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Posted on 1/21/25 at 1:13 pm to fareplay
quote:
Would dealerships sell at break even to move inventory?
Yes, but would be for very specific reasons.
1. If they move enough volume, they get kickbacks from manufacturer. Those are hard to find, but exist. They sell at cost essentially and get fat bonuses from manufacturer. Koons in VA used to seel Jeeps that way.
2. Need to move non-selling vehicles, to free up floor plan interest being paid. Every day a car sits on lot, it is costing that dealer interests payments. This was a major issue with Stellantis brands over the past 2 years.
3. Bank is forcing the sell. Some dealers have faced repo actions from their banks and those banks will dump the inventory to get what they can.
Ignoring all those, because they are not relevant to you probably. There is not that much wriggle room on new cars any longer. If saving a few thousand matters, you probably should not be buying the car you are looking at.
Posted on 1/21/25 at 1:14 pm to fareplay
dear car salesmen...I know yall make money off commission, but can you please post anyways possible to reduce that commission on a public message board?
TIA
TIA
Posted on 1/21/25 at 1:21 pm to RichJ
I'm looking for a Raptor R for sticker, hit a baw up
Posted on 1/21/25 at 1:36 pm to fareplay
FFS. They wanted cars off their lot prior to 31 DEC to avoid an inventory tax, and like a typical Aggy, you have shitty timing.
Posted on 1/21/25 at 1:37 pm to Townedrunkard
quote:
Are you a Honda dealer? Went to two dealerships and got a brand new 24 accord. Both offered below invoice price to get rid of left over 24s.
I am not a Honda dealer, I am SwampGar. I have been associated with Honda in my lifetime.
quote:
And they all say the same thing, Honda only goes down 1-2k on new vehicles
I did not say otherwise. I was being factual. I used to see the invoices all of the time and we all obviously know the MSRP. Of course we took losses on cars at times. For reasons already stated in this thread.
quote:
And they all say the same thing
Because it is true.
I do not give a shite what anyone does as far as pricing, I hope everyone gets the best deal possible for themselves.
Posted on 1/21/25 at 1:40 pm to GeauxTigers0107
quote:
Appears to have solid reviews but I know frickall about a Mazda.
It is a solid brand. I would be ok with a family member choosing that brand.
I like:
Honda/Toyota
Subaru
Mazda
In that order.
Posted on 1/21/25 at 1:41 pm to BrohemAlem11
quote:
dear car salesmen...I know yall make money off commission, but can you please post anyways possible to reduce that commission on a public message board?
TIA
Most of the time, if you are getting a good price on the vehicle, the sales person will only get a "mini' like $150-400. Some places get paid on front end gross, some do not. It all depends. Different pay plans at every dealership. Large variations of pay plans.
Posted on 1/21/25 at 1:45 pm to spaghettioeauxs
Dealerships get paid a dealer holdback on new vehicles. If they broke even, they'll still get a bonus from the manufacturer afterwards. They would also rather you finance through them since the interest is free profit from them. If you default, car goes back to them.
Free maintenance for x amount of years, which the average price for a mid-level non-luxury vehicle will go for about $70-$80 each visit at places like Firestone, Mavis, etc. Normal drivers should be getting their oil change/rotation every 6 months if you're driving 12k miles per year in current vehicles since most are synthetic and don't need the usual 3k oil changes. Actual parts for an oil change cost between $20-$40 depending on your vehicle.
This is why dealers can afford to sell below sticker (at least they used to do it with less of a fight) because they know they'll get you in some type of way.
Free maintenance for x amount of years, which the average price for a mid-level non-luxury vehicle will go for about $70-$80 each visit at places like Firestone, Mavis, etc. Normal drivers should be getting their oil change/rotation every 6 months if you're driving 12k miles per year in current vehicles since most are synthetic and don't need the usual 3k oil changes. Actual parts for an oil change cost between $20-$40 depending on your vehicle.
This is why dealers can afford to sell below sticker (at least they used to do it with less of a fight) because they know they'll get you in some type of way.
Posted on 1/21/25 at 1:47 pm to fareplay
Posted on 1/21/25 at 1:57 pm to fareplay
quote:
Would dealerships sell at break even to move inventory?
Sales people love spending 3-4 hours selling something they break even on, it's what motivates them.
Posted on 1/21/25 at 2:07 pm to BilbeauTBaggins
quote:
Dealerships get paid a dealer holdback on new vehicles
Holdback is part of the “cost” of the unit, and is usually paid quarterly, and is usually 3% of MSRP, less Destination Fee. We try to negotiate from our “net” cost, behind holdback…
Posted on 1/21/25 at 2:17 pm to fareplay
Go on the last couple days of the month when dealers are trying to hit incentives. If they’re a unit or two short they may eat more money to hit the sales total that triggers the incentive money. Do your research before, find the dealership that has the car on the lot that you want, and be willing to wait if you can’t get the deal you insist on.
But as noted, walking into a dealership and making unrealistic demands because of how deals were done in the past, or how people think car negotiations are supposed to go, are almost never gonna work. If people tell you to be firm, the dealership won’t let you walk out, they’re incorrect. Car buying/selling has changed, especially at a dealership.
But as noted, walking into a dealership and making unrealistic demands because of how deals were done in the past, or how people think car negotiations are supposed to go, are almost never gonna work. If people tell you to be firm, the dealership won’t let you walk out, they’re incorrect. Car buying/selling has changed, especially at a dealership.
Posted on 1/21/25 at 2:20 pm to LSUChamps03
100% markup is all I'll ever do. How do you think they build these fancy dealerships and give out free water?
Posted on 1/21/25 at 2:25 pm to AirbusDawg
It’s the ones who walk into a dealership with an arbitrary number and argue and insist the dealer can sell it at that price. “Nope, I want $5,000 off, or I’m walking.” This still happens.
Posted on 1/21/25 at 3:31 pm to RichJ
quote:
but I’d be more than happy to show our cost on the unit
If you're really in car sales and doing this you aren't going to last. What kind of dumbass are you? Who cuts their own commission this way? If you're on a flat, you're still an idiot and your managers hate you.
Posted on 1/21/25 at 3:37 pm to LSUChamps03
quote:
Go on the last couple days of the month when dealers are trying to hit incentives.
Wrong. What if the dealership has already hit quota? If you do your research it doesn't matter if you go on the 1st or 31st. As a matter of fact, some of my biggest grossing deals were on the last day of the month and my customer thought they got the best deal in town because we play it up. And my worst grossers on the 1st to get the ball rolling for the month.
quote:
Do your research before, find the dealership that has the car on the lot that you want, and be willing to wait if you can’t get the deal you insist on.
If you have done your research you already know what the dealer will and won't do. Go in with a real offer and buy the fricking car. Quit wasting yours and everyone else's time.
Posted on 1/21/25 at 5:13 pm to Tider13
quote:
in car sales and doing this you aren't going to last
Nah, you are right. I’ve only been doing this for 30yrs, have been sales, F&I mgr, Sales mgr, GSM, & GM. My apologies for wasting your time…
Posted on 1/21/25 at 6:00 pm to Tider13
quote:
Wrong
Dude, I’m responding to the guy trying to get a vehicle at cost. I know for a fact that works. So it’s worth a try for him. Worse case he pays the price the dealership offers.
quote:
If you have done your research you already know what the dealer will and won't do. Go in with a real offer and buy the fricking car. Quit wasting yours and everyone else's time.
I’m talking finding the specific vehicle he wants. You walk in and take your shot. At that point he has doesn’t know all the dealer will do. Again my audience is specific to the OP.
This post was edited on 1/21/25 at 6:31 pm
Posted on 1/21/25 at 6:09 pm to RichJ
You sound like an honest person
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