re: The new/used car sales business model is broken and defies logic

Palm luxury motors.com

The money a dealership makes is not from the raw sale price but the kickback from the manufacturer for x number of cars sold.

They can "lose money" on an individual sale but make thousands of dollars if it puts them in the next tier of reimbursement/incentive.

shite like your post is why you're all looked at as crooks.

The constant misrepresentation of how a dealership actually makes money is obnoxious.

I get all the frustration with the sales process. I particularly hate spending an hour with the F&I guy for him just to ALLOW me to write a check after he pulls a 5 liner. However, out of all the consumer goods that we buy cars are the one with (probably) the most available information for the consumer. If you can't spend a couple of hours educating yourself on a purchase that represents what for most people is 20% (often more) of their yearly income then I don't have a lot of sympathy for you.

The song and dance sucks but you can minimize that if you go in fully prepared.

I hate cars, car dealerships, and sales.

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Bought a new vehicles last month, it went like this.

Wife says I want this vehicle she found online 1 state over.

Called dealership on Wednesday around 9:00 am, provided my name number, vehicle I would like to trade and sent pics of VIN and Odometer. And told him the car we would like to purchase.

Told him I was busy and to text if any additional questions. Several text throughout the day cleared up our price agreement.

Friday at 5:00 we met in my hometown where we traded cars and I give transport guy a check for difference.

Done deal

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Last week I did deal through Costco that was incredibly painless and ended up $9200 under MSRP with rebates.

There is a better way. I never buy a brand new car because you'll always have negative equity in it.

I look for used of the current of past year model (usually 6 month or 1 year lease trade ins), test drive it, inspect all aspects of it, interior, exterior, engine, undercarriage. I look up blue book value of said vehicle, make the price I'm willing to pay for it (usually no more than a couple grand above blue book) and go from there. Most of the time used price is fair and I'll negotiate for them to pay the sales tax and add it to financing and to buy the tag. They usually accept

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Wow. Have you considered that the salesman may have kids to feed? Every time one of you filches comes in and tries to break us down over a deal you're basically taking food out of our kids mouths

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Shoulda picked a different industry to work in.

Tell me what items/services you overpay for?

Do you give FedEx an extra $20 per parcel you mail through them for the sorter who handles the package?

Their kids have to eat too.

The thousands of times dealerships dry-fricked widow ladies who came in to buy a car make me not too worried about karma.

New car salesmen are in a dying industry.

Do you homework and spend your money how you would like it.

My recent experience:

Step 1.
I picked a random truck on the lot to test drive, and told the salesman I wouldn't be buying this one but wanted a feel for the vehicle. After drive, got salesman's card and and cell number and said I'd get back with him. Repeat at other brand's dealerships. This step took the longest, which is ok, because it's the most important part.

Step 2.
Slept on it at home, and decided which brand truck I wanted. Looked online at options and features.

Step 3.
Browse websites of nearby dealers and see who has what I want. Research factory incentives and decide on my offer and what I want for my trade.

Step 4.
Text salesman stock number of the truck I wanted, and to have it out front. I told him the time I'd be there. And that I'll be in a hurry. Made up excuse.

Step 5.
Arrive at dealership, truck is up front and already detailed. Salesman is waiting. We test drive, and I let him know what I'm willing to pay and what I want for my trade. I remind him that I'm in a hurry and if they can do it right now, great. If not, I don't have time to waste. He walks over to his manager, and walks back. He asks if I'll buy today if they do it, I reply yes and buy the truck. I spent an hour and fifteen minutes at the dealership.