Dealer wins Round 1 (Live & Learn)

I can't remember if it's the hold back or what, but when a dealer gets a car off another dealer they don't get that revenue in the deal. A swap might be a little different, but as I mentioned in another thread I don't think dealers in the same area like trading. The dealer with the car you want probably figures you'll come to them if the other dealer close by wants to swap.

2 weeks on the lot may seem like a long time to you but the article today on Yahoo tallked about some cars sitting for 150 to 200 days. I imagne dealers would love to average 2 weeks turn over.

Many dealers when you're dealing on a car they don't expect or have in stock will want to price the car when you are ready to do the trade.

I think dealers are a lot like people and do some impulse things and then think about it later. What seemed like a good thing to move a car immediately might not look so good a few days later. They try to get you to purhase on the lot while they have momentum. I guess it can backfire on either side?

They may figure you were jerking their chain since you walked away the first time and just don't want to fool with you (stupid business, but these are humans)

Are they selling at a $600 discount still? That's about the best deal I have heard on here so far.

 

Sorry to hear that Midpack. Like I mentioned in PM, I figured they would pull the "trade depreciation" card. But, it is better to find out now, then after waiting for your car to come in and then say, "Oops, your trade isn't worth the same anymore"

 

Best to try another dealer. If you are having these issues with them and you have not yet pulled the trigger, just think how much help they will be if you signed an agreement (Hoo-Boy!)

 

I don't think you are being bull-headed at all. In this economy $1000 off MSRP should be the norm and Stealership markups ought to be a thing of the past. Even with $1000 off MSRP the Stealership makes a hefty profit thanks to hold backs from the manufacture.

We got our 2006 and 2007 Prius's at $1000 off MSRP each and if I can't get the same deal or better then I will pass.

 

Well somebody has to be first, but it could be a while before its seen as a "normal" discount. It's not happening anywhere so far so it is unreasonable to expect it just because it's the deal you want.

Wait a year and you'll find deals (unless of course Iran goes crazy(er) or North Korea does indeed shoot a missle this weekend at Hawaii)

 

A read through www.carbuyingtips.com will bring you to the conclusion that the dealer always wins. They are professionals while you are an amateur at the game. I suspect that either they were going to get their money back on fees or the pidgeon they had in mind for your car flew away.

2 weeks on the lot may be a long time for a Prius but most everything else sits much longer. As Lee Iacocca said, "If you can find a better deal elsewhere, take it."

 

Sorry you lost the deal, but I have a feeling that MSRP discounts will be the norm in a couple of months (assuming gas doesn't skyrocket). I've never paid msrp for a car before, but that's the going rate in my area, so I'm willing to pay it to get into the 2010. When I bought my '06 mustang, they were HOT and I still managed to get it for several hundred under invoice. The salesmen thought he'd be able to screw me on the financing, but little did he know that my plan was to pay the car off in full within the first month.

 

I started a related thread in the forum about a dealer decision. Maybe I'll wait until inventories start to stack to get better deals. Truecar has the average at $950 over Invoice for the Prius III+Nav in SoCal. I don't know if their sampling is that large as of now.

 

So you feel then that the economy has nothing to do with Stealership pricing? That is shame because it a factor, especially when consumers have less money to spend. There is no reason why a Stealership should be taking advantage of consumers just because a vehicle is a new model. They take advantage of this with Stealership mark ups (gouging) and surprisingly people pay it.

Stealership still make huge profits even when they sell under their invoice price. If you really understood how it worked then you would be calling them Stealerships as well. You say you would not let them take you, but how would you know you were being taken if you don't understand the process.

Does your Stealerships recommend oil changes sooner than the manufacture? This is another tactic they use to get more money from you. Don't be fooled into believing they are looking out for your vehicle, as they don't know your vehicle better than the manufacture does.

Do I sound bitter, yes. This is because I have never had a good Stealership experience. And every time I have ever used their service department, those goons have scratched my paint or forgot to reinstall bolts/screws. They have even thrown out my old parts when I specifically told them I wanted them. This is unacceptable in my book. Yes a company has a right to make money, but not to take advantage of people.

 

Your first comment I ignored Rest. But now you might be going a little overboard.

You know, I bit my tongue the last time someone came on this forum and started ripping dealers to shreds with false accusations. And I am going to do it again. But I have to know, If a dealership.. sorry stealership... sells a $25,000 car for under invoice, just how much of a "hefty profit" do you think we make? Please answer that for me. And just curious. Maybe you can even answer me this... how much money do you think a salesman makes, on average, for selling a car at invoice?

 

I agree salemen don't make much, it's the owner that makes a lot. Hold backs and manufacture incentives ensure this profit. You will not get any sympathy from me! Stealerships earned this name so don't blast me with teary eyed excuses. The last time we used a Stealership service for an oil change, I checked under the car when we got home and guess what....oil was leaking all over the place. The service goon didn't tighten the oil filter! We were scheduled to go on a long trip with that car the next morning, had I not checked it we could have blown the engine. Their response to this was that they offerred us a free oil change....I was like "No way are you touching this car again". I learned my lesson and do all my own service now, unless it is a major issue covered under the warranty.

 

I gotta agree with Jabber on this. Also, there is nothing "unfair" or "taking advantage" by a dealer charging MSRP or even $5k over MSRP. If people are willing to pay that price and they can sell the cars at that price, then by all means, they have the right to sell at that price if they would like. You have a choice to buy that car at that price. No one is forcing you. Don't like the price, dont buy it. You do not have some "right" to only pay some arbitrary price point the manufacture sets on the car. It's not gouging, it's not unfair, it's not evil...

It's business in a free market. If your demand is high and the supply is low...the price should go up. Take an economics 101 class.

And no, I'm not a dealer. I am currently pricing and evaluating a Prius and hope that I dont have to pay over MSRP. But shhhh, don't tell my dealer but I would probably go a fair amount over MSRP because I really want a prius.

 

And there is nothing wrong with a business giving their employees huge bonuses after a Government bail out.

Oh please spare me the supply and demand logic. Many have used that to compare with the cost of gas. Funny how the prices still went up when demand was low.

I will give you this though, consumers can control the prices and if they would not purchase any vehicle that is marked up, then Stealerships wouldn't sell them this way.

But what really bothers me about Stealership tactics is when they put you on a waiting list and agree to a price but then when the vehicle comes in they raise the price or sell it to someone else at a higher price bumping you off the list. Better yet, advertise a sale car and when you get there they say it already sold and try to sell you something else. Even though when you called first they said it was still there.

Oh yea I gots no love for Stealerships!

 

They are there to make lots of money and you are trying to buy and save as much as you can. It's like Las Vegas, The house usualy wins.

 

That was a service department wrench that doesn't care about your car. They have nothing to do with profit of a new car. I'll politely ask you again, how much is "a hefty profit" after we sell a car for invoice.

And there are a lot more middle men involved. Besides the fact that, and please correct me if I am wrong, but there is no futures market in the stock market on Prius.

Just like the email that goes around every few years about how nobody should buy gasoline on the third wednesday of August. That will force the price down. The trouble with that is it is true, but nobody will really pay attention to it. We still need gas, and people will still want the prius over car x.[/quote]

And I agree that bait and switch tactics are the 70's style of doing business. Most dealers do not do this anymore. Or, they specifically advertise one vehicle (shown by the stock # that must be included in the ad by FTC law). And if they did try that crap, you are always welcome to leave.

But, to get back to my original question. What exactly constitutes a hefty profit in your eyes?

 

I am sorry that you've had such terrible service and awful experiences at dealerships. Still, your statement is a basic non sequitur. A person is required by law to file an income tax return with the IRS, but that doesn't mean that I need to tell you how much money I make or what charities receive gifts from me.

A dealership that provides shoddy service and rips off customers eventually will run out of return business and go under. A business that miss-uses public funds is subject to criminal prosecution. There is a difference.

Conspiracist? There is more than one oil company and more than one auto manufacturer. More than that, each oil company has many outlets, and each auto manufacturer has many dealers. If you don't like one, go elsewhere. If you think they're all in on it together . . .