Crap dealers say
From time to time people ask for my advice about buying cars, how to get the best deal, what to watch for at negotiating dealers, and just general things about the car sales and finance industry. Since White Bear Mitsubishi is a Best Price dealer, I can expose (read call out) a lot of other dealers on the crap they try to pull! Here are come misconceptions, myths, and truths about the auto industry that you may not know.
On one of the biggest areas where people have misconceptions is on the financing end. So I'll give you guys the whole run down on that.
On to a different subject: Trade ins.
Here are some things that dealers might do, to be aware of.
So how do you get a fair deal? COME TO WHITE BEAR MITSUBISHI OF COURSE! No seriously though...
And finally to clarify, how exactly do dealers make money?
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Thank you for posting this, great info to share with the group. Also, thank you for mentioning the games a certain EvoM sponsor dealership in CA plays; there are tons of complaints out there from out-of-state buyers who fly in only to learn their actual price is no where near the "too good to be true" price advertised on the forums.
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Very well written and great information the general public does not know. You left out one thing in regards to trading in your vehicle with a licensed dealer. Yes, you won't get what you MIGHT get selling it retail, but you actually pay the state less in taxes when you trade in because you only pay the 6.5% or whatever it is now on the NET purchase price(new car-old car trade in value), so with a $20k trade in, you're saving $1300. That explanation helped a lot of people with trade in's because it offsets the lower price and of course is much more convenient.
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With the high value of Evos and a dealership down here that loves having modded cars on the lot, the majority of Evo owners trade-in here rather than sell privately. It's pretty common for the dealership just to buy the car out-right too, not sure how that works with taxes though. I sold my IX privately, but I really should have gotten it appraised for trade-in first.
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Good info, although I don't know if I quite get the trade-in part about having a manager sign off. So when do I want to ask them for a trade-in price for a car? Is that the very first thing I should do when walking in the door before I even say what I'm looking for?
I guess to me it seems like there's 2 transactions taking place. No matter which I do first (negotiate car price, or trade-in price), they will always try to offset it. So say I'm looking at a Fusion for 20k. I walk in the door and say yeah we're interested in this fusion for 20k. They say oh ok, yeah with the rebates we can give it to you for 18k. I say OK then how much for my trade in, and they say 5k, so in total i end up at 13k right? Vice versa, I go in and get a manangers signature saying they'll give me 6k for my car. Then we go look at the Fusion for 20k, the guy will say he can get it to us for 19k with discounts. Same 13k final price right? So I guess I'm not understanding how it matters? Also, say someone like me wants to just go in and pay cash. That's apparently a turn off, so what do I do to make sure I still get the best price? I could finance for 1 month then pay it off, but that seems silly, especially if it was a deal that was 0% or 2000 cash back and I chose the finance option. I hate the number games and the bartering, which is why I loved going to Steve. I just want to walk in the door, know the price, and that's it. If I walk out the door and get chased down saying OK OK We Can Go Lower (happened to me in Yuma), then it's like no too late, you already told me that was as low as you could go, that makes you a liar. Steve, I wish you were still in the business :) |
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Aww, shucks. :D
Yeah, the net is really the number you're looking for, the rest of it gets to be fluff. The nice thing about my setup was that my overhead was cheap compared to the bigger dealerships, so my prices were always quite a bit lower as I could give the same trade in but the starting price was cheaper. Plus I got really good at getting the best deals at the auction, that ended up being the key for me. |
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You would be surprised how many people don't understand this the first time you point it out to them. Then you have to actually do the math with them and show them "They said they'll sell you their car for 19,740 and give you 5,000 for your trade. We're offering your $4,500 but selling you our car for 18,999." Happens about once a month. I even had a guy walk once because of this. We offered him less for his trade, but the net difference was that we were $280 cheaper. He was so butt hurt by the fact that our trade offer was $500 less, he walked. Offering cash isn't a disadvantage. It's just not a way to get an additional discount as it's commonly believed. If you can get a 0% financing offer, ask them to show it to you both ways, then decide what's best for your situation. 0% offers generally require you to give back a large rebate. This means if you're the kind of person who pays off your loan early, 0% is probably not the best offer. Or, if you have a large some of money down (or valuable trade) than 0% is also not a good of an offer because you could be paying a small amount of interest on a small amount of debt which would not equal the cash you have to give back. I.E. 2.9% on $12,000 financed doesn't total $2000's if that's the rebate you have to give back. Quote:
That's what I like about working for the Rydell Auto Group, we just lay it out like it is. |
Re: Crap dealers say
Thanks for the explanation. Again though, so should I ask for a trade in value first thing right off the bat before we even go look at cars, and get the managers signature? And I'm still not understanding the trade in stuff I guess, because it seems like they can still offset it no matter what. Unless you are saying I can walk away with hopes that they will call me back a day later with a lower price on the car I want to buy, without being able to offer me less for my trade-in?
Also, is the tousley Ford by you a best price dealer, or are they no good? I ask because they had a lot of fusion that we are interested in. |
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And you can compare it against other dealers. If you go to Tousley and they offer you something and you get that in writing, you can confidently shop that against another dealer's offer. I'm don't think Tousley is a best price dealer (not 100% sure). Most often best price dealers will list their prices on their website, like WB Mitsu's page, or any Walser store. Tousley just has the MSRP listed. Apple Ford Lincoln 53 1.6T's in stock, and I know they are a best price dealer (That's a Rydell store I could pull inventory from) An no, please don't just walk in and say "What's my trade worth?" I hate when people do that, lol! If we don't have a car you want to buy, then why am I going to go look at your car and have my manager do a trade evaluation? |
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But lots of good info though! |
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Great info! Thanks for sharing this.
Its been a very long time since I traded in a car. Although, I hate selling cars myself because of the craptastic lowballers out there, I still do it to get the most money. I think the last time I traded in a car was 1997. :-) later, Curt |
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Sales 101: You have to earn the right to ask for a sale. You can just toss someone the keys and ask for their social security number so you can soft pull their credit while they're out, lol. |
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Yeah that is annoying as hell, especially when driving around the lot and the salesment hunts you down like dangerous game
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We've been there twice now. Test drove a total of probably 5 cars. Never once have I felt pressured (same salesman both times). We left both times without him even asking us for our phone number. Guess it all depends on the salesman.
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