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It wasn't my example. I didn't make it up. Someone making 8% is a swindle? How much do you think the manufacturer of your phone is making?
I'm not paying $30k for a phone. But that's not even the point.
For me, all the talk about the need for "transparency" is due to shady car sales practices. That's where the "swindle" stems from.
I always got a kick out of a customer that claimed to be a cash buyer when what they actually meant they had been pre-approved for a loan already. It's why I simply dismissed the claim in my head. Of course I would say "that is great, one less thing to worry about" but I can't tell you how many times the dealer was actually able to provide the customer a lower rate than they had been approved for, both saving the customer money and making the dealer a little extra.
Exactly what you said. But the dealership is swindling the buyer because now they're handling the financing. So what if the dealership makes a little bit on the back end of the deal if they finance through their lenders. That "cash" buyer will hear nothing of it even though the rate is better and they would be paying less interest over the course of the loan. In their minds they're somehow getting screwed over by the dealer.
Exactly what you said. But the dealership is swindling the buyer because now they're handling the financing. So what if the dealership makes a little bit on the back end of the deal if they finance through their lenders. That "cash" buyer will hear nothing of it even though the rate is better and they would be paying less interest over the course of the loan. In their minds they're somehow getting screwed over by the dealer.
Why do you think this is?
What got the buyers thinking this way?
I hate wasting my time negotiating. I have many better things to do with my time. I would rather pay a little more and be out the door in an hour than waste hours of my time to skim just a little more off the top not knowing in the end if I did get the best deal I could have. I know there are a lot of negative comments on here about it but I prefer dealerships like CarMax, where the buying process is laid out in front of you and they don't work for commission.
I don't like when dealers try to get me to buy GAP insurance, extended warranties, financing, etc.. When I go car shopping I am already pre approved for a loan and want to buy a specific car with specific options. Don't try to sell me something else. If I will be trading in my car I don't want it appraised until after we settle on a number for the new car. I also don't like test driving (if at all) before the numbers are where I need them to be. Again, this is a waste of time.
I would love to just order a car from the factory and have it delivered to my door to be honest.
I've read through some of these posts and I'm amazed at the entitlement that some people have. They expect the dealership to just hand over a vehicle at no profit. The holdback that everyone feels entitled to receive is not yours to have. The holdback is a small percentage of profit on the back end that is between the manufacturer and the dealer and paid out only after the vehicle has been sold and warranty registered. No dealer is ever required to show the holdback or even offer it. In the past few years it has become almost expected that the dealer show and offer their holdback.
Next time you try selling your home using a realtor, which will most likely be a much greater amount than your average vehicle, ask the realtors to work for you for only a 1.5% commission. Walk into an Apple store and ask to see invoice on a new MacBook and tell them you're only willing to pay invoice. The automotive industry is the only industry that I can think of where everyone loves the product they're buying, hates the establishment offering the product and expects to pay the same amount the dealer is paying.
I can't speak for everyone, but I'm not saying I'm entitled to the holdback. What I'm saying, is the dealer can't show some absolutely made up invoice, act as if holdback doesn't exist and then whine about how they are not making money in the deal, because that is a LIE. Supposedly, lying is not ethical, or so they say. If you can't make money, don't do the deal. Like I said, I'm happy to have an honest conversation without games about pricing and make sure everyone leaves happy. It's not worth my time to get the final $200 out of the deal or whatever, that's probably not half a payment, but don't act like I'm stupid.
As far as Apple with MacBooks, you don't see them selling one for $1200, one for 1250 to the grandma and one to the tough negotiator for 1050 now do you?
If I was the only one that everyone loved my product but hated me, I might try to find out why and change. Instead, the entrenched dealers try to fight people like Tesla that try to do it differently just like entrenched players almost always do instead of innovating.
I'm not paying $30k for a phone. But that's not even the point.
For me, all the talk about the need for "transparency" is due to shady car sales practices. That's where the "swindle" stems from.
Go somewhere they don't and not all do. Word of mouth is a good thing. It's even easier today with the internet sites that allow you to rate a business.
I enjoy going to auctions......there was one auctioneer that I simply would not attend. Many noted what he would pull and I saw him do it. He did eventually go out of business.
I hate wasting my time negotiating. I have many better things to do with my time. I would rather pay a little more and be out the door in an hour than waste hours of my time to skim just a little more off the top not knowing in the end if I did get the best deal I could have. I know there are a lot of negative comments on here about it but I prefer dealerships like CarMax, where the buying process is laid out in front of you and they don't work for commission.
There is absolutely nothing wrong with that. My wife hates it also. She picks out the car and leaves.
Quote:
I don't like when dealers try to get me to buy GAP insurance, extended warranties, financing, etc.. When I go car shopping I am already pre approved for a loan and want to buy a specific car with specific options. Don't try to sell me something else. If I will be trading in my car I don't want it appraised until after we settle on a number for the new car. I also don't like test driving (if at all) before the numbers are where I need them to be. Again, this is a waste of time.
This is where you could use a good experienced salesperson. If you told me that you were only interested in getting your car appraised after you were happy with the deal, I would have said "great, let's see what we can do". I might ask you to go ahead and drive unless you had a good reason (my dad has the same car and I love it) as I didn't really want to waste my time negotiating only for you to drive and then decide you didn't like the car and that is how I would explain it.
Quote:
I would love to just order a car from the factory and have it delivered to my door to be honest.
What happens when the seat hits you uncomfortably in the back?
There is absolutely nothing wrong with that. My wife hates it also. She picks out the car and leaves.
This is where you could use a good experienced salesperson. If you told me that you were only interested in getting your car appraised after you were happy with the deal, I would have said "great, let's see what we can do". I might ask you to go ahead and drive unless you had a good reason (my dad has the same car and I love it) as I didn't really want to waste my time negotiating only for you to drive and then decide you didn't like the car and that is how I would explain it.
What happens when the seat hits you uncomfortably in the back?
Haha, Im a little different than most when it comes to buying a vehicle. Its all about look, the brand, etc...if its a little uncomfortable im ok with that. I don't care if I had the most luxurious interior out there, if the look of the car doesn't appeal to me ill get bored with it.
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If you can't make money, don't do the deal. Like I said, I'm happy to have an honest conversation without games about pricing and make sure everyone leaves happy. It's not worth my time to get the final $200 out of the deal or whatever, that's probably not half a payment, but don't act like I'm stupid.
