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Old 09-28-2015, 04:54 PM
 
Location: Washington, DC & New York
10,915 posts, read 31,243,414 times
Reputation: 7137

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Last edited by bmwguydc; 09-28-2015 at 06:36 PM..
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Old 09-28-2015, 05:08 PM
 
837 posts, read 751,041 times
Reputation: 281
Quote:
Originally Posted by IShootNikon View Post
It's not the fact that you're trying to make a profit, it's your way of doing it. Why do you think customers usually hate car buying experiences. The whole process is just sleazy and filled with dishonesty (from both sides mind you)

Customers are 10x worse

How about people who agree on a deal and put deposit down, next day they come back and say they won't buy a car unless you chop it another 3K? How would you feel if we agreed to a deal and I raised the price 3K next day?
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Old 09-28-2015, 05:11 PM
 
Location: Birmingham
11,787 posts, read 17,634,822 times
Reputation: 10119
Quote:
Originally Posted by jaypee View Post
I was talking about car salesmen not adding any value.
The cashier at the general retailer adds value.
You say this as if you speak for the majority of the car buying public. There are lots of people who need help being guided through the buying process. Furniture, cars, homes, electronics - not every body knows exactly what they want before they see it in person. Nor are they aware of all the incentives or buying options they have.

If you want to skip the salesman and come in with your offer and go straight to the sales manager with cash, go right ahead.
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Old 09-28-2015, 05:31 PM
 
1,883 posts, read 2,811,441 times
Reputation: 1305
what kind of commission do you get off from financing?
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Old 09-28-2015, 07:20 PM
 
1,213 posts, read 3,090,654 times
Reputation: 995
I've noticed two "philosophies" at local dealers when it comes to pricing and moving used cars.

Dealer type "A" starts the asking price out kinda high. But if the car does not get a buyer within the first few weeks, they will lower the price by $500-$1,000 every few weeks. Recently saw one of these dealers lower the asking price of a BMW 5-series by $4,000 in two months. If it's still on the lot at the end of 60 to 90 days, it goes to the auction. They seem to want to move cars.

Dealer type "B" starts the asking price out lower than dealer "A", but will rarely lower the asking price or negotiate much. They will sit on a car for 6 month or more until it sells. One dealer like this had a Pontiac G8 that they sat on for 8 months, I drove by it every day. They only lowered the asking price $1,000 during this time. I don't know if they finally found a buyer or just sent it to auction. This type of dealer seems more concerned with getting the price they want, regardless of time.

What is each dealer's strategy behind these methods? What does your store do, and why? What ultimately makes more profit?
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Old 09-28-2015, 07:24 PM
 
16,979 posts, read 21,607,423 times
Reputation: 29052
Quote:
Originally Posted by brantleygilbert View Post
Customers are 10x worse

How about people who agree on a deal and put deposit down, next day they come back and say they won't buy a car unless you chop it another 3K? How would you feel if we agreed to a deal and I raised the price 3K next day?
AKA- Buyers are liars!
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Old 09-28-2015, 07:28 PM
 
16,979 posts, read 21,607,423 times
Reputation: 29052
Brantley- Do you sell Tru-Coat?


https://www.youtube.com/watch?v=G8qWG-glPC4
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Old 09-28-2015, 07:47 PM
 
Location: In a little house on the prairie - literally
10,202 posts, read 7,865,455 times
Reputation: 4559
Quote:
Originally Posted by JohnZ963 View Post
I've noticed two "philosophies" at local dealers when it comes to pricing and moving used cars.

Dealer type "A" starts the asking price out kinda high. But if the car does not get a buyer within the first few weeks, they will lower the price by $500-$1,000 every few weeks. Recently saw one of these dealers lower the asking price of a BMW 5-series by $4,000 in two months. If it's still on the lot at the end of 60 to 90 days, it goes to the auction. They seem to want to move cars.

Dealer type "B" starts the asking price out lower than dealer "A", but will rarely lower the asking price or negotiate much. They will sit on a car for 6 month or more until it sells. One dealer like this had a Pontiac G8 that they sat on for 8 months, I drove by it every day. They only lowered the asking price $1,000 during this time. I don't know if they finally found a buyer or just sent it to auction. This type of dealer seems more concerned with getting the price they want, regardless of time.

What is each dealer's strategy behind these methods? What does your store do, and why? What ultimately makes more profit?
Dealer A every time.

Good used car inventory management dictates no more than 90 days on the lot, and good dealers will average a 45 day turnover. I remember one dealer I consulted to who had a phenomenal 25 day average days in stock. Among other things, his used cars got priority treatment in service and body shop departments, so they were lot ready in much less than usual time. His used car managers worked with a good network of wholesalers in addition to using the dealer auction.

His simple philosophy was that 3 dimes are better than a quarter. In other words, the more he could turn his stock, the more money he made. He'd rather take 3 $1200 gross profit deals than one $2800 one. Interestingly enough though, his average gross profits were significantly higher than his 20 Group.
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Old 09-28-2015, 07:57 PM
 
Location: Shady Drifter
2,444 posts, read 2,734,895 times
Reputation: 4118
Quote:
Originally Posted by NoleFanHSV View Post
Thats because dealerships make money off of Finance, warranties, dealer add-ons( 500 dollar leather protection ), and the service department.
Oh my God! Business try to make money off the sale of ancillary items? When did this horrible practice start?
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Old 09-28-2015, 08:33 PM
 
Location: Western MN
995 posts, read 992,190 times
Reputation: 1804
Quote:
Originally Posted by SoCalCpl2 View Post
Ok my question is - Why are you and your fellow salesmen all dicks???
So in a dealership situation who administers the web page design?
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