Finance and Insurance - 3/3 - NICOclub
"dannys-corner"
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FINALLY, A REAL CHANGE TO BUYING A NEW CAR!
It had to happen…you should have known that someone would figure it out…, but why did it take almost 60 years to do it?
We’re talking about the ridiculous process you have to go through to buy a new car! It has remained basically unchanged since the late 1940’s.
Everyone knows the game and some enjoy the jousting but the vast majority of consumers hate it. You know the drill…you walk into the dealership and immediately are pounced upon by hungry; “my kids are sick”, lot jocks that just won’t leave you alone. It certainly couldn’t be true that you are only there to ‘look’ at the gleaming sheet metal and leather. No, you are actually there to buy the car and they know it! What’s more, they are not going to let you leave the dealership without being tens of thousands more in debt and most likely having purchased something you may not have even wanted. Sound familiar? Indeed. Even today this still takes place, only now they act just a little bit better. You may still have to see 3 different managers before the price comes down, but so what. You can always down a bottle of Excedrin and the headache will go away.
In 2007 24% of all automobile advertising dollars went into newspaper advertising but sold only 6% of the cars. You don't have to be a rocket scientist to do that math. TV and radio advertising results are also shrinking dramatically due to various recording systems such as TIVO and satellite radio. In a recent NADA (National Automobile Dealership Association) survey the number of shoppers that do Internet research before visiting a dealership is now up to 90%. The reason is simple...that's where the information is, so with the Internet in full bloom, you can now research and shop to your hearts delight and learn a lot more than you may have wanted to know, but at least you’ll be on a more even playing field when you do enter the lion’s dealership.
Get a free quote! Buy your car here! Get the best price! You see them all on page after page of search engines and car sites. And, after you’ve entered enough information to have your identity jacked, you’ll have 10 different dealers email and phone you saying they have just what you want – until you get to the dealership. So what’s changed? And who figured it out? And just how easy is it? Answers to follow.
Jed Virts just knew he wanted the new G37 Coupe from Infiniti and why not? It’s only placed Runner-up in a class with the Mercedes-Benz CL65 AMG and CLK Black Series in Cigar Aficionado (October ’07 issue – courtesy of Paul A. Eisenstein of TheCarConnection.com site). A slightly re-designed (why change it too much?) body and 330 HP to boot. It really is one of the best cars produced for the money. But now, how and where to get one? Jed is a Nissan guy from the 240 days and currently owns a ’90 Nissan 300ZX and a Lexus so I guess you could call him a ‘car guy’. When starting the ‘looking’ process Jed said, “...it just can’t be as bad as they say it is... but after walking into the local Infiniti dealership, I was convinced it was worse! I just walked out frustrated and hoped there was a better way. My frustration with the local dealership involved a test drive of the new Infiniti G37 Coupe and an hour plus with the sales rep who gave me a blank look when I asked for the money factor and all costs in writing. He went back to his manager at least 3 times to get clarification on issues. He came back twice with numbers in felt pen. On the third trip from his manager to the sales office, the manager finally brought a computer generated cost summary. The money factor was called something else and was about 2 and 1/2 percent higher than the current Infiniti lease specials on Infiniti's web site. They would also not come down from full MSRP on the Infiniti G37. That’s when I decided the dealership did not want my business and I was wasting my time. I got up and walked out. A lot of frustration has to build up before I will get up and leave. This type of frustration has a long memory. So does the contrast between that experience and the very positive experience with Luxury Auto Bids and Infiniti of Modesto.
I heard of Danny Mayer from his Grubbs Infiniti days and found out he had co-founded the almost-ready-to-launch version of LuxuryAutoBIDS.com. The concept was simple. I could ‘request bids’ anonymously from a nationwide dealer network and just sit in my den and wait for the numbers to come in; and that’s exactly what I did!VOILA…in just a few days bids for the exact car I wanted, at a really good price landed in my email box. I logged into LuxuryAutoBIDS.com and all I had to do was “accept” the bid.”
Well, you guessed it…he clicked on “accept” and Jed’s contact info was passed to Pete Johnson, General Manager at Modesto Infiniti in Northern California. One phone call from Brian Montoya, the Finance Manager and a new Infiniti G37 Coupe was on the way to Jed’s driveway. As Jed says, “It couldn’t have been easier and I didn’t have to drive all over the Bay Area, spending $4 / gal gas and having battle after battle trying to find the car I wanted. Just convenience at a competitive price. I actually can now see where people spend days and hundreds of dollars on gas doing what it took me about 20 minutes to do. And, I didn’t have to medicate first!
I was truly impressed by Brian Montoya. His professionalism was a big factor in the "hassle free" process. And having the car personally delivered to my home was also a big plus in dealer customer service.”
LuxuryAutoBIDS.com is the brainstorm of a 30 year automotive industry veteran and a sales and marketing expert. As co-founders, Danny Mayer and Steve Burhans, along with a team of Internet- marketing savvy web designers and developers, were able to launch a revolutionary way of buying a new car – anonymously! The dealer never knows who you are until you pick them by accepting their bid. As Jed and Pete can now testify, “…the patent-pending business model really does work!” Pete tells us that “…Infiniti of Modesto is a small dealership, kind of off-the-beaten path and this process fits in well with their business model. ‘Get the right car to the customer wherever they are’! In fact, 30% of our sold cars are delivered directly to the customer.” When Steve first called and discussed how the system worked I was intrigued and gave it a try. It works and really does cut down on the time-investment we have to make selling a car. I truly believe the customer is served well and my dealership is served well.”
Danny and Steve both knew that hundreds of companies purport to ‘generate leads’ for dealerships and they do, but the prices vary from $15 -$50 each and are sold to multiple dealerships and then the ‘track-them-down and skin-them’ routine begins. Nothing has changed. So now, one merely pays $14.95 to configure the vehicle of their choice and submits it to the LuxuryAutoBIDS network of dealers and then waits. Simple.
And now you ask, “What’s in it for the dealer?” Well, Pete Johnson of Modesto Infiniti has the answer. He says, “It took me 6 clicks to put the bid in the hands of the buyer. Of course I didn’t have a name, email address, phone number, etc. which in itself goes against the grain of a car salesperson, but I gave it a try. Although, I’m in my 90 day free period the monthly charge to be part of the network is only $250. In this industry that is Dirt Cheap when you think of how many people will be using this system in the near future and how many buyers I can touch for pennies! Today, with cost-of-sale being the buzzword in the car biz, this is great!”
[post_title] => Changing the Way We Buy a New Car
[post_name] => dannys-corner-1
[post_modified] => 2019-11-17 22:08:42
[post_modified_gmt] => 2019-11-18 05:08:42
In this installment of Danny's Corner, Danny interviews America's leading Infiniti salesperson. Allison Cohen has connected 166 owners with new Infinitis thus far in 2007, and shows no signs of slowing down - Read what makes her tick!
Would you purchase a home or invest in a stock knowing full well that in two years it could be worth only 50% of your original investment. The answer is obvious, of course. However, that is what happens when you purchase an automobile or truck....
Should buying a new car be as miserable as a trip to the dentist? Are consumers prepared to embrace a new way of buying cars? Danny Mayer walks us through an innovative and anonymous approach to the vehicle purchasing process...
How To Avoid A "Greedy" Dealer
When buying a new car, is it fair to pay a premium for a "newly-released" model?Is it legal for the dealer to charge more than the MSRP? How can you avoid getting gouged by a greedy dealer?Danny Mayer answers all these questions and more...
[post_title] => Danny's Corner:  Main Page
[post_name] => dannys-corner-6
https://www.nicoclub.com/archives/car-salesman.html
[post_modified] => 2019-11-17 22:16:11
[post_modified_gmt] => 2019-11-18 05:16:11
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.....What It Should Be!
I did get one sales tidbit from Allison…her customers bought 166 Infiniti’s from her in just 7 months into 2007! You noticed I said “...customers bought...” versus “…she sold…” and that’s because Allison has worked very hard over the years to create a long-term relationship with her customers. Allison says, “Thirty percent of my customers either buy a second car from me or give me a referral who buys a car.” In light of this, I asked Allison to tell me a little about herself and how she started her career.
[post_title] => The Reputation of a Car Salesperson
[post_name] => salesperson
https://www.nicoclub.com/archives/dannys-corner-6.html
[post_modified] => 2019-11-17 22:12:58
[post_modified_gmt] => 2019-11-18 05:12:58
[query_vars_hash:WP_Query:private] => 52c0fd83c3a1bb5a156b48673c2f3058
"new-car-sales"
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Then there is the cost of advertising - money spent to attract new customers to the dealership every month. In some major markets dealer spendhundreds of thousands of dollars to attract new customers.
[post_title] => New Car Sales - How Greed Overtakes Sound Business Judgment
[post_name] => new-car-sales
[post_modified] => 2019-11-17 22:10:11
[post_modified_gmt] => 2019-11-18 05:10:11
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"buying-new-car-online"
[toc_search_post_slug] => buying-new-car-online
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One person explained to me how they were told the requested car was waiting for them and when they got to the dealership – well you guessed it...no car! These “leads” cost the dealership much more than the fee charged by the lead generating company; they result in low closing ratios which leads to low morale which leads to low production by the sales staff..
I’ve been in the automobile business for over 30 years as an owner/operator, GM, GSM, salesperson, etc. and I consider myself to be open-minded and an innovator when it comes to adapting to the ever-changing facets of our business. That is why I find the new and very innovative, totally anonymous, buying process to be on the cutting edge of what the customer wants.
Here is where it differs from all of the others…there are no introductions…no contacts from the dealership…requests for personal information are keep private …none of what has formerly been the “norm” in handling website leads.Strange? Not really! The buyer “builds” the car just as always, but now the entire process changes. This request is then submitted to a network of dealerships with just the buyer zip-code. The dealer network sees the configured car and the zip-code and merely supplies the price for which they will sell the vehicle. The buyer has no clue who or where the dealer is, and the dealership has no idea who the customer is.
[post_title] => Buy a Car or Get a Root Canal?
[post_name] => buying-new-car-online
[post_modified] => 2019-11-17 22:14:41
[post_modified_gmt] => 2019-11-18 05:14:41
[query_vars_hash:WP_Query:private] => 97bebcc7a2ca10909fa8306276d734b7
Buy a Car or Get a Root Canal? What a question you say? Not really! I have been in the automobile business for over 30 years and my brother-in-law is a dentist. Even though both of us know that both are painless, most of the time, there are dealers and dentists that can turn a […]
"finance-advice-automotive-financial-articles"
[toc_search_post_slug] => finance-advice-automotive-financial-articles
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The following is NICOclub's growing archive of informative articles to help those who are preparing to purchase a new vehicle. If you have questions, please visit the forums for assistance.
This just may be a great time to consider trading in
Hot or Not, What's Right?
What can you afford and dealing with Salesmen and dealerships
"Free" add-ons thrown into a deal may not be as good as they seem
Knowing how a dealer makes a profit will help you in negotiating
[post_title] => Finance Advice - Automotive Financial articles - Main
[post_excerpt] => The following is NICOclub's growing archive of informative articles to help those who are preparing to purchase a new vehicle.
[post_name] => finance-advice-automotive-financial-articles
[post_modified] => 2019-03-25 21:55:12
[post_modified_gmt] => 2019-03-26 04:55:12
[query_vars_hash:WP_Query:private] => 2857e570237d3d2e7abe290c8d10093c
The following is NICOclub’s growing archive of informative articles to help those who are preparing to purchase a new vehicle.
Filed Under: Finance and Insurance, General Automotive Tagged With: finance advice, finance forum, financial articles, incentives, nicoclub
"negotiating-for-a-new-vehicle"
[toc_search_post_slug] => negotiating-for-a-new-vehicle
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First, let's all understand that car dealerships are "for profit" businesses. They don't exist simply to benefit us. The do provide that service, but at a price. They exist to make money. That's OK as they should make money. They need to stay in business, pay their employees, and taxes, etc...
Let's also understand that the salesperson is not the "enemy". I spent some time as a new/used car salesman a few years ago and it's a tough way to support your family. It seems that most customers come on the lot expecting to do battle with you. They treat you as the enemy and think no matter what, you will try to screw them. This isn't true! Treat your salesman with respect and appreciation. Their job is to help you decide which vehicle is best for you and then reach an agreement on a sales price that is fair for you and the dealership. Keep in mind that most are paid according to the profit to the dealership, so it's inherently in their best interest to keep a higher price. But at the same time, they have to make a sale in order to make any money. So it's a difficult job.
Invoice Pricing is usually NOT what the dealer's actual cost is on the vehicle.Years ago the invoice was a simple figure that described a dealership’s actual purchase price for a given vehicle. When this data started to become common knowledge to the consumer, the auto industry got smarter. They increased the invoice price and introduced dealer "hold-back". Dealer “hold-back” is a supplemental program in which a percentage of the vehicles MSRP or actual invoice price is paid back to the dealership upon purchase of a new vehicle. It is designed as an additional revenue stream to the dealership in order to reduce expenses or commissions by artificially increasing the dealer-cost of a vehicle.Not all manufacturers partake in this practice but Nissan does.
Well, we've established that the dealership earns a profit from the difference between the sales price and the invoice price. We've also now established that the dealership may earn an additional income through dealer hold-back. The third major part, and often the most profitable for the dealer, is through the finance department. The finance managers of a dealership earn profit through selling car loans, car care packages, extended warranties, gap and disability insurance. Did you know that the prices on some of these items are also negotiable? This can be a great way to save a few bucks a month on your payments. In addition to the finance area, car dealerships can earn profit through specialty part sales and add-ons and the service center as they earn money through the repair and maintenance of your vehicles. An additional point to consider is that dealership sales volume is also a source of profit for the dealership. Having more units to spread out fixed costs is a benefit. More than that, most manufacturers give preference in allocating future vehicles to dealerships which can move higher volume. So, simply moving more units off the lot can also be a source of benefit for the dealership thus it is in their best interest to negotiate.
Knowledge is key! After you decide which vehicle is best for you, it's best to leave the dealership and do some homework before returning to discuss terms of purchase. Go ahead and fill out a credit application to save time when you return, but don't get caught up in the heat of the moment and negotiate directly after falling in love on the test drive. You can go ahead and ask the salesman for a price prior to leaving, but tell him that you'd like to do some homework prior to entering negotiations on price. Before negotiating price, research a few key items. First off, know the MSRP of the exact build you desire. Second, know approximately what the dealer invoice is on the build. Third, have a feel for what the dealerships hold-back would be on each car. Fourth, get a feel for what others are paying on the same vehicle you are looking at. Fifth, decide ahead of time what other services you are willing to discuss (getting your car loan from the dealer, insurance, extended warranty, etc.).Finally, know where you stand from a financial standpoint.Pull a credit report and if possible procure the availability of being pre-financed via another bank or financial institution as this will give you further negotiating power for lower dealer finance rates. Now that you are equipped with the proper knowledge, you can make some decisions.
In my experience, the single greatest negotiating tool is to introduce competition into the equation. A dealership will fight tooth and nail for every dollar they can get as long as they feel they have the sale hostage. However, as soon as you introduce competition into the mix, the dealer's new chief concern is simply putting another deal into their books and not the competing dealerships books. Remember that volume is important to most dealerships as it gives them additional competitive advantages. I can tell you that many times the goal in the negotiating went from "let's make a profit on this sale" to "let's make sure we get this sale". When this happens, the prices can fall very quickly.
So now that we've gotten down to the nuts and bolts of this pricing game, what is a fair price? Well, we should all agree that the dealership needs to make some money and they will be unwilling to take a loss. Of course, we all want the lowest price we can possibly get as well. At this point we truly come down to an individual’s opinion on the matter.
My opinion is that on the average new car a fair deal for both parties is a price of a few hundred over invoice and the consumer's willingness to use the dealership's finance department for their services as well. I think asking for a price in that "hold-back" territory is unfair to the dealership. A consumer should not ask for this as it's vital to the dealership to cover its fixed expenses. The exception to this rule is in certain very high volume, high competition vehicles. For example, the Toyota Camry is a car that is very often advertised for hundreds under invoice. It's the highest volume seller, and competition has gotten so cut-throat that dealership simply view them as a volume tool and to help drive in finance and future service business.
I think a price at or over MSRP is unfair for the customer. Unless it's a new Nissan GT-R, a vehicle who’s demand will far out-pace its supply, the negotiated price should always be under MSRP. Please don't pay the sticker price on your new vehicle. Even with a brand new release, when dealers claim they can sell them high because of supply and demand. Remember that the quicker they can sell those first units, the more allocations they will get in the future.
[post_title] => Negotiating for a new vehicle
[post_name] => negotiating-for-a-new-vehicle
[post_modified] => 2015-06-15 22:16:45
[post_modified_gmt] => 2015-06-16 05:16:45
[query_vars_hash:WP_Query:private] => 24b350016813ed5f985dc39854ae4897
Finance and Insurance - 3/3 - NICOclub
"dannys-corner"
[toc_search_post_slug] => dannys-corner
) AND md5q3oa_posts.post_type = 'post' AND ((md5q3oa_posts.post_status = 'publish')) AND md5q3oa_posts.post_name LIKE '%dannys-corner%' GROUP BY md5q3oa_posts.ID ORDER BY md5q3oa_posts.ID ASC
FINALLY, A REAL CHANGE TO BUYING A NEW CAR!
It had to happen…you should have known that someone would figure it out…, but why did it take almost 60 years to do it?
We’re talking about the ridiculous process you have to go through to buy a new car! It has remained basically unchanged since the late 1940’s.
Everyone knows the game and some enjoy the jousting but the vast majority of consumers hate it. You know the drill…you walk into the dealership and immediately are pounced upon by hungry; “my kids are sick”, lot jocks that just won’t leave you alone. It certainly couldn’t be true that you are only there to ‘look’ at the gleaming sheet metal and leather. No, you are actually there to buy the car and they know it! What’s more, they are not going to let you leave the dealership without being tens of thousands more in debt and most likely having purchased something you may not have even wanted. Sound familiar? Indeed. Even today this still takes place, only now they act just a little bit better. You may still have to see 3 different managers before the price comes down, but so what. You can always down a bottle of Excedrin and the headache will go away.
In 2007 24% of all automobile advertising dollars went into newspaper advertising but sold only 6% of the cars. You don't have to be a rocket scientist to do that math. TV and radio advertising results are also shrinking dramatically due to various recording systems such as TIVO and satellite radio. In a recent NADA (National Automobile Dealership Association) survey the number of shoppers that do Internet research before visiting a dealership is now up to 90%. The reason is simple...that's where the information is, so with the Internet in full bloom, you can now research and shop to your hearts delight and learn a lot more than you may have wanted to know, but at least you’ll be on a more even playing field when you do enter the lion’s dealership.
Get a free quote! Buy your car here! Get the best price! You see them all on page after page of search engines and car sites. And, after you’ve entered enough information to have your identity jacked, you’ll have 10 different dealers email and phone you saying they have just what you want – until you get to the dealership. So what’s changed? And who figured it out? And just how easy is it? Answers to follow.
Jed Virts just knew he wanted the new G37 Coupe from Infiniti and why not? It’s only placed Runner-up in a class with the Mercedes-Benz CL65 AMG and CLK Black Series in Cigar Aficionado (October ’07 issue – courtesy of Paul A. Eisenstein of TheCarConnection.com site). A slightly re-designed (why change it too much?) body and 330 HP to boot. It really is one of the best cars produced for the money. But now, how and where to get one? Jed is a Nissan guy from the 240 days and currently owns a ’90 Nissan 300ZX and a Lexus so I guess you could call him a ‘car guy’. When starting the ‘looking’ process Jed said, “...it just can’t be as bad as they say it is... but after walking into the local Infiniti dealership, I was convinced it was worse! I just walked out frustrated and hoped there was a better way. My frustration with the local dealership involved a test drive of the new Infiniti G37 Coupe and an hour plus with the sales rep who gave me a blank look when I asked for the money factor and all costs in writing. He went back to his manager at least 3 times to get clarification on issues. He came back twice with numbers in felt pen. On the third trip from his manager to the sales office, the manager finally brought a computer generated cost summary. The money factor was called something else and was about 2 and 1/2 percent higher than the current Infiniti lease specials on Infiniti's web site. They would also not come down from full MSRP on the Infiniti G37. That’s when I decided the dealership did not want my business and I was wasting my time. I got up and walked out. A lot of frustration has to build up before I will get up and leave. This type of frustration has a long memory. So does the contrast between that experience and the very positive experience with Luxury Auto Bids and Infiniti of Modesto.
I heard of Danny Mayer from his Grubbs Infiniti days and found out he had co-founded the almost-ready-to-launch version of LuxuryAutoBIDS.com. The concept was simple. I could ‘request bids’ anonymously from a nationwide dealer network and just sit in my den and wait for the numbers to come in; and that’s exactly what I did!VOILA…in just a few days bids for the exact car I wanted, at a really good price landed in my email box. I logged into LuxuryAutoBIDS.com and all I had to do was “accept” the bid.”
Well, you guessed it…he clicked on “accept” and Jed’s contact info was passed to Pete Johnson, General Manager at Modesto Infiniti in Northern California. One phone call from Brian Montoya, the Finance Manager and a new Infiniti G37 Coupe was on the way to Jed’s driveway. As Jed says, “It couldn’t have been easier and I didn’t have to drive all over the Bay Area, spending $4 / gal gas and having battle after battle trying to find the car I wanted. Just convenience at a competitive price. I actually can now see where people spend days and hundreds of dollars on gas doing what it took me about 20 minutes to do. And, I didn’t have to medicate first!
I was truly impressed by Brian Montoya. His professionalism was a big factor in the "hassle free" process. And having the car personally delivered to my home was also a big plus in dealer customer service.”
LuxuryAutoBIDS.com is the brainstorm of a 30 year automotive industry veteran and a sales and marketing expert. As co-founders, Danny Mayer and Steve Burhans, along with a team of Internet- marketing savvy web designers and developers, were able to launch a revolutionary way of buying a new car – anonymously! The dealer never knows who you are until you pick them by accepting their bid. As Jed and Pete can now testify, “…the patent-pending business model really does work!” Pete tells us that “…Infiniti of Modesto is a small dealership, kind of off-the-beaten path and this process fits in well with their business model. ‘Get the right car to the customer wherever they are’! In fact, 30% of our sold cars are delivered directly to the customer.” When Steve first called and discussed how the system worked I was intrigued and gave it a try. It works and really does cut down on the time-investment we have to make selling a car. I truly believe the customer is served well and my dealership is served well.”
Danny and Steve both knew that hundreds of companies purport to ‘generate leads’ for dealerships and they do, but the prices vary from $15 -$50 each and are sold to multiple dealerships and then the ‘track-them-down and skin-them’ routine begins. Nothing has changed. So now, one merely pays $14.95 to configure the vehicle of their choice and submits it to the LuxuryAutoBIDS network of dealers and then waits. Simple.
And now you ask, “What’s in it for the dealer?” Well, Pete Johnson of Modesto Infiniti has the answer. He says, “It took me 6 clicks to put the bid in the hands of the buyer. Of course I didn’t have a name, email address, phone number, etc. which in itself goes against the grain of a car salesperson, but I gave it a try. Although, I’m in my 90 day free period the monthly charge to be part of the network is only $250. In this industry that is Dirt Cheap when you think of how many people will be using this system in the near future and how many buyers I can touch for pennies! Today, with cost-of-sale being the buzzword in the car biz, this is great!”
[post_title] => Changing the Way We Buy a New Car
[post_name] => dannys-corner-1
[post_modified] => 2019-11-17 22:08:42
[post_modified_gmt] => 2019-11-18 05:08:42
In this installment of Danny's Corner, Danny interviews America's leading Infiniti salesperson. Allison Cohen has connected 166 owners with new Infinitis thus far in 2007, and shows no signs of slowing down - Read what makes her tick!
Would you purchase a home or invest in a stock knowing full well that in two years it could be worth only 50% of your original investment. The answer is obvious, of course. However, that is what happens when you purchase an automobile or truck....
Should buying a new car be as miserable as a trip to the dentist? Are consumers prepared to embrace a new way of buying cars? Danny Mayer walks us through an innovative and anonymous approach to the vehicle purchasing process...
How To Avoid A "Greedy" Dealer
When buying a new car, is it fair to pay a premium for a "newly-released" model?Is it legal for the dealer to charge more than the MSRP? How can you avoid getting gouged by a greedy dealer?Danny Mayer answers all these questions and more...
[post_title] => Danny's Corner:  Main Page
[post_name] => dannys-corner-6
https://www.nicoclub.com/archives/car-salesman.html
[post_modified] => 2019-11-17 22:16:11
[post_modified_gmt] => 2019-11-18 05:16:11
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.....What It Should Be!
I did get one sales tidbit from Allison…her customers bought 166 Infiniti’s from her in just 7 months into 2007! You noticed I said “...customers bought...” versus “…she sold…” and that’s because Allison has worked very hard over the years to create a long-term relationship with her customers. Allison says, “Thirty percent of my customers either buy a second car from me or give me a referral who buys a car.” In light of this, I asked Allison to tell me a little about herself and how she started her career.
[post_title] => The Reputation of a Car Salesperson
[post_name] => salesperson
https://www.nicoclub.com/archives/dannys-corner-6.html
[post_modified] => 2019-11-17 22:12:58
[post_modified_gmt] => 2019-11-18 05:12:58
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"new-car-sales"
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Then there is the cost of advertising - money spent to attract new customers to the dealership every month. In some major markets dealer spendhundreds of thousands of dollars to attract new customers.
[post_title] => New Car Sales - How Greed Overtakes Sound Business Judgment
[post_name] => new-car-sales
[post_modified] => 2019-11-17 22:10:11
[post_modified_gmt] => 2019-1
1-18 05:10:11
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"buying-new-car-online"
[toc_search_post_slug] => buying-new-car-online
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One person explained to me how they were told the requested car was waiting for them and when they got to the dealership – well you guessed it...no car! These “leads” cost the dealership much more than the fee charged by the lead generating company; they result in low closing ratios which leads to low morale which leads to low production by the sales staff..
I’ve been in the automobile business for over 30 years as an owner/operator, GM, GSM, salesperson, etc. and I consider myself to be open-minded and an innovator when it comes to adapting to the ever-changing facets of our business. That is why I find the new and very innovative, totally anonymous, buying process to be on the cutting edge of what the customer wants.
Here is where it differs from all of the others…there are no introductions…no contacts from the dealership…requests for personal information are keep private …none of what has formerly been the “norm” in handling website leads.Strange? Not really! The buyer “builds” the car just as always, but now the entire process changes. This request is then submitted to a network of dealerships with just the buyer zip-code. The dealer network sees the configured car and the zip-code and merely supplies the price for which they will sell the vehicle. The buyer has no clue who or where the dealer is, and the dealership has no idea who the customer is.
[post_title] => Buy a Car or Get a Root Canal?
[post_name] => buying-new-car-online
[post_modified] => 2019-11-17 22:14:41
[post_modified_gmt] => 2019-11-18 05:14:41
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Buy a Car or Get a Root Canal? What a question you say? Not really! I have been in the automobile business for over 30 years and my brother-in-law is a dentist. Even though both of us know that both are painless, most of the time, there are dealers and dentists that can turn a […]
"finance-advice-automotive-financial-articles"
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The following is NICOclub's growing archive of informative articles to help those who are preparing to purchase a new vehicle. If you have questions, please visit the forums for assistance.
This just may be a great time to consider trading in
Hot or Not, What's Right?
What can you afford and dealing with Salesmen and dealerships
"Free" add-ons thrown into a deal may not be as good as they seem
Knowing how a dealer makes a profit will help you in negotiating
[post_title] => Finance Advice - Automotive Financial articles - Main
[post_excerpt] => The following is NICOclub's growing archive of informative articles to help those who are preparing to purchase a new vehicle.
[post_name] => finance-advice-automotive-financial-articles
[post_modified] => 2019-03-25 21:55:12
[post_modified_gmt] => 2019-03-26 04:55:12
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The following is NICOclub’s growing archive of informative articles to help those who are preparing to purchase a new vehicle.
Filed Under: Finance and Insurance, General Automotive Tagged With: finance advice, finance forum, financial articles, incentives, nicoclub
"negotiating-for-a-new-vehicle"
[toc_search_post_slug] => negotiating-for-a-new-vehicle
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First, let's all understand that car dealerships are "for profit" businesses. They don't exist simply to benefit us. The do provide that service, but at a price. They exist to make money. That's OK as they should make money. They need to stay in business, pay their employees, and taxes, etc...
Let's also understand that the salesperson is not the "enemy". I spent some time as a new/used car salesman a few years ago and it's a tough way to support your family. It seems that most customers come on the lot expecting to do battle with you. They treat you as the enemy and think no matter what, you will try to screw them. This isn't true! Treat your salesman with respect and appreciation. Their job is to help you decide which vehicle is best for you and then reach an agreement on a sales price that is fair for you and the dealership. Keep in mind that most are paid according to the profit to the dealership, so it's inherently in their best interest to keep a higher price. But at the same time, they have to make a sale in order to make any money. So it's a difficult job.
Invoice Pricing is usually NOT what the dealer's actual cost is on the vehicle.Years ago the invoice was a simple figure that described a dealership’s actual purchase price for a given vehicle. When this data started to become common knowledge to the consumer, the auto industry got smarter. They increased the invoice price and introduced dealer "hold-back". Dealer “hold-back” is a supplemental program in which a percentage of the vehicles MSRP or actual invoice price is paid back to the dealership upon purchase of a new vehicle. It is designed as an additional revenue stream to the dealership in order to reduce expenses or commissions by artificially increasing the dealer-cost of a vehicle.Not all manufacturers partake in this practice but Nissan does.
Well, we've established that the dealership earns a profit from the difference between the sales price and the invoice price. We've also now established that the dealership may earn an additional income through dealer hold-back. The third major part, and often the most profitable for the dealer, is through the finance department. The finance managers of a dealership earn profit through selling car loans, car care packages, extended warranties, gap and disability insurance. Did you know that the prices on some of these items are also negotiable? This can be a great way to save a few bucks a month on your payments. In addition to the finance area, car dealerships can earn profit through specialty part sales and add-ons and the service center as they earn money through the repair and maintenance of your vehicles. An additional point to consider is that dealership sales volume is also a source of profit for the dealership. Having more units to spread out fixed costs is a benefit. More than that, most manufacturers give preference in allocating future vehicles to dealerships which can move higher volume. So, simply moving more units off the lot can also be a source of benefit for the dealership thus it is in their best interest to negotiate.
Knowledge is key! After you decide which vehicle is best for you, it's best to leave the dealership and do some homework before returning to discuss terms of purchase. Go ahead and fill out a credit application to save time when you return, but don't get caught up in the heat of the moment and negotiate directly after falling in love on the test drive. You can go ahead and ask the salesman for a price prior to leaving, but tell him that you'd like to do some homework prior to entering negotiations on price. Before negotiating price, research a few key items. First off, know the MSRP of the exact build you desire. Second, know approximately what the dealer invoice is on the build. Third, have a feel for what the dealerships hold-back would be on each car. Fourth, get a feel for what others are paying on the same vehicle you are looking at. Fifth, decide ahead of time what other services you are willing to discuss (getting your car loan from the dealer, insurance, extended warranty, etc.).Finally, know where you stand from a financial standpoint.Pull a credit report and if possible procure the availability of being pre-financed via another bank or financial institution as this will give you further negotiating power for lower dealer finance rates. Now that you are equipped with the proper knowledge, you can make some decisions.
In my experience, the single greatest negotiating tool is to introduce competition into the equation. A dealership will fight tooth and nail for every dollar they can get as long as they feel they have the sale hostage. However, as soon as you introduce competition into the mix, the dealer's new chief concern is simply putting another deal into their books and not the competing dealerships books. Remember that volume is important to most dealerships as it gives them additional competitive advantages. I can tell you that many times the goal in the negotiating went from "let's make a profit on this sale" to "let's make sure we get this sale". When this happens, the prices can fall very quickly.
So now that we've gotten down to the nuts and bolts of this pricing game, what is a fair price? Well, we should all agree that the dealership needs to make some money and they will be unwilling to take a loss. Of course, we all want the lowest price we can possibly get as well. At this point we truly come down to an individual’s opinion on the matter.
My opinion is that on the average new car a fair deal for both parties is a price of a few hundred over invoice and the consumer's willingness to use the dealership's finance department for their services as well. I think asking for a price in that "hold-back" territory is unfair to the dealership. A consumer should not ask for this as it's vital to the dealership to cover its fixed expenses. The exception to this rule is in certain very high volume, high competition vehicles. For example, the Toyota Camry is a car that is very often advertised for hundreds under invoice. It's the highest volume seller, and competition has gotten so cut-throat that dealership simply view them as a volume tool and to help drive in finance and future service business.
I think a price at or over MSRP is unfair for the customer. Unless it's a new Nissan GT-R, a vehicle who’s demand will far out-pace its supply, the negotiated price should always be under MSRP. Please don't pay the sticker price on your new vehicle. Even with a brand new release, when dealers claim they can sell them high because of supply and demand. Remember that the quicker they can sell those first units, the more allocations they will get in the future.
[post_title] => Negotiating for a new vehicle
[post_name] => negotiating-for-a-new-vehicle
[post_modified] => 2015-06-15 22:16:45
[post_modified_gmt] => 2015-06-16 05:16:45
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