The single greatest new car buying tip you never knew
By David Maillie
Are you in the market for a new or used car and want the ultimate car buying tip? What if you didn’t have to deal with a car salesperson and his/her lying and scamming managers (they always lie about things like the true cost, how the deal is so good that they are losing money (if they were they certainly wouldn’t sell it to you), etc…)? What if you could easily pick any car or truck you wanted and the car dealer automatically gave you a price of around $300 over invoice with no haggling, lies, frustration, etc…? Well, it is possible at just about every car dealership and I will divulge all below along with some extra tips you may not be aware of so you will be able to get a great deal whenever you or anyone in your family needs to buy a car.
How does this work? Well, you certainly can’t go to the dealership and deal with any of the commissioned employees (salespeople, sales managers, and general managers) as they are paid a commission on how high above the pack (a add on price to the invoice that covers operating expenses, grossly inflated salaries of general managers (some hit $200,000 to $300,000), expensive vacations for the car dealer and family, and other expenses like free gas and other perks for upper management and the dealer/owner, etc…) they can sell the car. The pack is a pre determined price at which no commissions are paid. So this money the car dealer gets without paying any percentage out to the sales force. So, needlessly to say, commissioned employees will do anything they can to get you to pay as much as possible over the pack and even push unnecessary extras as they can bring additional bonuses to their paychecks and greatly increase your costs with little if any added value.
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Here’s a little bonus tip – Never, Ever buy any aftermarket accessories or additional products at any car dealership. From GAP insurance (which insures any upside down amount on your new purchase in case of a total loss), to expensive finishes and even warranties. All of these products are grossly inflated in price from 100% to over 600% over cost. The reality is that anything your dealer offers can easily be bought at huge savings through the internet. Amaze yourself and Google it (look it up on Google). Look up that warranty they said you can only buy from them for $2500 and you will find the same company or better offering it direct for $990! That car paint sealant and upholstery protection that the car dealer is offering for between $300 and $700 actually costs only $25 and through the internet it even comes with a better warranty and more supplies – what a racket! So bonus tip #1 never, ever accept any additional products from the car dealer. And anything offered in the finance office is a complete rip off!
Bonus tip #2 - Say No to anything and everything offered in the “Lie-nance” or finance office. The finance managers are trained to get every last dollar possible out of you and boy do they ever. It has been noted at numerous auto dealer association conferences and finance meetings that the car dealer many times makes more money in the finance office than in all other areas of the car dealership put together! The average car dealer makes $1500 gross profit on the sale of a new car, $2500 on the sale of a used car, and between $1700 and $3500 or more on the finance end per unit! Some deals can get to be over $7000 to $10,000 in profit easily when numerous products and financing are all purchased through the finance office (especially with marginal or bad credit loans). Go prepared and have financing in place so you get the best rates and never, ever buy or agree to anything in the finance office as it is never a good deal!