- Joined
- May 29, 2003
- Messages
- 18,883
Re: Looking at getting a different car for the g/f.
Family owned a dealership for years ... Pontiac and Oldsmobile ... anyway, a good saleman is going to size you up when you walk in the door and use the best tactics to convince you, based on your personality and plan of attack. And the number one rule of sales, if you can't sell them, confuse them!
Also remember that the saleman's paycheck depends on the sale. You would be offended if someone asked you to work all day for nothing, so don't ask a salesman to do the same.
Okay, what does all this mean? Well, Jkust and Incoop have the right ideas ... be armed with knowledge, let the salesman know you are not interested in negotiation, you just want the best price, and if the salesman HAS to ask his manager for the best price, tell him to get it from the manager before he comes with a price. Know the wholesale value of both vehicles (you can look at auction reports, NADA and Kelly Blue Book for these values) and then realisitically look at your vehicle and the vehicle you want to buy. Most people always feel that their vehicle is in better shape than it is.
After you know the wholesale values, decide how much you are willing to let the dealership make. Depending on the quality of car you are buying and the length of time it has been on the lot determines how much the dealer HAS to make. If the vehicle you want to buy has a wholesale value of $8,000 and they have another $250 in the repair/detail of the vehicle to put it on the lot, then the cost of the vehicle now $8,250.
Your trade in might have a wholesale of $7,750, but it has a few scratches and a few stains on the carpet. In all, it will take $250 to get it in "lot ready" shape. Now your vehicle has a value to the dealer of $7,500. So a break even deal is now $750. But the dealer would like to make $700 profit on his investment, and to cover the commission, etc. So your trade in cost will be $1,450 plus taxes and doc fees.
In the end, whether you are buying new or used, that is the process of the dealership in coming up with the price. The retail price does not matter. The amount they are showing you for your vehicle does not matter, it does not matter whether you are working off of wholesale or retail. What matters in the end is the difference. So know wholesale values of both vehicles, know your profit margin, and make an offer, or counter offer. If they don't accept it, and you are fair, then walk. They will call you back. If they don't, keep looking.
Family owned a dealership for years ... Pontiac and Oldsmobile ... anyway, a good saleman is going to size you up when you walk in the door and use the best tactics to convince you, based on your personality and plan of attack. And the number one rule of sales, if you can't sell them, confuse them!
Also remember that the saleman's paycheck depends on the sale. You would be offended if someone asked you to work all day for nothing, so don't ask a salesman to do the same.
Okay, what does all this mean? Well, Jkust and Incoop have the right ideas ... be armed with knowledge, let the salesman know you are not interested in negotiation, you just want the best price, and if the salesman HAS to ask his manager for the best price, tell him to get it from the manager before he comes with a price. Know the wholesale value of both vehicles (you can look at auction reports, NADA and Kelly Blue Book for these values) and then realisitically look at your vehicle and the vehicle you want to buy. Most people always feel that their vehicle is in better shape than it is.
After you know the wholesale values, decide how much you are willing to let the dealership make. Depending on the quality of car you are buying and the length of time it has been on the lot determines how much the dealer HAS to make. If the vehicle you want to buy has a wholesale value of $8,000 and they have another $250 in the repair/detail of the vehicle to put it on the lot, then the cost of the vehicle now $8,250.
Your trade in might have a wholesale of $7,750, but it has a few scratches and a few stains on the carpet. In all, it will take $250 to get it in "lot ready" shape. Now your vehicle has a value to the dealer of $7,500. So a break even deal is now $750. But the dealer would like to make $700 profit on his investment, and to cover the commission, etc. So your trade in cost will be $1,450 plus taxes and doc fees.
In the end, whether you are buying new or used, that is the process of the dealership in coming up with the price. The retail price does not matter. The amount they are showing you for your vehicle does not matter, it does not matter whether you are working off of wholesale or retail. What matters in the end is the difference. So know wholesale values of both vehicles, know your profit margin, and make an offer, or counter offer. If they don't accept it, and you are fair, then walk. They will call you back. If they don't, keep looking.
