Any Questions for a Car Dealer?

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Comments

  • delguydelguy Member Posts: 43
    Yes there is a tradeoff to make on time vs. money. But for me the choice wasn't too hard. For driving 120 miles I saved at least $1500 and got the car I wanted. v6 limited 4runners are tough to find here. Of course it's silly to drive all day to save $100, but what about $300 or more.

    BTW, I was the guy who was complaining about not getting a "fair" deal a couple of weeks ago wanting 5% over CR's wholesale. Thanks to a little poking around and the above mentioned trip, I came in at 3% over cr's wholesale. I have no idea why the dealership made that deal. It was advertised and I didn't even have to be a jerk, though I did have to stand up for myself a time or two.
  • isellhondasisellhondas Member Posts: 20,342
    The "one only" that was advertised as a come-on.

    I once did the same thing with a Corolla. Every week they would run a screamer ad, advertising a Corolla and a stripper truck for a ridiculous price. The Corolla was a bare bones stripper but that's what my in college little brother needed.

    I called from a phone booth across the street and the sales guy said it was still available. First hour on the opening day of the ad. Five minutes later I pulled in and asked for the guy I had talked to..." He's off today". When I insisted, lo and behold, they found him.

    At that point, he said he "thought" it might have sold and wanted to switch me to another.

    Finally, he led me to the back of the lot and there it was, behind the trash bins.

    They did their BEST to talk us out of it and into something more expensive...

    This is pretty typical, sorry to say, for So. Calif dealers!
  • grandtotalgrandtotal Member Posts: 1,207
    OK, maybe someone can explain to me why the dealer would run a screamer ad but be reluctant to sell the car it referred to. If people want to buy the screamer vehicle then the answer is simple, order more screamer type basic vehicles. If you're selling them at invoice + or - a little it doesn't matter a whole lot whether it has a thousand or two of extra goodies on it or not.
  • bigorange30bigorange30 Member Posts: 1,091
    Its because they don't really want to sell the screamer. They don't make money off of it. They only have it so that it won't be illegal to run the ad. They make money on all the other cars in the lot. That's why they try to get you to switch to another car. If they just order more, they will never make any money.
  • hondaguy9hondaguy9 Member Posts: 64
    guys on this one. We adv. this car that we don't have, our competition don't even have. I yell, scream, and beg not to do it but to no answer. We will sell you that car, but the kicker is, no one wants it. It is a total waste of adv. money and space. Their idea is to switch them to the next level car which we have 400 of. hmmmmm, why not adv. that car at the same profit margin and sell a bunch......naaaaaaaa....
  • zueslewiszueslewis Member Posts: 2,353
    because consumers demand it.

    Most people, when they read a newspaper ad or hear a TV/radio spot understand "Honda Accord 4-dr, $16,999" or "Toyota Corolla, $12,990". They don't bother to read the fine print that mentions that the Accord is a DX 5-speed or the Corolla is a one year old program car.

    If the dealership advertised the Accord LX, for instance, at $100 over invoice, any Honda dealer could beat the price.

    Ask yourself - which type of ad generates more business for the dealer? Advertising is meant ONLY to draw business, and that it does.

    If Mr. Customer doesn't want the 5-speed DX Accord or program Corolla, they are free to choose from anything else you have. We would sell that strip model Accord or Corolla all day long for the advertised price. Most people don't want a 5-speed. Most want a CD player. Some want a sunroof. Now, you need an EX.

    The point is that they are live, breathing and taking up space right on your acreage - your place of business - the ad worked.
  • hondaguy9hondaguy9 Member Posts: 64
    Most Honda customers know what they want before they get here, hence a DX 5-speed (which is exactly what we adv) is not what anyone wants, so we don't get any play on it, phone or in person. So in a sense, it doesn't do anything. My point is adv. the car most will buy Ex: LX at invoice and then get some calls and action. It is the law to have model code and specs in paper adv. here. So most will know what it is and doesn't have before they come in or call. If they DO call then they find out and still don't come in. We have had the same adv. for a couple weeks now and no one, I mean no one has come in on the ad. But the powers that be still have to adv. the lowest possible car just to have to lowest ad in the paper with sales from it. I am no adv. expert, but I thought the idea of adv. is to generate sales from the ad you place...hmmmmm. Once again I guess I am way off.
  • zueslewiszueslewis Member Posts: 2,353
    because it works - they wouldn't keep throwing hundreds and thousands of dollars at the newspaper folks if it wasn't working in some way.

    Honda folks are different. I worked at Lithia Honda, Medford, OR and I noted that many Honda people are on their 4th, 5th or 6th Honda. In just about every other dealership (besides Honda and some Toyota places), 80% of the customers DON'T know what they want when they hit the lot. Advertising the bottom feeder ride definitely works for those folks.

    I wrote advertising for quite a while, at 3 different dealerships. Everything I thought about the way things worked in the car business going into the deal had to be thrown out the window when it came to writing ads.
  • hondaguy9hondaguy9 Member Posts: 64
    I can see at certain makers that works, I totally agree, "just get em in", but as noted, Honda people already know they dont want a DX, they want a LX automatic in green with a spoiler and mudguards with beige interior and half know the code for the car, lol.
  • michaellnomichaellno Member Posts: 4,120
    back in '92 when we needed a new car, the (then) wife wanted an Accord. LX. 4-door. Automatic. Dark Blue. Saw an ad in the Friday paper for an Accord ... something like $13.8K (MSRP was, IIRC, around $17K). Called up dealer. Car matched perfectly. Went down and bought it that night.

    But yeah, generally, you have to read the fine print on most of the ads. If it gets someone onto the lot, so much the better (for the dealer, that is). Folks should do their due diligence beforehand, I would think.

    Speaking of which, for the Toyota sales folks out there, is the 0% financing for Camry's a national program, or regional? I saw an ad here in Denver for it, but my folks live is SoCal and might be in the market for a Camry LE. And, what (roughly) should they expect to pay? TMV is showing something like $300-400 over invoice for their area.
  • rivertownrivertown Member Posts: 928
    Dunno for sure about advertising strategy. 'Get 'em in makes sense', and 'let's sell what we got' also makes sense.

    Dunno if the ad guys or the folks who hire them calculate the cost of 'educating' new buyers in skeptism, though.
  • audia8qaudia8q Member Posts: 3,138
    Most people in the car biz will tell you than a large percentage of people come in with the intention of buying 'car A' and and up with 'car B'. This even applies to people who do alot of homework.

    Typical scenerio......"I want the blue DX 5 speed".....as they are walking to see the car the consumer often will spot something that catches their eye..."but the yellow LX with a spoiler really looks nice, and power windows and A/C would be nice....can I get close to my payment budget on the yellow one??"
  • delguydelguy Member Posts: 43
    Perhaps it was a screamer that I went in for. The one on the net was almost perfect, but I wanted to add a few small things like the floormats and wireless headphones for the rear audio. When we drove in, they told me that the truck was damaged. I was a bit worried about a bait and switch, but they got me another truck w/the extras I wanted for the price of the original + the cost of the phones and mats. So I was satisfied.

    Besides, this was a loaded 4Runner w/ a sticker of 39.4 and I had to cull through their online inventory to find it so I don't think it really was a screamer.
  • landru2landru2 Member Posts: 638
    Customer says, "How come your GT is so much? I can get one from ABC Motors for $3,000 less."

    Of course, ABC Motors has the zipper LX advertised for $3000 less.

    It doesn't take many of these conversations before the dealership starts advertising the zipper LX. Even though they actually sell way more GT's than LX's.
  • mackabeemackabee Member Posts: 4,709
    and leaving with another. How true. Had a customer Saturday looking at Corolla Le. Told me he would have to come back on Monday so she could drive it. Showed up an hour ago with wife and son. Guess what? They're signing the papers for a Camry Le as I write this.
                         : )
                         Mackabee
  • rivertownrivertown Member Posts: 928
    Went looking at a Civic Si; got real interested in the S2000. BTW, NOBODY was test driving that one.
  • ateixeiraateixeira Member Posts: 72,587
    Some people are all over the map. They'll sample several cars and buy the one that they like best, even when cars are in different categories. They might also just be brand loyal and looking for something a little different.

    -juice
  • niteswmer2niteswmer2 Member Posts: 20
    I've been perusing Autotrader looking for a serviceable car under 10K. Saw a 97 Infiniti I30 from a particular deal back in the Feb timeframe. Terrible photo, snow on the ground, car not washed. Not being in any particular hurry, I've still been hunting around. Well, I'm searching this dealer's internet site, and lo and behold there is another 97 Infiniti I30, same price. When I look a bit closer, I see its the same one, only now its been washed, picture taken from a different angle, and its been moved to another location within the same dealer's network. Same price. So, I guess the long of the short of this question is, how long must a car stay on a dealer's lot before they start looking to discount it (this is a no dicker-sticker dealer)? Thanks!
  • bretfrazbretfraz Member Posts: 2,021
    Some dealers may be buried in a used car, no room to drop the price and no sense to send it to an auction and lose $$. Others may feel a change of venue will improve its chances of selling at a certain price. There's no set formula but a smart dealer will boot a car to an auction if it doesn't move for 60-75 days. If you like this one you might want to talk privately to the used car manager and make him/her an out-the-door offer. Ya just might get lucky.
  • rroyce10rroyce10 Member Posts: 9,332
    ..... Fortunately or unfortunately - depending on your view, the ad's work .. it's not the customer that buys a new Honda every 7/8 years that the dealer is looking for, it's the customers that is currently looking at the Yota's, Mitsu's, Fords, GM products on a daily basis, thats whats makes the difference ..

            I have spent as much as $45,000 a month on "double trucks" and radio blasts .. Zues and Audia8q have brought up some great points, most folks don't know what they Really want. They may have all the printouts from every site in the world, but they are shopping everything .. I have had customers come in and say ~ "we want a light color Windstar, we want the rear air, quad seats and don't want to spend more than X .. then 3 hrs later they go home in a Miata or Camry, it happens everyday ..

             About 5 years ago the largest paper in my area got bought out and the new corp. raised their ad prices by 20% .. I immediately said we were not going to be "held up" and moved the ad's to TV, and doubled the radio, floor traffic dropped 25% .. 3 wks later, the paper and I came to an agreement and everything was put back into place (thank goodness) and the floor traffic was back in the swing -- do the Ad's work, yes they do .. it's "how" it's handled at each store that makes the difference to the consumer.

                   Terry.
  • zueslewiszueslewis Member Posts: 2,353
  • ateixeiraateixeira Member Posts: 72,587
    My hats off to you if you managed to sell a Miata to a Windstar shopper! Bravo! :-)

    -juice
  • tbonertboner Member Posts: 402
    Unfortunately, I don't fit in them...

    Back to the topic.

    TB
  • hondaguy9hondaguy9 Member Posts: 64
    disagree at all. I am positive it works in certain venues. My point is on the other side, if you have 300 LX Accords all at the same price, why not adv. them at a blow out price to generate traffic as opposed to placing a ad for a car I have exactly a total of 0 and then hope to turn a few into a higher priced car. You don't believe that you would generate more sales from a certain ad if you adv. a certain car you have plenty of and make it simple as opposed to trying to turn customers into a different car they came in for. Not to mention not cause a problem between the customer and the salesman for trying to spin them to begin with? You don't believe that it would make your CSI score even better if someone sees an ad, come in on an ad, and buys that car from the ad and at that price....you don't think that's a happier customer? The exact reason for a lot of the issues between customers and salesman is because of being misled. I know misled may be strong but if you see an ad for a certain product in the paper and you go a distance to purchase it and find out they never had one to begin with wouldn't you be a little edgy?......
  • zueslewiszueslewis Member Posts: 2,353
    the customers would still think you were lying and there was a catch.
  • mackabeemackabee Member Posts: 4,709
    We are giving them away right now and customers still want to negotiate off the advertised (loser deal) price. Hey it's the owner's money he has a right to do as he pleases with it.
            ; )
            Mackabee
  • grandtotalgrandtotal Member Posts: 1,207
    You've got to look at the big picture. The owner is!
  • sarahmazdasarahmazda Member Posts: 27
    Mackabee, it sounds like you need a vacation! :)
  • azpiroz2azpiroz2 Member Posts: 1
    IS IT POSSIBLE TO NEGOTIATE A PRICE WHEN PLACING AN ORDER FOR THE VEHICLE AT A DEALERSHIP? I DIDN'T THINK SO BUT SOMEONE TOLD ME OTHERWISE. I WANT TO BUY A MINI COOPER (2003) BUT I CAN'T SEEM TO FIND ONE WITH THE OPTIONS I WANT SO I WAS CONSIDERING ORDERING ONE BUT IF I CAN NEGOTIATE THE PRICE FOR IT, THAT WOULD BE GREAT. THANKS.
  • zueslewiszueslewis Member Posts: 2,353
    yes, of course, you can negotiate a price on an order - it's just like buying it off the lot, only the dealer may even feel more secure with your deposit and the salesman having "one in the bank".

    I haven't shopped Mini Coopers, though, so I don't know how much negotiating they're doing on them...
  • kyfdxkyfdx Moderator Posts: 260,917
    Everything is negotiable...that said, very few if any MINI dealers are going under MSRP. The local dealer here is just now getting cars that aren't presold. At least they aren't adding anything to the MSRP. They say they charge the same price, whether you order, or buy off the lot, but I get the feeling you may be able to knock $500 off on a lot car. To find out, try negotiating the price on a lot car, before telling them you want to order.. You might find out there is a little room, but don't expect much.

    kyfdx

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  • mackabeemackabee Member Posts: 4,709
    We have a Mini store and they are all going for MSRP. They literally can't keep them on the lot.
                                        : )
                                         Mackabee
  • kyfdxkyfdx Moderator Posts: 260,917
    Cincinnati MINI.. now running what looks like a national ad in the local paper:

    How long is the wait?

    How soon can you get here?

    thought that was interesting.
    kyfdx

    Edmunds Price Checker
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    Did you get a good deal? Be sure to come back and share!

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  • ateixeiraateixeira Member Posts: 72,587
    A friend of mine is shopping for a Cooper S. He said the ones in stock carry a markup, orders go for MSRP. This was his dealer, at least.

    I guess they want to have a few cars to show to potential customers.

    -juice
  • akanglakangl Member Posts: 3,282
    I don't think we have a Mini store, but there is a used car dealer who brings them in here and there. Those things sit on the lot forever, guess Alaskans are too stuck on their Toyotas and Subarus.
  • jumpngmarinejumpngmarine Member Posts: 1
    Sorry if this has been asked before, but I'm new here.

    I have a 95 Honda Civic EX that was rear ended and needs a new rear bumper. Am I better off fixing it before trading it in or applying the money for the repair to the down payment. I know that selling it outright would be better but I may not have the time.

    Thanks for any answer.
  • hondaguy9hondaguy9 Member Posts: 64
    I would weigh out both and see which way comes out better for you. Make sure you go to a small body shop (not a dealer) to get at least a quote. If you are not keeping it, whats the sense of paying a lot to have it fixed. Depending which way, sometimes it's better either way, so just check it out.
  • zueslewiszueslewis Member Posts: 2,353
    the "House of Glamour" body shop - I'm assuming it's covered by insurance, though, and that plays into this.

    Get it fixed at a decent shop, then trade it.
  • colie74colie74 Member Posts: 42
    Hey there, ok the dealer that I am working with just sold the only V6 Manual trans they had. Ok, so I check inventory on the manufactors website and located several dealers that have the car I want. I gave the VIN and dealer info to the sales guy I am working with bc he said he could locate one for me, so I was just helping out with the leg work. My current car will be surrendered (lemon law) in around 3 weeks. My question is this, before the car on the lot they had was sold, I had told the sales guy what I wanted to pay for it and he said we could probably do it and so forth. It was a total deal for me. Anyways, if he locates one or trades one from another dealer, can I still expect to get the good price I want? Will he say no bc it's not from his dealer's inventory or anything like that? Will I need to put a deposit down on it before he gets it for me? He is suppose to email me on Monday with terms, but was just curious to know what I should expect since I am not taking delivery on dealer stock.

    Thanks
    Nicole
  • sarahmazdasarahmazda Member Posts: 27
    Hi. I'm a dealer in Mpls.

    The only reason a dealer would not honor the original price:

    1. The vehicle traded for at another dealer has more equipment/it's a hard to find color, options, etc

    2. The dealership they traded with is a long distance away and there is a cost of transporting it to their dealer. For instance, if I'm trading for a vehicle in Minneapolis and my dealership is in Chicago, I would charge the customer X amount of dollars to send a driver to get it. Now, if the dealer is within 50 miles , there is no reason I should charge my customer.

    (We're talking about, depending on distance, $50-$150 for transportation)

    Also, when we do a "dealer locate" to search for vehicles, we search a seven state area, but we do not typically get cars that are further than 200 miles. It's too costly.

    I require a signed buyers order and non-refundable deposit of $500 to get a vehicle from another dealer. This deposit can be used towards the vehicle, down payment or refunded at the time of delivery.

    I take a deposit because it ensures that my customer is commited to purchasing a vehicle.

    I would tell the dealer that you will put a deposit down on the vehicle once you have agreed to terms. Do not put a deposit down on the vehicle unless you have agreed to a price.

    If they say, "well, I can't quote you a price because I don't know how much transportation will cost, or what options the vehicle has on it"--that's untrue.

    When you do a dealer locate, you know EXACTLY what options it has on it and even the VIN number.

    Aside from that, there is no reason why the price should change dramatically.
  • kbehnkekbehnke Member Posts: 60
    A couple of questions regarding trading a vehicle...

    I'd like to know what amount gets taxed in the vehicle price. Example:

    MSRP: $25,000
    Purchase Price: $23,000 (excl rebate)
    Rebate: $3,000
    Negative trade equity: ($2,000)

    What amount does my Wisconsin sales tax get applied to?

    Also, if my trade has been in an accident, am I obligated to disclose this? One salesperson told me "If they don't ask, don't tell". On the other hand, is a dealer required to disclose this if I'm buying a used vehicle from them?

    Thanks.
  • rivertownrivertown Member Posts: 928
    Dunno about the tax question. Others prob have the scoop on that.

    About disclosing repairs to your car - I wouldn't sweat it. The dealer will prob pick up on the repair when you drive onto the lot. If you try to conceal OR make a big deal about the repair, it'll just hurt your position as you negotiate the deal. "Yup, I've had some work done. What's the bottom line?" is where I'd go. If you decide to private sell the car (you'll do better that way), I'd point out the repair just to save some kickback later on.

    The dealer's obligation to disclose repairs to you as buyer is a very iffy thing, apparently. Some salespeople say with a straight face that they just don't know the repair history of used cars they sell. Given the ease with which repairs can be spotted, that sounds like willful ignorance to me. Me? I'd get a Carfax and also have the used car gone over by someone who knows cars before buying a used car, even from a dealer.
  • ateixeiraateixeira Member Posts: 72,587
    Carfax had one free VIN check on their web site a while ago, not sure if it's still going on.

    -juice
  • grandtotalgrandtotal Member Posts: 1,207
    I think you can have any number of free VIN checks, but to find out what Carfax knows will cost you money.
  • zueslewiszueslewis Member Posts: 2,353
    "repair" history and "accident" history are two different things.

    Having "some work" done on your car, like having and air conditioner compressor, alternator or fuel pump replaced may be no big deal at all - there's no legal recourse if you don't disclose that you replaced your alternator.

    Having an accident, then having the damage repaired, depending on its severity, is a legal issue should you not disclose it.

    If a dealer doesn't disclose substantial accident damage when selling a used car, you can bet there's going to be a lawsuit.

    Many dealers are getting tired of getting screwed over by lying customers who don't disclose major issues with their trade-in vehicles. Many have gone to a formal disclosure sheet that requires the customer to entail whatever damge or major repairs have occured during their ownership. This DOES give the dealer legal recourse against the consumer, and rightly so.

    There's no such thing as a free lunch.

    The funny thing about this particular question is that a guy who loves the word "hooey" to describe the lyin' cheatin' ways of car dealers is giving suggestions on "how to lie" to help a consumer lie about their trade.

    Kinda' takes a shot at the ol' credibility, doesn't it?
  • ateixeiraateixeira Member Posts: 72,587
    John: must be, because I ran one on my own Miata, which had been hit (and repaired), and nothing showed up.

    -juice
  • tk865tk865 Member Posts: 52
    Should never say with authority: "This car has never been wrecked." No matter how good you are, it IS possible for a very good paint/repair shop to get one past you. The best you should expect to hear from an honest dealer is "The vehicle does not appear to have been wrecked, and has a clean Carfax history". Also, I know here, the salesperson DOESN'T know the repair history, nor can the vast majority of them spot paintwork. The used car manager, however, should have that info.
  • rivertownrivertown Member Posts: 928
    If the guy appraising your trade is blind, you should disclose. Otherwise, the appraiser'll know just by looking over your car.

    Like I said, "If you try to conceal OR make a big deal about the repair, it'll just hurt your position as you negotiate the deal." LOL, there's always the possibility of pointless argument.
  • zueslewiszueslewis Member Posts: 2,353
    but you also said:

    "About disclosing repairs to your car - I wouldn't sweat it. ..... "Yup, I've had some work done. What's the bottom line?" is where I'd go. If you decide to private sell the car (you'll do better that way), I'd point out the repair just to save some kickback later on."

    You left the rest of that out. Your sentence, directly above in post #4250, doesn't sound bad by itself. Combined with the rest of that paragraph, it's conspracy to commit fraud. Or "hooey" as you'd say.

    You really shouldn't blast anyone for lying when it seems so easy for you to recommend/suggest.
  • qbrozenqbrozen Member Posts: 33,647
    regarding your tax question:
    the way it works here in Jersey, you pay tax on the purchase price, minus the money they give you for your trade. So I can't tell you based on the numbers provided because you tell me your negative equity on the trade, but not what they are giving you for your trade. In other words, if your car is worth $10K, but you owe $12K:
    Purchase Price: $23,000
    minus value of trade: $10,000

    $23-$10=$13

    so you pay tax on $13K. Then add back in that $12K that you owe on your trade - tax free.

    I am not sure, however, about the rebate. I was originally thinking you don't pay tax on that either, but then I remembered that you do pay tax on the money that you get off when you use a coupon at the store or when you have a mail-in rebate. So I confused myself. ;)

    '11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S

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