Last post on Oct 31, 2013 at 1:29 PM
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Car Buying, Car Financing, Car Leasing
#20 of 39 Re: How could it be worse? [boomchek]
Mar 26, 2013 (8:12 pm)
Bargained at the flea market today on a couple of items. Guy had a beautiful wooden cane that he wanted $25 for. Offered $10 and he took it! He had to cut it down to match my current cane size and put a rubber tip on the bottom also...he's very good and was recommended to me by a friend. he sells all kinds of stuff and saw a German paring knife for $4.00 and got it for $3.00. Don't know his cost on all these items but they must be really low for him to accept my deals. But I was the only one in his cubicle so he made something from me no matter what...and all cash as it didn't seem fair to charge it all. he also reglued my other loose cane "Cain" and put on a tip on a 3rd cane that had lost it recently. Real nice guy whose shop I definitely will go back to...he made a customer out of me and the wife & girls will love his place.
But even though there's all this info on the web about invoice, etc., I never really know if we got the best deal possible as it involves many variables and we as consumers don't know most of them. No matter what, the dealer is usually always in the catbird seat on any deal. We all have our "target price" on what the vehicle is truly worth to us ans usually start at a much lower price point so we can negotiate. If we do better, we're thrilled to death and if we make it by a few bucks, there still is joy that we didn't pay over our "target price". After the papers are signed and we drive off, we stop wondering as the deal is done and just want to enjoy the new vehicle purchase. It must feel terrible to find out later that one got raped by the dealer because every day you drive the vehicle, it's a constant reminder of the bad deal. Sometimes ignorance really is bliss so get your best deal and move on and enjoy as there's nothing so wonderful as purchasing a new to you vehicle and that great new car smell...orgasmic!
The Orgasmic Sandman
#21 of 39 Re: How could it be worse? [tommister2]
Apr 03, 2013 (9:12 am)
I know the dealers get kickbacks from the manufacturers based on sales volumes (extra allocations, cash bonuses quarterly, etc.). If they are willing to sell below invoice they must get more money some other way.
Yes, but those like you said, have more to do with performance bonuses than the dealer cost of car. They don't occur all the time and are variable.
Just like if your salary is $xxxxx per year, an occasional performance or Christmas bonus that may or may not happen still doesn't change your salary figure. It's just a bonus.
If you go to your bank and ask for a loan, they will want to know what your guaranteed salary is, not what your occasional bonuses may be.
So true cost may be the invoice, however the dealer may receive bonus money from the manufacturer for performance and they can allocate it as they wish - to employee bonuses, facility upgrades, or to lower their cost on cars, but it doesn't mean they will give it away to customers.
#22 of 39 Re: How could it be worse? [boomchek]
Apr 03, 2013 (11:30 am)
Right, I understand that they can use it any way they like. Some dealers will not sell below invoice and some will. It is their choice. I wonder if the ones that sell below invoice without too much of a fight know they are getting a bonus, or maybe they figure they will get it from the next buyer? Or they hope to get something from the buyer in F&I...
#23 of 39 Re: How could it be worse? [tommister2]
Apr 03, 2013 (11:35 am)
From personal experience of working in the car sales business for about 10 years, the ones that sell the cars way below invoice, or cheaper than other regional dealers, tend to also sell fewer cars, and tend to either close down or change ownership often because they lose money on a regular basis.
When I worked at Chrysler, each month we had sales figures of all local Chrysler stores, and their average profit per car. The dealers that made the least also sold the least (they lacked sales process and HAD to give their cars away in order to try and stay afloat). They ended up closing down, being bought out by bigger franchises and turned profitable, or changed brands completely.
#24 of 39 Re: How Would You Improve the Car-Buying Experience? [sandman_6472]
Apr 04, 2013 (3:06 am)
Your welcome, my observation was for readers who might not have gleaned the obvious. Most lenders do not require a credit score of much more than 720 for the best rates. A score of 720 is very good but not stellar.
Rather than pay cash, it is often better to let the dealer finance the sale. Allowing the dealer to think it made a bit of profit on the financing might result in that dealer selling the vehicle for a lower price. Since there are no pre-payment penalties for most auto loans, especially for someone with a stellar credit score, the loan can always be paid off immediately.
#28 of 39 Scarff up a low stress deal on a Subaru
by Stever@Edmunds HOST
Sep 25, 2013 (1:22 pm)
"All vehicles in the Scarff inventory have a large "Bottom Line Price" tag hanging from the rearview mirror. This offer applies not only to new cars, but to pre-owned and certified pre-owned vehicles, as well.
The store nearly doubled its market share after implementing the sales strategy. In addition to the uptick in sales, the level of stress was reduced for both the buyer and the dealership's employees. With less stress on the employees, staff turnover was reduced. Scarff has been able to retain a long-term, experienced sales team. Scarff says this is one of the reasons his dealership was rated the number one dealer in customer satisfaction in his area by Subaru of America, five years running."
Washington Subaru Dealer Takes Haggling Out of Car Buying With Bottom Line Pricing
#29 of 39 Re: Scarff up a low stress deal on a Subaru [Stever@Edmunds]
Sep 25, 2013 (2:22 pm)
Interesting...my grandpa and uncle (I think) bought a few cars from that group over the years.