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I might as well get this out now. I enjoyed selling cars. I mean, I really enjoyed it. And no, it's not that I liked "helping people" or assisting them with their big "investment". I just liked the thrill of going toe-to-toe with a guy who thought he knew everything, who wasn't going to pay one penny over the most Spartan, down-low-and-dirty deal and after playing the haggling game, letting him think he achieved his goal, even after he had just paid hundreds, or even thousands more than he had to.
Is that unethical? No, a car is worth whatever someone will pay for it, and if the customer is happy with his or her acquisition, then it was a fair deal. Some cars are a bargain at list price. Right now, for example, a Ford GT is a great deal at only $65,000 over list.
Over the next few days and weeks, I will be sharing the in and outs of the automotive industry. How to know you got a great price, negotiating your trade, the facts about financing through a dealership, and the lowdown on leasing.
You may be shocked and surprised at what you learn. For example, did you know that when you tell a salesman you are shopping around and ask for the "best price", you will get only one of two things:
a) a price that leaves them a healthy amount of wiggle room, that they will try to negotiate with that day, or, which is far more likely:
b) a low-ball price that you can shop around with, and when you return there because it was the lowest, you find out they can't honor it for one of a thousand reasons.
The first rule in Carsales101 is never let a shopper walk out with a buying number!
How can they get away with that? It is pretty simple. It is all in the way a statement is phrased. Let's say, for example, that you are buying a $20,000 car, and you know that the dealer invoice is around $18,200. The dealer isn't in any rush in most cases to blow a car out for invoice. You ask, just the same, if they would sell it to you for that price, or a hundred or two over invoice. The salesperson asks you the 'Golden Question'- 'If I could get my manager to approve the sale at $18,200, would you buy the car today?'
Now, if you still feel the need to either shop around some more, or need your spouses input before you pull the trigger, and answer 'No, I am not buying today', then the salesman will likely answer 'Well, when you are ready, I will check with my manager to see if we can sell it to you for $18,200...or who knows, maybe even a little bit less!'.
Now you have just been low-balled. The salesman is counting on you to shop the price around, thinking that you can get that vehicle there for under $18,200. But the salesman never actually said he could sell it for that price. Just that he would check with his manager.
The low-ball is typically stated as a 'If I could...would you' statement. The shopper is just listening for the number nestled in that phrase, not realizing they are being deliberately set out on a fool's errand of trying to find someone who would beat a ficticious 'deal'.
If you are interested in learning the secrets of the trade, simply email me, and say 'I want to know'. The insider tips are all free. There is no charge. I guarantee that what you learn will save you money and keep you from a lot of regret over the coming years. |
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