Auto Dealers Compete

What did you read that right? I know a car salesman you can trust is an oxymoron. But I found this great story about Robert Chambers who started a non-profit to help the working poor buy cars and get loans with out getting taken to the cleaners. He sounds like a very cool guy. At age 62 he finally has found his calling. Way to go Chambers! Check out the full story at time.com. I added a link below:

That’s when Chambers discovered his calling. He founded Bonnie CLAC (Car Loans and Counseling), a nonprofit that attempts to negotiate fair car prices for the working poor and offers them low-rate loans. Since launching his firm in Lebanon, N.H., five years ago, Chambers has underwritten $10 million in loans, and his clients have saved an average of $7,000 over the life of their loan, he says.

TIME.com: A Car Salesman You Can Trust — Jul 31, 2006 — Page 1

technorati tags:car salesman, Robert Chambers

Great blog post on a Car Salesman’s Worst Nighmare is a calculator. I agree it is a tool you can use to get the best deal but for me the worst nightmare for a car salesman is the internet. It allows you to level the playing field and get the best deal with out even talking with a sales person.



I bet you thought car salesmen didn’t have nightmares - didn’t you? Well, you’re wrong. And you might be surprised that the culprit is in millions of backpacks across the country. That’s right - a car salesman’s worst nightmare is a good ‘ol financial calculator.

BeancounterBlog.com » Blog Archive » A Car Salesman’s Worst Nighmare

technorati tags:Car Salesman, buy, new, car

Internet can be your buffer zone from the salesman… It can also help you get a rock bottom price on a new car. See the story below.

I’ll repeat what Michael, my ASM, told me about Caucasians . He said white people never come into the dealership. “They’re all on the Internet trying to find out what our invoice price is. We never even get a shot at them. I hate it. I mean, would they go (to a mall) and say, ‘What’s your invoice price on that beautiful suit?’ No. So why are they doing it here?”

Proof is in the pudding:

“. One young guy was killing time by goofing around with his Palm Top computer. He was outfitted in designer jeans and a T-shirt, so I wasn’t surprised to hear that he had just bought the radical new SUV our dealership sold. Michael had told me these vehicles were selling for over sticker prices, so I asked Mr. Palm Top how he made out.

“I got an awesome deal,” he said.

“How awesome?”

“Three hundred below invoice,” he smugly answered.

I asked how he did it. He said he checked prices on the Internet. He then called the fleet manager and made the deal over the phone. “

As noted in a at edmunds.com

Car Salesmen

Technorati Tags: Car Salesmen

I read this great series at Edmunds.com. The idea was to take a staff writter from Edmunds and send him out to get a job as a car salesman. The series is a nine part series on his time at the lot. Very eye opening. If you are in the market to buy a new car you should read this and find out what the “enemy” is thinking!

I had driven by the dealership a hundred times and never stopped. As I passed I would look over at the row of salesmen standing in front of the showroom windows, white shirts gleaming in the sun. This phalanx of salesmen looked so predatory it always made me think, “Who would ever stop there?”But today, I knew I would be the one stopping there.

Confessions of a Car Salesman

technorati tags:Car Salesman, car buying

Test driving your next car is one of the most important parts of the sales process. Do not over look it. I have gone as far as rent the car I am interested and drove it fro 2 to 3 days. It’s a big investment and I want to make sure I am happy with my purchase.

I found this great article on about.com on how to do a proper test drive. I posted the first 5 steps and added a link at the bottom so you can read all 10 steps.

Again this is very important so don’t miss this article.

1) Your test drive should last a minimum of 20 - 30 minutes and take you over familiar terrain (so you can focus on how the car feels). Drive through both light and heavy traffic, smooth and rough roads, as well as hills and curves. How smoothly does the car drive? How responsive is it to gas and steering input? Do the brakes respond well? How does it handle compared to other cars you’ve driven (including your last car)?

2) Here is a safety check that should be considered when test driving a new car: how well can you see the road? Does the windshield - plus the side and back windows - give you an adequate view of your surroundings, or do you feel yourself straining to see?



3)A well-built car is a quiet car. You should be able to carry on a conversation with your test-driving friend without raising your voice. If someone is sitting in the backseat, try talking to him/her. Can you hear this person without having to strain, or is engine/wind/road noise overpowering the conversation?



4)Park the car in a few tight and open spots - is it difficult to maneuver? Take the car into a parking lot and try it out there. Does it reverse easily, without jerking or clunking?

Buying a New Car: Test Driving Tips

technorati tags:test drive, new car, new car buying guide

I really like both of these sites to help me find invoice pricing:
http://www.kbb.com/
Yahoo Auto

I have receive several emails about how dealerships price their cars. I found this great site that gives really good information.

Tony Lorio has this to say about so called “Secret Pricing”…

“there are no “secret prices!” This website you mention is just using a gimmick so you will get a new car price quote through them. Why? Because they earn a commission on each free price quote they generate through their site.”

InsiderCarSecrets.com Blog: Secret Prices For Car Dealers

So what is the pricing dealers use?

The Dealer will pay invoice for the car. You can find this on the Internet any site like yahoo autos, Kelly Blue Book, etc.

So how do they make money outside of you financing th car? Well dealers will get something called a hold back. A hold back usually is 3% of the retail price of the vehicle, and paid to them quarterly. The holdback is used to off set the cost of financing each car the dealer will keep on the lot.

So even if you can buy the car at invoice the dealer will still make 3% of the retail price. Sometimes you can get a dealer to eat into their holdback money and you can get cars below invoice. depending on how fast the Dealership can sell the car they can still make money on each car they sell under invoice.

One final way to reduce the cost of a car is look for special rebates offered on cars. The factory to dealer incentive is used to push the sales of slow selling models. If you keep your eyes out for the rebates you can really get yourself a good deal.

technorati tags:dealer pricing, below invoice, dealer hold back, new car pricing