Originally Posted by bobs
No, the guy is "ruined" because that he doesn't realize that dealers are in the business to make money. What the little book says doesn't mean squat if the numbers don't match up to what the dealer paid for it. No dealer I know of is willing to sell something at a loss. That's not good business. If you really want to have a pleasant dealer experience, try this: Walk into the dealer and strike-up a conversation with the salesman. Let him (or her) know that you're serious about buying and you want to do the deal today. Then you say , "Look, I know you need to make a profit on this car, but I want a good deal too." Then ask them to pull the invoice and offer them invoice plus 3%. Seeing as most dealers make anywhere between 2% and 5% on a deal, chances are you'll be done with the paperwork and driving your new car home within an hour. The salesman will be freed-up to start working on another deal in a minimum amount of time and you have a new car. Everyone's happy.
Having worked at a dealer (motorcycles, not cars), I can say that nothing torques me off more than having some yahoo walk in off the street and expect me to sell him a bike at a loss because his little book says so. Not gonna happen.
Everyone realizes the dealer is in the business to make money, but the educated consumer is in the position to spend no more than necessary to obtain goods. If I offer the most I am willing to pay, and the dealer says it's not enough, I simply go home or visit another dealer. No haggling necessary. Very little time wasted. It's not my job to ensure that the salesman gets a nice pay check. If I make an offer and the sales manager approves, he is acknowledging that my offer is acceptable regardless of whether it is more or less than others are spending or whether the salesperson will be able to pay rent that week. If someone goes to the dealer equipped with pricing information and the dealer says he can't sell the car for that amount, but another dealer says he can, how is the consumer "ruined"? If the consumer is dealing with purely erroneous data and numerous dealers reject the offer, she will eventually recognize that her source of info is flawed and develop a new plan of action. But considering that 70% of people use the internet to research car prices, consumers must be getting some pretty reliable information.
As far as selling at a loss is concerned, most reputable businesses will lose money on a transaction at some time or another. For example, a dealer obtains a used vehicle that develops serious problems prior to being able to resell it. That vehicle could end up losing money at auction or the costs to repair could wipe out any profits.
How many Crossfire owners paid invoice plus 3%? In the past year probably most Crossfire sales have been below invoice. So the dealers are only able to profit selling Crossfires on holdbacks and factory to dealer incentives to move inventory. Try asking the dealer to reveal what the holdback and factory to dealer incentives are.
Polls have shown that other than politicians, the public perceives car salesmen to be the LEAST trustworthy of any occupation. So how could anyone expect you can just plop down in a chair at the first dealer you visit and drive away a car an hour later at a good price?