Prev: Danger Of Benzene And Car Airconditioning
Next: Fueling your car with natural gas from home
From: Rod Speed on 14 Jun 2010 14:21
James wrote
> Rod Speed <rod.speed....(a)gmail.com> wrote
>> Vic Smith wrote
>>> Tegger <inva...(a)invalid.inv> wrote

>>>> Your only weapon is the threat of walking out. You must be --
>>>> and explicitly appear to be -- completely unafraid of using
>>>> that weapon. The manager won't sign for your price?

>>>> Then your asking price is too low. End of story.

>>> That about sums it up.

>> Nope.

>> The other obvious possibility is that the manager has decided that you can be conned.

>> Doesnt mean that is true.

> Conned or upsold....

> What happens in the business office is the saleperson brings the quote
> in and the Sales/Business Manager is calculating how much profit is in
> the sale, before they approve the deal. Note that if your car is in
> high demand, he will have a minimum profit already in his head. On the
> other hand, if your car has been on the lot for 11 months, its a dog
> to him and he just wants it gone, so he can order another car that
> will turn over faster. He may even sell it at a loss.

What I said in a lot more words.

And the other obvious variable is what those spivs and con men
decide might be possible with a particular potential buyer too.

> What the business manager knows is the incentive packages/rebates
> from the manufacturer. In many cases they could sell you some vehicles
> at invoice cost and make a good profit from these rebates, in other
> cases there are no rebates (high demand cars).

> If the business manager thinks the profit is too low, they will strong
> arm you into buying things like paint protector, rust proofing etc.

Not even possible to do that with a buyer with a clue.

> They will try to sell you these in any case, but in some cases, they
> push harder. These are the most profitable items in the dealership,
> with the highest markups, so if you really want them, bargain hard.
> These items may have a margin of 50% or more. They usually
> count on you being anxious or tired by this point.

> Unless you are in desparate need of a car (never tell a salesperson
> that), use your power to walk. It takes a sales manager only a
> minute or two to calculate the profit in a deal. If they are
> deliberately making you wait, walk, and don't go back.

> The profit margins on small cars are also small, not much room to
> manouvre. The more expensive cars are more profitable on a percentage
> basis. Dealer installable add ons also add to the dealer's profit.
> Many dealers make most of their profit from service, so if you
> have been a loyal service customer, don't forget to mention that.

So Tegger's original line is just plain wrong, as I said.


From: James on 17 Jun 2010 14:33
On Jun 17, 12:20 pm, Jeff <j...(a)donotspam.me> wrote:
> "Mina O." <minaol...(a)nospamapple.com> wrote in news:km1v488bhs9x
> $....@apple.com:
>
> > On 13 Jun 2010 19:05:30 GMT, Jeff wrote:
>
> >>> I looked in KBB and didn't see the dealer cost ... can someone show it
> >>> to me for a 2010 Honda Accord, for example?
>
> >> In the "new car" box, select make and model and select Honda and Accord
> >> from the lists.  Enter your zip code.  Click "pricing" next to the
> >> picture of the 2010 Accord.  Click on the trim level you want from the
> >> list.  You will get the list and invoice prices.
>
> > This can't be correct because the "pricing" to the dealership has nothing
> > to do with the zip code. The only thing the zip code affects is the
> > destination charges which are independent of the dealer invoice!
>
> Agreed, it doesn't affect pricing.  The zip code is merely for their
> marketing purposes to connect you to dealers in your area.  

True.

The Kelly Blue Book is a decent starting point for dealer cost, but
don't assume anything.

KBB will tell you what the dealer list is, not the invoice price, nor
any other incentives.
The manufacturer has preferential pricing based on the volume a dealer
sells, and thats The manufacturer will also offer incentives (rebates,
discounts) that have time limits. The manufacturer may look at their
sales rate and offer a lower than list price. Its complicated. Trust
me I know from my work that often dealers have a hard time doing a
calculation of what the profit is on a vehicle, given all the factors.

The other thing to look out for are admin fees - these are totally at
the discretion of the dealer. Supposedly they are the fees to do the
paperwork and register the vehicle. Some dealers (not many) charge
zero, other may charge hundreds of dollars.

James
From: MAS on 17 Jun 2010 19:04
On 6/17/2010 2:33 PM, James wrote:
> The other thing to look out for are admin fees - these are totally at
> the discretion of the dealer. Supposedly they are the fees to do the
> paperwork and register the vehicle. Some dealers (not many) charge
> zero, other may charge hundreds of dollars.
>
> James

These are sometimes negotiable - it never hurts to ask and, depending on
how bad the salesman is trying to meet his quota, you might be
pleasantly surprised.

Marsha
First  |  Prev  | 
Pages: 1 2 3 4
Prev: Danger Of Benzene And Car Airconditioning
Next: Fueling your car with natural gas from home