gandhi
January 14, 2025

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I got completely taken for a ride leasing a car this weekend.

The worst part? I knew it was happening the whole time. It was surreal—I watched the dealership use negotiation tactics I recognized and was still helpless to defend myself.

I lost sleep that night. As a former talent agent and partnerships executive, being a good negotiator is part of my identity. I felt like a failure, until my wife pointed out we really like the car, and it’s still less expensive than my last one.

After reflecting, I’ve realized what I did wrong. Obviously, this isn’t a car-buying newsletter, but many of these tactics apply to Creator partnerships like brand deals, so I’ll outline what you can take away at the end.

Let’s get into it!

Anchor and Justify

Me after they made their offer

I did my research and knew the price range of the car I wanted. I figured I’d drop hints during the test drive about how price-sensitive I am, let them present an offer, and negotiate from there.

That didn’t work at all.

The sticker price wasn’t just the suggested retail price—it was 15% higher. Cleverly, they itemized additional expenses to justify the difference, with various add-ons, services they insisted couldn’t be removed, and a “Dealer Margin” they claimed was their profit.

By coming in higher than the standard online sticker price, they ended up anchoring the negotiation, while the itemized costs they presented made the anchor feel justified.

Anchoring is a classic negotiating tactic, as is justification - and even if you’re aware of them, their effects are unconscious. Combined, they were particularly powerful, and I ended up negotiating from their price point rather than the one I researched.

Appeal to Humanity

I believe deals should be fair—and they used that against me.

Throughout the negotiation, they kept emphasizing their “need” to make money.

“Look how much we’ve given!”

“Here’s the invoice price. We’re barely breaking even.”

They showed me spreadsheets and calculations, making me feel unreasonable for pushing too hard. It was a subtle play on my empathy. I even justified their figures to myself, with thoughts like “Well, LA is expensive, so maybe their costs are higher and that’s why their price is higher than online”.

Recognize and use Leverage

There’s such a thing as being too prepared.

I spent months deciding on the car: safety ratings, interior comfort, dad-friendly features, even the color scheme - I knew exactly what I wanted, and this car was it. I researched pricing online and went to two dealerships on different weekends.

All that work is why I failed to get the best deal.

Knowing exactly what I wanted meant I wasn’t open to other cars with better incentives.
Spending two weekends at dealerships left me tired and ready to be done.
Using multiple lease calculators meant I knew the low and high price ranges.

I lost leverage. The dealership knew they had what I wanted and that I wasn’t willing to walk away.

Leverage isn’t just about power—it’s about options. The more options you have, the more willing you are to walk away, and the stronger your position.

Next Time

In 3 years, here’s how I’ll approach my next car lease:

I’ll visit 2-3 places in one day.
If they offer different versions of the car I want or better-priced alternatives, I’ll be open to them.
I’ll make the first offer, anchoring 5-7% below MSRP, and justify it with data.
If I choose another car, I’ll use ChatGPT on my phone to prep an offer before sitting down.
If they appeal to my humanity, I’ll remind them I know how dealerships work. If they push, I’ll channel my inner Ari Gold and get a little angry.

I’ll make an offer, get a counteroffer, negotiate a little, and walk out at the first place. Walking away gives me leverage, keeps me fresh, and provides deal terms to use when negotiating at the next dealership.

Applied to Creators

Here are the takeaways for Creators doing deals:

Anchor high and justify - The dealership anchored high and justified their pricing with inflated costs and fees. Even if the justification was fluff, it made the anchor stick. You can do the same with brand deals, by (lightly) inflating and breaking down your costs. This is a standard practice for content production companies, so why not Creators?
Appeal to the buyer’s humanity - It’s OK to humble yourself to make more money. I’ll sometimes joke about the cost of diapers to humanize myself in negotiations. There’s a person on the other end, and if they as people want to give you as a person money, that will make it more likely that they’ll do it in the context of their job.
Be willing to walk - If you feel like you have to close the deal, you’ll do whatever it takes. To make more money or do less work, you have to be willing to lose the deal, which is why it’s important to have lots of irons in the fire.

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