I have read a few articles that portray the car salesperson and the dealer in general as nothing but robbers, thieves and crooks. I will be the first to admit that there are car dealers and sales persons who give the industry a bad name. But try to find one industry that isn’t like that. I will also tell you that I, myself, have been in the car business for more than 15 years. I have worked from detail man all the way up to general sales manager. Some of these articles have been written by people that who worked in the car business for two months!! If I am still learning after 15 years, how could they know it all?
These are the ways to choose a vehicle that will find you the best price:
1. I will agree with most of them here and say you must do your research. Decide what kind of vehicle you are looking for and do your research on this vehicle. Kelley Blue Book is a good GUIDE but nothing more. Far too often, people assume that this is the absolute truth when it comes to what a vehicle is worth. If it were that easy, why even have dealers, auctions or anything to do with selling cars?
Salespeople are not scared if you know what kind of vehicle you want. It makes their job a miniature easier. We would rather have someone come in that knows what they want instead of that customer who is “just looking”. If you do come in without really knowing what you want to steal you will not procure screwed everytime. Most of the time you will go home without buying because you really do not know what you want. Hopefully, the salesperson will take the time with you so when you do choose you will arrive back to see them. If you know what vehicle you want and have visited Edmunds.com, please make sure the car you want has the same options as the one you looked up. But please, do some research before to protect yourself from the very few “bad” dealers.
2. Don’t come in the dealership with a chip on your shoulder. There is no need to reach into a dealership and commence berating the salesperson. Most salespeople work more than 60 hours a week. If you treat them with respect they will return the favor and most the time will work with you to try and get you a better deal. Remember, they do not make ANY money unless you win. Treating them like a second class citizen will not help you buy a vehicle. Again, if you know all about the vehicle and are equipped with the information that helps you pick a vehicle, the better any GOOD salesperson likes it.
3. No matter where you shop, the best time to get a good deal is at the demolish of the month. This is also true with car dealerships. If the salesperson gets a bonus for selling X amount of cars and he/she is 1 car away, wouldn’t you mediate they will work harder to get you a minute better deal? Why shouldn’t they? And these bonuses are usually not in the thousands of dollars but in the few hundreds. However, what good dealership would allow their Sales Managers to lose money on a vehicle so the Sales Manager can receive a bonus. Believe me, that Sales Manager will not last long.
KEEP IN MIND – Most rebates end on the last day of the month and dealers do not know what the next incentive will be until the following day. You kind of have to gamble here and decide if you want to wait one more day or buy the car now.
4. Sale people Spiffs – There are times throughout the month where the Manufacturer or the dealership will put a “spiff” or a bonus on positive vehicles. It doesn’t happen everyday and 90% of the time it is from the Manufacturer. It usually takes 6-8 weeks for the salesperson to procure his check from the manufacturer. You also must remember that they do not take any taxes out of these checks so the salesperson gets a 1099 tax effect at the end of the year. I have read an article in here that says you should ask to split that bonus with the salesperson so that you will buy the vehicle. How in the world are you going to do that? He/She is going to pay you on something that they haven’t even received yet? Should they deduct the taxes before they split it with you?
Let’s get serious here for a miniature. As I mentioned earlier, an average salesperson will work around 60 hours a week if not more. Lets say you are the only person they sold all week. Keep in mind that they work on a commission basis and only make money if they sell vehicles. Getting encourage to the one car for the week, most minimum commissions are $100.00. Lets say the bonus from the manufacturer is $250.00. Therefore, they made a total of $350.00 on you and for the week. I am no mathematician but $350.00 dollars for that week divided by 60 hours equals $5.83/hour. Would you work for that? I believe not. To ask a salesperson to split something that really has no bearing on the deal you are getting is ludicrous and you may be asked to leave the dealership. When you shop at a department store do you ask the associate that helped you to split whatever they are making? Give me a crash.
5. You should know what your credit rating is before purchasing anything, not impartial vehicles. Depending on what state you are in, it is alright for the dealership to point to you your rating. They should not invent copies and give it to you but they can show it to you while you are in the Finance Office. It is true that the Finance Office can make a little money on the rate but the banks have put a ceiling on what they can charge. There are no tricky ways (if you are a reputable dealer) to scare someone about their rating. Especially when you can ask to search for it.
6. Test Drive – You should always retract a test drive before buying a vehicle. Any salesperson that does not offer you a test drive will not last long in the car business. All salespeople are required by the insurance company that is writing the dealerships policy to go on the test drive with the customer. You should go on a test drive that is anywhere from 10-15 minutes long. That way you can find out how the seat hits your legs, arms and support. You can’t do that on a 5 minute test drive. There are times that you might be able to take the car overnight. The only thing you must do is sign a form that says your insurance company will pay for any accidents if they should occur. A true test drive starts out with the salesperson driving so he/she can justify all of the options that this particular vehicle has. Half way through the test drive, you should drive so you can feel how the vehicle responds to you. The salespeople are taught to be very quiet as to not disturb you from your driving. So this would be the time that you can ask any and all questions you might have.
Remember that through all of this, if you have a good salesperson, he/she will want you to ask questions so they can overcome any objections you may have or to suggest a different car or different options.
7. If you should happen to near into the dealership with a copy of an invoice for the car, again, make sure that the car you are prepared to remove has the same options as the one you printed out. Most dealerships do not mind selling a vehicle for a few hundred dollars over invoice if it is a vehicle that they have in stock. But before you go offering X amount of dollars over or even under invoice, let me turn the table a miniature bit here. Lets say I asked you to give me $30,000 dollars. I told you I would invest it for you and at the end of 60 days I would give you back your $30,000 plus another $300.00. Would you consider that to be a good deal? I THINK NOT! Being that the average vehicle has an invoice of $30,000 and the dealerships have them an average of 60 days (all the while paying a floor plan interest), a $300 profit is not that tantalizing. Especially when the dealership is giving $100.00 of that the salesperson. Now the dealers do have what they call Holdback that they receive from the manufacturers but that only comes every quarter of the year. It usually is right around 3% of the invoice. Should not be a big issue.
8. Trade-Ins – Most of the time a person will have a vehicle to trade in. You should also do research on your vehicle to see what it is worth. Kelley Blue Book, again, is a good guide, but not the answer. Reason being is that most people are not honest with the condition of their vehicle and do not deduct for minor scratches and scrapes. You should also look at the trade-in value and not the private resell or retail values. If you make your best deal and then throw in a trade, quiz to receive ACV (Actual Cash Value) or wholesale for yours. You cannot buy the dealerships vehicle for invoice and then inquire to get retail for yours. It just will not happen. Also keep in mind that in most states, you are paying taxes on the DIFFERENCE between the new vehicle and the trade in. For example, if the current car is $30,000 and your trade is worth $10,000, you are paying taxes on $20,000.
Be honest with yourself about the condition of your vehicle and what the correct worth is. We hear all the time about dealerships not telling the truth about what may or may not be wrong with a vehicle. At the same time, how many people do you know that have bragged because they sold a piece of junk to a dealership by fixing something up or not really telling the truth about what may be base with the vehicle. Why does the truth only have to hasten one method?
9. Once you and the sale person have reached an agreement on all the figures, it will be time for you to go into the Finance Office to sign the paperwork. If you are sitting in front of a excellent Finance Manager, he/she should go over all the options you can add on to the vehicle. By options I mean, Extended Warranties, Bank Rates, Service Visits, etc. They would not be doing you a favor if they did not go over everything with you. If you do not understand a document that they are asking you to stamp by all means have them explain it to you. Keep in mind, that everything they go over with you is optional and you have the factual to say no to any or all of them. You should also go over at this point any items that the salesperson said they would “throw in”. This should also be in writing. If you were promised pinstripes and could not make it back for a week but the salesperson left the dealership since then, this allotment of paper would back you up to the fact that it was promised to you. You should receive copies of most of the paperwork but again you can request to have copies of all the paperwork that you have signed.
10. Once you are done with the Finance Manager, the salesperson should take the time to go over all the options on the car, go over the warranty booklet, take you on a orientation drive, have you visit the Service Department (where you should actually make your first oil change appointment) and take the time to encourage you activate your XM Radio and OnStar (if your vehicle is equipped with them). You should also make distinct that the vehicle is free from any defects and it is cleaned to your liking. The gas tank should be full and if it is not it should be brought up true then. Any salesperson who tries to steal YOUR gas ticket should be fired on the spot.
11. The dealership should be a dealership that has a good reputation and been in the community for several years. Do they belong to the Chamber of Commerce? Are they active in their community? Do they sponsor any businesses or sporting teams? Check with your neighbors, friends, co-workers, or anyone else to see if they have had any dealings with the dealership. If any draw possible try to buy from a dealership that is in the same neighborhood that you live in. Don’t go outside the site to save a couple hundred dollars.
So keep these in mind the next time you need to visit a dealership to buy a vehicle:
BE PREPARED – by doing your homework
BE NICE – You do not need nor should you be mean to the salesperson. They are the one that is ultimately going to decide how hard they will work for you.
GO AT THE END OF THE MONTH – You will ALWAYS get a better deal then
KNOW YOUR CREDIT RATING – Also know what kind of payment you can afford and what percentage you should pay.
TEST DRIVE – ALWAYS test drive any vehicle you are thinking of buying
TRADE – INS – Do your homework and give your car an Unprejudiced evaluation. Observe at Trade-in values
FINANCE – Listen to the Finance Manager to determine if you need any added coverage for you and your vehicle
PROMISES – Get any promise that the salesperson made you in writing
ORIENTATION – Remove an orientation drive as well as be shown where the service department is and meet the Service Manager
SURVEY – Every car manufacturer sends a survey once you have bought a vehicle. Manufacture sure to give the salesperson a Completely Gay on this survey. If you feel you cannot do this, call the salesperson to account for why and to see if there is something that he/she can do to correct any site.
The best deal is not always the person who got the best price but the person who got a pleasant price with excellent service afterwords.
Filed under Automotive Business Insurance by on Jan 24th, 2011. Comment.
When buying car insurance protection, it can be a tiny daunting as you look at all of those terms and numbers glaring at you from the application The concept behind insurance protection is to pay money for ample to guard you from a significant loss without the need of breaking your spending budget perfect now This can call for some give and take to arrive at the magic quantity that will operate for you.
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Filed under Automotive Business Insurance by on Nov 6th, 2010. Comment.



