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New Car & Dealership Question- Sales Associate Related
Posted on 6/14/19 at 5:09 pm
Posted on 6/14/19 at 5:09 pm
Say you are purchasing a new car in the $30k range. What is more motivating to the sales associate? Motivation meaning willingness to complete a sale while still negotiating a favorable price for the buyer.
A buyer who finances through the dealership with a minimum down payment.
A buyer who secures outside financing but supplements with a larger down payment.
A buyer who dealer finances a minimal amount but avoids an all-cash payment.
Had a random thought about this today. Basically wondering if it's favorable for the sales associate to accept less or zero dealer financing if there is more upfront cash, and if the buyer can use one of those strategies to their advantage.
A buyer who finances through the dealership with a minimum down payment.
A buyer who secures outside financing but supplements with a larger down payment.
A buyer who dealer finances a minimal amount but avoids an all-cash payment.
Had a random thought about this today. Basically wondering if it's favorable for the sales associate to accept less or zero dealer financing if there is more upfront cash, and if the buyer can use one of those strategies to their advantage.
11
Posted on 6/14/19 at 5:11 pm to McVick
Car salesmen don't care about your downpayment size. They only care about the overall agreed upon sales price. Why do they care if you put down $5,000 down now or $20,000?
Posted on 6/14/19 at 5:11 pm to McVick
Let me guess, you're 24 aren't you?
Posted on 6/14/19 at 5:11 pm to McVick
quote:
A buyer who finances through the dealership with a minimum down payment.
Pretty sure that.
Posted on 6/14/19 at 5:11 pm to McVick
quote:
if it's favorable for the sales associate to accept less or zero dealer financing if there is more upfront cash, and if the buyer can use one of those strategies to their advantage.
Sales associate isn't accepting anything. His boss is.
Posted on 6/14/19 at 5:17 pm to McVick
they might be more amenable thinking they can make it up through financing tricks and by ripping you off with the trade in
what i do is, i negotiate the deal, telling them we will discuss my trade in and financing only after we have settled all details of the actual purchase price including TT&L. i even drop hints along the way if they are hesitating by saying i know they will make it up with the trade in and financing and that usually works for them.
then after the details are all in writing, i tell them i have no trade in and im paying cash or dont need any financing. every time i see it on their face they know i got the better of them.
what i do is, i negotiate the deal, telling them we will discuss my trade in and financing only after we have settled all details of the actual purchase price including TT&L. i even drop hints along the way if they are hesitating by saying i know they will make it up with the trade in and financing and that usually works for them.
then after the details are all in writing, i tell them i have no trade in and im paying cash or dont need any financing. every time i see it on their face they know i got the better of them.
Posted on 6/14/19 at 5:18 pm to McVick
A sales associate has absolutely no control over the numbers.
The only concern they have, really, is the OTD price as that is what their commission is based upon.
The only concern they have, really, is the OTD price as that is what their commission is based upon.
Posted on 6/14/19 at 5:19 pm to SG_Geaux
The sales associate gets commission based on the overall profit for the dealership. That’s including financing, extended warranties, etc. If you finance with your bank, it means less profit for the dealership.
When you finance through the dealership, assume at least one point of your interest rate is going to them.
When you finance through the dealership, assume at least one point of your interest rate is going to them.
Posted on 6/14/19 at 5:22 pm to alajones
1 point? Lol
Posted on 6/14/19 at 5:43 pm to McVick
Car salesman,repairers,dealers and politicians are the scum of the earth.
Posted on 6/14/19 at 5:47 pm to alajones
quote:
When you finance through the dealership, assume at least one point of your interest rate is going to them
Where do you people come up with this shite?
Posted on 6/14/19 at 5:49 pm to McVick
quote:
A buyer who finances through the dealership with a minimum down payment.
Bingo.
Price matters less when they can sell payment.
Posted on 6/14/19 at 5:50 pm to alajones
Quit making up dumb shite
Posted on 6/14/19 at 5:52 pm to McVick
Dealership gets a commission on financing so they’d rather you do it with them. Sometimes you’ll get a rebate for financing through dealership but you can refinance it a week later.
Posted on 6/14/19 at 5:52 pm to keakar
quote:
then after the details are all in writing, i tell them i have no trade in and im paying cash or dont need any financing. every time i see it on their face they know i got the better of them.
You think that is a negotiating tool that works?
Yes. You should always negotiate every single piece, but unless you're at a wholesaler, they still make money if you pay cash.
Posted on 6/14/19 at 5:53 pm to yellowfin
quote:
Dealership gets a commission on financing so they’d rather you do it with them. Sometimes you’ll get a rebate for financing through dealership but you can refinance it a week later.
Non of this has anything to do with the sales guy
Posted on 6/14/19 at 5:53 pm to McVick
It cracks me up to hear old baws say “cash” like they’ll get a better deal.
Dealerships & manufacturers make most of their money on financing.
Dealerships & manufacturers make most of their money on financing.
Posted on 6/14/19 at 5:56 pm to Mingo Was His NameO
quote:
Non of this has anything to do with the sales guy
Most sales guys are paid a percentage of backend sales and their primary commission is made up of front.
Meaning.. If they get you to finance, and still hold the rebate, the boosted their front by the rebate.
Stick to things you understand. Like performing fellatio and drinking low calorie alcoholic beverages.
This post was edited on 6/14/19 at 5:58 pm
Posted on 6/14/19 at 5:58 pm to X123F45
quote:
Meaning.. If they get you to finance, and still hols the rebate, the voosted their front by the rebate.
Engrish pwease
Posted on 6/14/19 at 5:59 pm to Mingo Was His NameO
Please note time of corrected post.
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