New Car Warranty Comparison
MSRP Is A Fair Price For That New Car
When I started my website as atool to offer my services to sales companies, I never considered that consumers would be viewing it as well. Recently I’ve started getting inquiries from consumers on how and when to buy a car. So knowing what I know, here goes.
If you think about it, the anxiety associated with buying a vehicle is directly caused by the fear of negotiations. Over the last few years I’ve often wondered why more manufacturers don’t simply go to a one-price marketing system. Many dealers must recognize a problem because I see a grassroots effort happening all over the country in one-price shopping.
1) Make a conscious decision to buy within a certain time frame. 2) Research vehicles you intend to consider on the manufacturer’s website. Your research should include dealer invoice, warranty, fuel efficiency, standard features, options, finance or lease plans and at least two dealers near you. If you are purchasing a pre-owned vehicle try to purchase one that is certified. Do some online comparison pricing on similar vehicles with similar miles. When you get to the dealer ask for a Carfax report. Not that Carfax knows all, but it might have valuable information. Look for fluid leaks beneath the vehicle. If you intend to buy, and it’s not a certified car then you may want to take it to an independent mechanic. During your research you will likely come across articles that are titled something like this, “what is the dealer hiding” or “tricks that dealers will play on you” or “what to be leery of when buying a car” or blah, blah, blah. Believe me, there are no clandestine conspiracies among dealers to do anything other than serve the public. Dealers have nothing to hide. As a matter of fact if you do your research, the dealer will be negotiating from a disadvantage. The information highway has brought all of the information right to your fingertips and every dealer is just a mouse click away. Now, that’s not to say there aren’t some run and gun, shoot from the hip, horse trading, high pressure crasfty rascals still out there. Just go with your gut feeling, you’ll know within minutes if you need to put your boots on. I had a guy in chest waders once. He told me he's already had on his puddle slippers, knee boots and hip boots. So I asked him..."is this your last pair of boots?" I knew I had him.Be mindful that dealers, just like all business owners need to make money, so don’t get your kicks by wringing the last few dollars out of a deal. Take pride in the fact that a deal is fair for everyone. After all, the dealer did invest millions to sell and service automobiles. You will want them around when it is time for service.
Ok, things you may not be aware of; dealers spend an average of $350.00 - $700.00 per car sold in advertising. It costs them almost $200.00 to get you in the door whether you buy or not. Dealers also incur thousands of dollars in interest charges each month (floor plan expense) to finance their new vehicle inventories. Now on the other hand, you have 4 fingers and a thumb. Ha! Most manufacturers pay their dealers’ holdback, a 2%-3% margin built into the invoice cost to help offset expenses. Many manufacturers also pay floor plan assistance when dealers effectively manage their inventories. In other words, when dealers turn their inventories quicker, they can buy more cars more often and in turn, the factory will help defray floor plan expenses. Dealers also get paid a stipend to prep the vehicle so it’s checked and ready for sale. These are the hidden income streams you will read about. By Steve Peck - I've been in sales 33yrs. I own PinPoint Sales Systems, a sales and online solutions provider. I write auto and sales related newsletters @ www.pinpointss.comNext page: Cadillac Extended Warranty
Bookmark/Share This Page:
|
|
|
|
New Car Warranty Comparison News
Fraud case versus AIG ex-CEO Greenberg cleared for trial - Reuters
8 May 2012 at 2:58pm The appeals panel said a lower court judge was premature to hold Greenberg and former AIG Chief Financial Officer Howard Smith liable in October 2010 for damages over an auto warranty insurance transaction with Capco Reinsurance Co, which the ...Read more...
