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I tell you, I used to quote prices over the Internet when customers e-mailed. It was the party line from all of the services we subscribe to. And you know what? Nobody bought. We only sold about 5% of our Internet sales leads during that period. People would say, "I went to X dealer, and they matched your price." Well, duh! Everyone pays the same for the cars, so everyone can pretty much sell them for the same prices too.
Then I switched it over. Now, I make it my job to get the customer the price that THEY want. I'm at 12% and climbing now, and the main thing is that my customers don't have to work at getting a car. I'm the one getting paid for it, I don't see why they should have to do the work.
Sorry for the long-windedness.
Jason
Does this sound right? I know what they say on Edmunds, but given the dealers invoice can include "other things", I just wanted to get a sense for what other dealers are actually stating as their invoice for Passats.
thanks.
What ffxvw said is part of the reason why I won't respond to them. Also, what usually happens is some screwball dealer will lowball the customer to try to take them out of the market.
Say I "hit" someone at $20,500 on a car with a $20,000 invoice and a $22,000 MSRP. Assume that that is a strong price. Some jerk is gonna call the guy and say $19K or something just to take him out of the market. Then I either look A) Greedy or
Not worth the aggravation.
However, there IS a way to get my attention. Immediately. Do it like this (If Snurple listened 1/10th as much as he posted he would have remembered that I've posted this before):
Make a realistic offer. If people seem to be buying the cars for $500 over, offer that. You know it's a doable price. If 1 person claims to have paid invoice and 10 people claim to have paid list, well, then... offer invoice but dont get your hopes up. You can offer a dealer invoice for an Odyssey all day long, but it doesnt mean that you can get it, right?
But fax me this, and if it's realistic, I will respond ASAP and fax it right back to you. The best way to get my attention is to make it clear that you want to buy right now, not in 3 months.
Read the following:
============================FAX=====================================
Attn Sales Dept/Manager/Fleet Manager:
Hello, My Name is Bill Clinton. I would like to buy a Huyndai Accent GLS 4-door with the Touring Package, A/C, CD Player, Wheel Locks, and Cigar Holder. I understand that this vehicle has an MSRP of $12,750, a dealer Invoice of $11,050, and a rebate of $500.
I want one in Scandal Red with a Liar Grey Interior. I want to buy this car TODAY.
I will take an in-stock car for delivery TODAY. I will also sign paperwork and leave a deposit and commit myself to the purchase of an incoming car IF i can be provided a VIN Number and a gurantee of delivery within 2 weeks.
The FIRST DEALER to Respond to this FAX that agrees to my price gets the sale. I would like a purchase order faxed back to me with a VIN and I will then fax back my credit card information. I am pre-approved at 7.95% through my credit union, I am willing to finance through you if you can match or beat that rate.
I WILL BUY THIS CAR TODAY FOR $10,950 INCLUDING ALL FEES PLUS SALES TAX AND REGISTRATION FEES ONLY.
Please complete paperwork as follows:
William Jefferson Clinton
1600 Pennsylvania Ave
Washington, DC
123456
Thank you for your consideration,
Bill Clinton.
Do you agree with an earlier post that I would get a better price if I were "flexible" on color, etc? Can a Central Florida VW dealership get the EXACT car I want? I could be flexible somewhat.
Thanks in advance...
Chipper:
Well, I'm sure you could get a better price if you're flexible on color. Silver cars always seem to be tough with VW Dealers. They are hand-allocated. They are also worth a bit more when you go to re-sell. When I am at the auction, Silver VWs simply bring the highest prices so bear this in mind for long-term ownership costs.
Point is, buy the car you like. I'd still try the old-fashioned thing at Royal. See what you can do first that way.
Any car dealer can pretty much get you anything within reason (No I cant get you a convertible Suburban or anything haha) But you can always try for an order...
Bill
I am not sure what harm a so-called "lowball offer" would involve, *especially* if you are careful to be absolutely clear in your discussions with dealers as to what you will and will not accept in the way of an offer.
I think that calling an offer from a competing dealer "a lowball offer" may also be the equivalent of trying to "take someone out of the market." I don't doubt that one dealer would readily badmouth another if it meant securing your sale. Calling another dealer's legitimate offer "a lowball offer," is basically saying that they are dishonest, or that they are only playing games.
Dealer said cd would be additional $495, I decided I will add it later. (probably would cost me only 360 or so)
bought it from the the first dealer I spoke to!(Plenty of dealers in Bay area)
I guess I could have got the same for 200 or so lesser!
Was just curious regarding the $22300 price. Was the $287 for the Monsoon? What was the $600 for?
Enjoy your nice ride. From your tone, I'd say you even got the color you wanted.
take care.
A lowball quote is specifically designed to have the customer wear themselves out running all over town trying to beat it, only to come back to the lowballer and be told the lowball quote can't be done. By then many customers are so tired of shopping that the lowballer has a higher probability of getting the sale, as long as they're reasonable.
I know they won't sell to you, but the car business is a numbers game. Selling to 20% of the people you lowball is better than what was happening when you lowballed them, which is that they were walking off the lot!
When I talk to someone who has obviously been lowballed, I tell them they should have taken the offer then and there.
I have a friend who just bought her Passat from City Chevy/VW, off of I-5. Wasn't the smoothest transaction ever accomplished, but the final price was worth the effort.
You just have to not be afraid to walk away. Give your offer that you think is good for you but still do-able and if they don't accept, then give them your number and tell them to call if they change their mind. If they are able to make a little bit of $ from it, and you have made it clear that you are ready to buy, you will probably get a call. If not, well, you know approximately what their limit is.
good luck.
Thanks all!
My comments on yours and mney6's "explanation" of a lowball quote are twofold:
1) Low ball quotes may exist--fine--but how can we as consumers combat them? My suggestion was to be *very careful* to specify exactly what you are looking for, preferably in writing--this will make it less likely that a dealer will try to lowball you, and much easier to walk away if some [non-permissible content removed] dealer pulls a "lowball" on you.
2) In an ironic twist, people may find themselves in a situation where one dealer may characterize the quote of another--a quote that they do not want to match or beat--as a "lowball quote." In this case, the lowball offer would, in fact be a legitimate one, and the dealer who is questioning the great quote would in fact be the [non-permissible content removed] dealer. My suggestion was to take a *dealer's assessment* of your "lowest quote" with a grain of salt.
I trust that every consumer who reads any post from any dealer at this site will bear in mind that maybe, just maybe the dealer will be giving their answer the slightest bit of spin.
I guess that is why I didn't read mney6's post on lowballing and just smile, nod, and say "thanks!"
Point #1 part 1 about detailed specifications is irrelevant, the salesman will still claim stupidity in this situation, leaving you with the choice of either surrender (which does happen) or point #1 part 2, walk away, which in my opinion is equally easy no matter what the situation.
you have is a piece of paper.There are alot of dirty dealers out there and it is very difficult for people like Mr Snurple to understand that not everyone is that way.You do have to protect yourself and have as much knowledge as you can,just like I do when I buy Electronics,Furniture,Jewelry,and other general goods.
Now mney6, as to your difficult position. You are arguing that, "there are alot of dirty dealers out there and it is very difficult for people like Mr Snurple to understand that not everyone is that way." My question is this: If there are a lot of dirty dealers out there, doesn't it follow that there are a lot of dirty dealers in here?
And, as a follow up: If a dealer has 12 years of experience @ 70 hours per week--or roughly 40,000 hours of experience with "lowball offers"--does that mean that he is an expert at practicing the lowball OR that he has never offered a lowball quote and has dedicated his life to wiping lowball offers off the face of the earth? Just wondering...
As for your customer who missed out on his Pathfinder--let's all remember him in a moment of silence...........................ah, forget it, I am sure that he is well on the road to recovery--he will find a nice car soon, if he hasn't already.
Since pricing on cars varies, and since shopping around spurs reluctant salesmen into *actually lowering* their "rock-bottom, no-more-room-to-negotiate, kids-are-starving, Price," everyone should shop around...
it works so well that some dealers cant seem to avoid it...
Here's how it works.
The consumers and the dealer cant agree on a price. The consumer wants to pay 20K and the dealer wants 21K and the dealer is at or near invoice. when the consumer leaves, the dealer will write on the back of his card the consumer offer...and tells the guy to shop his number and he will see what he can do.. Oddly enough many consumer immediatly think they can buy at that price...proceeding to run all over waving the card with the consumers own number on the back to every dealer around. They all tell him or her they are nuts and cant buy the car at that price...now the consumer might have been able to work out a deal with the other dealers but is so hung up on the number on the card they often dont bother to even check what the other dealers price may be.
so now the consumer has burned their bridges at all the other dealerships...goes back to the original dealer and wants to do the deal. The salesman now says that is your target number not what im willing to sell the car for BUT i can do it for $21K. the next thing you know the deal is signed sealed and delivered...
Rich
Many smart people become absurd when buying a car, for whatever reason...sometimes the sleazy dealer hels to creat this but "carding" simply works and it works well.
I don't use the tactic, though i did back in the 80's. some dealer use this all the time..I know beacuse i deal with it daily.
Rich
The customer wants a sweet car, (i.e. Silver w/Grey Leather), and no one has any. Volkswagen makes these in very limited numbers (compared to the demand level). He shops around to every dealership trying to find the car, or a dealer willing to locate it for him. All of the dealers aren't willing to discount the car severely because of allocation limitations. Then one dealer "magically" appears with an incredible offer!
Customer jumps on it, plunks down his $500 deposit, and hunkers down to wait. One month passes...two...three...
Customer shows up at dealer. Right as he's driving in the parking lot, he sees a customer driving out in what looks suspiciously like a Silver w/Grey Leather. Inside, he's told that of course that wasn't his car, his car is "backed up" in the production chain, but here's a nice Blue one!
This happens a lot more than you'd think, and many times, by this time the customer is so tired of waiting they'll take anything just to be done with the whole process.
What happened with the car he ordered? That came in, and was sold to someone else for a larger profit. Is it any wonder people (i.e. Snurple) are so afraid of dealers?
Jason
P.S. Is there some unwritten consumer law that when you go into a car dealership, you can suddenly become the rudest A**hole on the planet?
An experience this weekend made me question staying here.
I just followed the advice of the Motley Fools - in particular, I jumped to step 12. Take a look: http://www.fool.com/car/step12car.htm
I faxed the letter out to about 8 dealers saying I was ready to buy a 2001.5 GLX in either of two colors and got responses as follows: two offered to sell at sticker price, two offered to sell at invoice plus 3% (one with a $200 dealer prep fee) and one offered to sell at invoice plus $500 (with a $200 dealer prep fee that he forgot to mention until I called to get details). In a follow-up letter, I asked the 2 & 3 bidders if they wanted to beat number 1. Within an hour, Number 2 (Esserman VW) knocked another $525 off the price and I was done. I sent the letters on a Tuesday at lunch, had all my offers by Wednesday, did the followup on Thursday, then made some phone calls on Friday and Saturday and signed the contract Saturday afternoon with absolutely no games played by the dealer. I was quite amazed.
They gave us a 2000 Passat as a loaner bc the car was ordered but not delivered yet, but I had a VIN on the contract. The only "glitch" was that the car was delivered to the dealer sooner than expected - it was there on the following Monday but I was out of town until Saturday. So, in usual dealership fashion they sold my car to someone else and offered me a different color when I got back in town. I said no, they said ok and located a car for me the next Monday which I picked up that Friday. Since I had a free loaner, the extra 5 day delay was no problem.
The car is great - 2001.5 Passat GLX Tiptronic Silverstone Grey with Gray interior! I can't wait till I break in the engine and can drive it properly - 800 more miles to go.
The exact price we paid was $28,366 with NO (zero!!) dealer prep fee - sticker was $30,375 so my price was $2009 or 6.6% off sticker. Invoice was $27,737 plus $25 port fee and $92 floor plan charge for a total of $27,854, so my price was invoice plus 1.8% or $512.
I also paid $385 for the 6 cd-changer and $129 for window tinting and that was it except for tax and tag.
I'll be happy to post my letters if anyway is interested.
I'm sure that people would appreciate it if you posted your letter.
Enjoy your new Passat...
believe the expression is *profiling*...Shame on
anyone that does it...Unfortunately, I suspect to
a certain degree it is human nature. I guess that
is where the ages old admonishment comes from...that "you only have one chance to make a
good first impression". It must have 40 years ago
when I first heard that...
Its like the processing fee, it just makes the package appear to be better.
Jason
and possibly a local Advertising Assoc. Fee which
would be $50-$100 maximum in No. Calif. Should not be
far removed from this variance anywhere in the
country...
Question (especially for the salesguys): Are there still any dealer incentives in place? and given where we are in the year, how much below invoice do you think this car should go for? It is there last 2001 of any kind.
Any help greatly appreciated.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
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