Not a dirty word in my mind.Can i get that invoice on that polo shirt that they sell at the mall for around $60.00 to $80.00 Let me see i think it cost them to make that shirtabout $16.00 hmmm do the math how much mark up is that?

New cars have about 10-12% markup How about that sofa i want to buy O letsnot forget that nice dinner at red lobster that so marked up can i get the true cost on that hmmm i wonder how much it cost them to make it?

I sell cars and i luv it some people make it harder then it is..We Dont
like the back and forth stuff that all customer talk about we have whats called

a msrp that the Consumer dosent want to pay so we do the back and forth for them.If we marked all our cars down people would still want even a better deal.

I know we have a bad rap but things have change like surveys we send out to all our customer put yourself in my shoes if your manager at your job told you ok you can make $100.00 on this deal or you can make $600.00 what would you do????

Do some reseach like kbb.com find out the true cost and offer like 500 over its good for trades also.

We work hard just like you, and we should make profit this is america profit makes economy not saying we have to make alot just a little…..

I like what X did with costco. He liked the price, he went to the dealer and will buy if he likes the drive. Why spend your vaulable time messing around?

Visit the dealership you want to buy from last.
I assume that will be the dealer closest to your house or want it serviced.

I usually ask those I drove to give me a crack once they finished pricing…but that rarely happens. That is why the pressure is on to close the deal that day.

Personally, I wouldn’t buy from a dealer in Lower Uzbekistan to save $100. I’d rather buy from the local dealer in case there are issues.

But certainly you must agree that there has to exist some limit on the amount the local dealer can “lose” by, before it becomes worth it to buy from the dealer out in the sticks.

You call 10 dealers, someone is going to beat you by $100.
Not good when manager asks why we got beat by $100 after spending 2 hours driving around.

I might not have gotten the best deal in town, but I spent far less time. So, I am pretty happy with the Costco Auto program, as I know I am not a good haggler and don’t like to cut people too thin, but don’t like overpay either. the price I got still $400 below the great price on truecar.com

If they pull out a 4 square, leave…
If they don’t have business cards with their name on it, but were sales man of the year… what the heck.
If the sales manager won’t give you a price on a car, but instead insists you just “make an offer” that he will “consider”, leave.

I agree wholeheartedly with the people who said go into a dealership with the intent of test driving the car and do the “dickering” later based on what you can find online.

Locally there is a ford dealer who consistently sells cars at invoice or below, in fact they advertise cars at invoice prices. Then there is another chain that claims that they will beat the other guys price or give you the keys the car… well they definitely don’t match other places prices.. they always have a loophole.

For those who suggest you buy a used car with a few miles on it, find out first if it is a previous rental car and decide if that is what you want, once a car is a rental, it is flagged as such forever.

I think if you where looking at a hard to find color or a new model car, it can be ordered.

Regarding ordering options, I will use the example of power locks or power windows because I do not know what one your considering dropping. I don’t think that would NOT be available because it would cost more to install manual windows and locks then to keep the assembly line going.

Mike,

Keep in mind I was asked what my largest margin ever was. The normal mark up on an Audi is $2000-$2500. Once every 6 months you steal one from an auction because the dealers where in the wrong market and had to get rid of it. That is where I had a couple home runs. We always sold them because we spent a ton on advertising every month.

The guys on the floor make mini’s if a deal goes at or below invoice. That ranges from $50-$100, depending on the pay plan. Most guys making these deals last about 2 months before going broke or get fired.

The rest of us learn to sell the car, not the price.

But now people are buying cars at or below invoice. What is the margin left for you guys then?

The magin on new cars averages 8%. Selling full MSRP = around $1600 over invoice. 20% of that will be mine or $320. Not to bad if I sell 1 a day, but my monthly average on new cars = $200 per car.

Used cars are where the money is at. Most BMW and AUDI’s on the lot have markups of $2000-$5000. I can’t figure the exact margin because it varies so much. My monthly average is $350 per used deal.

I do ok because customers keep returning, and I make every deal as simple as possible. I also enjoy working because I turn over any ball busters to a green pea. I have no time to spend 10 hours on a $50 mini. At the same time I will bring any 30 minute deal to the manager for $50.

Thanks for the career insight…but I rather get into law or the medical field. Nobody ever negotiates with their Doctor or Lawyer.

Did not realize it was ok to call someone “numb nuts” on this blog. /insert “your mama” joke here.

That attitude right there is one reason I don’t like car salesmen. I’m in a dealership making a very large purchase that I’ll more than likely be paying for over the next 36 to 60 months, and this guy feels like it’s stealing from him when attempting to get a fair price for the car. If that’s how you feel, quit your job. Nobody is forcing you to sell cars with sh**ty profit margins. Go sell starbucks coffee.

Your job is to sell the car for the highest price possible, my job as the consumer is to get the lowest price possible. You aren’t being beat up…it’s a fight numb nuts. In the end, if you make the sell, you come out on top because you walk away with cash and I drive off with a depreciating “asset”.

I read Bill slamming “salesmonkeys” and saw comments such as “do not tell them your paying cash…” to get a better deal. This made me think about the bad advise and lies I always hear…such as don’t mention your trade, don’t mention your cash, don’t mention your credit.

Also, when reading comments such as test drive at one place, then shop at 10-15 dealers, I started thinking about the lies I hear when the customer wants to leave. “I have to talk to my wife….I have to go to the bank….I have to think about it…I want to grab some lunch and will be back in an hour.” I love telling them “hey, I skipped lunch, here is $5, grab me a burger since your eating lunch at BK.” I won’t tell you how many of these test drivers are thieves as well