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Article: Automobiles - Car Auctions
By Chris
Fox
Many of us
have been at the car dealership and have been drained by a
salesperson during price negotiations for the purchase of a new car.
Most people give in too easily or do not negotiate at all to avoid
the dreadful act. This only means more money in the car dealers’
pocket, while you are out of several thousand dollars! Yes, they
make that much in profit per car.
In addition to the
MSRP (manufacturer suggested retail price), which is the dealer’s
cost for the car plus an additional 20-25% profit, a dealer also
gets financial incentives from the manufacturer when a new car is
sold. This is called Holdback.
Depending on the car, dealers
can make hundreds on each car through holdbacks. Dealers also get
additional incentives and bonuses on selling a car before the end of
the month and/or quarter. A shrewd dealer can make several thousand
on a new car even by selling it at invoice price. This is how new
car buying can become tricky for the consumer.
Here are
four tips to get you started. Each one is a dealer tactic to watch
out for.
1. The Guilt Trip - As you may have noticed, every
desk in a dealership has photos of the salesperson’s family, instead
of photos of cars. Midway in the negotiation, the sales person will
bring them up and make it look like his little commission check can
hardly pay for his daughters college and little Bradley’s braces.
A seasoned salesperson will soon have you feeling guilty for
driving the price down and hurting his commission. Watch out not to
fall for this tactic, since you already know about holdbacks and
incentive programs from manufacturers.
2. Wearing You Down -
Come prepared to spend half a day at the dealership or pay whatever
the dealer asks for. Car Dealers are trained to delay and tire you
out to the point where you give in and accept their price just to
get out of there.
After you make your offer, sales people
typically claim they would have to run it by their manager. You may
then have to re-start negotiating with the manager, who is also a
seasoned salesperson. This dance goes on for a while until you give
in.
Remember, there are multiple dealerships in a city, so
they need you more than you need them. Demand to speak to the
manager after a certain time period or threaten to leave. Because
you are devoting a lot of time to bargain with the dealer, they know
you are a serious buyer, so they will not let you leave. The earlier
you can speak with the manager, the faster you can leave.
3.
The Test Drive - We all enjoy a good test drive and look forward to
it. Although it is essential to test drive a car before you buy it,
remember to not show your absolute love for the car to the
salesperson. Their goal is to get you emotionally attached to the
car, so it becomes a must have for you. I have learned it the hard
way.
To hide your emotional tears from the salesperson,
mention the features of a competing car in the same class, like the
new shape, light, leg room, resale value etc. This will make the
salesperson a little vulnerable.
4. Monthly Payments - This
one is to confuse you. Dealers will start talking about monthly
payments rather than the total price of the car. They will start by
asking how much you are willing to pay per month and how much of a
down payment you are willing to pay. Since people don’t want to look
like they cannot afford a certain car, they will usually give a
higher number. Big Mistake!
You have left little room for
negotiation when this happens. Always steer the conversation to the
total price of the car and do NOT mention any trade-ins at this
point. Only after the total price of the vehicle is completely
negotiated then talk about interest, monthly payment and trade-ins.
General Rule - As a general rule, remember to only focus and
negotiate on the Total Price of the vehicle. Everything else is
pretty much the car dealer’s trough.
If the above new car
buying tips seem like a lot of hassle, yet you still want to get the
best price in town, there are some websites that do this for you.
www.autoauctionbids.com for example is a great website for this
because you can collect price quotes from multiple local dealers for
a particular car as well as its competing car models (like Honda
Accord, Toyota Camry and Ford Taurus) and compare them.
The
website then allows you to send back the lowest quotes received for
each car make to all participating dealers in your area through the
website itself.
Dealers view this price and continue to
submit new lower prices over a 3 day period. By putting local car
dealers in such a price competition allows you to avoid the dreadful
face to face negotiation and yet gets you the lowest price in town
for up to 3 competing car makes.
The best part about
AutoAuctionBids.com is that it is absolutely free for you and there
is no obligation to buy after the new car auction is
over.
For more information on cars and car auctions
visit http://cheap-car-auction-portal.com
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