Conan71
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« Reply #30 on: September 20, 2010, 11:34:46 am » |
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I'm not afraid to negotiate, nor is it difficult to figure what "invoice" is on a vehicle so I'm not a good potential customer for you, but I'm happy to offer some suggestions.
I've got a background in the industry. I think your consulting fee is high, perhaps you should think about a different business model of working with a certain number of dealerships and make 1/2 your fee on the front from the customer and 1/2 on the back from the dealer. You are bringing them a customer, after all. Perhaps you could structure it as a percent of the amount you save the customer off list to the sales price.
One mistake buyers do make is pissing off the dealer by making a ridiculous offer below invoice and trying to make the dealer think they can refer x amount of relatives and friends. Congratulations, you are the 20th person who tried that today. Car dealerships are a lot like casinos, the house always wins. It's not so much making a low ball over as it is being a completely obnoxious prick when doing it.
The actual negotiation for the purchase price isn't all that difficult. It's when you get into the disposition of your old car it gets hinky, especially if you are looking to trade it.
My own specialty was F&I or the "business office". It never failed, someone would come into my office gloating about beating the house down to nothing on their deal. It was up to me to make it back. "Sorry Mr. Dingle, you have a few dings on your credit, your rate is going to be three points higher." Doc fees, buy down points, extended warranties, credit life & health, gap insurance, etc. An hour later, the house had just made a gross profit of $4000 on a "nothing" deal.
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