Posts
Wednesday, March 18, 2009
HIGHBALLING YOU ON YOUR TRADE VALUE
I MENTIONED IN AN EARLIER BLOG THAT DEALERS WILL LOWBALL YOU ON THE VEHICLE YOU ARE TRYING TO PURCHASE, IN AN EFFORT TO GET YOU BACK TO THEIR DEALERSHIP, SO THEY CAN "CLOSE" THE DEAL. KEEP IN MIND THAT THEY USE A SIMILAR TACTIC TO GET YOU BACK. THIS TACTIC INVOLVES YOUR TRADE FOR THOSE OF YOU WHO ARE ACTUALLY TRADING A VEHICLE IN. BEFORE YOU LEAVE THE DEALERSHIP, AND THE SALES PERSON IS SURE YOU ARE NOT A "NOW" BUYER, THE SALES PERSON WILL "WHAT IF" YOU ON YOUR TRADE VEHICLE VALUE. LETS ASSUME THAT THE VALUE YOU WANTED FOR YOUR TRADE WAS $2000 MORE THAN WHAT THE DEALER OFFERED YOU. LETS ALSO ASSUME THIS WAS THE REASON YOU DECIDED TO CONTINUE SHOPPING OTHER DEALERS. THE SALES PERSON NOW WILL SAY SOMETHING LIKE THIS TO YOU BEFORE YOU LEAVE "WHAT IF I GAVE YOU AN ADDITIONAL $1500 TO $2000 FOR YOUR TRADE MR. CUSTOMER? WOULD THAT BE ENOUGH TO DO A DEAL RIGHT NOW"? AND YOU THE CUSTOMER WOULD SAY "WELL THAT'S BETTER BUT I STILL NEED TO THINK ABOUT IT". AT THIS POINT THE SALES PERSON HAS ACCOMPLISHED SOMETHING VERY IMPORTANT. HE HAS ALLOWED YOU TO BELIEVE THAT YOU CAN GET $2000 MORE FOR YOUR TRADE. NOW WHEN YOU VISIT OTHER DEALERS THEY MIGHT BE COMPETITIVE ON THE CAR YOU PURCHASING AS FAR AS SELLING PRICE, BUT THEY CANT TOUCH THE OTHER DEALERS PRICE REGARDING YOUR TRADE VALUE. WHAT DO YOU DO NOW?? YOU GO BACK TO THE DEALER THAT OFFERED YOU CONSIDERABLY MORE FOR YOUR TRADE, OR SO YOU BELIEVE. WHEN YOU RETURN TO THE OTHER DEALER THE SALES PERSON WILL KINDLY INFORM YOU THAT HE ASKED YOU "WHAT IF I GAVE YOU THAT MUCH FOR YOUR TRADE MR. CUSTOMER? I'M SORRY IF YOU WERE UNDER THE IMPRESSION THAT I WOULD ACTUALLY GIVE YOU THAT MUCH FOR YOUR TRADE. THAT WASN'T MY INTENTION AT ALL. I JUST WANTED TO SEE IF THERE WAS ANY MOTIVATION TO DO A DEAL THAT DAY". AT THIS POINT, YOU THE CUSTOMER, ARE FRUSTRATED AND TIRED. YOU HAVE PRICING FROM A NUMBER OF OTHER DEALERS ON YOUR TRADE AND THE VEHICLE YOU WOULD LIKE TO PURCHASE. NOW IT BECOMES EASY FOR THIS DEALER TO SELL YOU A VEHICLE BECAUSE YOU ARE WORN DOWN. DON'T FALL FOR THIS TECHNIQUE. KINDLY SAY TO THE SALES PERSON "I WILL BE PURCHASING FROM ANOTHER DEALER AND I AM VERY UNHAPPY WITH YOUR UNDERHANDED TECHNIQUES". AT THIS POINT JUST LEAVE AND RETURN TO A DEALER THAT YOU FELT COMFORTABLE WITH AND SEE HOW MUCH BETTER THEY CAN DO ON PRICING. DO NOT FALL FOR THIS HIGHBALL TECHNIQUE THAT IS COMMONLY USED AT MANY DEALERSHIP. AGAIN THESE DEALERSHIPS ARE NOT REPUTABLE. ALSO, DON'T BELIEVE THAT ALL DEALERSHIPS OPERATE THE SAME WAY. THEY DON'T. THERE ARE MANY MORE REPUTABLE DEALERS OUT THERE TODAY THAN THE CONTRARY. GOOD LUCK AND AGAIN IF YOU HAVE ANY QUESTIONS JUST EMAIL ME AT JOECARGUY1968@AOL.COM
Tuesday, March 17, 2009
Saturday, March 14, 2009
I HAVE CHANGED MY EMAIL ADDRESS
I HAVE CHANGED MY EMAIL ADDRESS TO JOECARGUY1968@AOL.COM. IF ANY OF YOU HAVE ANY QUESTIONS REGARDING MY BLOGS FEELS FREE TO EMAIL ME AT THIS NEW ADDRESS. AGAIN THE NEW ADDRESS IS JOECARGUY1968@AOL.COM
JOECARGUY1968@AOL.COM
JOECARGUY1968@AOL.COM
Friday, March 13, 2009
THE DEALER LOWBALL TECHNIQUE
As I mentioned in an earlier blog dealers will often use a technique to frustrate and confuse the consumer. This technique is called lowballing. Lowballing occurs when a dealer feels as though you the consumer are not a "now" buyer. Now when I say "now" buyer let me explain what I mean. Often consumers will shop many dealers in an effort to find the best deal. Its the old idea or belief that if you shop many dealers it will keep the other dealers honest in the pricing that they have given you. When a dealer feels as though you are just visiiting their store for a price and you give the impression that you are not buying then they do not consider you a "now" buyer. When this occurs the dealer will then give you a price that is so ridiculously low that no other dealer can even come close to that pricing. Now your asking yourself "why would they waste my time doing that"? Thats exactly the point. The dealer feels because you didnt purchase from them that you wasted their time so they return the favor by giving you a price that no other dealer can match. You go from store to store to store and hear the same thing over and over again. "dont walk back to that store that gave you that price sir, run back". The reason is simple, these other dealers know that when you rturn to the dealer that gave you that tremendous pricing, that price will never be met. The dealer only gave you that price to keep you running in circles trying to get a price beat, that even they can not and will not give you. They in return waste your time for wasting their time. Does this make sense?? They do achieve one very important thing though. You returned to their store and now your worn out from running in circles. You already have pricing from several other stores and now they take another shot at selling you a car. THEY GOT YOU BACK IN THEIR STORE TIRED AND NOW READY TO DO BUSINESS. Does this work all the time. No it does'nt. Many people get angry with the dealer for not honoring the price they gave them last, but these dealers will come up with all kinds of excuses and reasons for ehy they can't. How about "we made a mistake and quoted you on a different stock number". You have nothing from them that legally binds them to pricing on a specific vehicle and they are simply off the hook. Some consumers get angry and leave while other consumers surrender to the games and purchase a vehicle with apologies coming at them from just about every one that works in the dealership now pretending to be you, the customers, best friends. Believe me this technique works and is utilized many many dealers to get consumers to return to their stores. The object and the lesson to be learned by the consumer is get everything in writing before you leave the dealership. Make sure you have a copy of a form with the dealership letterhead on it specifying the stock number and pricing of the vehicle you intend to purchase. And if a dealer tries to change this pricing when you return, just turn around and walk out the door. They are not reputable and they have just lowballed you into coming back to them, They have wasted alot of your valuable time, and remember the old saying: "time is money". In my nex blog I will explain the highball technique which pertains to your trade in vehicle. Any questions remember you can email me at JOECARGUY1968@AOL.COM
WHAT IS YOUR TRADE IN WORTH????
Ok. Now we are going to assume you have made it past the negotiation stage in purchasing your new vehicle. But now you have a trade in. Dealers will many times give into your demands regarding the price and terms of the vehicle they are selling you. Some times they give in way too quick and its seems too easy to be true for you the consumer. This is especially true when there is a trade in vehicle involved in the transaction. I will now explain why this is. If you make the mistake of telling the dealer right from the start that you have a trade in they will attempt to "steal the trade" as it is called in the industry. You are asking yourself right now, how the heck can they steal my trade?? Its mine they cant steal it!!! Its just a term used by the dealers to give you the consumer considerably less in value for the trade versus what it is really worth. My recommendations are these: do not tell the dealer there is a trade until after you negotiate the price of the vehicle you are considering purchasing. Even if the sales person asks if you have a trade just tell the sales rep nooo!!! Also before you start your shopping at dealers, arm yourself with information with regards to what your trade is worth. There are many tools on the internet where you, the consumer, are able to to this. One very good source is www.kbb.com otherwise known as Kelly Blue Book. Keep in mind that kelly sometimes does have inflated trade values for vehicles. When evaluating your trade in using Kelly Blue Book be truthful in answering the questions about your trade. Remember dealers have used car managers that know these values quite well. There are several factors that contribute to your trade in value. The most important are these: condition, accident history (carfax), service history, mileage, tire tread, interior condition, state inspection, and age. These are just a few that the professionals utilize to value your vehicle. Your make and model trade in are also very important as many cars have a very strong demand in the used car market depending upon their reliabilty. Honda is a very good example of this. Honda's are known to have a very long reliable shelf life, so there is a very high demand for even older Honda's. Its simply supply and demand. Alot of people want used Honda's and there are very few in the marketplace, thus they have a much higher than normal trade value. The opposit applies to vehicles that are in large supply with very little demand. These are considered market values of your vehicle and have a strong impact on what it will be worth, so you must consider this in evaluating your trade; But remember be honest. Just because you think your car is worth a certain amount doesnt necessarily mean that it is. Ask to speak to the person at the dealership who evaluated your trade. Have that person walk around your vehcile with you and justify the value he/she is offering. Ask how that person evaluated the value. What sources did he/she use?? This person most likely will be the dealerships used car manager and is the best suited to arrive at your trade in's true value. If the finance manager comes out to discuss the value, demand to speak to the used car manager. Dont take no for an answer. One last note, when using internet sources to evaluate your trade you must keep in mind that you are looking for the vehicles trade value. Dont evaluate it based on retail value and think your going to get this past the used car manager of the dealership. You wont!! Remember, they are the professionals and they know their business very well. Be honest to yourself and to the selling dealer in this regard and you will find that, at reputable dealers, negotiations will go rather smooth. They are in business to make a fair profit so dont come off as if you could care less about their profession. Many times consumers make this mistake of thinking they can outsmart the dealer at their profession and come on too strong and end up just spiting themselves. Dealers have many games in their arsenals and can have these consumers running in circles if they choose. There are techniques that dealers use to deal with these "hard" customers and I will explain them in other blogs. For right now we will call them lowball and highball techniques. Dealers will low ball you on the price of their vehcile if they feel as though you are a "shopper" and not a "now" buyer. The will also highball you and give you an inflated value on your trade for the same reasons. Again check back and I will further explain how to avoid this techique used by the dealer so that you come out ahead in the car buying experience.
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