Quote:
Originally Posted by Por_sha911
Out of curiosity, kaisen: do most dealers still tack on a huge lot fee to every deal before they figure in sales commissions? Are doc fees still set in stone or are some stores willing to negotiate on them?
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Commissions and pay plans can be simple or complex.... there's infinite ways to write them. Some dealers have a 'pack' they add to a car and calculate the salesperson's commission on anything above that figure. It's really just a way to advertise higher commission rates.... "We pay 40% commissions!!", but 40% of eveerything over invoice and a $200 pack is probably the same as 20% paid from net less holdback.
As you may gather from my other posts, I believe salespeople should be paid based on performance, not profit. In a one-price non-negotiating dealership, the best way is to pay a flat amount per unit with incentives for volume. That way if it is in the customer's best interest to buy a $5000 car rather than a $30,000 car, there's little incentive to 'sell' them something they don't need..... they just help them 'buy' what fits. Chances are the salesperson put as much effort into selling the cheap car anyway.
Nowadays, dealer 'doc fees' are state regulated. Not in all states, but most. At one time (Florida comes to mind) advertised sale prices on new cars were ridiculously low to get people in the door, only to charge them a $795 documentation fee. In most midwestern states (where I've run stores) the fees are capped at $50 or $75 max, and you must publicly state what your fee is and EVERYONE pays the same fee. You can't negotiate it. Of course, some people just demand the $50 off the price of the car. But 99% of people understand the costs the dealer incurs for buying all of the state-mandated paperwork and titling and registration fees and labor. Otherwise they'd say: "Here's your title. YOU go stand in line at the DMV and fill out THEIR forms. Good luck"
Quote:
Originally Posted by Nathans_Dad
It's pretty simple really, if car dealers want to be treated with honesty and respect then they should start doing the same to their customers. Of course car dealers aren't really interested in being honest, they want to make max profit. Unfortunately in the car biz that means screwing over every customer you can.
I really don't have an issue with how dealers work as long as everyone understands that a car negotiation is a no holds barred affair.
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Sad. I'll treat you well if YOU treat me well FIRST!! Is this the way life works?
As many of us have stated in this thread: There are several good dealers. Vote with your feet. Vote with your checkbook. Do business where you are treated ethically. If we all did this, you remove the incentive from dealers (or any other business) to enlist bad practices.... or they will go out of business. Yes, it does work this way.
Quote:
Originally Posted by Macroni
ND might have behaved in a manner that many find less than honorable but IMO He behaved as he should have given the way the system (car sales) operates.
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Keep doing what you're doing, keep getting what you're getting.
Break the cycle. Demand better.
Would you pay, say, $200 more on a $25,000 transaction to be treated with integrity and respect? To start a long-term relationship with a company that treats you well and shoots straight?
It takes two.....