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They don't have $5K wiggle room. You have to get into luxury cars and fully-loaded Tahoe's before you even get close to that.
When you use CostCo, they send an email to the Internet department, who then sends them a fixed CostCo price, usually around $250 over invoice. The rebates are subtracted from that. No way he got $5K under invoice plus rebates. That would lose the dealership around $4K.
Tried Costco a few years ago when I was looking at a Malibu Maxx. I knew who the Costco dealer was so I didn't deal with Costco at all on this. Costco doesn't do too well with GM it seems; the best he could do was the "supplier discount," which is what you can probably get if your uncle works for GM. It wasn't too good, considering a lot of people around here get the real GM employee discount. I don't think I would buy a GM car at the Costco price.
There is no "CostCo" price. All CostCo does is email some dealers and get a quote and market it to the consumer as the "lowest price", when in reality, anyone with an ounce of negotiating sense (or even just getting an Internet quote) can get the same or better price.
So they shouldn't make money off it? Again, it's a business. Businesses make money. You get ripped off more by the grocery store than you do car dealers.
You do hopefully understand that when the dealer sells a $30K car, they don't actually make $30K. It's entirely possible they were only making $50 on the car if they needed it to go away. I sold more than a few cars at a loss just to get them off the lot. It costs money to keep a car sitting on the lot. The manufacturer only subsidizes floorplan costs for a certain period of time.
Keep being insulting. It only makes you seem like even more of a classless piece of trash.
Aside from that, I don't know...maybe taking care of their family? Paying a mortgage? Earning a living?
Again, as I said, how little you actually know about the actual business of running a dealership is quite apparent. New cars are expensive, so is cleaning them, maintaining the showroom, and everything else that goes into it. Sure, in luxury cars a new car department will be profitable (or should be), but in most domestic store where they average $500 or $600 profit on a car, new cars can actually be a money-losing department. However, new cars feeds finance, used cars, and service, which is where the dealership makes it money.
If you don't like the salesman, leave. I did when I was looking at new cars. One pissed me off by being an ass, so I stood up and left.
Otherwise, negotiations are a game. It's positional negotiations, it's not personal. Too many people want it to be personal, but it's simply business.
Sure they make money off of it but, how much is reasonable? I'll be willing to bet most people don't know they(car dealers) make anything off of finance charges. We aren't talking about milk here we are talking about the second biggest purchase most people will make. What is reasonable? I know dealers have to make money but, on the other hand people need to know they aren't being ripped off just because some car dealer said so.
Regardless of what you might think I am smart enough to know if they sell a car for 30,000 they don't make 30,000. Duh. Again how do you keep the doors open making no money to loosing money? It just don't add up!!
In most cases you can't leave...they will send lizards from all over the place to twist your just a little more.
It is personal at least the salesman want's you to think so. Hey buddy I'm trying my best to get you a good deal...I'm working for you!! (sure you are buddy)
I'm on to car salesman....I guess that's why I am a classless piece of trash.
Am I supposed to give in and tell you are right now.
Yes it is simply business....business as usual.
Don't get me started on the service departments.
Oh I forgot....I'm done with this, nuff said
Last edited by HiBall; 10-04-2010 at 08:54 PM..
Reason: forgot something
In most cases you can't leave...they will send lizards from all over the place to twist your just a little more.
You're telling me a grown person capable of purchasing a car isn't capable of getting up and leaving? If you want to leave, you can leave.
Quote:
Originally Posted by HiBall
I'm on to car salesman....I guess that's why I am a classless piece of trash.
Or it could be because you immediately started insulting people and me, without knowing anything about me, or, as evidenced by your posts, anything about the car business. I'm sure I could come up with some insulting remarks about your profession, but I choose not to.
Just a thought.
Quote:
Originally Posted by HiBall
Regardless of what you might think I am smart enough to know if they sell a car for 30,000 they don't make 30,000. Duh. Again how do you keep the doors open making no money to loosing money? It just don't add up!!
Do you have a reading difficulty? I've explained it several times.
I never had a problem and always bought at $100 over invoice. I know several people at the dealership and talk to the mechanics and parts counter people all the time. They know that my price is my price. All they have to do is place a telephone call and order it. I don't buy off the lot and custom build everything. I don't BS when I go to look for a new vehicle either. They know if they make me my price as usual ,it is a done deal. In other words, I don't go in for a year, every week and waste people time! LOL Money talks and BS walks. Some people just give off the vibe that they are yanking the salesman's chain and have no intention of buying something. They just want to "stroke em" hence the coined term used for such people "strokers". Let them know you don't fool around and will buy if the price is right. Once they determine this you are home free!
I agree with almost all of your post. However, most people don't shop for a car to please the people who work at the dealership. My car is 10 years old. I like to shop long before I'm going to need a car. So, I stay up on what's out there. If I see a new model I like, I'm going to go look at it in person and even drive it. Am I breaking the law by looking at cars with no intention of buying right now? It's a big investment that most of us use extensively. I can't take it back if I change my mind. So, yea I'm going to go to great lengths to get it right before I'm even needing a car.
When I am ready to buy, I'll go to truecar.com and get the best price at the best dealership and close quickly. If sales people don't like people like me who like to look and educate themselves on the vehicles that are on the market, they probably are in the wrong business. It comes with the territory.
I agree with almost all of your post. However, most people don't shop for a car to please the people who work at the dealership. My car is 10 years old. I like to shop long before I'm going to need a car. So, I stay up on what's out there. If I see a new model I like, I'm going to go look at it in person and even drive it. Am I breaking the law by looking at cars with no intention of buying right now? It's a big investment that most of us use extensively. I can't take it back if I change my mind. So, yea I'm going to go to great lengths to get it right before I'm even needing a car.
When I am ready to buy, I'll go to truecar.com and get the best price at the best dealership and close quickly. If sales people don't like people like me who like to look and educate themselves on the vehicles that are on the market, they probably are in the wrong business. It comes with the territory.
So what you're saying is you go and purposefully waste a salesperson's time by driving a car with no intention of buying it from them.
I had something happen that was extremely odd and irritating before. One time while stopped at a truck lot looking at new trucks, I heard my own pick-up start and drive off! WTF??? I see it stop up the lane and park with a dufuss salesman getting out. This is about 500 feet or better from where I was standing and where it was parked. I walked over to my truck and asked him "WTH are you doing in and moving my truck"? He said he needed to get another truck out for a test drive. Soooooooo, you enter someone elses vehicle without their permission, start it and drive off with it? F"n" idiot, you were lucky I realized you were a dufuss salesman before I ruffed your azz up or worse! Use that head for something other than a hat rack next time, will ya!
My car is 10 years old. I like to shop long before I'm going to need a car. So, I stay up on what's out there. If I see a new model I like, I'm going to go look at it in person and even drive it. Am I breaking the law by looking at cars with no intention of buying right now? It's a big investment that most of us use extensively. I can't take it back if I change my mind. So, yea I'm going to go to great lengths to get it right before I'm even needing a car.
Ditto!
I start researching about a year before I need a car. I started shopping for a car and I was really liking one particular car and I test drove it and the seat arrangement was awful and no matter the levers or buttons to adjust my seat could not help it. I saved myself a ton of grief of having to run around and look for something else on very short notice (my car was on its last legs at the time). It is once we get close to really, really needing a car is when we end up paying too much because we need the car ASAP.
So what you're saying is you go and purposefully waste a salesperson's time by driving a car with no intention of buying it from them.
As someone who has been in the business for over 45 years ...
I'd have to take some exception to your comment.
That person visiting the lot to follow up on their initial interest may yet be developed into a real prospect, if not a deal. If not today, tomorrow ... when they're ready to buy.
Surely, you can help the process along with "knife edge" type questions leading to a sale. But most folks don't really enjoy being pressured into making a big decision, although they may be responsive at the time, and may even make a purchase.
In my view, much of successful car sales is relationship based selling. What we're seeing in a lot of the posters here is that a lot of people have been very turned off by the car buying experience and car sales tactics they've encountered.
In my experience, the top producing car sales people focused on establishing those long term client relationships. In some cases, those relationships have been strong, multi-generational ... even if the product they were selling in some years wasn't the best available.
Of course, it's the salesman's job to qualify a "test driver" as a real suspect, possible prospect ... rather than simply a "joy rider". But you never know ... I've seen folk without any money or credit prevail upon a financially capable family member to buy (or co-sign) a car for them. Treated right, that person came back to the dealership where they felt comfortable rather than humiliated or embarrassed.
As someone who has been in the business for over 45 years ...
I'd have to take some exception to your comment.
That person visiting the lot to follow up on their initial interest may yet be developed into a real prospect, if not a deal. If not today, tomorrow ... when they're ready to buy.
Surely, you can help the process along with "knife edge" type questions leading to a sale. But most folks don't really enjoy being pressured into making a big decision, although they may be responsive at the time, and may even make a purchase.
In my view, much of successful car sales is relationship based selling. What we're seeing in a lot of the posters here is that a lot of people have been very turned off by the car buying experience and car sales tactics they've encountered.
In my experience, the top producing car sales people focused on establishing those long term client relationships. In some cases, those relationships have been strong, multi-generational ... even if the product they were selling in some years wasn't the best available.
Of course, it's the salesman's job to qualify a "test driver" as a real suspect, possible prospect ... rather than simply a "joy rider". But you never know ... I've seen folk without any money or credit prevail upon a financially capable family member to buy (or co-sign) a car for them. Treated right, that person came back to the dealership where they felt comfortable rather than humiliated or embarrassed.
Normally, I'd agree with you...I never minded a long-term sale. However, he explicitly said he goes on test drives with salespeople and then
Quote:
When I am ready to buy, I'll go to truecar.com and get the best price at the best dealership and close quickly.
So he's just wasting time and costing them money.
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I see it stop up the lane and park with a dufuss salesman getting out. This is about 500 feet or better from where I was standing and where it was parked. I walked over to my truck and asked him "WTH are you doing in and moving my truck"? He said he needed to get another truck out for a test drive. Soooooooo, you enter someone elses vehicle without their permission, start it and drive off with it? F"n" idiot, you were lucky I realized you were a dufuss salesman before I ruffed your azz up or worse! Use that head for something other than a hat rack next time, will ya!
