Invoice cost vs. the REAL invoice
Dec 24 '99
Okay...true confessions now. I actually was a car salesman during my college years. But no - I never did wear the white shoes with the matching white belt...I promise you, I didn't! Actually, my uncle owned a dealership and he got a waiver that allowed me to sell cars at age 18 - although the state minimum was normally 21 years of age.
Since those days I've moved on, but I've never forgotten the experience. And I feel sorry for the salesman who've had to deal with me as a customer since then...because I won't let them control ANY aspect of the sale. You can do the same thing, I assure you. But it requires a certain amount of moxie...and the biggest advice I can give is simple: If you are not prepared to "walk" away from the deal - then it's not a negotiation, it's a holdup. And they'll be holding the gun on you.
One of the most popular "ploys" these days is the $100 over invoice sale. Most dealers employ this...sometimes as a special 48 hour sale...and sometimes as their regular end of month "sale". But guess what...the "invoice" on the window is NOT the true cost of the car to them. All the big automakers have "holdback" monies that are deducted from the invoice before it's printed. The dealer then can claim they are selling you the car at invoice....and they'll get their holdback money quietly from the manufacturer at the end of the month, or the quarter. The holdback funds are supposed to be special advertising deductions...and they can actually be upwards of 3% of the invoice of the vehicle. Thus...a $15,000 automobile might generate $450 in holdback funds for the dealer....not too shabby - and a hidden fund that the average consumer is completely unaware of when negotiating.
I also agree with another epinion here (and I'd suggest your read the ALL of the epinions on how to effectively buy a car if you're in the market for one)about the best time of the month to buy a car. The end of a month...the end of a quarter...and the end of the calendar year....are BIG sales quota times at all dealerships. The salesman...the sales manager...the general manager...and even the owner...all get end of month bonuses when they exceed their quota. In fact - sometimes the bonus is as large as their regular commissions. So....be prepared to negotiate for a car on the lot (that's the key) that you MIGHT be willing to buy before the end of the month/quarter/year. It's amazing how much they'll be willing to give up to sell that last car they need to make their quota.
Oh...and one final thing. If the salesman is a rookie....IMMEDIATELY ask to see the sales manager or the general manager. Tell them you are in the market to BUY A CAR TODAY...but you'll not work with any middlemen. Take control early on...and never relinquish it.
The end result? You'll have the advantage...and you'll actually feel clean when all is said and done. And that doesn't happen to many consumers in the relatively unclean world of selling cars to the masses.
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Epinions.com ID:
Bonies7
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Member: Jeff Clow
Location: The Lone Star State
Reviews written: 132
Trusted by: 1018 members
About Me:
Father, Husband, Consultant, Photographer, Writer, Conservative, Inquisitive, Texan
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