The car selling adventures of Yankee

Omar V Tinko

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LOL. I see. You should open a dealership and put those sorry businessmen out of business.
I don’t have to. Other have already. The major public and private dealer groups are moving this way already at varying levels of commitment. The largest used car retailer is the USA is no negotiation and pitches the experience over price. And they have competition coming up everyday.
Selling to low price only gets volume. The most profitable dealer in any area is rarely the biggest volume dealer.
 

VolFaninFla

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Better experience for the customer. Less time in dealership. Less fear of being ripped off.
Better for the dealer because profit margins come up and customers are happier.
Yeah...I’m always happier when I cannot negotiate and wind up paying more for something.🙄
But, at least the dealers profit margins increase!! That’s something I should be grateful for!!😄
 
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Omar V Tinko

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Yeah...I’m always happier when I cannot negotiate and wind up paying more for something.🙄
But, at least the dealers profit margins increase!! That’s something I should be grateful for!!
I understand what you’re saying and you are not alone in your feelings. But you may be in the minority. People, in general, will pay for a better retail experience. Automotive retail is starting to understand that. And they have to, margins have shrunk for years and dealers have to find ways to slow that down.
Being bad at negotiation, some dealers are seeing that maybe they shouldn’t negotiate anymore.
 
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Omar V Tinko

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Yeah...I’m always happier when I cannot negotiate and wind up paying more for something.🙄
But, at least the dealers profit margins increase!! That’s something I should be grateful for!!😄
If you get what you want at the price you expect while dealing g with courteous and k owned gravel staff.... it’s a pretty good day.
 

BigOrangeMojo

The Member in Miss December
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I don’t have to. Other have already. The major public and private dealer groups are moving this way already at varying levels of commitment. The largest used car retailer is the USA is no negotiation and pitches the experience over price. And they have competition coming up everyday.
Selling to low price only gets volume. The most profitable dealer in any area is rarely the biggest volume dealer.
The biggest issue is not all dealers are the same. They have different capital structures and cost structures. If I wanted to buy a new Malibu, there's probably 7-8 places within 50 miles of me where I can buy one. And, there's 7-8 different prices. As long as different prices exist, negotiation will exist.

(Note, this example is in pre-COVID normal inventory world)
 

Omar V Tinko

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The biggest issue is not all dealers are the same. They have different capital structures and cost structures. If I wanted to buy a new Malibu, there's probably 7-8 places within 50 miles of me where I can buy one. And, there's 7-8 different prices. As long as different prices exist, negotiation will exist.

(Note, this example is in pre-COVID normal inventory world)
That’s a fair take. It’s going to be awhile before big volume manufacturers and their dealers get to one price. As I said, used is getting there now. The high lines are moving that way too. Eventually. It will be the standard across the board.
 

BigOrangeMojo

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That’s a fair take. It’s going to be awhile before big volume manufacturers and their dealers get to one price. As I said, used is getting there now. The high lines are moving that way too. Eventually. It will be the standard across the board.
As long as people have trade-ins, there will be negotiation at the lot. That's a huge profit driver for the dealers.
 

BigOrangeMojo

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it can be but not like it used to be. Reconditioning costs are way up so you have to be disciplined on how they buy or trade for cars.
Even if you get to the day of more uniform pricing within a market, you will have trade in negotiations and probably salespeople being better trained in pushing the highly profitable ancillary products and services. Right now, most salespeople appear to be better trained to get the initial sale and not the ancillary stuff. If you get to uniform pricing, the sales pitch will shift more toward those ancillary products and services.

Just think car buying will still be stressful. The pressure points will just be different.

(I'll let the dealers chime in as needed, just my opinion)
 

Omar V Tinko

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Even if you get to the day of more uniform pricing within a market, you will have trade in negotiations and probably salespeople being better trained in pushing the highly profitable ancillary products and services. Right now, most salespeople appear to be better trained to get the initial sale and not the ancillary stuff. If you get to uniform pricing, the sales pitch will shift more toward those ancillary products and services.

Just think car buying will still be stressful. The pressure points will just be different.

(I'll let the dealers chime in as needed, just my opinion)
You’re not wrong at all.... the profit centers for dealers are already in the ancillary products. Right now a new car dealer will generally make far more on those than on the sale of the car.
 

VolFaninFla

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I understand what you’re saying and you are not alone in your feelings. But you may be in the minority. People, in general, will pay for a better retail experience. Automotive retail is starting to understand that. And they have to, margins have shrunk for years and dealers have to find ways to slow that down.
Being bad at negotiation, some dealers are seeing that maybe they shouldn’t negotiate anymore.
Do you know how it would work given price fixing/collusion laws?
 

Omar V Tinko

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Do you know how it would work given price fixing/collusion laws?
That’s part of the issue on new vehicles. If it comes down from the manufacturer or if all the dealers get together and decide to do it, that’s a legal problem. If a dealer decides to do it in their own. It’s no issue. They run the risk of being undercut by local competitors. it generally takes a very strong dealer or dealer group to be first in an area.
 

northknoxvol

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Classic car salesman lingo....
My mom came in last week and bought a car and she had to pay the doc fee.
Well we got to keep the lights on somehow.
What kind of payment are you looking for?
You got a trade?
 

Volture

Harry your alive!!
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Hey Yankee, what are your opinions on the 2500 with the 6.6 gas engine? Have you had good feedback on them? I’m looking to get my first 3/4 ton and really like what I am seeing from Chevy right now
 

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