Auto Dealer Strategies - PowerPoint PPT Presentation

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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?