Posted by K Effective on December 02, 2015 at 11:06:44 from (162.235.236.141):
In Reply to: Trading cars posted by Case e on December 02, 2015 at 07:44:58:
I just experienced some of this when my Mom upgraded her car. I was so proud of her that after a few test drives with me, she actually went to a dealer, saw a car she liked, and started negotiating a deal, all without my help! She had not bought a car in 75 years, her Dad then my Dad handled all those things for her. At that point, she insisted I look over and drive the car, which turned out to be a great one-owner (80 year-old) local car in pretty good shape. The deal she finalized was just under the average retail from KBB for our area for condition. She got a trade-in price, but then gave us her "old" car for one of the kids. Hers was clearly negotiated as a cash deal right up front.
A friend who had retired really young, and has a car fetish, took a job selling cars at that same dealership years ago, just to pass his time and look for cool cars for himself. He told me that new car sales has little margin in most of the common cars. some deals netted the salesman less than $100 commission. The dealership does have a set "holdback" number that they get paid by the manufacturer depending on volume, etc. that helps pay the overhead. Their fattest cows are the late-model used cars, where there may be a couple of thousand dollars over the trade cost. His experience was that any other salesman (than an independently wealthy one like him) would work a deal until they broke even- so stay fixed to a low offer until they actually ask you to leave, then take their last offer, as it will be the best they can do. I prefer to think of them as servers, who deserve to EARN some of my money, if they treat me well, I don't mind them making some decent profit.
Mom is enjoying the new gadgets- she tracked her tire pressures to show one leaking air, the dealer aired them all up for her once, then investigated further to find a broken drywall screw in the tread even I did not see! They offered one brand new replacement tire, she upgraded to four new ones, just to keep a matched set. Seemed like good customer service to me.
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