Question about ads placed by car dealerships.

Factual Questions
41

[QUOTE=mhendo]
I think that’s a good attitude, actually. Some people get so obsessed by the idea that they might get ripped off that they never actually sit down and ask themselves whether they are happy with the price they paid for their car.

It’s like the whole storm in a teacup over the recent reduction in the price of the iPhone. When Apple dropped the price, there was much wailing and gnashing of teeth by some people who complained that they felt cheated. Others just shrugged and said “I was willing to pay $600 for it when i bought it, so it must have been worth that much to me.”
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I wonder how they would have felt if the guy before them paid $400 and the guy after them paid $400.

42

There’s nothing wrong with going to CarMax, or buying a Saturn, or using Costco or any other way of paying a fixed price for a specific vehicle.

Just be aware that you’re paying hundreds of dollars to be able to do so, it’s not free. If that works for you, great.

43

My son has been the Sales/General Manager at three or four dealers. I haven’t really gone thru the precedure but as best as I can tell the salesman’s first goal is to determine what car/+assessories you want and then get information that allows them to get your credit rating. They then go to the manager to determine the deal. With rating information, etc. the manager says “OK offer them this and tell them that, etc., etc.” The salesman then goes back to customer. So obviously the salesman doesn’t want to act like he knows about the ad. He’ll tell the manager you mentioned the ad and the manager (who also may have put the ad in the paper) will determine what the salesman should say about it.

All the dealers in the area know how many cars their competitors (same make) have sold and what they made on the deals. The dealer that sold the most cars may or may not have made the most money. Some dealers like to be known for selling the most cars and others like the most money (they all like both), so do you really blame the managers for not giving everyone the same deal? Also not every customer is as nice as all of the posters on these boards; some could even be labeled as nasty. The managers make good money but have to work long hours, since the salesman seem to be like fish out of the water when they have a deal and the manager has gone home or has gone to lunch. The cell phone of course is a very convenient instrument at such times.

Service is another department where the dealer makes money (in fact my son claims that is the only place they make money). That is why sometimes selling the most cars verus making the biggest margin isn’t always bad.

44

[QUOTE=LouisB]
My wife just bought a Scion Xa from a Toyota dealership; she’s had it for three months and I’ve been over the paperwork a dozen times. I STILL don’t know if she got ripped off or not. But, she is happy with the price she paid and she is happy with the car she bought; I suppose that is really what makes a good deal.
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Scions are supposedly sold in a different way that actual Toyotas, and I thought at different dealers?

Yes, some Saturns are boring. Others are not. The Sky Redline is hot.

There are no scams at Saturn dealers. That’s part of the rules for Saturn. Sure, there is always soem wiggle room on the trade-in, but Saturn doesn’t scam you on financing, add ons, or high pressure sales.

Google Saturn if you like.
http://www.adweek.com/aw/magazine/article_display.jsp?vnu_content_id=1003641201

"General Motors’ Saturn, which built its consumer-friendly strategy on a no-haggle pricing policy as well as picnics and factory tours at its former plant in Tennessee, is facing the problem head-on by incorporating online shopping into roomy, redesigned showrooms.

From its start in 1990, Saturn considered its showrooms to be retail stores rather than dealerships and paid sales staff with salaries, not commission." That’s why there are no scamsters there; the sales staff do not make extra money by ripping off the customers.

http://www.journalnow.com/servlet/Satellite?pagename=WSJ%2FMGArticle%2FWSJ_BasicArticle&c=MGArticle&cid=1173352897417
*The auto business, it seems, is one place where even the most timid customers know they need to negotiate (although such companies as Saturn have adopted no-haggle pricing policies because negotiation is so unpopular).

You do not pay any more by the Saturn “no haggle” policy. Yes, sure, if you come at a good time, have all your facts, are looking to buy a slow selling model, and are preapred to spend half a day fighting with them, you can sometimes get a better deal by “negotiating” at other dealers. Few can or will do that. And, it requires that you do not want a popular model, like say a Prius.