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Old 04-16-2015, 10:11 AM
 
847 posts, read 956,327 times
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I worked at several different car dealerships in college, usually in service but was familiar with sales.

Quote:
Originally Posted by Juram View Post
To an extent, but sometimes people get downright silly when it comes to the price that they are looking to pay. I have a friend that is a general manager at a car dealership in town and he's always amazed at how people seem to assume that there's a tremendous profit margin on new vehicles and how often he's got folks coming in and making ridiculously low offers on vehicles and then throwing a fit when the dealership tells them "thanks but no thanks." Or people who expect the dealership to take a $3,000 or $4,000 loss on a vehicle because "I'll be happy to be a reference and recommend others to you."

That or people who come in with vehicles that they purchased a couple years ago, are incredibly upside down on and get angry when they hear what their monthly payment on a new vehicle is going to come out to be, upset because they were expecting to get the full value of their vehicle even though the bank still owns far more of it than they do.
This stuff happens. On the one hand, dealerships have historically been slimey, so it's understandable that people have this model in their head, but yes, situations like these are just stupid. I worked for one luxury brand where the difference between sticker and invoice on their entry level model was about 10%, so ~ $3000 - $3600. Yet people wanted to go thousands more below that. It's like ok, sure there are manufacturer incentives to the dealership and so forth, but it's not THAT much.

Quote:
Originally Posted by Juram View Post
From everything I've heard, most dealerships are moving to a more straightforward sales model, with the internet and all the information that people have access to, the better dealerships aren't giving people the run-around the way they used to and in some cases, the salespeople are working solely on salary and not commission.
I worked for one dealership group whose sales model was that they hang their best price from the rear view mirror of every single vehicle, and there's no haggling. In 99% of cases, this price was BELOW even the invoice price. For the salesperson, their commission was a flat price. $250 per car for the first x cars, then $300 for the next y cars after that, and then $350 per car for any cars above that. So it was about volume. Move more actual cars, not more gross per car. Their sales volume was fantastic, their customers were happy, and so were their consultants. It's amazing how much better the process is for everyone involved when it's no longer about the price of the car, but more about the car itself.
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Old 04-16-2015, 04:59 PM
 
Location: Leaving, California
480 posts, read 840,246 times
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Quote:
Originally Posted by Jkgourmet View Post
I'd totally agree with that, but we found the savings from USAA's program to be better in Raleigh, NC than we did in Phoenix, AZ.

Might be because there's a really big military base about 2 hours from Raleigh (Fort Bragg in Fayetteville). I'm unaware of anything in AZ that comes close to that in size.

They delivered the vehicle directly to our home.
Oh, I agree. Few bases are as large as Ft. Bragg. We have a couple of Air Force bases here in Arizona (Luke AFB here in the Phoenix area, and Davis-Monthan AFB down in Tucson), but nothing at that scale. Great service by the dealer, too! :-)

Speaking of Arizona military bases, I always encourage people to use Google Maps to look at the retired/obsolete aircraft parking areas down at Davis-Monthan. Just wow. It's like a catalog of the Cold War and Vietnam. (Although note that the B-52s parked down there are un-retired when we lose an operational aircraft.)
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