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Hey - I have an idea. Why don't I ask HIM these questions I have? (LOL). I guess it's because when it comes to sales transactions, I rarely ask questions I odn't already know the answer to.
Thanks, Mark
It may be possible to recontract.
Bill
Rich
Now, how should a customer act, and what type of preparation would you like the customer to have? And what suggestions do you have to make the transaction go smoothly as possible?
Don't worry - 99% of the time any "great" deal they offer you will still be available when you come back.
Good luck
That customer is foolish to buy the first car they drive.
Now, if you're out to buy, say, an Audi A4 and the first place you go treats you well and gives you a good deal that you're happy with, I see no reason not to pull the trigger.
But, say, you're also looking at an IS300 and a 328i... I'd say that not looking at all cars is a bad idea.
Bill
Rich
From reading these boards, I found out that someone who ordered the same car 5/7 (different dealer, same state) has been driving his for a week, and that his dealer had told him the boat came in earlier than expected, around 6/10.
I hadn't heard a peep from my dealer in over 7 weeks so a few phone calls later he finally gets back to me and says I should have it by next week, so I should "sit tight" (and of course there was no VIN and he has not called back with it as he said he would and he obviously doesn't know where the car is.)
Now I'm a little miffed at this lack of communication so I'm wondering, am I being unreasonable or am I being jerked around?
You can't have your cake and eat it, too.
Ask yourself, "is my goal to keep driving a new car every few years, or do I want to settle up for what I already owe?
Like lancer said, the negative equity isn't going anywhere.
However, Banks often use MSRP or Invoice as a guideline on how much money they will advance on a car. With really super credit you can generally borrow 110% of MSRP.
I.E. SunTrust ain't gonna loan you $35,000 on a Daewoo no matter how good your credit is. Which makes sense.
Now, take the Millenia. Say that MSRP is $29K, Invoice $27K, and there's $6K of dealer cash. (Wow.. $6K of dealer cash? Ouch. No wonder they depreciate like they do..)
So, say that you can buy this millenia for $22,000. But, the Bank will loan 110% of the $29K MSRP or $31,900. That's $10,000 that you can "bury" in this car. So, you'd get trade-in for your car, pay $22K for the Millenia, but they can stack the $6K of negative equity on top of the $22K sale price as they're still below the "max advance" or the maximum that a bank will loan on the car.
Doesn't mean that you won't be buried. In fact, you'll be buried even worse than you are now. I'd think this over very carefully. You may want to hold onto your present car if you can and try wacking up higher payments on it or something.
If you want to drive a new car every few years, you may want to take a close look at leasing... Depending on the car it can be a lot cheaper in many cases.
Bill
Not bad cars, but WOW, do they depreciate.
What's the matter with the car you have now?
1. Do dealers typically charge for doing this? Will the other dealer expect a share of the commission or profit or does it all work out in the end since the other dealer may need a car from someone else eventually?
2. Are the cars transported on a flatbed truck or driven from dealer A to dealer B?
3. When a customer makes this kind of deal, can they write "sale contingent upon acceptable test drive" on the deposit?
They did ... about 60 miles away. Swapped a car in their inventory with the black SE. When I came in to look at it, I noticed that the black one had pinstripes, which made the car look hideous. So, I ended up taking the red one in stock. Dealer didn't seem to think it was that big of a deal.
No special paperwork, no commitments. However, depending on the car you're looking for, that may not always be true.
Just my .02
Interesting exception all Jaguar Dealer trades are transported at Jag's expence within a reasonable distance. Jag's can also be traded before they arrive at port.
The request was surprising and under pressure the saleperson did not press the point of the request id denial was forwarded. What I do not understand is why any dealership should need your signiture on a document that isn't a invoice, or worse yet a finalized price not yet set.
Additionally, what is even more strange is that if one wanted out of the lion's den they could simply take the position that an new Accord is not worth a dime over $5K and then get up and leave.
This dealership was, at the time, the second place volume dealership in America. I, was not a buyer nor a friend of a buyer, but a student working a summer job as a weekend salesperson for the dealer. I never fully understood why such a request should be made unless some psychology was at play.
Any interpreters out there on this aspect of the negotiaton play?
Still, even though I've read that, I have a strong sense of personal responsibility and I think I would still feel obligated to buy the car. In the past, I've refused to sign the promise a few times, but I've never signed and not done the deal.
I also would be interested to see what the dealers have to say--it's certainly a high pressure technique.
Things worked a lot differently at Lexus. But, umm, now that I am no longer emplyed by JB I have no regrets shall we say?
Although there have been some substantial changes at Lexus recently, it is a nice store if I do say so myself (Also my very good friend is the GSM which is a good thing. I hope)
Bill
My question is this, is there a base listing and then a separate page to add on additional equipment in the "black book"? I did a pretty extensive search of dealers in the area of the country I live in to see what price they were selling this model at and found nearly all of them were around $15-17K retail. I only found two out of 20 that were retailing for around $13k.
Anyway, take a look at the topic and see what you think.....
I believe there's a law in the state I live in prohibiting the sale of a leased vehicle to a third party other than a dealer.
I too think he should sell it privately. Dealers will low ball you no matter how great shape your trade-in is. They rarely even check the condition of the car, which is actually good if you have numerous problems with it. I've recently traded in a car with squealing brakes and the dealer never even mentioned it.
Anyone in the market for a new car should check out www.carsdirect.com, it's a great site to compare prices and to use in negotiations.
But, could you turn down the font, it's hurting my eyes ;^)
TB
I'm running the numbers on a calculator that seems to suggest that it's better for the consumer to get more for a trade and less discount as opposed to lowering the cap and lowballing the trade.
2001 Camaro V6, $17,920 MSRP
$16,441 invoice
-$13,990 sale price
-----------------------
$2,451 difference
-$1,500 V6 rebate to dealer
-----------------------
$ 951 ?
2001 Trans Am, $29,002 MSRP
$26,565 invoice
-$24,489 sale price
-----------------------
$2,076 difference
-$ 750 V6 rebate to dealer
-----------------------
$1,326 ?
My question is, where's the extra discounting coming from? Is GM offering a Factory-to-Dealer of $1,000 on V6s and $1,500 on V8s? Those amounts would cover the extra discounting and leave a little left over for the dealer.
Also, can we say that a dealer is possibly just selling for below invoice after rebates? I would guess not because that would mean that they'd make no money.But, after reading kkollwitz's original message, I thought that the premise was right: the dealer was collecting some company to dealer incentive and still making profit. But, goral seems to indicate that the issue is that the advertised cars either don't exist or they're not entirely desirable (like program cars with many miles on them, for instance).
I'm looking at a van that the dealer gave me the invoice for (it seems to me to be the invoice). He discounted the incentives and offered me the car for that price (invoice minus incentives). I'm about to ask him to drop the price a few hundred (or throw in a luggage rack or something). Is that even an option? Your questions have me thinking that to ask him that is to ask him to make nothing off of the deal (since I'm asking him to sell it to me for, basically, below invoice). I guess there may be a company to dealer incentive and thats his profit. But, if there isn't, then I'm asking him to pay me to take the car. Thats not right I wouldn't think.
Anyway, two questions: Do stock numbers in an ad indicate program cars or something?
And, do dealers sometimes make nothing on a sell?
D
Rich
Needless to say, I passed on it
What's interesting is that on the day I was going to go to the dealer (and use my '96 Maxima SE as a trade-in), I got a call from someone who was interested in it (I posted an add on autotrader 4 months before, and never got any replies!). Turns out, the guy liked my car, and bought it on the spot (well, he gave me a deposit). So now, I sold my car and didn't get the Trooper!!! Few days later, though, I wound up going to a dealer auction and picking up '96 3.5RL so all was well
$1000 under invoice, which was unheard for a popular car (Honda CR-V). It wasn't my first choice for a color but looked real good. The mileage was less than 25 miles and was in perfect condition.
But I soon found out that the car being in stock wasn't the difficult part, it was dealing with the finance manager. He tried to sell $3k worth of aftermarket junk, which I promptly declined. Then he said I couldn't buy the car w/o the junk. I figured this was illegal, but since I really wanted the car I decided to buy LoJack and finance with them. I didn't save as much money as I thought I would, but I still saved $3k-$5k compared to other dealers I had previously visited.
A so called "program car" is usually an ex-rental which isn't necessarilly a bad thing either.
A purchased car could have come from the auction or bought outright from a customer.
And, good (and bad) cars come from all sources.
As an example, last month we wholesaled about 50 cars that didn't meet our standards. Most of those were trade ins.
Terry.
There is however a sign back in parts and service. So we established a policy of accepting no more than $5,000 on a credit card. With the tight margins in this buisness losing 3% of $5000 is still not a good thing, but better than 3% of $75,000.
IF you are willing to pay the fee you may be able to find a dealer willing to go along with you.
thanks in advance.
Here in the People's Republic of Massachusetts, tags cost only the processing fee, which is something like $60. They certainly would not put that into escrow. We pay our 5% sales tax separately to the Registry of Motor Vehicles at the time the car is bought. They might want to put that much into escrow until the deal is closed. We also pay a separate Excise tax to our local town annually (supposedly) for road maintenance. Excise starts out at 2.5%, and decreases as the car ages.
So that's $60 for the tags, plus $1,000 sales tax(on a $20k car) plus $500 Excise for the 1st year = $1,560. Some states collect similar such "fees" and taxes as part of the price of the tags. If that's the case, personally, I would rather that money go into escrow until I get the car, rather than lay in the dealer's financial rep's office. From the time you pay it to the dealer until they finish the deal could take several days if a weekend is involved. It's safer for you that way.
Do they want to charge you for the cost of escrow? I think I would object to that!
Hope this run-on bit helps some. BTW, I am not a dealer. Maybe one of them can tell you more.
I was told that the tag would be $225 and that the money would be put in escrow and the unused portion returned to me. I didn't realize it would only be held until the deal was finalized, and was confused on that aspect. After reading your posting, i understand now. Thank you!