The "Shady Dealership Techniques" Thread

NYSpeed Automotive
41

speaker of tips people can use… go to the dealership that sucks and get a business card then take it with you to the good dealership… once you’ve got them down on price distract them and write a slightly lower price on the back then tell them to beat it.

and LOL at how whenever a salesman posts in a thread like this they are always at the good dealership. For once I’d like somebody to tell me about how bad they screwed over some idiot, it would be way more informative and fun.

42

I haven’t had any time to write for this thread yet. Hopefully soon.

PA also caps the max interest rate on a vehicle loan to 12% or 14% if I remember correctly… NY can go much higher but again I can’t remember the exact %

So it’s sometimes better to get a loan in PA if your credit is junk.

If someone wants to do this we can start a new thread, PM me the stories and I can post them anonymously.

43

if i remember right, i think nys is somewhere around 25%

44

I love how they come out with a work order for all the stuff the vehicle needed before it hit the lot to justify the price. Not my problem, it didnt cost $1500 for the tires and brakes

45

IMO if i make alot of money on someone, it doesnt mean i am ripping them off… there is a saying in the business " the happiest customers you will usually make the most money, and the customers that you give the best deals to will never be happy and will never think they got a great deal"

highest rate in pa is 21% for certain years, 19% for older vehicles, but if your buying new you should research to see if there are any special rates for that particular model

I have no problem saying I have made $1500 dollar commissions, some i dont give “true” value for their trade, but 90% of them we sell the vehicle under kbb which most people consider a good deal

ultimately if you are happy with what you pay for a car, why would you care what the company made?

46

that’s another pet peeve I have about dealers… if it’s your trade in then KBB is 100% wrong, if it’s the car they are selling you then look how they are cheaper than KBB, the trusted source.

47

i’ll say this one again, “salesmen gotta eat too.”

48

then it’s my job as a consumer to make you starve.

49

then no soup for you

50

I’ve bought or helped buy about 15 new cars for my family & friends, and have come across very little shadiness. Like other have said, it usually comes down to who can give the best price.

Points of interest in my dealings:

  • Some places do like to talk payments unless you ask them to do otherwise, which they always have. Show me new car price and trade in price and I can figure out if the final is the deal I was looking for regardless of how they break it out.
  • I had one place (who was notriously shady in the past) say they could do a special order but it would be sticker price. That ended that visit quick. The next dealer dealt with an order in a normal manner.
  • One place was very low on a trade-in because it “wasn’t a Honda”. Had a similar bad experience there on a 2nd purchase, so they’re off the list now - not worth the time.
  • Most places will deal honestly with you if you’re up front with them, know what you want, and show them that you’ve done your homework on pricing and financing. They pull up what’s available form local banks so I can compare to the financing that’s already available to me.
  • Older trade-ins may go to auction, so don’t get too stuck on the KBB price like someone else mentioned. If you want more, you can always sell it yourself if you want the hassle. Sometimes time is worth more than the extra money depending on your situation.

Overall, car buying has been a positive experience. No one else in my family or at work seems to enjoy the experience, so I’ve become the “car buying guy”.

51

I’m confused, does this apply to used car dealers only or new as well? Everyone here seems to associate “shady” with not giving discounts. I don’t want to give discounts because when I go buy a flat screen T.V from Wal-mart I don’t negotiate with the service rep. Those who do not sell simply don’t understand how frustrating it is when someone thinks they can save $3000 on a Corolla when margins on vehicles like that are 500-1300 profit.

52

it applies to all in basic terms.

“discount” is a shell in the shell game. there is what the car is worth and what you paid. You do bring up the good point that if you know what a dealer stands to make then you can figure out what to offer. Knowing about invoice and holdback is golden.

53

I think car salesman should be tipped just like restaraunt staff.

Provide good service, get good tip. Up to and including $100.

54

I always get frustrated when dealing with trade-ins. I always feel that they are trying to low-ball me on it, but then again, they’re always taking a risk on it and I have no idea what auction prices are like.

Ideally, if you want to avoid the shadiness, it’s best to sell privately.

55

Same here. I enjoy it, but that’s because I’m informed. Most people view the experience as a hassle.

56

Not that I like Wal-mart but they already sell you the TV for nearly as low as they can while still making a profit. They don’t try to mark it up to some absurd price in hopes that you’re a sucker or uninformed, and then make you waste your time arguing your way down…they price it as low as they will go from the start and if someone else is lower, buy it there.

If you only make $500 per car and don’t want to give discounts then mark all your corollas $500 above invoice from the start, and show them why pricing is non-negotiable since you’re already as low as you can go, make it transparent. Dealerships won’t do that because they still want to pound the uninformed. Not to mention double dipping by having to make money off their trade and financing as well.

57

:bigblap: well said joe.

58

I don’t know you personally so I should ask if you have ever worked at a dealership? Front-end/back-end/management? I would love to know your background prior to any other comments.

59

Trade in

  • some people get hung up on “they didn’t give me what I want for trade” or “but my trade is worth this on KBB or NADA you should give me XXXX for it” a dealer is going to give you less than what they are going to be able to sell the car you are trading in. This is fact. If you want to maximize your money. sell your car private sale then go purchase a car. If you are trading in a car know that you are giving up some money. The dealer is taking a gamble on the car they are bringing in on trade. What major issues does it have that they didn’t notice in the little time they looked it over? how long are they going to sit on it before finding a buyer? how much will it fetch at auction if it is not a car that fits the dealers lineup? how much will it take to complete repairs to make the car ready for sale? Now factor time tied up into that car you are trading in… Time is money and it adds up quick when dealing in cars.

  • cliffs: maximize your money by selling your car by selling private sale rather than trading in your car when possible.

  • Ask to take your potential purchase to your mechanic. It is easy to become overcome with the I WANT IT NOW!!! mind set when looking at something you like. Sometimes a look by someone who is unbiased is helpful in purchasing a used car.

60

No sir. Closest I came was dealing with their floor plans. I am in finance/banking though so I probably picked up on a lot more of the financial shenanigans I’ve seen than the average person.