Last post on Nov 20, 2013 at 9:45 AM
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Car Buying, Car Selling
#3028 of 3350 Re: Trade in ? [qbrozen]
Nov 16, 2012 (4:30 am)
Great advice. Research is the key. A buyer should determine (1) the price they are willing to pay, (2) the value of the trade they would accept, and (3) the difference between the two. Keep that difference in mind and a good deal will be found, regardless of what tricks the dealer plays. Of course, it is usually good to have the trade valued on the high side as that saves a bit on sales tax.
And, as always, a buyer should just say no to everything presented by the top gun sales person in the dealer's F&I office. A simple thing to remember is the F&I people have convinced themselves the only reason a person will not buy the products they offer is the buyer does not understand the value of those products. As a result the relentless F&I sales pitch complete with props all designed to convince the buyer to buy, buy, buy. To those sales people, the fact the products are vastly overpriced plays little part in a buyer's rejection.
#3029 of 3350 Re: Trade in ? [billy3554]
by MrShift@Edmunds HOST
Nov 16, 2012 (8:41 am)
Also great advice. Any sales presentation which is appealing to your emotions rather than your reason (aka "fear", worry, doubt, greed, status, etc) is to be viewed with suspicion.
#3030 of 3350 Re: Trade in ? [billy3554]
Nov 16, 2012 (10:55 am)
I cringe when I see people on these forums who paid $1500 for GAP coverage. I am an insurance agent and it is literally less than 5% of that amount to add it to your insurance policy. I think some people are so beat down by the buying experience by the time they get to the F&I sales pitch they just give in. I have only bought two new cars in my life. One I financed and got the whole sales pitch. The other I paid cash and never saw the F&I room. I was amazed they didn't try to sell me all that fluff. They handed me the keys and I was like...that's it?
As far as sales tax I believe in CA the sales tax is based upon price paid regardless of trade in. Argh.
#3031 of 3350 Hurricane Sandy victim?
by Stever@Edmunds HOST
Nov 19, 2012 (4:45 am)
A reporter would like to speak to Sandy victims who lost a car in the storm and are trying to replace it. If this fits your description, please send your daytime contact info to predmunds.com no later than Tuesday, November 20, 2012 at 9 a.m. PT/noon ET.
#3032 of 3350 Re: Trade in ? [billy3554]
Nov 19, 2012 (6:28 am)
Of course, it is usually good to have the trade valued on the high side as that saves a bit on sales tax.
Well, not to pick nits, but just to be clear, as long as the difference is the same, the tax will be the same. So if I pay $20k for the new car and get $5k for my trade, I'll pay tax on $15k. If they only value my trade at $3k but I pay $18k for the new car, I still pay tax on $15k. This is in NJ. I'm not sure about other states.
#3033 of 3350 Re: Trade in ? [qbrozen]
Nov 19, 2012 (4:14 pm)
same in Pa.Wonder what state he is refering to?
#3034 of 3350 Re: Trade in ? [qbrozen]
Nov 20, 2012 (12:16 pm)
Same here in Florida and my home state of NY. The only difference that makes a difference is the difference.
#3035 of 3350 Re: Trade in ? [koctailz]
Nov 21, 2012 (7:58 am)
Thinking about it, we probably should be happy so many people purchase so many things in the F&I office at inflated prices. I suppose that allows those of us who say no to the F&I offerings achieve a better price on the vehicles we purchase. If dealers did not make so much back end profit, they might not be so willing to discount the front end selling price.
#3036 of 3350 Affiliate/Friends & Family Discounts
Dec 01, 2012 (10:06 pm)
I've just started car shopping and I'm curious about how discount programs for friends/family/business partners work. I work for a very large company that has deals set up for us on a lot of car brands. I went to look at a Dodge Dart today, which could be covered under Affiliate Rewards (1% discount off factory invoice).
If I assume the Edmunds True Market Value is accurate, it says I should expect to pay about 1.9% above invoice.
1) Does Chrysler give an additional payment to the dealer when they sell me a vehicle under this program to help them recover some lost profit? Or is a few low/no profit sales part of doing business (of course there is still financing, dealer options, service, repairs, etc for them down the line).
2) What about the salesperson? The guy who helped me out today seemed great. If I end up buying from him I would hope he earns a commission on the sale.
I figure it's always good to understand people's financial motives in situations like this!
#3037 of 3350 commision
Dec 01, 2012 (10:49 pm)
salesman always earn some money on a sale-how much depends on the total profit to the dealership-but the dealership will pay something to their employee