06/25/2020
Hello everyone.
I’ve been seeing a lot of these videos surfacing of late from would be “car buying experts” to inform consumers on how to handle their dealership experience in order to get the best deals they can.
After watching these videos I figured that I (a legitimate car salesman) would shed some light on the truths behind how customers should approach buying their next vehicle, being as majority of these “tips” provided are outdated and based on the once upon a time methods of how car salesman operate.
Granted, you WILL still encounter those sales types that give the rest of us a bad name, but I’m here to tell you how to avoid them, and have the most comfortable experience with arguably the second largest investment (next to a home) that you can make in your life!
- Buying your car at the END of the month is NOT your best practice. Majority of dealerships pay their sales reps commission in a tier structure (eg. 1-10 vehicles is 10%, 11-15 is 15% etc). HOWEVER, these are OVER THE CURB based percentages, meaning that you’re likely to get your best, most aggressive deal either towards the beginning, or middle of the month as the vehicle can be counted for said month. This in turn benefits not only the sales representative, but also the dealership when they submit reports to head office. Not to mention that most brands these days always have promotions and incentives, so it really doesn’t make a difference.
- DO NOT shop for your vehicle one hour before the dealership closes. This is just doing YOU a major disservice frankly. When I saw that this was offered as “good advice” for purchasing a vehicle, I was perplexed. Why would a customer wish to have their sales rep frustrated with them right off the bat? Human beings are programmed a certain way, and I personally would like someone to handle one of my largest purchases with courtesy, care and patience, so why would I show up an hour before they’re allowed to go home to their families after a long day for a process that in some instances can take 3 or more hours? Do yourselves a favour, be aware of your timing when making your trip to the dealership and you’ll give yourself a MUCH better experience.
- New vs Pre-owned (or as I like to say, “previously enjoyed”). There’s an overwhelming misconception about purchasing new vehicles. There’s a stigma about pulling a brand new car off the lot, and I wish to tell you, squash those thoughts. I’ve negotiated many deals with customers over pre owned vehicles, with majority of those conversations revolving around parts and performance. Anything from “I’d like new brakes put on it”, “these tires seem worn down”, etc. So, naturally and understandably they’d like those concerns addressed, but will also want a price reduction on the vehicle on top of having parts replaced, or any nicks and scratches buffed out. Perspective wise, a previously enjoyed vehicle doesn’t have the same negotiation room as a brand new vehicle. These vehicles are either acquired via trade in, or at auction. When the dealership goes to auction, they naturally have to out bid other buyers, and of course, being a business, have to re sell that vehicle with a certain profit goal in mind, which, now a days, isn’t as large as the average consumer assumes. So, when you look to have tires replaced, brakes done, paint touched up etc., that all comes out of the gross of the vehicle, which leaves you no room for price negotiations. Solution? Buy brand new! You’ll have full warranty, everything will be fresh, no concerns about balding tires, brakes, scratches, and dents. Not to mention, if you’re a price driven shopper (which majority of us are), new vehicles often offer lower interest rates, and also, there will be significantly more “wiggle room” on pricing!
Check back for more tips on making your vehicle buying experience a much easier process as I continue to combat these antiquated methods of the car buying process that these “experts” offer up online!
Have an excellent day!
