Internet vs. Traditional Car Buying

golic

When is part two going to come out???? I can't take the suspense!!

audia8q

I think there is a bluring of what is actually buying on the internet and those who initiate the process via the internet.

To me, buying on the internet means that everything was done via the computer. Golic posted
"...I obviously do go to a dealer to do test drive, kick tires etc... and even engage the salesman a shot at my business.."
This sounds like a regular sale to me, just because the person initiated contact via the internet is no different than taking a phone call from a customer and he comes in and buys a car. Does that mean he purchased the car over the phone??

rich

vwguild

That is one thing that I have never understood...

I guess a large number of people feel that the Internet is simply an electronic brochure, and
certainly it can be so much more than that...

CarMan@Edmunds

Golic, I haven't heard when the second part of the article will be released, but I certainly can check into that for you if you would like.

Car_man
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masspector

Buying or researching over the internet used to help the buyer save money. Today it is just another way for the dealer to sell a car.

I too purchased a vehicle in 1996 and had a great experience using the internet and ABT.

Fast forward to 2002 and using the plethora of auto websites and buying services, got me nowhere.

All of the "internet depts" at the dealers would never email a price quote back, they just wanted me to come on down and talk to them about it. No thanks. That is why I am using email, so i do not have to just come on down. If I wanted to just come on down, I would have just come on down.

A number of buying services let me configure cars for a price quote that were not available anywhere in the country.

I did experience some dealers that were responsive and tried to help me as best they could. These dealers seemed very professional and seemed like they had a more dedicated internet dept.

It would be interesting to have an article with interviews with the salesmen and managers and buyers from the most successful internet dealerships to see what they think works and doesn't for the buyer and the dealer.

abtseller

Actually, as a published author, I could probably write it.

The majority of the internet departments went from "The" way to buy a car, both for the lack of drama, at a great price to "The" way to shop your dealership against every other dealership in 200 miles.

This is why nobody quotes prices up front anymore, and this is why you find many dealerships cursing the "d**n internet"

It used to be a much better transaction from both sides of the desk, but, as they say, the game has changed.

The advent of inexpensive computers and cheap internet access has watered down the gene pool of buyers (and sellers). Its no longer (always) the cool/ chic/ hassle free way of buying a car. You now have a grinder with a computer in his hands, and you also have old school dealers using computers to play the same old (old school)games.

Those of us who are the best of the best at this game are having to wade through the pool to get to the legitimate buyers, as the "serious" buyers have to wade through the pool of sellers. We could use a *lot* of chlorine here.

Ed

mackabee

You got that right!
: )
Mackabee

vwguild

has hit one out of the park...

I cannot imagine walking into a House that is selling for $xxx,xxx.00,
and asking the seller "What is your bottom line price?" Not only preposturous, but rude...and very ineffective. Same here.

I seldom give prices...only the store's advertised Sale Prices from the paper... But I happily entertain offers...and either I can accommodate or I cannot.

Every Dealer wants the number that is on the Window, and every customer wants Invoice; somewhere in between is the common ground that makes everybody happy...

As Ed has pointed out this process is starting a
counter clockwise spiral...when the economy turns around; so will this. And, quite
frankly, what I miss the most is a customer base
that is polite and friendly...These folks are now
the exception and not the rule...Sad, very sad.

golic

I think the internet customer doesn't want to play the 6 hour negotiation game. I think they are the informed customer, who just wants a fair price and doesn't want to play the back and forth with the SM routine.

When I shopped for my car in 2001 I had my Edmunds and CR info. and emailed about 3 dealers for each make I was looking at. Never played them against each other, but right out of the box one guy gave price that was under TMV.

I emailed back and made appointment, took car for a test drive and spent about 2 hrs (1 wtg and w/ F&I) and I was done.

IMHO I think that is how the internet should work.

masspector

abt- have you written a book or articles on this subject? I would love to read them. BTW, glad you are back.

You said "The advent of inexpensive computers and cheap internet access has watered down the gene pool of buyers (and sellers)."

While I agree that there are probably a lot more people with internet access today than 5 years ago, are they necessarily worse buyers and sellers? I would think that they were at least intelligent enough to A)buy a computer, B)figure out the invoice and MSRP info, C)get in touch with your dealership electronically. Of course this is no excuse for them being rude.

I think what dealers are more PO'd about is that more and more people "know" about invoice pricing and incentives, etc and want a rock bottom price on cars. Also they can go on message boards like edmunds and find out what others are paying.

The old school of car selling was to get the buyer in the car and let the newness sell them. Keep them at your dealership and a sale is more likely. Unfortunately you cannot do that with the internet. There is no hook or emotion, that is what buyers like about it, and old school dealers hate.

Golic hit the nail on the head. He did not have to make an offer. A dealer took a chance and threw out his best price. Like golic said, it was easy to see who was the better dealer and he got the business and everyone saved a lot of time and hassle. Even the dealers that did not get the business did not have to waste time with golic at their lot dickering over price. I agree with him, that is how internet car buying should work.

Dealers need to understand:

A)The internet and the info it provides is not going away.
B)It is only going to get bigger and more and more future buyers will have computers and this info.
C)Dealers need to adapt to use this technology effectively, instead of being afraid of it just like the music industry fears MP3's and cd burners.

Dealers may find it harder to sell at MSRP, but what are they going to do when every buyer that walks through the door, or inbox wants a car at invoice?

abtseller

your scenario is exactly how it should work. However, you end up with shoppers that are not truly "informed" customers. They email you asking your best price on a car. If you give it to them, and they have no clue what a great deal you're offering them, they're going to print the email out, and head for their local dealer. Most shoppers don't really know what they want, and they don't know what a truly good price is. I get about 5 emails a day that say basically "I want to buy a Camry."

They get to the local screamer ad dealer and the game begins. "Ok, who wants to sell a car today." the salesmen all run...

Finally, a green pea takes the customer for a test drive. They inhale some of that new car smell, the customer gets excited, all is great. "Lets talk some numbers" the salesman says. They sit down, break out the 4 square sheet, and lo and behold, the customer realizes when they are all through playing games that they're $2000 apart (realistic figure). Now, the salesman gets handed an email from the other dealership, "this can't be right, let me get the manager" blah blah blah. The manager comes over, big fake smile and all, looks at the figures, "what's it going to take for us to earn your business?" The customer wants $500-1000 less than the internet offer. "Sorry, that isn't a legitimate offer, they won't honor that, blah blah blah." Never mind that the offer may indeed be a couple of hundred into the holdback already from the internet guy.

At this point, the customer will A) continue to fall for the dealer's BS line and eventually get the car for the 1st guy's offer, or he will storm out and continue looking elsewhere or he will regain his senses and stick with the internet guy.

As I see it, the floor people have the advantage. They sell cars every day. The customer buys once every 4-5 years on average. The salesmen will TO to a manager who is even more convincing. Eventually, 99% of the customers will give up (and sign up), as we have seen many times here.

The honest internet guy (and again, this doesn't mean everyone) just lost a sale for doing his job. He did all the work exactly like the customer wanted, and someone else got the sale.

The dealer group that I work for has 7 stores. One of them is consistently the #1 seller of its make in the state. Everything about the process there is 100% old-school. They even deleted the invoice pricing from the salesman's computer so even the salesman doesn't know the invoice cost of the car. Lot dropping will cost you your job, everyone meets the manager. ADM stickers on everything.

Sounds great, right?

Our internet dept. basically got to the point that we wouldn't sell for this store. Nobody wanted to have to drive down there and deal with the atmosphere. We quit selling. Eventually, when the managers got their heads together, they put two of "their" floor guys in front of computers, and they're selling about 25 cars a month via their "internet" dept.

Some days it doesn't pay to get out of bed.

This isn't to say that it is all bad, because it isn't. However, I'd say now that the ratio of online "idiots" to realistic buyers is probably about 20:1. The 1 is a real gem, and gets the royal treatment (I had one Sat.) but they are so rare that the salesman's perception of you is going to be jaded by the time they eventually find you.

That's my perception of reality, anyway, I could be wrong.

Ed (still looking for that book deal

golic

I doesn't matter what business you are in, if you sold everything at invoice you will lose money. How are you going to pay for utilities, rent, interest, and sg&a?

I have never pursued "invoice" pricing because I understand this. And most consumers understand this when they go to Sears, etc...

Correct me if I am wrong, but dealers cost and overhead is not the invoice.

But, I am right to suggest that Dealers either created or contributed to this stigma buy using the "here is our invoice on the car" tactic. Consumers, right or wrong, believe invoice is the "cost" of the vehicle.

I don't know how incentives, holdbacks and allocations work. (But I am a CPA and willing to learn if I can persuade any of you to convince your owner to change firms**cheap plug). But until Dealers find a way to educate consumers on true cost this rationalization will always exist.

Perhaps that is what the no-haggles (saturn, carmax, etc) are trying to do and Edmund contributes by offering TMV.

But I agree with masspector, the intenet is not going away and dealers should look for ways to use it to their advantage, ie email lists, send service coupons out to those provide email referrals, etc...

umyaya

I hear dealers saying they have very slim margins on their new car sales (which is very true), all the while the customers are hating them for making "big profits" on these sales. And I hear customers saying "I'll never buy new again" as they think used cars are such a better value as they have already depreciated, yet my carsalesman buddy says used cars are where his dad's dealership make all their money. It's just funny isn't it. How are both ends getting screwed on one side, and both ends finding their best deals on the other?

audia8q

Invoice pricing isnt the problem...but lack of understanding of what goes into a sale and how much revenue it takes to sell a car is the problem.

I have no problem with a consumer who thinks they are an expert in car buying...but they better be an expert in reality too. I can't tell you how many people really think that anything over invoice is NET profit. Santa clause and the easter bunny pay the overhead expenses. lol

isellhondas

The shoppers who concern themselves more with how much evil profit the dealer may be making more than the value of the car.

It just drives some used car buyers nuts when they can't find out what we paid for the used car they are thinking about buying!

tboner

I've never understood why dealers, who claim to lose money or break even (not a really good ROI, btw) fight tooth and nail to prevent other avenues of new car sales such as factory direct or on-line sales.

If the money is in the service, used car, and F&I departments, then dump the new car operation and start bailing money, right?

isellhondas

Anyone in the business coming here and saying they lose money selling new cars?

tboner

I could probably find on this site where brentwoodvolvo has said essentially what I paraphrased.

Shall I look?

brentwoodvolvo "Why do people want to buy cars for cost?" Mar 23, 2002 4:08pm

TB

audia8q

the main reason we are in biz is selling new cars..but regretfully, in many cases it's our loss leader. But that loss leader feeds the most important and profitable parts of the business.

So if we take away our feeder source of revenue, (new cars) and give that stream to another source like factory direct (which has been a proven failure) our most profitable departments will not have a direct link to the customer....Remember, nothing lends credability to a used car department and service department like a new car franchise.

On top of that, due the the huge failures of manufacturer selling and internet selling...what is a better way of doing things???

tboner

I'm not arguing with you. It just strikes me as ironic that if it truly does lose money that dealers would fight so hard to keep that part of the business.

I do understand the concept of a loss leader.

I too, don't know of a better way to sell the cars. Besides, I buy cars, I'm not in the business of selling them.

I just derive some sort of perverse pleasure from pointing out such ironies.

TB
Having a hard time serving my customers today, their problems are too vague for the solutions I have, LOL.

isellhondas

Well, I suppose he does what he has to do in order to move whatever he sells.

Bill...ARE YOU OUT THERE? Anywhere...?

masspector

I have heard many sales people say that they do not offer email price quotes, because all the buyer does is shop that price quote to other dealers.

My question is this:

How do you "know" they are shopping the price to someone else? Do they come back and tell you that?

If I got a price from you and then got a lower price from another dealer I would probably go with the lower price dealer and you would never hear from me again. But there could be many reasons why I did not contact you again. Maybe I decided not to buy a car at this time, our I bought another brand.

I do not see the difference in email quotes or in person quotes. I always get the salesman to put a price quote in writing (usually on their business card) and then I have proof that the quote is real, if I decide to shop with another dealer. I would think that email would save everyone time.

Also, if customers are shopping your email price quote, wouldn't you on average get a fair number of shoppers shopping other email price quotes to your dealership that you could get business from?

Thanks.

audia8q

Our internet department will quote prices via email...but with some qualifications. If somebody send over something like "how much for stock#3456? no name, no location or any other info... The reply will be info on the car and the asking price or MSRP on the car, info on the dealership and warranty. Inviting the customer in for a test drive, asking for name, location, phone number, trade in, financing needs etc....All things needed to propery quote the customer.
If the customer replies back or initially with the detailed info, a discounted price will be offered...

Our number will rarely be the lowest but we won't be the highest either. Our sales abilties, dealership reputation and inventory will sway the customer our way...so I dont care if they shop.

vwguild

The way for the customer to improve this process
is to do the Homework, Research, etc. There is MSRP and Invoice pricing Everywhere on the Internet. Determine exactly how they want their car configured, and what they deem to be an acceptable *Target Price* that they would pay for the car.

Contact the Dealership that would be the most convenient, or that they have heard good things about, and where they would like to do busines.
Then contact that Dealership with all of the above.

This is the traditional, accepted procedure for any type of negotiation...knowing a Retail/Asking price and making a counter offer...

By asking for an email quote or bottom line price the Customer is typically asking to be *LowBalled* only to discover that the price will
not be honored, or worse...paying substantially more than they really should for financing, or an
Extended Warranty, if they elect to get one, or buying *Gap* Insurance when it is already included in the contract.

I have always looked at the Internet Buying Experience as the one, single way for the Automobile Dealer to raise the bar, and make the car buying experience a pleasurable one...Fun, easy, quick, and devoid of the typical crap.

By succumbing to the temptations to get something for nothing, or at least for as little as humanly possible, the other door is opened, again...deceit, lies, and not much fun at all.

masspector

for your info and opinions

If I did my research and had a real target price of $20,000 OTD should I offer $18,500 as my first offer assuming that the dealer will counteroffer with a much higher number? Then we could trade offers and get closer to the real $20,000.

I would think if I made my first offer as my real target price, that the dealer would think that they could raise me.

abtseller

again, you're the "one in a million" that we'd all love to have as a customer. Most people just want a number to shop. We know this, because we follow up every lead that we get. When 100 people a month say that they bought somewhere else because the other dealer "matched" your offer, then you're not getting beat on price, you're being used as a price quoting service.

If you submit a realistic offer, I wouldn't try to bump you. Even if you submitted a lowball offer, I'd counter with the bottom line that I could do. Its getting to the customer that actually wants to buy something (from me) that is the hardest part of the job.

Ed

masspector

thanks for the input

It seems that the dealers that try to do the right thing by giving a quote get beat up by the other dealers that do not. It is ashame that it is this way, because the internet really could make the process better for buyer and seller.

mackabee

I agree with audia8q, I do the same with my leads. The ones that come in asking for a quote on a Camry, I respond with: What trim level,options,color, and engine size and even direct them to toyota.com to the "build your own" section. Once I get a reply on what they want I will quote them a price. This seems to work for me so far. The ones I receive with no phone number, and sometimes even with a made up name (Mr. Diggin') or something to that effect I won't bother to respond. I have been getting a few lately on credit challenged customers, they seem to think the internet will solve all their problems. Had one come in today that we've been e-mailing for the last week. First she sent in a credit application, after I e-mailed back she told me she'd been all over the place trying to buy a car. That was not a good sign. Today we looked at her credit and she has a 494 beacon, bunch of collections, etc, had 17 inquiries on her credit since 8/02/02 we might be able to get her into a 6-7k car with a couple of grand down and it will be secondary financing. I asked her if she had any money to put down. She said she could get it from her dad. We'll see how this one goes. I put it on the back burner for now.
: )
Mackabee

vwguild

The point here is to AVOID the back & forth hassle, unless you enjoy it, of course. And this is where everyone's individuality comes out.

Quite frankly, this is fine if you are actually at the Dealership and prepared to drive home in the car of your choice or one that they try to get you into instead...;)

My vision of the Internet is one where the customer pays a price that they are comfortable with and where the buying experience itself is
important.

If you have accurate Invoice numbers, and that
obviously is important...checking a couple of different sources is a good idea...Edmund's, for
example continues to leave out Port Prep & FloorPlan Interest Reserve($167.00)for both on Volkswagen Invoices. And you know what MSRP is...
always accurate; then a Target price would lie somewhere in between. *IntelliChoice* has used this "Target Price" concept for years.

masspector

Mack, how do you handle when people come back from toyota.com with a configuration that is not available?

I found this very frustrating with the highlander. Toyota.com and carsdirect.com let me configure the car I wanted, but when I checked with dealers, nothing like that was available. All I could do was order it.

mackabee

I've never run into a customer yet where the car they "built" on Toyota.com couldn't be found. As long as they used the zip code for our region it wouldn't be a problem. What was so special about your Highlander that the dealers couldn't find it? I would like to know for future ref.
: )
Mackabee

masspector

It has been a while, I will try to remember the toyota package names. I am in the SET region.

I wanted a 2wd v6 limited with jbl premium stereo with cd changer, leather pkg, and side airbags only. I did not want a sunroof, or the towing prep pkg.

I think the side airbags was the first problem. All the dealers could locate with that option were fully loaded. Next, they had a hard time finding one with no sunroof. The final nail in the coffin was that all highlanders had the towing prep pkg installed at the factory, no exceptions, except on a dealer order. But if you check the website and edmunds, it lists that as a seperate stand alone option.

What is ironic is that what I ended up getting has a sunroof. Can't get away from them.

94_octane

One thing I've found on the "build your own" site for Toyota is that it lists the availability of EVERYTHING as "limited". I find that very hard to believe. I even tried using some widely varying zip codes, from DE to PA to CA to MA on a wide range of models, and they ALL come back "limited" availability. Which to me, makes it a worthless tool, misleading, and annoying. Why is Toyota having 0% financing if all their cars are in "limited" supply? I find it extremely hard to believe that Camrys are in "limited" supply, when I drive past a dealer on the way to work and he has probably 50 on his lot. It takes alot away from the credibility of the website, IMO.

mackabee

Which Camry did you put in there? If it was a V6 LE or XLE limited availability would show up. LE's are all over the place (bread and butter car) On my inventory sheet allocated vehicles I show no V6 XLE's, no V6 LE's, Just two SE's 4cyl, 12 4cyl XLE'S and 30 4cyl LE's these are all Camrys due to be built last week of November, thru December 16. In stock I have 39 4cyl Le's, 2 V6 LE's, 8 4cyl XLE's, 2 V6 XLE's', 6 4cyl Se's, and 4 V6 Se's, these were built mid-October-mid-November.
: )
Mackabee

mackabee

So in effect, if you are looking for a V6 Camry I would say availability is Limited. Looking at the big picture.
: )
Mackabee

mackabee

I just went to toyota.com and checked the Central Atlantic Toyota region. Looks like availability is Excellent on 4cyls. They are not even listing the V6's. Kind of goes along with my last post, don't you agree?
; )
Mackabee

golic

I think part II of the article shows that internet is the way to go. So either the informed/internet user only makes up a small %'s of buyers or the Dealership may have to reinvent themselves sooner or later.

BTW- can any of you in the business tell me two things...what % of buyers come in informed? and what % of people negotiate only on down payment and monthly payment. Just out of curiousity

sbell4

My OPINION:
(1) Quote everyone an out the door price.
(2) Follow up.

You will get some deals you wouldn't get by making it easy and you will lose some deals because someone will better your price by a few dollars. Most people are not PRICE SHOPPERS alone, price is usually in the top 4 or 5 but the only deciding factor. You should follow the 10/80/10 rule
10% you never have a chance to sale a car
80% use the internet to make a simple painless transaction (these are the people you concentrate on)
10% will say I'll be right down and pick it up now.

Before you say I don't know what I am talking about I do realize that you are only going to close about 10% of the internet leads and that 90% are time consuming and will end up nowhere. The internet is here to stay and it will constantly be changing and the best way to be successful at it is to be different. If no one can get a price over the internet I would advertise that not only will I give you the price but will also show you the invoice and whatever you need to see to make a well informed decison on your next car.

...off soap box now...

capitano

I like the idea of greatly simplifying the transaction by using the internet. I do not want to see a four-square and do not want to hear "what do we have to do to get your business?".

But I still need to test drive the various cars I am interested in and that usually involves the floor salesfolk. This then puts me in the Inconsiderate Buyer category because I am using their time and they will never get a real shot at selling me.

I want to figure out what car I want before I ask the Internet department for their price. It just seems awkward to me to arrange a price and a test drive from the internet department when I might not actually like the car or more likely, the car I want won't be in the local dealer inventory.

vwguild

There is absolutely Nothing wrong with contacting
the Internet Manager about a Test Drive; he or she probably, no certainly, will be happy to accommodate...I know I always am...I cannot speak
for any other ISMs out there, but of the 20+ Sales Staff in our store, I am the go to guy about product knowledge & availability because of
my constant use of the net and because I order the cars.

If the car is not your cup of tea; then that is
the way it goes...And remember EVERYONE that you come in contact with at a Dealership that is involved with Sales is on Commission...Only exception would be the Sales Secretary at the
Reception Desk...Even the Managers...Bonus aka Commission.

So, don't give it another thought...Contact the ISM, explain what you would like to do, and be prepared for a great Drive...

Happy Thanksgiving!!!!

mackabee

I couldn't have said it better myself! Great job!
: )
Mackabee

tblazer503

that I shopped his price w/ the local Honda dealer. I also told him in the initial conversation that the reason I was calling him was because the local dealer could not meet my price(we were off by about a grand) He was well within the ball park with his initial offer assuming same trade value, so I told him I would think about it and give him a call one way or another. I called the local dealer and he says that there is no way he can budge, so I told him what the other dealer quoted, and he said it was a great deal, and that he couldn't even move a couple hundred dollars. So I said okay, and called the other dealer. He asked if I called the local dealer and I said yup, had to give him a fighting chance. But since he couldn't even come close, I'm talking business w/ you. We closed the next day. I got a little less for the trade but still ended up like 800 cheaper than the local dealer.

abtseller

that your numbers are optimistic. 80% are buyers in it for a painless transaction? No way. Not even 30%

I know what the marketing people say, but they're not visiting the same planet Earth that the rest of us live on.

Ed

sbell4

If 30% are in it for a painless no hassle transaction then why don't internet departments give "out the door" prices to everyone and close the 30% and simply lose the other 70%. If you are only closing 10-15% now anyway you would still be selling more cars!

abtseller

deal can still be beat elsewhere, so they shop the number.

Ed

vwguild

whether it is an Acura-Volkswagen and everything in between, but one one would hope that today's customers are sophisticated enough to realize that there is a great deal more involved here than merely saving a couple hundred bucks...

I delivered a New Beetle last night to a family that was totally unaware of half the features on the car. They got a New Beetle 4 months ago and it got totalled in a Rear Ender and this was the
replacement. The first one had only 2800 miles on it.

They had received a terrible delivery on the first Beetle, got a great price, but a terrible
Lease Factor...Today they have a better equipped
New Beetle, spending $35.00 less on their
payment, and with a total of $177.00 out of pocket. That is REAL VALUE...And they have an advocate if they need one...

Is that not what people really want? Value and Service?

audia8q

"....one one would hope that today's customers are sophisticated enough to realize that there is a great deal more involved here than merely saving a couple hundred bucks..."

The key word here is hope. It seems lately there is nothing sophisticated about the people walking through the door. haha

rroyce10

...... Yep, the key word here is "Hope" .. just because there is a lot more info doesn't mean it's used correctly ..

You will still have folks that offer $200 over invoice on a loaded up G35 (with a straight face) offer $500 over invoice on a new "E" class Benz because the say "I know your cost.! - So here's my offer or I'm going down the street" ..

What the consumers forget is, most dealers know what their product is worth and what they selling for in Maryland or in Missouri, but buyers try to use this as some kind of "negotiation tool" against the dealer .. actually it works against the potential buyer.

I just had a 350Z, my golf partner was in LOVE with it, now he knew what I paid for it, he was with me the day I bought it .. He offered me $500 over what I paid for it, he was greatly insulated when I politely refused his offer ..

In his viewpoint, I could always get more and I should be happy with what was offered too me. I had to remind him, that it was going to be sold to a dealer in Arizona, for a lot more than his $500 offer - and my job is not trying to replace "hard too gets" with my time, but my job is finding the "hard too gets" for a profit ... we haven't played golf together now, in over 2 wks, he's upset.

Sorry, but I have never asked him to reduce his prices at his golf store for his products, and I know I have over paid more than once, but it's his business and I do understand business and if I wasn't happy, I could have gone down the street or online.

Terry.

CarMan@Edmunds

Edmunds.com just released part two of this article. Here is a link to it and a brief description for those of you who are interested: Shopping over the Internet holds the promise of being faster and cheaper. How much? We tried both approaches to the same dealerships and got very different results: Part Two: Internet vs. Traditional Car Buying - Shopping for Price. Enjoy!

Car_man

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Smart Shoppers / FWI Message Boards

mackabee

they are becoming more uninformed than before. Last night a "gave away" a 2wd Sequoia for $800.00 over invoice. I had e-mailed the customer a couple of times during the week. The first price quote had been $1500.00 over which is what I normally sell them thru the net. I sent another e-mail at the request of my GSM at $800.00 over as an "After Thanksgiving Special". The customer showed up Saturday and someone upped them on the lot. Luckily it was one of the vet's and after he asked them a couple of questions they told him I had quoted them a price over the net and if we could do better. He came in and got me and I began building some rapport with them. Turns out his wife is also from the southwest and they met while he was in the Navy stationed in San Diego. After some more small talk, I asked if they had driven the vehicle yet. "No, we just saw it at the auto show last week and we really liked it. I would like to look inside if that's okay." he responed. "I'll get the keys." I walked back to the showroom and grabbed the keys and my d-tag. I opened it up and went over the features and sent them on a test drive. I asked if they wanted me to come along or if they would prefer to go by themselves. They chose to go by themselves which is perfectly alright with me. After a 45 minute test drive, they got back and fell in love with the vehicle. "Can't you do any better than that on the price?" he asked. "Frank, you are getting a great deal. Normally I sell them for $700.00 more than the price I quoted you." I replied. "Well let us go home and see our finances. Do you what my payments would be with $7000.00 down?" he asked. I pulled out my calculator and gave him a ballpark. "Right around $625.00, that's an approximation. Once we do a credit check and see what you qualify for it might be lower." I replied. So they left, and no more than 10 minutes later they call me on my cell phone. "Mack, How long will it take to get it ready? We would like to pick it up tonight if that's ok with you." he commented. "I'll take it to clean up right now. It should be ready in about an hour to an hour an a half." I replied. They came back as agreed and drove away in their new Sequoia.
: )
Mackabee