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Auto Dealer Strategies

Auto Dealer Strategies. John Butler Mark Luke John Ricks. Overview. Dealer goal vs. buyer goal Enticements Negotiating tactics Scams Recommendations. Enticements. Enticements. Dealer Negotiating Tactics. Focus on monthly payment not price Pressure to lease not buy

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Auto Dealer Strategies

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  1. Auto Dealer Strategies John Butler Mark Luke John Ricks

  2. Overview • Dealer goal vs. buyer goal • Enticements • Negotiating tactics • Scams • Recommendations

  3. Enticements

  4. Enticements

  5. Dealer Negotiating Tactics • Focus on monthly payment not price • Pressure to lease not buy • Negotiate down from MSRP (or MSRP + markup) • Wear you down / switch salesmen or lost keys routine

  6. Dealer Negotiating Tactics • “This car may not be here tomorrow” • Sympathy ploys • Salesman gets a call from “interested” buyer • Need a deposit before signing (try to obligate you before closing the sale) • No haggle pricing = No deal

  7. Scams Most common victim: someone with bad credit • 10,000-point inspection/Dealer Prep Costs • Additional Dealer Markup (ADM) • Financing fell through (before or even after taking possession) • Wrong date (or other info) on paperwork • Hide the Mulroney (MSRP) Sticker (this is a felony)

  8. Legal Obligations • Dealer • Disclose APR and total amount of interest that will be paid • MSRP (Mulroney) Sticker can only be removed by buyer • Buyer • In most states once you drive it off the lot it is yours

  9. Do your homework Find out dealer acquisition cost (ie. consumer reports)  NEGOTIATE UP from this! Research dealer rebates and manufacturer offers – don’t let the dealer keep a rebate you’re entitled to! Already have financing arranged (ie. loan from credit union) Recommendations

  10. Find a salesman through the service department Don’t take possession of the car without payment coupon book and paperwork all done Don’t buy on first day out Review paperwork & check dates Understand every line item and what comprises monthly payment Recommendations

  11. References • www.smartcarguide.com • www.consumerreports.com • www.carbuyingtips.com • www.kbb.com(Kelley Blue Book) • dir.yahoo.com/Recreation/Automotive/Buyer_s_Guides

  12. Questions?

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