JALLEN4 wrote:
monkey44 wrote:
Been a few comments on here about "wasting salesman's time" if you're not buying from that salesman. First, impossible to get a "deal figured" without spending at least SOME time ... but, when a shopper is first shopping, it makes even MORE sense for a salesman to take "a minute or two" to send whatever figure he thinks will turn a shopper into HIS buyer in, or a real price he'll sell for, depending on his particular method of closing a sale eventually, once a shopper becomes a buyer.
His option is to spend a lot of time (some call it wasted) sitting with a shopper that will certainly be wasted often if the shopper is comparing brands at that time. The simple solution is a reasonably honest email price quote, and save that 'sitting' time until a shopper is ready to become a buyer in your dealership, and that's where the details are worked out anyway.
I can tell you absolutely, if a salesman does not honestly engage the internet and emails, he'll probably be flipping burgers or selling hardware soon enough.
And, this shopper / buyer will never for one second believe those folks on here that state dealerships only make profit in the hundreds and not in the thousands on a truck sale -- they'd never stay in business. Inventory in any business cannot survive on what would amount to one or two percent margin on a sale of a $30k product, which that "hundreds" profit would mean.
You are shooting from the hip here and voicing what you think is logical. Dealership operations are not logical to those not involved.
Pricing of vehicles to the consumer is complicated, not a one size fits all, and changes from one day to the next. Each deal is individual and dependent on a myriad of possibilities and opportunities. Whether or not financing is involved, the type of trade, current manufacturer programs, competition, age of inventory, availability of inventory, and a large number of other variables determines the management of the deal from the dealerships perspective.
Thinking there is some magical number one can quote over the internet that will sell cars is delusional. The dealer that thinks he can sell vehicles lower than everyone else consistently and survive will soon be flipping burgers himself.
Let me tell you about two real life purchasers. The first is an avid reader of Forums. He contacts the Internet Department looking for a $50,000 truck to tow his RV. He tells you upfront he lives 50 miles away and is going to shop the world via email. He has already arranged financing with the credit union and it will be a straight cash deal with no trade. After two weeks of emails back and forth with the internet geek, the deal is closed at $700 under invoice including all rebates and the dealer nets $800. The salesman gets a mini for a $75 commission.
The second buyer is a young husband with kids who his wife convinces him it is time to sell his five year old perfect red Corvette convertible and buy the same $50,000 truck so they can have an RV. He is five grand upside down and has edgy credit. After two hours of negotiations, you roll his negative equity into a new 72 month loan on the truck. You actually lose $1,000 dollars on the new truck to keep his loan amount right. But, you know you can make three grand selling the trade almost immediately. You add a point and a half to the interest rate, sell him accident and health, credit life, and an extended warranty. At the end of the day, you are going to make over $7,000 after you sell the trade and the salesmans commission is $500.
Short story, every deal is different and there are a lot of ways for dealers to make money.
At most dealerships, however, that $500 commission is going to be earned by the guy who sells the corvette. The Salesman that closed that $1000 loser truck is going to get that $75.00 mini. The Finance department is going to make their commissions on the financing and maybe the truck salesman will get another $50 spiff from F&I. Of course every dealership has their pay plans structured differently, so it may be really different at yours.
