The Secrets of Dealerships
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The Secrets of Dealerships
Before you purchase your vehicle, you may want to spend some time going to other Subaru dealerships to practice your bargaining skills. Never deal with the same dealership in consecutive days or the one that you're going to purchase your vehicle at.
Just remember that dealerships buy WRX in bulks wether it be 2004 or 2005 before the summer. You wouldn't believe how cheap dealers buy WRX's. Just imagine one WRX at dealership price can cost up to 16,000-18,000. Believe it or not, however, you can never negotiate down to this price. Here is what you do.
If you bought a WRX for 26,000, well they just made 10,000-8,000 worth of profit from you. Please dont settle for that!
Did you know that their are three different prices? Sticker Price, Invoice Price, and Retail Price....Confusing huh?
Dealers will always sell you the car at the highest possible price. Why? Because they only live on commisson my friend. No hourly pay, holiday bonus, nothing, but just a percentage of their sale.
The best time to buy a WRX or any car is several things:
1. Go at the end of the week (Sat or Sunday) because you will always see a salesperson trying to meet his/her quota. (Not Prefered)
2. Go on the last day of the month because, again monthly quotas. Sometimes dealers need to sell in order to make room for other cars and for each day that car stays on the lot, guess what the dealership pays for that vehicle. (Prefered)
3. Go at the end of the year, this is when you can get the best possible price because you'll have not one but many sales people just dying to make a sale, WHY? Just think of all the cars they need to sell in order to make way for a 2005.
Why do you think sales people try to sell you a 2002 WRX first before actually considering a 2004. (Always Prefered)
4. When you know your price range and what other dealers offer, this is when you make the best sale..... 2-3 hours before closing, because dealers will be pressured to sell you a car before closing and he/she will give you offers that you won't believe. I say 2-3 hours because this gives you a little leeway for negotiation and what i would like to call seal the deal.
Oh, one more thing don't ever put a bulk of your money on the car. When the dealer tries to tell you that you need to put X amount of dollars so that they can seal the deal, don't do it...your just giving them more profit. What you do is tell them that you can give them a check for $50 and give them more the next morning......always try to make them rush and pressured...You see what i'm getting at?
Another important tip, don't ever give your account# or drivers license to them when they ask you for it because what they are really trying to do is prepare to offer you a deal based on your income, savings account ect. If they know how much you make or have in the bank you might as well smile and take their first offer. The reason they do that is because they check your credit history, income, bank references...etc, and based on the information they wil offer the car to you at a ridiculous price, plus insurance or loans throught them...forget it. By law, they can not look at your information without written consent from you.
There are many ways to get your dream car my fellow i-clubbers, just remember you're the one thats buying a car from them, and practically it's your money......so in essence i just don't want you guys to get ripped off.
Just remember that dealerships buy WRX in bulks wether it be 2004 or 2005 before the summer. You wouldn't believe how cheap dealers buy WRX's. Just imagine one WRX at dealership price can cost up to 16,000-18,000. Believe it or not, however, you can never negotiate down to this price. Here is what you do.
If you bought a WRX for 26,000, well they just made 10,000-8,000 worth of profit from you. Please dont settle for that!
Did you know that their are three different prices? Sticker Price, Invoice Price, and Retail Price....Confusing huh?
Dealers will always sell you the car at the highest possible price. Why? Because they only live on commisson my friend. No hourly pay, holiday bonus, nothing, but just a percentage of their sale.
The best time to buy a WRX or any car is several things:
1. Go at the end of the week (Sat or Sunday) because you will always see a salesperson trying to meet his/her quota. (Not Prefered)
2. Go on the last day of the month because, again monthly quotas. Sometimes dealers need to sell in order to make room for other cars and for each day that car stays on the lot, guess what the dealership pays for that vehicle. (Prefered)
3. Go at the end of the year, this is when you can get the best possible price because you'll have not one but many sales people just dying to make a sale, WHY? Just think of all the cars they need to sell in order to make way for a 2005.
Why do you think sales people try to sell you a 2002 WRX first before actually considering a 2004. (Always Prefered)
4. When you know your price range and what other dealers offer, this is when you make the best sale..... 2-3 hours before closing, because dealers will be pressured to sell you a car before closing and he/she will give you offers that you won't believe. I say 2-3 hours because this gives you a little leeway for negotiation and what i would like to call seal the deal.
Oh, one more thing don't ever put a bulk of your money on the car. When the dealer tries to tell you that you need to put X amount of dollars so that they can seal the deal, don't do it...your just giving them more profit. What you do is tell them that you can give them a check for $50 and give them more the next morning......always try to make them rush and pressured...You see what i'm getting at?
Another important tip, don't ever give your account# or drivers license to them when they ask you for it because what they are really trying to do is prepare to offer you a deal based on your income, savings account ect. If they know how much you make or have in the bank you might as well smile and take their first offer. The reason they do that is because they check your credit history, income, bank references...etc, and based on the information they wil offer the car to you at a ridiculous price, plus insurance or loans throught them...forget it. By law, they can not look at your information without written consent from you.
There are many ways to get your dream car my fellow i-clubbers, just remember you're the one thats buying a car from them, and practically it's your money......so in essence i just don't want you guys to get ripped off.
Registered User
iTrader: (38)
Joined: Oct 2003
Posts: 7,783
From: rightBehindYou, HI
Car Info: 1973 Huevo Ranchero
Originally Posted by k_icarus
Just imagine one WRX at dealership price can cost up to 16,000-18,000. Believe it or not, however, you can never negotiate down to this price. Here is what you do.
If you bought a WRX for 26,000, well they just made 10,000-8,000 worth of profit from you. Please dont settle for that!
Did you know that their are three different prices? Sticker Price, Invoice Price, and Retail Price....Confusing huh?
Dealers will always sell you the car at the highest possible price. Why? Because they only live on commisson my friend.
i just don't want you guys to get ripped off.
If you bought a WRX for 26,000, well they just made 10,000-8,000 worth of profit from you. Please dont settle for that!
Did you know that their are three different prices? Sticker Price, Invoice Price, and Retail Price....Confusing huh?
Dealers will always sell you the car at the highest possible price. Why? Because they only live on commisson my friend.
i just don't want you guys to get ripped off.
In response to your profit comment. . . if only that were true! dealerships do not make that much profit from selling the cars @ msrp. now if there is a mark up that is different. i am in sales & finance @ kaneohesubaru. i know for a fact that we don't get cars that cheap. in terms of pricing you can go to www.kbb.com (sorry vets i know ive posted this many of times) in there u will find that they will disclose to you our costs as well as any rebates(if any offered to dealer). also in there you will find the msrp and last the kbb new car value. in terms of commision. yes most dealerships pay strictly commision- but there are some that do pay salary.
last let me say that i am not saying all this to de-face you. . . i am here to let you know that there are salespeople that are in this forum(me being one of them) and we know that information is gold...as long as it is accurate. to say that dealerships have that much profit is wrong. there are many sites that will help educate customers on dealer costs as well as what the customer should pay. with these type of resources negotiating is almost not necessary.
i appreciate the fact that you do not want people to get ripped off. i am the same. here on a small island i have family and friends all over the place. it would be a shame for me to get a bad name because i ripped someone off. i take pride in offering my customers a honest and refreshing approach to buying a car.
aloha,
greg
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Very well said Greg. It is a shame that someone may believe what this person said. I pride myself on be up front and accurate with all information that I tell customers. I have never once seen a dealer look into a persons bank account to see how much they make. That is ridiculous. We don't have the resources or the time to do that. The only things that effect price are MSRP, Invoive, Holdback and customer and or dealer incentives.
By all means negotiate, I would, but be realistic.
Jeff Empey
By all means negotiate, I would, but be realistic.
Jeff Empey
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You should do your research before you go to buy a new car, know what it costs and what the msrp is and what options you want. True a dealer will try to get the most he can, but are you going to let him when you know what the cars costs. Have and know you limit. Don't take the first intrest rate they offer you. Dealers get kick backs on the intrest..(don't even try to argue that one dealers there have been several news shows on that!) Dealers cannot look at you bank account nor will they ask to, they do however do need proof of income. why sell you an expensive car if you can't afford it. IF you go in with a plan and stick to it you will get a much better deal. Here in Reno they are sticking people for 40k+ on the sti and 30k+ for a wrx. hell even the mitsu dealer is nailing people for 38k on the evo. Me I went in with a plan and a set amount I could do per month and my down I was going to walk out with an sti for 31k. But they couldn't get the payments down to what I could do. but they did try very hard so when time comes I'll go back to them and that one sales man.
oh I even asked my salesman how they are getting people for so much..he said right out "they don't do any research before comming in and take the first offer."
oh I even asked my salesman how they are getting people for so much..he said right out "they don't do any research before comming in and take the first offer."
Last edited by Murf; May 6, 2004 at 10:36 AM.
Registered User
Joined: Feb 2004
Posts: 2,256
From: Blue-faced in a red state
Car Info: 04 Silver WRX Wagon
just dont fall for the line, "how much can you afford to pay per month." the only response to that question should be, "this is a car, not a house. i can afford what i want to pay, not what i can."
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Well Guys i think you're wrong on that because in Hawaii, some dealers in the past have done that to their clients. although you have never been through that many of my friends have. If you don't believe me, pick up a Dummies Guide to Buying a Car, thus it will tell you.
I appreciate all the feedback, but i only give resources from other books.
I appreciate all the feedback, but i only give resources from other books.
Registered User
Joined: Feb 2004
Posts: 720
From: The Hunted Forest
Car Info: Mazda Protege '02 (Wishing protege has AWD and a H6 twin turbo)
As a side note most dealerships that are behind in quotas offer a "get them here" deal which basically is a very reduced price on only ONE car. Dealerships will call them the "weekend deal" sale. So take a look in the paper for a weekend deal and you prolly can get a wrx for a few thousand less than you'd expect with a full package such as a friend of mine 
22k for his wrx and including tax it was 24.5k out the door
22k for his wrx and including tax it was 24.5k out the door
you can ask barrol_roll9 for the exact milage it was really at.
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Financing - get the best financing you can from anyone but the dealer and get it in writing. After the negotiating the price of the car and being undecided, let them know what your best interest rate is and let them try to beat it without changing the price of the car. John
Last edited by john steele; May 6, 2004 at 12:57 PM.
Registered User
iTrader: (38)
Joined: Oct 2003
Posts: 7,783
From: rightBehindYou, HI
Car Info: 1973 Huevo Ranchero
Originally Posted by k_icarus
Well Guys i think you're wrong on that because in Hawaii, some dealers in the past have done that to their clients. although you have never been through that many of my friends have. If you don't believe me, pick up a Dummies Guide to Buying a Car, thus it will tell you.
I appreciate all the feedback, but i only give resources from other books.
I appreciate all the feedback, but i only give resources from other books.
unfortunately you are right about some dealerships making huge profits on their cars. especially those that are with a mark-up. i encourage you to come to my dealership or any subaru dealership out here in hawaii(oahu). you will see that none have a mark up over the msrp. with the exception of maybe one dealership(which i don't need to name names). it is unfortunate that your friends have been through "shady" dealerships. it is very good that you are offering a fair warning to shoppers. if u look throughout the threads in here you will see there are several salesmen doing the same as you. i have a conviction to do the same because i am a person just like you.
as a matter of fact (if u are on oahu)you are more than welcome to come by and visit me to talk story. plus i wouldn't mind seeing your car.
why don't you come by when you have time.
heres my dealership number
235-6568
aloha
greg
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Greg, what dealership do you work for? To tell you the truth, i actually had a shady deal and i only purchased the book after buying my car. Now you see why im so cautious and why i tell it like it is. Please dont get offended because of my thread, but not all sales people or dealerships are like that, however, i feel that honesty is the best policy.
Oahu breed,
K_icarus
Oahu breed,
K_icarus
Registered User
iTrader: (38)
Joined: Oct 2003
Posts: 7,783
From: rightBehindYou, HI
Car Info: 1973 Huevo Ranchero
Originally Posted by k_icarus
Greg, what dealership do you work for? To tell you the truth, i actually had a shady deal and i only purchased the book after buying my car. Now you see why im so cautious and why i tell it like it is. Please dont get offended because of my thread, but not all sales people or dealerships are like that, however, i feel that honesty is the best policy.
Oahu breed,
K_icarus
Oahu breed,
K_icarus
aloha
greg