Quote:
Originally Posted by stomachmonkey
...dealer saw the check and realized he would not be financing thru them the car went up in price by nearly $1k....
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Ah yes, the craft of selling automobiles...scratch that. The craftiness of automobile salesmanship.
I once got a firm price on a new car, say $30k. The salesman offered me $10k for the car I was trading in, a great price because its resale market value was only $8k. So I'd be paying $20k out of pocket.
But I decide not to trade my old car in and the bargaining started over. I got the salesman to agree to sell me the $30k car for the absolute lowest he would go, which was $25k.
So I told the salesman that I was a bit irked about the $10k he was willing to pay for my trade in. He looked at me with an expression on his face that was a combination of surprised puzzlement and uh, oooh, and hesitated before he asked, in a wary tone of voice, Why?
Because I can do basic math in my head and you were not about to pay me $10k for my trade-in now were you? The look on the salesman's face became that of a fighter beginning to realize that he was up against the ropes, but he managed to say, No, I would have given you $10k!
Really? Well then, on second thought, I'll trade it in. So the deal will be, I buy your new car for my trade-in and $15k. Deal!
Umm, er, well no I can't do that. Why not? I asked. Well, you have to realize that when we take a car in on trade we have to sell it and can't take a loss on it. You understand. I said, But you dealers commonly sell off the trades you take in at wholesale bluebook to parties who auction them off, don't you?
Erm, uh, yes because we're really not in the used car business. We just take in trades as a service to our customers. He knew he was on the ropes now and the enthusiastic salesman's look on his face turned into an 'I'm not going to make this sale' look of resignation.
Well why not be honest with your customers and tell them you'll pay wholesale bluebook for their trade-ins, which is exactly what you would pay me, $5k, the wholesale bluebook value of my car?
I saw no point in watching him squirm, so I said, I'll think about it and left.
That's SOP in new car sales and I knew it going in. I did end up buying the new car but from another dealer, at the same price, $25k, without being lied to and told they'd give me $10k on a trade-in. I then sold my old car for $7k, $2k more than I'd have gotten if I'd have traded it in.
The above are round figures, but they make my point.