Car salesman have huge pressure on their sales managers. You are supposed to steer the conversation away from price and towards "value"....
But price has everything to do with value. If something is sold for 10 dollar in all other stores but you are able to purchase at 8 dollars in Amazon... Guess who gets the business?
Amazon! And that is largely the reason why Walmart, Target and Amazon seem to do the bulk of retail business today.
"We don't sell on price..." Common advice given by training from dealership.
What a dealership does is pressure people into buying. As a salesman, you have to control the process as they put it. Don't let the customer dictate or tell you what to do. Tell the customer what to do.
Don't ask for their information - trick them into giving it to you - have them give it to you indirectly. You have to be devious.
If a customer is not willing to give you their information, THEY ARE NOT A FUCKING SERIOUS BUYER! They are tire kickers (yes, we do get them) or they not sure or the person in power to make the decision or they are merely just half-way thinking about or unsure yet - they want time....
You have to be hard selling. Urgency selling. NOW!
When Apple comes out with their own cars, I highly doubt they will ever sell the way cars are sold by dealerships today and in the past.
But guess what? I bet they will sell a shit load of them without any hard selling!
Check out Tesla. They sell directly themselves to the customers without any third-parties. Consumers get a much better price and less game-playing nonsense.
All car manufacturers will soon find it is much more efficient and profitable to sell directly rather than through third-party scumbags.
Of course they are laws put in place halting direct selling to consumers in the automobile business and I'm sure the big major car dealerships are hiring lobbyists to try to keep it that way....
But Tesla is still selling cars directly and trying to sell directly where they are prohibited. The FTC has sided with Tesla as well in being allowed to sell direct.
In fact, cars should be sold online. They should just have you verify your identity for any financing online and that's it. No need to walk into any fucking dealership operated by some third-party.
You can test drive the cars by going directly to the manufacturer's stores. Once car buying is completely online, the car dealership business will be toast...
Third-party operated dealerships will be a thing of the past along with the sleazy high-pressure salesman.
Everything I tell you about my dealership may not be EXACTLY what they teach in every dealership but it is pretty much in the ball mark.
Also during negotiation, they tell you to not put the price figure of the car on the attention of the prospect. Only the trade-in value and the down payment and monthly payment. Almost forget that part.
Anyway.... I'll update what happens on Saturday Sale.
2 days of training. Just came back after a 12 hour shift today in training and cold calling. Didn't have time until now to post updates.
We have a special one day sale tmrw on Saturday. Did a lot of fucking cold calling for that shit. Found quite a few suckers who want to go.
Here is what I learned more in my training.
1) Do not ever bring numbers to a prospect and than tell them that these are your numbers nor should you ever imply you came up with the numbers. You should tell them your sales manager came up with these numbers. When actually - you went into the back office and just wrote them yourself. The trainer told the training recruits that they should take a black permanent marker and right down the number so it looks like you didn't write. He said to use a different pen so it truly looks like the Sales Manager used it.
2) The recruit trainer said that you MUST make sure the prospect thinks that you are fighting the manager during negotiation, When you actually are not and in fact in the majority of negotiations the sales manager doesn't even have any hand in it. The salesman is just lying that his sales manager came up with these numbers and he needs to get approval from his manager for any reduction or counter offer.
During my cold calls, a seasoned salesman told me to handle call with fake scarcity and to fake that I am talking to manager for extension on the sale.
Why would you accept $8,000? (assuming you can even get that).
If you accept $8,000 - you lost $17,000 dollars.
Instead of spending $17,000 just to drive a car to 100,000 miles...
You could have bought a used-car from the get go at 100,000 miles for $5,000 and drive to 200,000 miles with the car mileage at 300,000.
Repair costs - trust me you don't need worry about as long as you bought a mechanically sound used car and you use it sensibly.
You could have saved $20,000 dollars by spending only $5,000 instead of spending $25,000 and only ending up with $8,000 saved (if that).
Why not spend $5,000 instead of $17,000 all to achieve the same result?
That very same Toyota Sienna Minivan will be for sale after a couple of months. I already have people who want it.
Perfect condition. Clean cut. Very low mileage. Always maintained. I would use synthetic oil, even though it was not necessary.
I don't expect to get more than $8,000. :(
I would say to keep it. Not worth selling and defiantly not worth trading-in.
After 10 years for low mileage, I'm guessing around 75K miles? It can go another 250K miles as long as it is used sensibly, not abused and oil changes done regularly.
Next-time buy used. I don't suggest leases unless you own a business and can get a tax write-off from it. Even with that said, leases are a horrible deal compared to buying a used car with very low miles and well-kept for $10 grand that can go for another 250K miles easily. Around 15 years of service.
Tell me what fucking lease gives you 15 years of service for $10 grand? Even if they did, once you return the car - they WILL nickel and dime the shit out of you for little scratches and cosmetic damages. You own nothing and may even have to pay at the end from penalties I mentioned.
With a used car that is dead - you can still salvage it and get something even if it's $300 bucks at the end of it's life.
Used cars require hardly any repairs and are reliable as long you bought the right car and knew what to look for. New cars are actually more unreliable and it's where you get the most lemons from actually.
("Trade-ins" by the way are hardly ever compensated by dealers fairly, they basically steal your car by adding the money you think they gave you on what you are buying.)
In all honesty, cars are always a horrible deal - it just depends on the extent.
Let me explain.
With the new car - you are taking all the depreciation. The value will be gone very very rapidly. Easiest way to lose shit loads of money,
With the leased car - you are avoiding the depreciation but are limited to mileage and are penalized for any excess wear or any kind of damage. After 3 years, you blew around $5-$10 grand but end up owning nothing.
With the used car - For $10 grand, you could buy a honda or toyota used private party that will last for another 300,000 miles or 150,000 miles if a $5 grand used car, if you use the car in a sensible manner. The only problem with used cars is you just have to do a lot more research and know how to determine if the car is mechanically sound, its servicing history, accidents, etc. Other than that, used is much much better than both new and leased in my humble opinion.
Also what is a new car?
There is no such fucking thing! The car salesman, mechanics, delivery guys, customer test drivers - all abuse the cars on the lot. They rev it hard, break hard and drive the piss out of the car. No new cars on the lot have 0 mileage meter. They have around 10-300 mileage - small mileage - sure but defiantly abusive mileage on a brand new engine.
The only way to have a truly new car is to have the dealer order it direct from the manufacturer and have their truck deliver you the car at your home.
10 years ago I offered $28,000 for a Sienna Minivan. They did not even counter, and just blew me away.
3 days later, the salesperson calls me back, and tells me the exact same car is being advertised the next day for $25,000. He said if I came in first thing in the morning, he would get the car for me at the advertised price without haggling. I had offered all cash.
I got the car as promised by the salesman. The finance guy seemed pissed and refused to shake my hand. He even asked me if my check was gonna clear?
I should have complained to Toyota, but did not. What is your opinion? Could I have done better?
You did alright. Just ok. You didn't get ripped off but you didn't get the deal of a lifetime either and you actually left some money on the table to be honest.
In a normal deal, they actually discounted by not much. The finance asshole was pissed because he made no commission or any money from you doing business at his dealership. He asked if your check would clear in the hopes that he would make a commission on doing you a finance deal if the check bounced.
Generally the best way to get the killer deal on a new car is find out when a dealer is selling a particular car for less than what they bought from the manufacturer and than negotiate. Even telling them you know they get backend payments from the manufacturer and you will not buy unless they cut down the price further.
The most important next step is to go ahead and WALK AWAY...
This is actually why they called you back with the $3,000 deduction on the price from your original offer. You made the right action...
But than you made a mistake. What you should have done was countered with $20,000-$23,000 the most. I am willing to bet my left testicle, you could have gotten the vehicle for $22,000 the most if you started with $20,000 and weren't afraid on the phone to hang up.
This game is a lot like poker. Both parties must bluff...
Only that the dealers always win on every deal regardless...Even if you get a steal, they still make a profit from backend payments from the manufacturer.
Is there a correlation between future financial performance and objectively measured pecker size at the company now?
Yes. A negative correlation. As the average penis gets larger, the greater the percent of niggers with the company. The more niggers in a company, the more financial issues a company is likely to incur in the near future according to countless studies.