Auto manufacturers entice their dealer body to sell more of a particular
model by offering enormous monetary incentives. These are unadvertised dollars
that go directly to the selling dealer. The incentive is time sensitive
based on the dealers performance against quota and vary by region and model.
Makes you want to run right out and buy a car doesn’t it?
As a prudent shopper you can begin to see why the "best deal" is
such an elusive animal. Unless you truly study the market, live in the right
region, pick the right model and buy during the designated time frame from
the dealer that meets quota you really don’t have any chance of beating
the system.
The car dealers potential loss of huge incentives are a major reason
why several people can buy the exact car from the same dealer and get different
prices. Some dealers are more willing to pass along a portion of their incentives
to further reduce your price to earn your business. If you negotiate a great
price and get the manufacturers rebate and before you walk out the door the
dealer offers you further discount, you’ve done a good job. Now, do you really
only want $50 over invoice? Don’t expect dealers to give you all their incentive
dollars. That’s like giving up your Christmas or performance bonus.
Keep this thought in mind, car dealers are in business to make
a profit. They should be allowed to make a profit. But, you don’t want to
be the one they make all of the profit on.
Questions to ask the salesperson: Does this model have a
dealer incentive? If so how much? When does it expire? How close are you
to meeting the qualifying quota? Did you meet quota last month? Which models
have a manufacturers rebate and dealer incentive?
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