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There are deals that I have definitely scratched my head over. /shrug It's there money. They can spend it however they want.
-Moo
When they ran, they were a blast!!!!!!!!!!!!!!
Sold my '69 MGB and jumped from the frying pan into the fire buying a Fiat 124 Spider ('81 model if memory serves). That yielded to an '82 Fiat X 1/9. All of them were well used by the time I got them, so wrench turning was a prerequisite.
kyfdx should remember this but the local MG dealership I bought parts from turned into a Yugo dealership. I think it's now a Saab dealership. Don't know if there was poetic justice in that, or not.
Having the dealership figure out which car they can sell you is never a good thing.
-Moo
I remember when Tom Sweeney had the MG/Triumph/Jag and BMW dealership. I think it was where the Parisian parking garage sits at Kenwood Towne Centre..
Did Schoonover have Saabs? Or was that Subaru? Or both? I think I remember them being down and across the street on Kenwood Road..
Heck, it's only been 32 years, or so...
Or, maybe we are talking about another side of town?
regards,
kyfdx
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They do it. Hey, who needs to ever see daylight as long as you can drive a Ferrari/Lambo?
Now, to be fair... if you are one of the lucky few who can buy a new V8 Ferrari, who cares if you never build equity off of the contract amount, you can sell the car a year or two later for what you paid for it or more.
The dealership wanted to know if he would sell it back to them for 15,000 more then he paid for it. They had somebody who was hot on that particular color combination with the special features he had ordered and didn't want to wait for one. I am not sure how much the dealership was going to charge the other guy for it but I am sure they were going to make another 15,000 or so in markup.
Re ultra negative equity deals:
In my experience I have never made a ton of money on deals where I am burying a ton of negative equity. Maybe the Finance guy makes some decent money if they can grab a point on a ton of amount financed and if they get gap and an extended warranty but the front end profit is always kind of low.
I stopped in to our local Ferrari delaership last week to take a peek at one. I think they came and talked to me out of obligation since I'm sure I didn't look like I could afford one, which I can't. But I just explained that I wanted to see one in person before having the opportunity to actually be in one that weekend. I'm not sure if anyone has seen the ads for the World Class Driving events that tour the US, but they provide the opportunity to drive some exotic cars for a day, for a fee of course. The cars we drove were an F430, Lambo Gallardo, Porsche GT3, SLR MacLaren and a Noble M400. It was an awesome day for it, in the 90s, sunny, a 150 mile route through the Colorado rockies. Here's the website if you'd like to check it out: World Class Driving. Anyway, the salesman said all of their Ferraris were pre-sold like 6 years in advance. Does that seem right or was he blowing smoke up my you know what? I don't know if I could spend that kind of money and not see anything for it for 5 years, let alone 5 days!
And you didn't email me to tell me about this event?
I thought you were my friend in CarSpace.
WOW...payment buyers get sharper every day.
BTW, if you spelled it DUH you could buy 2
Hyundaisthrow-aways for that price and you would have a rolling spare. :surprise:jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
May I ask how you arrived at that conclusion? :confuse:
Anytime there is negative equity involved it's difficult to put a deal together unless there's money down to cover the negative. With no money down some of the negative gets eaten up by the gross profit if any and the rest gets put on the new loan. They signed up last night and also bought a maintenance plan and gap. I'm not making a "fat commission".
On the bright side this is my third used vehicle sale this month which gets me to a bonus level, plus they financed and bought a service plan and gap so I get a percentage as long as I sell the required units.
I went in this evening to stock in the two trades and to get their Prius cleaned up and filled with gas. I sent a lot attendant to get the Bimmer since the husband is legally blind and not allowed to drive at all. They are happy with the car.
Mackabee
I know that there is not a position available immediately. GM is making some changes though and wanted to make sure he was getting a great salesman. I think I'll make him and I a lot of money. Selling is selling. I'm presentable at least!
-Moo
Depends on the models. I know a few Ferrari dealers... the 360 Spyders were sold out before they were first delivered.. for years. 360 coupes were unobtainable, 430s? Forget it.
The V8 cars are just unobtainable, and it's not even a matter of getting one at MSRP.. you can't just waltz into the local Ferrari store, order one at MSRP and wait a few years... see, the dealers only get just so many cars, allocation and all, and, well.. they save em for their clients. In other words, if you aren't a good customer of theirs, you aren't getting a car.
Now, it can be different with V12 cars... especially the last of the 456s.. there were some dealers even discounting those, and you could find them in ground stock. V12s depreciate, V8s appreciate.. although this new 599GTB has them all nuts and they are unobtainable all of a sudden.
Fuiiest exotic car sales story ever? Guy comes in on a Gallardo Spyder... he'd been in before, could not afford one, but wanted to act tough in front of his girlfriend. He wasted my time, I embarassed him.
"So, will you show me your invoice on the car?"
"Absolutely, why not."
"Here you go sir, a car like the one you want is $218k MSRP and invoice is $197k." (It was in that ballpark).
"How close can you get to invoice on the car?"
"I can do $21,000 over invoice and can guarantee delivery within 18 months, perhaps sooner if you aren't picky on color and equipment IF I get a cancellation, which I doubt".
"Look, I never paid sticker for a car in my life and I am not going to pay sticker much less wait for one"
"Well then you're in luck, I have a used one for $239k that you can have right now, takes care of both problems, shall I write it up? You can take delivery today"
heh heh heh.... good thing I don't sell cars anymore, sometimes illness is a blessing
The customer that hasn’t done their homework, doesn’t know what they want and has a history of making poor car purchases leaves themselves open to be taken advantage of. (Not saying that was the case with you.) Your job is to sell them a car and not to be their financial advisor and I understand that completely but your customers made a terrible deal and will pay for it down the road. They have already made some poor decisions and I'm sure they were taken advantage of on some of their previous deals. (10K negative on an explorer.) A dishonest dealer could have really taken someone like this to the cleaners.
At the same time, the store made a profit on the car, financed the deal, sold gap and service contract. Everyone goes home happy.
By the way, I didn’t say you made a “fat commission", that was somebody else. I hope you made good money, it sounds like you earned it.
Did they give you a pencil and tell you "Sell me this pencil". I hear that is standard in the car biz. :shades:
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
Come on Old farmer this is a Porsche Store. It would have to been at the least a Mont Blanc Pen
Well he is here now... :sick:
Normally I don't mind I take my turn do the song and dance and always score a 100 but our Centre manager is on vacation for the last part of this week and I am supposed to be covering for him.
Fine I can do that but that means I have to do his part of the Audit too which I have never done before and the sales guide that is supposed to be up for the Audit is also off today so I have to do his song and dance too. :mad:
Then to top it all off it is an auditor I have never met before and he isn't being flexible at all. My entire day is probably shot now and I won't get anything else done.
This poor guy is paying almost $600. a month for a Prius...and now we find out that he can't even drive the thing!! :sick:
2013 LX 570 2016 LS 460
Come on Old farmer this is a Porsche Store. It would have to been at the least a Mont Blanc Pen
I'll take a stab...
I'd accept the pen, clear my throat and look back at the manager. "It's a Mont Blanc, what color did you have in mind?"
Now when would you like me to start?
Their problem is they had too many cars for only one driver. There was also a Ford Contour they sold privately so now they are down to only one vehicle.
Mack
This poor guy is paying almost $600. a month for a Prius...and now we find out that he can't even drive the thing!!
Tell me about it! That family is paying $20 less per month than we are.... on our mortgage (and we've got a nice house)! :surprise:
Yeah, yeah, I know, I'm talking about a 30-year mortgage, but still. Wow. I echo the comment of a previous poster - good luck to that 4-year old daughter they have, at this rate her family's going to be a financial wreck by the time she's college age.
Good for you - selling luxury products to people who can afford them and that are willing to spend the money is usually easier than selling volume.
They have the money, are willing to spend it and value their time more than anything else.
So they were two years into a six year loan @ $592 per month and they were still 10K upside down? Yikes !!
Still, it sounds like overall, they are in much better shape now. Assuming, of course, they don't show up at the Ford dealer in 6 months, looking to trade into an Expedition!
If nothing else, they should save some serious coin putting gas in the Prius instead of and Exploder. Plus 1 car on insurance instead of 3, probably lower maintenance/repair costs, etc.
So, from a financial standpoint, getting into the Prius (if they can stay with it for the long term) was probably a good move overall, especially for their cash flow!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
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You all would be amazed if I was to tell you the amount of Neg Equity financed in my office in a weeks time.
Here is just a sample of some of the deals I am working right now.
2005 Chevy Owes $26501 ACV $15000
2002 Ford 0wes $11850 ACV $2500
2005 Honda Owes $22850 ACV $12500
Before the day is over I will have them all either approved or within a couple thousand of being approved. Then in the morning I will have 3 or 4 more just like it to start all over on again.
The biggest I have ever seen that was not from a wreck was $22,800 on a 2 year old Dodge Truck. This cat was $22800 negative. Not counting the taxes and profit we were going to have to add to the next loan.
I actually laughed at him when he stood up in my office and said, "with my good credit I have never had to put money down before" well duh, thats why your $22K neg. He had put 100K miles on this truck in 2 years. He was a builder and he chased storms.
Last year my Ferrari Collector had that Arnage T.
2006 Arnage T owed $200,000 or there abouts I don't remember exactly how much it was. ACV was $165,000 from us and the Ferrari Dealership he bought his F430 from gave him $170,000 IIRC.
They buy someting on a whim, tire of it a year later and want out. Rarely do they have anything to put down and they are usually looking to LOWER their payments in the process.
I always lay it on the line to these people and I try to explain why they shouldn't bury themselves deeper.
At a point, I'll stop and I'll proceed knowing that if we don't sell them a car, they will go somewhere else instead.
And talk bad about you to all their friends because you refused to sell them a car. :confuse:
And usually those are the same people that say:
"Lease?!? I am not stupid, I know - lease is a rip-off! I will not own anything after 3 years!"
So instead they bury themselves for 6 years...
Exactly, it is almost humorous when I have a customer and I suggest a lease and they say that. I have gotten to the point now where I just ask them. "Would you rather turn the car in and be at worst case scenario even, or be sitting here like you are now $8000 out of equity. I then explain that if they had leased the car they are driving now the payments on the car they are looking at today would be $160 cheaper.