Walk into any big car dealer and you will see several business managers, secretaries, salesmen, shop staff,lot full of vehicles and a $2/$3 million dollar building. Sales pitch is "we are selling this to you at cost or making only 2%". REALLY???? Wish I could manage my shop as well as they do! lol Would be interesting to know their actual ROI.
- Thread starter dwag
- Start date
Car manufacturers committed war on many of the smaller dealers a few years back. Message was simple, move many cars, or we don't want to bother with you. Closed many local and rural dealers. Got to go to the big city and get jerked around by big dealers now. Kind of like farm machinery dealers, huh?
When you're ready to buy a car, there are online services where you can pay about $15-$20 for a full breakdown on the dealer's costs and exactly how they make their money.
It's usually fairly complicated, and it differs between manufacturers.
Essentially they get money back from the manufacturer as a sort of bonus. It's all smoke and mirrors to keep you as a buyer in the dark.
I was very hesitant to pay for that service myself - assumed it was a scam - but was so glad I took a chance and did it. Much easier to negotiate when you fully understand the dealer's pricing tricks.
Dealer got very upset when I kept shooting down the half truth's he was telling me, right out of his how-to-sell manual.
Felt good to be so prepared.
The other side of that coin is that guy DOES have to make a profit. You can't expect them to sell you a car for nothing. You're not going to save a fortune, but it's good to walk away knowing you got the fairest deal possible.
It's usually fairly complicated, and it differs between manufacturers.
Essentially they get money back from the manufacturer as a sort of bonus. It's all smoke and mirrors to keep you as a buyer in the dark.
I was very hesitant to pay for that service myself - assumed it was a scam - but was so glad I took a chance and did it. Much easier to negotiate when you fully understand the dealer's pricing tricks.
Dealer got very upset when I kept shooting down the half truth's he was telling me, right out of his how-to-sell manual.
Felt good to be so prepared.
The other side of that coin is that guy DOES have to make a profit. You can't expect them to sell you a car for nothing. You're not going to save a fortune, but it's good to walk away knowing you got the fairest deal possible.
We still have our small car dealers. Our Ford dealer has no salesmen. His desk is out front. His sister does the paper work. But he is a little higher than the mega dealer 35 miles away. He is 20 miles from me. Bought a new pickup 12 years ago and another one next friday.
So what is your point? Is having a building full of employees and inventory now considered bad??? I hope they have a decent enough ROI to stay in business and keep those people employed and the community supplied with vehicles, you do understand that the reason people risk their capital is to make money, don't you? Maybe they have to claim they are selling at ''cost'' to get pikers who don't understand capitalism in the door. You could always wait until the government starts selling cars, just ask any Russian over 50 how that worked out.
Allan in NE
Well-known Member
What's an "obersation"?
Allan
Allan
Actually what I am shocked by are the number of people that don't care what they pay - they just want to know what the monthly payment is. I'll talk to a samesman about price and all they want to talk about are the monthly payment amount - sometimes its a freaking arguement just to get them to state the sales price. Last Dodge dealer I was at they kept asking me what I wanted my payments to be, finally I told them "I WANT ONE PAYMENT" how much will it be? Walked out when they didn't take that question seriously.
1948CaseVAI
Well-known Member
You must be too young to remember when even the "expensive" vehicles were worn out, smoking, over-heated pieces of rattling junk at 60,000 miles.
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