Stories from the Sales Frontlines

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Comments

  • boomchekboomchek Member Posts: 5,516
    Del, the MSRP is not a hyper inflated price set by the dealers. They're sticker prices set by the manufacturers.

    GP didn't "inflate" or even set the prices when the customer came in. They were there on the car from stuck on at the factory. The customers probably came in because the prices were in his range and he though he could knock down some money from that.

    There's always incentives and rebates on prices, most of which come from the manufacturers, not dealers. Even if the customer wouldn't ask for any discount, by law he wold have gotten a rebate which would drop the price down to about $18-$19k (educated guess).

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • boomchekboomchek Member Posts: 5,516
    Thanks for the input. It wil help me do my job better. ;)

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • houdini1houdini1 Member Posts: 8,351
    I see where the average bonus per employee was $112,000. on Wall Street. I have to assume that it is just about the same in the auto biz, right? :)

    I am just giving you guys a heads up because B.O. sounds like he is threatening to demand that the brokers return their bonuses so don't be surprised if this demand trickles down to you. Yall getting any of that tarp money or did the mfgs forget to share? :)

    2013 LX 570 2016 LS 460

  • driver100driver100 Member Posts: 32,594
    I canvassed the parking lots and all I could find was Grand Marquis in white/gray/silver/gold.

    I don't think you see too many black ones in Florida because it looks too much like a hearse.......not a nice feeling for most folks in FL.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    Altima 2.5. The car has basically eveything except a radio which we can add for a small fee

    I know Chikoo already asked but I can't wait to hear the answer to this one!

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    Cars come on ships....we don't make them. The only cost is shipping cost

    Sarcasm at work, good answer though, I wish I thought of it.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    but the managers still want the "come in and we'll talk" type email deal, where I'm leaning towards the giving out a fair price online as I think it will attract more customers

    I think you are right boom. Nothing turns off a potential buyer more than the come in and we'll talk about it line. It just shows there is game playing going on. I think at minimum I would like a realistic ball park figure, and request for a phone call. I can see where you might not want to put your best price in writing for the internet customer to shop around using that to undercut you.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • golicgolic Member Posts: 714
    Drop me an email and I will forward the email chain. You can use it as a how not to use the internet.

    When I asked him for the 3rd time for the price of the car. He took the lease payment and multiplied it by 39 and said that was the cost. (And even showed me the math!). Priceless!
  • driver100driver100 Member Posts: 32,594
    20.5k.You were 4k way off from the price and he was 1.5 k.So he could have asked you later after u agreed to 16.5k that-where did u get your original price offer from?

    Del has a good point GP, selling price is 20% below MSRP! Is that a normal discount or is that because of the current market conditions?

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    My local guy came down and is still about $100-$200 more than the best internet quote,

    Hope you keep reporting on your negotiations. I have been in similar situations and I have a question. Your local dealer came down and is almost matching a better price you got from other dealers. This is where I lose some trust because obviously he gave you a higher price in the beginning. You had to shop around to get him to come down.
    In my case I showed my local guy an ad from the newspaper that I thought was a great price and I said I would buy if he could match it, he said he would do even better. I liked that a lot and I always checked with him first until I switched brands.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • sterlingdogsterlingdog Member Posts: 6,984
    Thanks for your patience. I did slip out of gear on that one. ;)

    Richard
  • boomchekboomchek Member Posts: 5,516
    I can see where you might not want to put your best price in writing for the internet customer to shop around using that to undercut you.

    That's the main reason for not wanitng to give out prices. However I think it might turn off more people than the number of price shoppers we'd lose to comepting dealerships.

    Plus if most dealers don't provide prices, and we're the only ones that do, and that's what customers want, then we'd have an advantage over most dealers.

    It's a tough situation, but I have to set it up so it works both for my managers and customers.

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • golicgolic Member Posts: 714
    Driver-

    I don't mistrust the sales guy because he didn't offer me the "bottom" out of the shoot. Had he been $1,000 - $1,500 off, well my radar would have went up, and I probably would have focused my attention on the other guy. But he was with in $500 and to me that is ball park and I can't begrudge the guy for wanting a larger commission.

    This is our first transaction together, and the way I look at it, it is still my responsibility to do my research and find out what the bottom on this car is and establish my starting and end point of the negotiations.

    I just got a vm from him about whether I was going to pull the trigger. I will let you know. I just keep kicking myself, because I figure I am going to make the wrong decision. If I buy it now, Honda will have an unbelievable special next week - If I don't do it, the price will get worse.
  • traindrivertraindriver Member Posts: 328
    My local guy came down and is still about $100-$200 more than the best internet quote, but I am sticking him because he has been a real professional and a pleasure to work with
    Guys like me are time strapped, have families, and just want a quick process at a fair price. I am not going to spend hour upon hours trying to find the last $200.
    What I am looking for, is a detailed response to my inquiry, giving me the best price for the vehicle.
    The salesman who is the most direct and upfront is the guy I have always bought from.


    This is exactly how I hope that my purchase this coming summer turns out. Well said, golic.

    Sales friends, isn't this the easiest way to handle an internet/educated buyer inquiry? A grinder is going to grind one way or another. Nothing is going to change that if they are determined to squeeze blood from a turnip. If they will cut your throat for $100, would you rather it be done by spending a few minutes through email or 4 hours grinding away in person on a busy Saturday while other leads come and go? They don't value their own time and dang sure don't care about yours. Send those folks to your competition; you don't need the aggravation.

    If you don't respond with a price, you are sending golic and me somewhere else.
  • jmonroejmonroe Member Posts: 8,989
    I don't think you see too many black ones in Florida because it looks too much like a hearse.......not a nice feeling for most folks in FL.

    You are so right. My brother says, down here, Florida is known as ...God's waiting room. :cry:

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

  • golicgolic Member Posts: 714
    You haven't seen God's waiting room until you have visited Yuma, AZ.

    That place is truly the last stop before the after life.
  • greanpea68greanpea68 Member Posts: 1,996
    With what you have been going through the last couple of months, I can understand a "brain freeze". Welcome home.

    Thank you Rich.... In the last two and half months i have lost 55 pounds and haven't been happier.... the only thing that would make things perfect would be a good economy and plenty of big grosses :shades:

    But I have been keeping myself busy enjoying life!

    GP
  • greanpea68greanpea68 Member Posts: 1,996
    I'm surprised the base Altima doesn't come with a stereo.


    Yeah no radio and no buttons on the out side door handles for the intelligent key. But when you get in the base car the intelligent key works normally.... in other words just step on the brake and push the start button. :confuse:

    GP
  • verdugoverdugo Member Posts: 2,288
    In the last two and half months i have lost 55 pounds and haven't been happier

    Damn. Awesome GP! Congrats and keep it up!

    Angel
  • greanpea68greanpea68 Member Posts: 1,996
    saying this house is a great deal and would not last long--how would u feel? He could say I am only making a 1k profit ,,but for u it is an investment for ,say,60k or more,,a big life event.
    Hope this helps.


    Del,
    I appreciate your opinion but have to agree to disagree or what ever it is called. As for the pricing on the $20.5 altima base. there is $800 from invoice to MSRP.... than there is $500 Hold back.... So the dealership with all hold back ownss the vehicle for $19200.... There is $1500 rebate bringing that number to $17700.... we were using a $500 college gread rebate which brought itto $16500 which meant we were loosing..... yes loosing $700 to sell it that price. Now the kid doesn't qualify for the college grad program which means his new price is $17000 ....

    The problem is people think just becaus ethe economy is bad or it is raining that they justify there price in there own minds. If his budget really called for $15000 he should be looking at a preowned vehicle or a sentra or a versa.... but people believe what they believe...

    While I was typing this I just talked to the kid and he is refusing to do the deal and wants his deposit back. Now I have invested a total of 7 - 8 hours with this person. Yes i know it comes with the business but he just doesn't realize the deal he is getting.... My favorite part of this whole thing is he says to me that " he is going to be able to go to another Nissan dealer and get his price"..... sorry Pal but not at loosing $700 with no trade. Plus also we submitted him to Nissan first and with "truth in lending" no other nissan dealer can get him qualified for the college grad rebate :D :shades:

    Oh well....... Next!!!!!! :)

    GP
  • greanpea68greanpea68 Member Posts: 1,996
    Del has a good point GP, selling price is 20% below MSRP! Is that a normal discount or is that because of the current market conditions?

    No it was a agressive price with $2000 in rebates and loosing $700..... Also we were looking for market share ;)

    GP
  • greanpea68greanpea68 Member Posts: 1,996
    Damn. Awesome GP! Congrats and keep it up!

    Thanks Verdugo
  • explorerx4explorerx4 Member Posts: 20,777
    to preface my post, i am going to assume kristie's post #38276 as tacit approval regarding the super bowl and this topic. please! :blush:
    jmonroe, i just have to know. back in '72 when you were there, was the 'immaculate reception' really a catch? :surprise:
    2024 Ford F-150 STX, 2023 Ford Explorer ST, 91 Mustang GT vert
  • driver100driver100 Member Posts: 32,594
    But he was with in $500 and to me that is ball park and I can't begrudge the guy for wanting a larger commission.

    Basically, I buy the same way as you do. Even $500 isn't a really big deal over 5 years ($100 a year), though no one wants to just give money away unecessarily.

    Over the years I am sure I could have saved $200 here or there on cars I have bought, but it would have made me into a mean stingy grinder with no friends and no life.

    It is best to reasonable and happy. You must be in sales golic, someone once told me salespeople are the easiest people to sell to, they have too much empathy (I think I am easier to sell to than most, and I really fall for a great sales pitch, like someone who has a lot of facts and can show me some advantages)..

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    Yeah no radio and no buttons on the out side door handles for the intelligent key. But when you get in the base car the intelligent key works normally....

    What is the thinking? Try to make the price as low as possible to get people in the door.
    How many people buy a car without a radio?
    What is the cost for this option?
    Can you get an AM radio for $20 if you want?
    Surprised my son in laws Lexus R----- Hybrid has a CD player, but it also has a tape deck....what happenned there, did Lexus get a deal on old radios?

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    My favorite part of this whole thing is he says to me that " he is going to be able to go to another Nissan dealer and get his price".....

    Love it! Wish I could see his face when he returns.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    No it was a agressive price with $2000 in rebates and loosing $700..... Also we were looking for market share

    Got it now....thanks. Hope market share doesn't put you out of business.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • verdugoverdugo Member Posts: 2,288
    You must be in sales golic, someone once told me salespeople are the easiest people to sell to, they have too much empathy

    I'm easy to sell too, and I'm not a salesperson. I just know the value of my time and I do my research ahead of time. I don't want to save $100 or $200 if it means I have to spend 5 hours of my time negotiating for it.
  • verdugoverdugo Member Posts: 2,288
    No it was a agressive price with $2000 in rebates and loosing $700..... Also we were looking for market share

    Got it now....thanks. Hope market share doesn't put you out of business.


    Don't worry, they'll make it up in volume ;)
  • tidestertidester Member Posts: 10,059
    i am going to assume kristie's post #38276 as tacit approval regarding the super bowl and this topic.

    There was nothing tacit about it. Kirstie indicated very clearly and explicitly where to post football chatter. :P

    tidester, host
    SUVs and Smart Shopper
  • snakeweaselsnakeweasel Member Posts: 19,592
    Over the years I am sure I could have saved $200 here or there on cars I have bought, but it would have made me into a mean stingy grinder with no friends and no life.

    Well if you save $200 enough times you can buy friends.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • snakeweaselsnakeweasel Member Posts: 19,592
    How many people buy a car without a radio?

    I would figure that cars that appeal to guys that customize cars right after they get them could offer cars without radios since these guys would rip out any factory installed radio and install their radios that would qualify as WMD's.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • jipsterjipster Member Posts: 6,299
    which brought itto $16500 which meant we were loosing..... yes loosing $700 to sell it that price.

    That's a darn good price greenpea. Puts the Altima fairly close in price to other cars I will be considering in the not to distant future (Sonata, Malibu, LaCrosse, Fusion).

    Your dealership was willing to take a $700 loss, which some would say should be a $1,200 loss, considering some folks here believe the $500 in holdback belongs to the dealership. I believe it is isell who has always said holdback is money the dealership is due back, and that dealerships don't take a loss on new cars... myth busted I guess. Or, maybe it is just Honda who doesn't give holdback back and sell cars at a loss. Hyundai sold my niece her car for around $700 under invoice... should have gone for holdback I guess. :cry:

    My Buick dealership just sent me a mailer, offering the 2008 Lucerne for $6,500 under invoice. Very tempting, as they are throwing in $500 in gas and lifetime oil changes. I suspect though that the higher priced models are the only ones left. So, I'd still be looking at around $23k. :sick:
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • chikoochikoo Member Posts: 3,008
    >Well if you save $200 enough times you can buy friends.

    on 5th ave?
  • bolivarbolivar Member Posts: 2,316
    Here is one:

    http://billknightlincolnmercury.com/New-Inventory.aspx?InventoryId=26610621

    Tulsa.

    I saw a total of 3 black ones.
  • driver100driver100 Member Posts: 32,594
    I would figure that cars that appeal to guys that customize cars right after they get them could offer cars without radios

    In an Altima?

    We are off to Tampa area for February. I'll watch for lots of Grand Marquis, big huge Cadillacs, Buicks, Chrysler 300s....many will have vinyl rooves and spoke wheels. Maybe I'll see a few with bull horns on the hood. I'll be on wi-fi with our laptop so I'll be checking in.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    GM looks nice and quite a few features.
    I can't believe they list "Chrome door handles " as a feature???
    What's the alternative, tin?

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    >Well if you save $200 enough times you can buy friends.

    on 5th ave?

    LOL

    Actually, I bought my friends off for a lot less!

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • oldfarmer50oldfarmer50 Member Posts: 24,253
    "...The MSRP on the vehicle is $20545...he offers $15000...we settle on $16500..."

    First, let me echo the others, welcome back. Your sales environment must be real bad down there at the other end of I-90 from me. Snow after snow after snow. :sick:

    That price on the Altima is increadable! Makes me wish I had waited a year to look at that Altima coupe I was considering. Last year at this time they were not dealing at all. It was MSRP or "see ya".

    But the world of cars has changed. A woman I know at work just bought a new Kia Sorento which had a $25000+ MSRP for a little over $16000. She said that the dealership was packed with people to the point she had to wait 30 minutes to talk to a salesman. That's encouraging volume-wise but $9K discounts can't be very profitable. Maybe she bought a 100 year mop & glo program. :confuse:

    Are dealers pushing harder for extras to make up for losses on the deal? They have to make money somewhere.

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • golicgolic Member Posts: 714
    Little background on the local guy. The main guy I have been speaking with is the sales manager (he was my first contact- who answered the internet RFQ) but there is also a salesman there who would call and check status every now and then, but went it was time for numbers it was always the SM and me.

    So salesman called yesterday afternoon and wanted to know, where I was and If I wanted to get it done today. I told him I was on the fence and needed a push. He called back and offered a couple accessories. I said ok.

    The best part. I asked for the credit app to be faxed over and I completed it and faxed it back and told them I would be in around 8:30.

    Got there, they were ready for me. Reviewed the numbers, shook hands, showed me the car (already prepped) then lead me right into F&!. I was there 35 minutes. It was exactly the experience I was looking for.

    I have no idea if I was in and out like that because it was late on a Friday night or they really have there "fecal matter" together. But I don't care and high marks for them.

    I thought it was odd though, that i didn't deal with the SM at the end, is this because the salesman was a greenpea (which he was young) and he was giving him a deal? The SM did swing buy to say hi and gave us tickets to the Chicago Auto show, which was nice....

    So...next up is to replace the family mini-van but I am going to wait until the 2010s come out to see what is new and mostly hope that we aren't mired in a depression come fall...
  • greanpea68greanpea68 Member Posts: 1,996
    I believe it is isell who has always said holdback is money the dealership is due back, and that dealerships don't take a loss on new cars... myth busted I guess.

    A lot of that has to do with individual sales people.... Loosing gross. I happen to average $1200 a car over a month. Sometimes I getbig hits and sometimes I loose money..... Ussualy when a deal is loosing that much money it out of calling a customers bluff. In other words they are grinding away acting like they are not buying and come out with a ridculous offer like said instance. You have to understand this process was over two days and hours of negotiations. Sometimes you just call the bluff and they take it..... Well in this case this kid cancelled last night after a lot of work. Now I will refund his deposit.... but I have to admit I do enjoy the process of waitingtwo weeks because he wrote a check :P People ussualy expect it right away.

    GP
  • greanpea68greanpea68 Member Posts: 1,996
    First, let me echo the others, welcome back.

    Good to see you to Farmer! :D

    Yeah the snow has been killing us this year. I think we have had around 6 feet so far which exceeds our yearly average. If I am correct you basically get the same stuff as we do here in Bawstin.....

    Sometimes I wonder what it is like to have no snow all year round. I have to admit it is fun though on snow days. It is like being 12 years old again with snow ball fights. Tyring get a snow ball in car while someone is driving with the window down :P

    White washes are always fun too. Plus it is good exercise pushing a 10 inches of snow off of 300 cars. You do end up feeling it that night and the next day. It is sometimes helpful tohave a perc or a vike kicking around to help you through the day ;)

    GP
  • driver100driver100 Member Posts: 32,594
    That price on the Altima is increadable! Makes me wish I had waited a year to look at that Altima coupe I was considering. Last year

    But the a.m. radio costs $4,500.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • driver100driver100 Member Posts: 32,594
    Sometimes I getbig hits and sometimes I loose money..... Ussualy when a deal is loosing that much money it out of calling a customers bluff. In other words they are grinding away acting like they are not buying and come out with a ridculous offer like said instance.

    So, sometimes grinders do win. Maybe I'll change my car buying techniques. I'll become a mean angry grinder and lose my $200 friends.

    2017 MB E400 , 2015 MB GLK350, 2014 MB C250

  • madmanmoomadmanmoo Member Posts: 2,039
    Hi bud! Hope all is well in your corner. Good to see you. ;)
  • sterlingdogsterlingdog Member Posts: 6,984
    You were mighty nice to find those. Though Tulsa is a bit of a drive from North Carolina, I enjoyed seeing them.

    Richard
  • sterlingdogsterlingdog Member Posts: 6,984
    Enjoy your trip, and enjoy seeing all of those tanks floating down the road on a cloud. :D

    Richard
  • sterlingdogsterlingdog Member Posts: 6,984
    Hope you enjoy the new wheels. It sounds like you had a pretty nice experience.

    Richard
  • boomchekboomchek Member Posts: 5,516
    Congrats on shedding some poundage. I've been trying to lose weight too as I ballooned from 195 to about 225lbs since I quit smoking. It's been over 5 smoke free months now and i'd rather be chubby than smoke. It's time to tackle the weight but it's hard when I sit in front of the computer all day and the most physical work I do in a day is go up one flight of stairs to my apt. :blush:

    Anyways I have a feeling that the kid and his papa on the Altima won't come back even if they realize the deal was the best they could get. I'll bet my last year's bonus on it. ;) They might be too embarassed and try to save face by not returning. Too bad for them and for you for spending such a long time on them. I guess it's time to move on to someone who does value your time and expertise.

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • chikoochikoo Member Posts: 3,008
    a 6-pack i guess ;)
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