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#2072 of 2121 Re: Invoice & profit [mattgg1]
by Kirstie@Edmunds HOST
Nov 14, 2008 (11:15 am)
Enough. Seriously. E-NOUGH.
We draw the line at harrassing other members to respond to questions or allegations. They don't have to. You don't have to. No namecalling.
End of this discussion.
I have a schnazzy belt and purse made from the hide of the horse that was beaten to death sometime during the course of this discussion. Further posts pursuing this line of conversation will be removed without notice.
#2073 of 2121 Re: Invoice & profit [kirstie_h]
Nov 14, 2008 (12:06 pm)
#2074 of 2121 Re: Invoice & profit [dtownfb]
Nov 14, 2008 (3:08 pm)
I personally could care less what a dealer makes or if they make any money. I negotiate a price that I am comfortable paying. I do all my research and number crunching before I finalize a deal. Plus there are so many ways that a dealer makes money on selling cars that I (and you) may not be aware of like manufacturer sales incentives.
Your attitude is certainly a very common one. Customers don't care what,if any profit we make and they still mistakenly believe that dealers have hidden ways to make money. Even after websites like this make it plain that dealers don't have these hidden revenue streams.
All anyone with a brain has to do is look around at all the dealers and manufacturers in trouble right now. There is going to be a HUGE readjustment in the auto industry over the next couple of years. Fully 1/3 to 1/2 of the dealers in business now could be gone in a few years or sooner. The reason why consumers have the upper hand isn't due to the internet, it is due to the fact that there simply are too many dealers cutting each others throats. Get the number of dealers under control and profits will rise. Yes, it will make cars more expensive for consumers,but frankly, cars are too cheap right now as it is. The manufacturers have created this bubble by making it easier and easier to buy cars. Same thing as what happened w/ housing.
#2075 of 2121 Re: Invoice & profit [mattgg1]
Nov 14, 2008 (3:31 pm)
I'll answer your question.
The customer is gonna get diddley/squat.
Because customer service is entirely dependent upon the dealerships revenue stream. People who are the best at serving the customer want to go where they can make the most money. So, the dealer with a lower revenue stream simply has to hire people who they can afford to pay.
Which is why there are so many complaints on this website about dealership behavior. Note that you almost NEVER hear anyone complain of the way they are treated in a Mercedes, or Lexus or Porsche store.
Why? Because those people who work there are getting paid.
Now, before you start splitting hairs about the 1 guy who paid good profit vs the 1 guy who didn't that doesn't matter. Things don't work like that.
Your average mass market dealership doesn't have the ability to separate those people. What Moo is talking about is a dealership that does,like a Porsche store.
Or a Lexus store, or a bimmer store or a Volvo store. Piss off the dealer and see how you are treated. At a Hyundai store, there simply isn't enough revenue potential to matter. But, someone who buys a lux car and pays real money and refers people and has a relationship w/ the store is gonna get his backside kissed, buffed and polished. The guy who buys the Hyundai is just a number today, nothing more. Chances are,his salesperson won't even be there should he ever need anything.
I think if we are going to agree on anything, it is that you get what you pay for.
#2076 of 2121 Re: Invoice & profit [saablcp]
Nov 14, 2008 (3:34 pm)
One question I will pose to the consumers in this forum from a sales persons perspective: Is there ANYTHING and I mean ANY"FREAKIN"THING you buy as a consumer that you give any thought to or care one iota about what the profit margin your retail provider is making.
OK I will answer, no not even cars. I really don't care how much money the dealership makes or doesn't make off of me. Same as I don't care how much wally world makes off of me or the restaurant or movie theater makes.
I do care about getting a good deal and not being overcharged. That is especially true for big ticket items. I will research and find out what are the best prices and what some retailers are selling for. I am also not afraid to try to negotiate a price, sometimes it works and sometimes it doesn't.
#2077 of 2121 Re: Invoice & profit [kirstie_h]
Nov 14, 2008 (3:36 pm)
I have a schnazzy belt and purse made from the hide of the horse that was beaten to death sometime during the course of this discussion.
To tell the truth I think the steak I had last night came from the same horse.
#2078 of 2121 Re: Invoice & profit [volvomax]
Nov 14, 2008 (3:40 pm)
I'll answer your question.
I liked moo's answer better.
Also, the "Grand Pooh Bahh" said no more posts on this particular subject. So, be prepared to have the Delete-O-Matic 5000 rainith down upon yo head.
#2079 of 2121 Re: Invoice & profit [volvomax]
Nov 14, 2008 (7:09 pm)
I don't disagree with you. I know it has been discussed before that no-haggle pricing is the best option. but as you mentioned, all you need is one dealer who decides not to play the game.......
#2080 of 2121 Re: Invoice & profit [volvomax]
Nov 14, 2008 (7:51 pm)
The manufacturers have created this bubble by making it easier and easier to buy cars
While true, this has been the driving force for the sales volume. The problem the car industry is going to have is that people buy cars mostly based on want, not need. Most people don't need a new car every few years. Cars are built to last a long time, and if people keep them twice as long, then that would be alot fewer new car sales. Not to mention the people who could, but now can't get financing. The inability to get people with poor credit financed will be a huge loss to dealerships. They often tend to be the least informed buyers.
#2081 of 2121 upside down trade in
Nov 14, 2008 (9:19 pm)
Hey all,I need some advice,
my past experience buying a car was pretty disastrous. I walked in to buy a $4000 honda and walked out with a $10'000 Audi... a couple of years later, i'm back to shopping for a Honda, except now, I still owe $6000 on the audi, and trade-in looks like the best option. At a $4000 trade in value, what are my financing options should I find a car at 4k or less... could the difference be transferred over?
Appreciate any input.