Hi Veeky Forums!
Every once in awhile I like making a thread to just help out fellow anons who have questions about how dealerships/salesman work!
I'd prefer not to give out super specific information about myself, but I sell at a fairly large dealership, primarily new but occasionally pre-owned. A big Japanese brand.
Ask anything related to how the process works, tips tricks, whatever!
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Totally unrelated but, do you think this car looks like it would be reliable?
Credit karma says 745/732. Can you give me an ballpark interest rate on a used 20k car? 8k down.
I recently had a salesman lie to me about what the dealership provided for buying a used bike. Namely, they covered the 10k service for 60 days after purchase. The dealership did the service and swallowed the cost because of this. The same dealership later gave me a tire for free because instead of replacing the tube the service department did the whole thing. How common is this?
Not really my thing unfortunately, not very mechanically inclined. Just from reading it it's probably fine.
Going through your bank or a credit union will usually get you the best rates. It mostly depends how old, but you should qualify for the best rate available. Also can depend on area. Biggest factor is how old. I know BECU counts 14 and newer as a new car, and you can get rates around like a 2.24% with good credit.
How common is what exactly? A dealership having to cover a salesmans ass?
What made you become a car salesman?
>tfw no more LPG Tales from the Dealership threads
A dealership eating $1k+ worth of work because a salesman lied. A salesman they fired before hand.
I leased a car last year and don't want it any more. I also put 52K miles on it just past the 36K limit. It's also been in an accident that hasn't been repaired
How the fuck do I get out of this contract?
Help.
That thing is worth 3$K Max WTF.
You're pretty fucked. Hopefully the company has a cheap mileage cost. You'll have to drop it off at the end and pay the miles.
Personally never heard of it. Someone close to me did it, made a lot, so I tried it out.
Do you guys lower the prices on old 'new cars' you don't sell? Do you eventually get desperate to get rid of them?
Yes. Usually the ones pre discounted on a dealerships websites are old age units. Though you can normally get a non old age one to the same or lower price just by going through some type of buying program or just negotiating.
What is the margin of profit on a typical car, lets say Sedan and a standard Pickup?
Also, is there any specific point that they won't negotiate past or is it just a gut feeling? To phrase that a little better, is there a certain mathematical formula for the absolute lowest a dealership will take on a vehicle or is it just a case-case type thing?
Well I know it differs per brand, but I know for a fact that all across the companies, the markup from invoice to msrp has been getting smaller and smaller. On our cheapest cars, the margin is literally less than $400. On a $35,000 car, it's about $2500 or so. That's not exact in anyway however.
For he second part of your question, at least with my manufacturer, as far as I know there is no set formula of any kind. Mostly a case by case. It's not uncommon to sell some of our volume type cars, think civic/Corolla/Sentra type vehicle for invoice to $1,000 below invoice. I've seen a deal that was about a $2500 loser, and that was an odd situation that our GM approved, not quite sure why. A typical employee deal is like $500 back of invoice, unless it's some sort of super rare vehicle.
>TLDR:
Mostly a case by case. If we are struggling to hit numbers for the day/month, and we have 20 of the car on the ground, we know they'll service here, etc. we are more likely to sell it for a loss/bigger loss.
Are there any advantages to a payment plan if I can afford to just buy the car outright?
What's the best way to get the best price?
Builds your credit
>Are there any advantages to a payment plan if I can afford to just buy the car outright?
You can negotiate a better deal if they think you are going to finance it thru them. As long as there is no penalty for paying off the loan early, you can get the loan and pay it off in the first week. Thus you have a minimal interest charge with your losses being the loan financing interest charge for that week, the loan opening fee (ouch), the loan paperwork fee, and whatever else you got stuck with from the dealer.
As for payment plans, there are financing plans obtained thru the dealer versus pre-approved loans you get yourself from your credit union or bank. Obviously, the dealer wants you to use their financing plan instead of you getting a loan out from your CU/bank since they profit from that financing plan.
Remember that you can be told one thing verbally, but the contract can say something else. I've had that happen to me before and learned the hard way. Salesmen want you to buy and won't tell you stuff that makes you run away. Their personal justification is that if they don't sell it to you, then someone else will. So read the finance terms carefully to make sure you can pay it early without some penalty or closeout fee added on. If there is some minimum load, that means there is a minimum amount of financing profit the dealer makes before closing out so you will have to buy that out. That was in the 1970's in a contract my grandfather had. I don't know if such contracts are legal now (probably not) but always read the fine print before signing. There is no rush since the manager has all day for you to hand the paperwork to him at that point.
This was not the OP. I am OP.
Well, do you mean personal benefits? Or what will the dealer do to benefit you?
For yourself, it'll build you credit, as well as allow you to keep money in the bank.
If you mean deal-wise, many manufacturers offer rebates/incentives if you pay cash.
If you mean wether or not the dealer will change price by your method of payment, I actually had a disagreement with LPG about this before. My experience with this, is that with a new/reputable dealer, they either barely care, or don't care if you pay cash or finance. It's buy here/pay here lots/used car lots that make a lot of money on rate, that care if you finance or not. We generally don't make money on rate at my dealer, don't get me wrong, we sometimes do, but it's not a huge driving factor in the dealerships income, like it is at used lots signing people at 19.99%.
We will send people aggressive offers over email/phone from our internet department without knowing if they plan on financing/ paying cash. It generally does benefit our dealer to finance rather than do cash deals I should clarify, but it doesn't influence the deal we give.
I meant to say that
Was not op. I am op.
Do dealerships really do a multi point inspection when people trade in their cars?
How sales men work
>lie about price
>try to get you to do a monthly $ number instead of total $ number
>full of shit
>ALL of them are liars
>they are all cucked by the manager
>this other model TOTALLY is a better deal (it's not)
>give you shit trade in
>never will help you if there is a problem
>NEVER to be trusted
Don't EVER trust a sales man. They are ALL shit. Source: worked in sales for YEARS.