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Stories from the Sales Frontlines
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Probably not but the guy was going to pay for the gas either way. :shades:
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
It says "thanks for your business!"
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Yep, that is my understanding. If the vehicle is totaled or stolen, the Gap Insurance will ensure you don't owe anything, but all the cap reduction money you paid just went bye-bye.
GIANT GARAGE SALE
Everything's Cheaper at a Garage Sale!!
* Prices so low they cannot be quoted over the phone as not to disturb other dealers' business.
* All trades welcome. Special appraisers on hand to get you maximum trade-in value.
What's this world coming to when a prominent BMW dealer resorts to this?? Is Land Rover or Mercedes next? :confuse:
We've heard here, on these forums, that this stuff works but I thought that meant it works for the average family sedans not the upscale stuff. I'm thinking this dealer is trying to get a jump start for the Spring Season.
Even in Arizona there has to be a time when people get more interested in cars but then what do I know. I live in the South so to speak, Southwestern Pennsylvania, where we have four seasons and there is a lot of excitement about car buying when it gets warm and the sun shines.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Yep, that's a newbie mistake to fall for that one, at least the generic prepaid lease I am thinking about, could lead to lots of sleepless nights ..
http://www.leaseguide.com/sn/prepaid-lease.htm
of course, there could be specialized prepaid leases that account for this, don't know
For those interested, here's a more or less complete list of the Ferengi Rules of Acquisition. I didn't see one that covers Bobst so maybe we're still one up on the Ferengi!
tidester, host
SUVs and Smart Shopper
That's a hoot! I think rules # 1,8,10 and 16 apply to salesmen while rules # 11 and 141 apply to the customer.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
The payplan and grosses deteriorated the last little while.
On every used car that came in there was $1500 minimum, of junk added on automatically, before we, as salespeople even saw a dime.
Let's say a used Civic came in on a trade for $10000. We would price it to be on the lot for about $12995. Hmmm, good margin you may think, but not so fast...
To that $10k the following items were added on:
$500 PAC (that of course we weren't paid on)
$250 Used car reserve (the money went into a pool and was applied to reduce prices of cars that were sitting there over 90 days
$150 Inspection: Your typical used car inspection
$150 Tune-up/oil change
$300 Used car certification/warranty
$300 Window Etching
That's $1650 on top of the $10k. So now the car stands us $11650.
Customer comes in and grinds us down to $13000, AND wants dents and so on fixed, you usually end up with a mini.
Now some of the used cars had even more stuff added on before we even saw a dime:
Dent guy comes around and takes out a few dents $200. Why they did this on 7 or 10 year old cars I don't know.
The window guy comes around and fixes a few chips, and that's another $100-$200.
Hubcap guy comes around and takes off perfectly good hubcaps and puts new ones on, that's another $100.
Sometimes he'd put on moldings on the doors or around the wheel wells too.
Then the floor mat guy comes around too and throws in a set of aftermarket floormats, that's anothe $50 or so.
Seems like everyone was getting paid including the owner, business office (etch), and all these other guys, and we were left scrambling for the leftover crumbs.
I don't mind if the cars are reconditioned to be in a nice shape but to replace unnecessary items is a bit ridiculous.
What really got me though is when they started adding window etch to the cost of the car and taking the money out of our pocket to do so. The price for the etch was $299. We were on 30% commission so that's about $100 out of every used car we sold. Granted were had a bonus for cars with etch ($30), but since it became manadatory on every used car the bonus dropped to $15. The kicker is that the cost for etch tfor the dealership was a measly $58.
They wanted "high etch penetration" and because the finance office was having hard time selling it (wonder why), we got stuck with it whether the customer wanted itor not, it was part of the car now.
On new cars, we were charged against the gross on items like scratch removals, extra buffing of panels, and so on. Itmes that should have been part of the high PACs that were added on.
Anyways enough ranting. I like my new place, sold 3 cars so far, and still learning the product.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
Say - I come and figure your wholesale cost was said 10 grand (say I'm a used car genius
It was a lose-lose for you - looks like they made you a favor.
2018 430i Gran Coupe
2018 430i Gran Coupe
boomcheck, can you hint at the specific honda dealership?
If the vehicle is stolen or totaled, the lease is pro-rated, as though it were broken up into equal monthly payments.
The admonition against making large CAP cost reductions is valid, though. A very bad idea. It just doesn't apply to pre-paid leases.
regards,
kyfdx
(not the host here)
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
http://www.leaseguide.com/sn/prepaid-lease.htm
You are correct. It isn't the same as making a large CAP cost reduction on a normal lease. It is also stated that GAP coverage provides no benefit to prepaid leases.
Again referring to the rule of acquisition #3
Never pay more for an acquisition than you have to.
BTW, isn't there a resident host who is an expert on leases at edmunds?
Do you want to come work for me?
I've got 22 RX330's and 4 RX400h's that I need to boot out!
Mark156
Thanks for the laugh
No, at least with Ford if the unit is deemed a total loss and the account is in good standings you are refunded the balance of the prepaid payments.
Don't you mean "RX350"?
Here's my 'Lexus RX350' sales pitch:
"The RX350 is the perfect luxury/performance vehicle for the urban jungle or the country backroad. Forget the jittery or clumsy rides of other SUVs. Instead, take heart in this Luxury Utility Vehicle's excellent fuel economy -- mid-20's mpg on the highway, without the need for Premium octane! For those who desire the luxury, performance and maneuverability of our sedans, as well as the reliability and customer service provided only by Lexus -- but who also might need some added configurable cargo space, or the all-weather traction capabilities of All-Wheel Drive, the RX350 hits that perfect sweet spot!"
If I quit my job as an electrical engineer, can I sign up??
Days off
Draw
Demo
Personally, I do not see a huge difference between the Rx330 and the Rx350
Now thats a car man
I would only want the monaco for a demo if I got a gas card.
They started telling me what they were going to do and what I was going to do, and no one was going to screw them blah blah blah.
Anyhow I present my menu and the lady goes berserk over the 8.85 rate I was selling them. Then the husband chimed in saying his credit was perfect. I started to try to signal the guy to shut up because he was fixing to get in trouble, not from me but his wife.
But he just kept on and on.
I have learned over the years that 90% of the time when a husband and wife have all there credit joint but the husband has one card that is individual the wife usually knows nothing about it. This guy had an AMEX that was paid 12X30.
Back to the story, so I tell these folks, sir, you obviously are not aware of every thing in your credit bureau. He stands up in his chair points his finger at me and yells "My credits perfect".
I thought OK its on now. All I had to say was Sir you have an American Express that is...................
He sits down, gets red faced, his wife is yelling that "they" don't have an American Express. I raise my voice and say no you don't he does and he has paid it over 30 days late 12 times in the past two years. (at this point all pleasantries are out the window) She starts yelling at him, he is mad that he got caught and just keeps yelling that it is not his. She tells him to call AMEX from right there on speaker phone and straighten it out.
About that time I figure I need to take back control of my office so I say,
"Folks, obviously the account is not yours. So I think that for now just sign the contract here, Ford is a simple interest lender with no penalty for early pay off. Get the AMEX card straight then re-fi with your bank.
Guy say ,OK where do I sign.
I LOVE MY JOB!!!!!!!!!!!!
Did Lexus make a 2007 RX330? My sources show it was the "RX350" for MY2007.
"Personally, I do not see a huge difference between the Rx330 and the Rx350."
Depends on how you like to drive. I've been told, on more than one occasion, that I have a heavy right foot. (I prefer to call it a "vertically-challenged" foot.) Hence, I would quickly discover the horsepower difference between these two models (270 vs 223), and I bet I would continue to verify that differential each time I drove it! :P
I'm only speculating...LOL
Lexus only made a RX350 for 2007.... :lemon:
Or, do you think she is one of those "My husband would never do that..." people?
I hope it's the former. I think this country has enough people who say "My husband/wife/son/daughter would never do that!"
Is that because you are looking forward to that Monaco for your personal Demo, and everything else, in comparison, is a lemon?? :P
Yes, as a matter of fact it is - I take it the BMW dealer is also?
Another clue that I don't own a dealership is why would I be driving an ole $456,000 coach when I could be driving a $2.5 million dollar Marathon coach!!! Cuz you know if I owned a dealership, I would be rolling in the dough! :P
Mark156
Yes, sometimes by accident but most times by design.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
boomcheck, can you hint at the specific honda dealership?
I started my car sales career at this store. Seemed like we were making more money in the past, but now that the volume is up, the only other way to increase profit is to take it out of our pockets.
The reason they won't be able to increase volume is they're having hard time finding business managers to worek there. There is only a ceretain amount of cars you can sell before it gets bottlenecked at the busines office. So deals started tubing, rolling the same day was impossible, customers would be calling and it would take days for anyone to call them back regarding their approval and so on.
I don't really wnat to be hinting which dealership it is, all I can say it's a Honda dealer in BC.
PS Most of the people working there were awesome though, and are still coming to my wedding. :P
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
2013 Mustang GT, 2001 GMC Yukon Denali
2018 430i Gran Coupe