At the end of the day, you are dealing with someone that will directly profit off of their ability to negotiate. It’s business not a charity. Maybe someday UNICEF will get into automotive sales, but untill then, do your homework.
You’re completely wrong. Dealers (atleast smart ones) don’t advertise their second best price. Most advertised prices are on a specific car and back of invoice several hundred dollars.
---------- Post added at 03:37 PM ---------- Previous post was at 03:36 PM ----------
You don’t need to go to school for finance to know that. Thanks for the heads up though.
---------- Post added at 03:54 PM ---------- Previous post was at 03:37 PM ----------
Alright boys, step aside. Here’s how it really is.
#1 rule, it’s all in whom you deal with…dealership wise. There are dealers that are easy to deal with and there are dealers that will be a pain in your ass until the day you get rid of the vehicle.
#2 rule, don’t be afraid to make a mistake. This is the biggest reason why people think buying a car is such a hassle. People are afraid to say “yes” and put up HUGE fucking defenses. If people weren’t trained to negotiate price and feel they were getting fucked, then buying a car would be as easy as going to the store for a pair of shoes. You don’t want to deal with the haggling bullshit? Then pay sticker.
#3 rule, every dealership has a “bottom line”. It’s not that ABC dealer was a bunch of ass holes and trying to fuck you buy giving you $1,000 less than XYZ dealer, it’s just that they have a margin or profit they had to turn on the car to keep things going. I don’t motherfuck Kohl’s because Target was cheaper…
#4 rule, “it is what it is”. Honestly, there are dealerships out there that don’t work on commission. Some of them are local and some board members are employed by them. Towne auto group for instance pays their sales people on a flat basis. Some dealerships have even made it a point to sell their vehicles at one price and one price only. There is a dealership in Ohio that sells Hondas for $300 over invoice. They sell a ton of cars and sure you could go down the street and play the game with the guy to save another $500, but in the end…at the $300 over invoice dealer…you know what you’re getting.
#5 - not all sales people are bad. Yes, they are trying to make as much money possible. Wouldn’t you?
#6 - finance guys aren’t bad. Dealer financing is usually better than direct financing through a credit-union etc etc. Make it a point to procure a rate from your credit union and see if the finance dept can beat it, simple as that.
I want to take this opportunity to extend my services to anyone who ever has any questions about the deal they are getting or the deal they got, feel free to PM and I’ll let you know what’s up. Whether or not you need an invoice on a car or you want to know if the dealership is giving you a “fair” rate.
Remember it’s not about getting the lowest price or getting the best deal. It’s getting a “fair” deal for both parties.
Also, it’s not the deal you got…it’s the deal you think you got. (You’ll get people who literally get a car for thousands back of invoice and they bitch and moan and complain that they got ripped off.)
---------- Post added at 04:11 PM ---------- Previous post was at 03:54 PM ----------
PS- I deal with ~2000 customers a year and have never once been deceptive or dishonest. I get lied to DAILY from customers.
It also particularly amuses me when hardasses come in and try to act like they know what they are doing…like it’s my first day in the business and haven’t seen it before. :bowdown:
Beck what do you do if you dont mind me asking?
Did you light a cigarette before you typed that?
tell me that your dealership usually can’t sell a car for lower than the newspaper price and I’ll call you a liar.
one topic I would value your input on is the “internet sales manager” how do they work? why is it that if you call a dealer and ask for them and try to make a deal on something on their lot you can get away with things like saying “I’d like to split holdback”, which never works in person.
Our Rav4 advertised this Sunday is $1,000 back of invoice… I wouldn’t say that you can get a better deal on a car that’s harder than hell to get right now. The whole point is to drive people away from the competition. Now, as for used cars which are advertised? Of course you can do better. New cars…not so much.
Most dealerships won’t split holdback, TDA, etc etc.
Internet managers (usually) have to work a deal just like a salesman would, however, because you’re behind a computer and most likely doing the same thing with a dozen other dealers, they will usually do anything (reasonable) to get a deal done. The ideal way to buy a new car nowadays is through email, as you are not in the dealership and you can just turn away. Basically dealers are forced to drop their pants because if you don’t buy, well they don’t lose anything and if you do buy, they gain a deal/customer.
Example:
You send 6 emails to Honda dealers across WNY. One comes in @ $20,000. The other $20,500. The other $22,000 etc etc. The $22,000 guy just wasted his time. You’re going to try and work the $20,000 guy. If he has to lose another $200 or $300 to get a deal done, well…so be it. A customer you never had can never be lost.
---------- Post added at 09:45 AM ---------- Previous post was at 09:44 AM ----------
Finance/Business Manager for 4 years.
Sold cars for 2 years before that.
rav4 deal is probably a lot of toyota taking a hit leaving you still some room to lower before you’re not making anything (my guess)
I guess my more specific question about the internet sales manager is: do the people in the back room give him more power to deal up front, or just cave easier on trying to put together a deal?
another question that I just thought of: people sometime say there is a best day of the week, time of the month to get a dealer to deal… thoughts on this?
It amazes me how people make this more complicated than it needs to be. Dealerships work off a basic 4 square worksheet, and the “shells” people keep talking about are simply moved around these squares.
You’ve got:
1: Price
2: Down payment
3: Trade in
4: Finance
Want to avoid getting screwed? It’s easy… Just go in knowing what is a good deal for you on each square BEFORE YOU GET THERE!
1: Price - Have you heard of this thing called the internet? Use it and it’s really easy to find out what a good price is for the car you want to buy.
2: Down payment - Be reasonable. Look at your budget and set aside a dollar amount you’re willing to put down and stick to it.
3: Trade in: - See #1 about the internet. Also, be honest with yourself. I know you love your 15 year old Honda that looks like it’s been at the bottom of Lake Erie for the past 5 years, but clicking the “Excellent condition” box when getting the KBB isn’t helping anyone.
4: Finance: - How do people fuck this up? I’ve never walked into a dealership without having my financing pre-arranged. Check your credit rating just before then assuming all is well shop around for rates. When I bought the Murano I walked in with financing arranged through PenFed @2.99%. The dealer actually got close enough ($250 over the life of loan) that it was worth it to me to go with them for the convenience of their same day processing, but I doubt they would have worked so hard to get a low rate had I not walked in and told them what the rate was going to be.
That’s it. No magic, no super negotiating skills. No need to be scared of them “somehow fucking me” if you just take a little time and understand the ENTIRE deal.
The states does a lot of this online / e-mail haggling bs? We get best price calls all the time and we laugh more or less at them. Give them MSRP prices and call it a day. Cheapness is extreme now as people literally won’t pay $500-$1000 for great service.[COLOR=“Silver”]
---------- Post added at 11:56 AM ---------- Previous post was at 11:49 AM ----------
IF you want the best price I suggest last weekend of the month, this Saturday would have been perfect. Give it 2-3 days max before month end but be ready to do everything quickly as they need to move it by month end. Deposit, credit app, papers, and delivery/pick-up within 2-3 days.
The funniest thing is that no body here has mentioned the real way to get the best price. It takes research to find out which dealer is a volume dealer more or less. These dealerships tend to focus on vehicles moving in and out of the dealership. Profit is a big thing but they really focus more on how many units they sell. Find which one suits this criteria and be ready to buy - don’t waste time.
See who greets you and simply pull out your licence, credit card, and say I’m buying. If they really want to move it near the end of the month just ask right away, showing commitment, for invoice price. Put a tough face on and be a jerk haha. To be classy I would tell them 2%-3% on top of invoice because Business need to make money.
Do you really think that there is thousands of dollars that dealerships make and hide from you, below invoice you have holdback, marketing fees etc etc… Besides that there is nothing else… It’s called a lost leader, just like restaurants/bars/stores sell some things at a loss to have customers come in there doors and not the competitions…
Dealers do not make the money on the sales side, they make it on service!
DUDE. Fucking listen to me. Dealers who advertise a specific new car in the paper are advertising it their lowest price. Why would you spend $10,000 is advertising to advertise your 2nd best price? Sure you might be able to chew some dealers down a few more bucks, but if you try that with me ill tell you to go jerk yourself off instead of me.
---------- Post added at 03:44 PM ---------- Previous post was at 03:39 PM ----------
No. Usually not. I mean I guess. Every dealer is different. Again its all in who you deal with.
Some dealers tell them upfront to go $750 or $500 (whatever number the dealer sees fit) back of invoice from the get go.
I would say walk away from any dealer who uses 4square, it’s a concept or the past and was/is used to deceive as much as possible
:tup: Could’nt agree more! Our sales “MENU” shows 16 payment options (4 down payment options/4 different term lengths), shows all fees, trade allowance, and selling price.
Every time i hear about a 4 square all i can think about is “Suckers” lol
---------- Post added at 11:40 PM ---------- Previous post was at 11:33 PM ----------
Lol… You guys can dress it up all you want, but those are the 4 pieces of the deal. A customer who walks in with all 4 figured out ahead of time doesn’t leave any room to get screwed by the dealership.
Besides that, your “16 option menu” is nothing but a 4 square with the finance square cut into more pieces. But don’t worry, the average consumer doesn’t recognize a pyramid scheme as long as you call it a trapezoid, so I’m sure your “16 option worksheet” line will work on them too.
Absolutely I agree, If you know those 4 pieces you will do good no matter where you go. Now would you rather deal with a company who shows you all of it, or a company who tries to deceive in almost every aspect… Might as well add addendum labels as well
you can say it until you’re blue in the face… I’ve beaten it, I’m sure plenty of others here have also.
The most easy way to beat it is to walk into the competitor and tell them to beat it.
^^ this. When I got my CC I got them to come down on the purchase price by going in to their competitor and asking them to beat the other places advertised price, then the first dealer matched that, and I just chose which dealer I wanted to actually buy from.
By how much? $400? Who cares. You’re making it seem like you can walk in and wiggle out $2000 from an advertised price.
---------- Post added at 12:58 PM ---------- Previous post was at 12:57 PM ----------
4 Squares don’t decieve. They single out the objection immediately. If the customer hits payment, you know they are a payment buyer, etc etc.
Does it maximize profit? Sure, but it’s not like you jack up the selling price if they only object to the payment.
---------- Post added at 01:01 PM ---------- Previous post was at 12:58 PM ----------
I like people who waste whole weekends and deal with 6 or 7 different dealers to save $2/month on a lease payment. Those are my favorite types of people.
hey, that $400 can buy me a set of floor mats that the cheap ass manufacturers don’t include anymore with money left for a nice meal out.
I am with you that things get to a point where people try way too hard for very little gain.
How much time is it really wasting if you’re doing it online? I can hit 10 dealers and ask for their best price, then copy and paste the same email to 9 of them that the best price is xxx, can you beat it and by how much? and then do the same thing if necessary one more time… total investment maybe 30 minutes for 3 rounds. it’s not like you’re killing the whole weekend. Only once you have the best price does financing and/or payment come into the question. For the non-net savvy buyer though, it is definitely a huge pain in the ass to go to all of these places and haggle.