Posted on 07/18/2022 4:17:10 PM PDT by Responsibility2nd
“The writer obviously doesn’t know how to negotiate.”
I’d rather negotiate with car dealers in the style of Korben Dallas in The Fifth Element. BAM! “Anyone else want to negotiate?”
You can order a car like in the UK from any dealership.
What an idiot.
Though I’ve never worked at a car dealership I have several friends who made nice careers of selling for new and used lots. In fact, I have a friend who has worked for the Toyota dealership for decades. In fact he’s the New Car Manager there.
Unless things have changed drastically manufacturers DO NOT force cars onto dealerships. Each dealer has a New Car Manager who is responsible for ordering the new cars from the manufacturer. He or she is usually a former salesman who has moved up. They order the vehicles they want for their lot choosing the color and trim packages, engines, transmissions, even down to the tires.
The manufacturer would be crazy to force vehicles onto a dealer if that dealer can’t sell them.
A small lot in “Podunk” may order some extra high end vehicles that are hot ticket items and then trade them to other dealers and make a killing on the trade. One Ford dealership did that for years just to stay in business.
Financing is a huge money maker for the manufacturer. GM didn’t start GMAC just to be nice. They did it for extra money. Why let a bank make that dough?
Each new car also has something called “hold back” which is a dollar amount the manufacturer pays the dealership as each car is sold. Higher end vehicles naturally have a bigger hold back than the cheaper cars.
If needed the dealership can use that hold back to make a better deal for a valuable customer.
That’s an interesting strategy.
The European brands tend to stand firm on MSRP. Toyota is similar to the European model. Nissan, Mazda, Honda, Hyundai, and Detroit all have about 8 1/2% margin built into the MSRP. So there is a lot of negotiability. Their willingness to haggle is based on the sales manager’s perception of you, as you walk in the door. Your best deal is between 5% - 5 1/2%. I’ve never been able to get them to 6%. They simply won’t go there.
‘
Buy a used one from an individual or a fleet operator.
The main issue is he using one dealer and one carline. Different dealers and manufacturers have come a long way in the last few years streamlining the buying processes. As far as marking up vehicles…. The manufacturers do not condone it and some will punish franchisees for doing so. With that being said , it’s still supply and demand. If you insist on buying a vehicle during a supply chain crisis you may not get the car you want. I’ll assume the same applies the the UK as well. I doubt Nissan is allotting a surplus of cars for England and leaving dealers here with empty cupboards.
Indeed
If you aren’t picky on trim levels or colors, grab what they have left off the lot a month or so after the new models come out. They’ve been paying intrest on those on their floor plan for a while at that point, and are more motivated to get it off the pavement. Last purchase we paid close to list price of the bottom of the line, but got a couple of trim levels up taking the previous year’s model that had been sitting around for at least 5 months at that point. Not one of my better outings, but too early in the day.
Okay sweetie. Now tell us how we can walk into the liquor store and by a machine gun.
When I bought my 2016 Honda Accord Sport the finance guy was a woman with really nice cleavage.
I was at a disadvantage...!
She up sold the security package and the coating on the car to keep that glossy look and who knows what else.
Kyle CheromchaThis was from LinkedIn
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My uncle was a silent partner in several dealerships in Ohio, but that was probably thirty-plus years ago.
I know the manufacturers often had some slow selling cars and they simply allotted them to dealerships. Although this was after my uncle’s time in the business, I know that GM had a terrible time selling the electric cars after the government essentially told them to flood the market as the people in Obama’s office who were doing this had zero experience in the business. The Obama office told GM, “The only reason people aren’t buying the cars is you aren’t making them.” Thus, every dealer had way too many of them.
When manufacturers have a slow selling line they usually offer incentives for dealerships to take on more of that line. They either juice the hold back or plain cut the cost. That way dealerships can cut the retail cost without suffering themselves. The manufacturer gets a tidy tax write off.
I do know a dealer can’t be forced to take a vehicle they didn’t order but do have to accept every vehicle they did order.
The whole dealership model of business can be very byzantine when you get into the nuts and bolts of it, but it has gotten better.
The coal powered cars (EV’s) were a one off that really shouldn’t be counted. Just another example of government screwing something up.
Saturn tried a direct from manufacturer model of sales didn’t it?
No, when GM decided to launch the Saturn as a standalone brand they opened Saturn dealerships.
One of the Saturn dealers claim to fame was the No Haggle pricing. GM set a MSRP price for the cars that was a good deal for everyone and you paid that price. Like buying a new refrigerator.
If you are willing to be a complete a-hole and are willing to buy off their lot then you can drive a really hard bargain with them.
Never let them know you like a particular color even if it’s the color you want. Always be nebulas when asked about color. It is always the wrong color, always.
Always shop on a gloomy cold rainy Tuesday morning preferably in February. A day when car shopping is the last thing on most peoples mind. Make sure you are the only customer.
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