Darn car salespeople.....

[Travelover]

In my opinion, 95% of car salespeople are crooks.

You mean that they are becoming more honest?

 

[Tomtint]

What Tomtint says about paying floor plan money on the inventory...everytime I go past an RV dealer who has dozens of huge, loaded motorhomes in inventory on his the lot I wonder how the (bleep) he manages to pay the interest on those.

There are always different deals with holdback money ( floor plan money ) for example, a Chevy dealer may not get any terms with a Corvette or Camaro SS. But they may get 60-120 days of free carry for units on the ground. The holdback is also allocated to advertising the inventory. It is typical to have as much as 3% of invoice on the back end and in some cases there are "wooden nickels" that can be cashed in to make a deal happen.

 

[Pixguy]

Wooden nickels? lol

 

[Tomtint]

Wooden nickels? lol

"Wooden nickels" ... Dealers have relationships with banks. If a deal is really tight and it is a matter of a interest rate dropping 1/2 -2 points, to make a payment deal happen. Some dealers can cash in a nickel to a lender they do a lot of business with. Even if the buyers credit score does not warrant it.

 

[Pixguy]

Interesting. Thanks Tom, I bought (leased) a new Camry last year and the young salesman told me that he had no idea what a holdback was. Hard to believe but I'm sure some dealers don't inform their new staff of all their "deals"

Great kid and we'd go back to him.

 

[swines]

I insist on dealing with the commercial vehicle sales people - that's where the "pros" usually end up. They sell a LOT of vehicles and don't have to "see the sales manager" to make a decision.

I dealt with one guy that sold 300-500 vehicles a year, and he made it easy to buy a vehicle. He retired after 35 years at the same dealership. Then I dealt with a different commercial salesman and have purchased 5 vehicles from him over a 10 year period - I just call him, ask him what a good time to drop by would be, and we go over what I want. He either finds it or orders it for a fixed markup (1% over dealer invoice), no dealer prep fees, etc., just TTL and out the door.

 

[aczlan]

One reason for this is that used dealers bring retail customers to auctions, and those buyers are a quick turn and pay a premium for a nice unit. Thinking they saved thousands from what it would be on a dealers lot. The trade is always the biggest bargaining chip in a purchase. If you have a nice one, hold out for all the money on a trade.

Saw that at a local Dodge dealer. A used (loaded) Caravan with 50k miles was the same price as a new base model.

Aaron Z

 

[swines]

Interesting. Thanks Tom, I bought (leased) a new Camry last year and the young salesman told me that he had no idea what a holdback was. Hard to believe but I'm sure some dealers don't inform their new staff of all their "deals"

Holdback is variable with foreign car manufacturers, and it can vary from 0 - 3% depending upon the vehicle and a formula specific to each manufacturer. American car manufacturers have a fixed 3% holdback on all vehicles.

 

[Tomtint]

I insist on dealing with the commercial vehicle sales people - that's where the "pros" usually end up. They sell a LOT of vehicles and don't have to "see the sales manager" to make a decision.

I dealt with one guy that sold 300-500 vehicles a year, and he made it easy to buy a vehicle. He retired after 35 years at the same dealership. Then I dealt with a different commercial salesman and have purchased 5 vehicles from him over a 10 year period - I just call him, ask him what a good time to drop by would be, and we go over what I want. He either finds it or orders it for a fixed markup (1% over dealer invoice), no dealer prep fees, etc., just TTL and out the door.

The last 3 vehicles I bought were over the phone. One was a 2015 MB Sprinter. That sales guy was a true pro. Possibly the easiest,cleanest and most upfront sales person I have ever felt with. Also bought a Harley over the phone and if was a cluster *****. They did everything possible to add after sell when I went to pick it up. Total treadmill with them trying to add to the bottom line. I almost walked out.

 

[nc redneck]

Its all about work, effort and time involved. You need to make at least 3 dealers believe ( at end of the month ) that you will write the check to them if they have the best deal. With car or truck you want with the correct options. Do not trust them on options. You know a lot more than they do.
If it is a cheap car not worth the time. They only make about $ 1500.00 on a 30 K car so know room to negotiate.