Newsgroups: rec.autos

In rec.autos, greis@csd4.csd.uwm.edu (Gayla Ann Greis) writes:

> many people's time.
> 
> A check to back what you offer is the most powerful way of saying,
> "I'll do it today if you'll meet me at my price." If you don't put this
> offer down, don't expect to get "the best price," because experience 
> says you'll just go down the street and try and beat it. (See earlier
> post of person trying to buy Toyota truck and running from dealer to
> dealer getting whipped.) Be prepared to have your offer accepted if that's
> what you're really offering!!! In many dealerships, the salesman is 
> instructed *NOT* to even waste a manager's time until money is on the
> table. e.g. The salesman may go in the back room after writing up your
> offer, smoke a cigarette, and come back and try to bump you into more
> money without even running an offer. Why? Because you weren't serious
> enough about your offer. (If you were, why not back it up?) You can
> always get the check back, and leave if the offer is not accepted.
> 
> There is ***NOT*** $8,000 markup in every car, or DCI (Dealer Cash
> Incentives), or rebates on every car. Holdbacks are a way of making
> up losses on long standing inventory, and are not a profit center.
> Check out the library, and be aware that those numbers change during
> the year - especially on imports because of trade fluctuations.
> 
> Rustproofing is usually a waste of money. Some cars come factory
> undercoated, like VW, and doing it again is *REALLY* a waste. Some
> things are not all that bad, and provide profit for the dealer, AND
> security for you... Things such as extended service contracts provide
> "warrantees" on used cars, and extend the warrantee life of new cars.
> e.g. I just bought a new car this week from myself for a $400 profit
> from the dealer. The VW factory warrantee is 5/50 P&D and 2/24 B-B.
> We put ***HIGH*** miles on our cars quickly, so a 6/100,000 near
> B-B warrantee was a wise investment. Fabric guard you can spray on
> yourself. Paint sealant isn't a bad idea if you live in the city, or
> own a black or "soft"-pigment car. Some accessories actually add value
> to the car down the road (10 years or more usually). Go to a car show
> and see what I mean.
> 
> Even though you are presenting a check to the dealer with your loan
> value pre-approved, as you are working the deal, mention the rate that
> you have to the F&I guy, and hint that you will let them finance you if
> they can beat that payment by, say $5-10 per month. Often, a dealer will
> take a mini-deal "front" because, even at a minimal interest rate
> markup, the dealer still makes money, and you get a better payment - by
> eliminating the middleman - the bank. Be aware though, the salesman only
> sees a percentage of the "front" so a bottle of wine, or a gift
> certificate would sure be a nice touch when you get a good honest deal
> from someone who you like... (Yes, a "tip".)
> 
> Oh, and one last thing... when considering your trade... Two main books
> are used for appraising your car, the "black book" and the "NADA" guide.
> The dealer will *only* pay wholesale for your car. Anything above that
> is discount, so if you have already followed the above proceedure to get
> a max discount, and then want a lot for your trade, be prepared to be
> "bumped." A good rule of thumb I use with customers is that the major
> item we are looking at is final cash price. If I give you more for your
> car, or more off this new one, either way whats important is what you
> still have to pay. So if you would walk in and see *YOUR* car on our lot,
> *AFTER* negotiations, what would you expect the final selling price to
> be on *YOUR* car? From that take $1200, because it costs about $600 to
> put a car on the lot, and we need to sell it and make about a $600 profit.
> (Actually, most people over-appraise their cars, so we end up in discount
> again. But we're at least closer, say only $500 or $1000 extra in the
> trade, off the sticker, before negotiating the additional discount.)
> Now what you don't realize is that your are usually saving yourself money
> by trading in a car. Or at least a lot of headaches. You don't have to
> place an ad, meet customers, do your own negotiations, be responsible for
> breakdowns, etc. You also don't have to pay the SALES TAX on the difference
> in the transaction. Say you are buying a $20,000 car, but trading in your
> $10,000 car. 5% sales tax on $10,000 is $500. You would have to pay that
> tax without a trade. Now if your tax rate is higher than 5%, that's a
> lot of $$ you're saving (plus time and headaches).
> 
> Boy, I only wish I could reach all my customers and tell them what you
> know... :-) 
> 
> Thanks for listening!!!
> 
>