| Note: The following refers to pre-owned | | | | separate in the minds of buyers. Only the |
| vehicles. Generally, the only variations in | | | | owner of a particular vehicle can determine |
| the "cost" of a new car to franchise dealers | | | | how much profit(or loss!)is acceptable in a |
| is in destination or shipping fees. An | | | | deal. Often it is the crushing weight of time |
| additional variation for buyers is the | | | | and depreciation that determines how much a |
| notorious 'doc. fee', which varies widely by | | | | vehicle will eventually sell for, whether it |
| dealer. | | | | is a dealer or private-party sale. An |
| | | | acceptable offer today is sure to be lower |
| Let's take two cars, identical in every way. | | | | than it would have been a month ago--to the |
| The first one has cost the dealer $13000 to | | | | seller--but a great deal a month ago is still |
| acquire, between the expense of the vehicle, | | | | a great deal today for the buyer. |
| the necessary work to prepare it for sale, | | | | |
| new brakes and tires, etc. The second one has | | | | Generally, those folks who are members of the |
| cost another dealer $12000, with all | | | | 'A' group become that way as a result of the |
| identical work being done. These cars are on | | | | continuous stream of bad car buying advice |
| sale for the Kelley Blue Book retail price of | | | | they have received since birth. They feel |
| $15995. You have determined, through your | | | | cheated every time because they are |
| research, that a very good price would be | | | | conditioned to believe that it is the sellers |
| $14500, and a great price would be $14000. | | | | objective to cheat them rather than to simply |
| Both vehicles are eventually purchased for | | | | make a profit. And while this may seem like |
| $14000. Dealer A has made a profit of $1000, | | | | just two different ways of looking at the |
| dealer B has profited $2000, and you have | | | | same thing, it is the folks who can focus on |
| purchased the vehicle for a great price. Now, | | | | the factors they can control who will |
| let's say that you purchased yours from | | | | ultimately be 'driving happy'. |
| dealer B and have somehow found out the | | | | |
| specifics of both of these deals. | | | | Buyers need to understand how to do proper |
| | | | research in order to determine what a great |
| Do you feel | | | | price would be on a given vehicle, how to |
| | | | formulate an acceptable offer, and how to |
| A) angry that your dealer made more money on | | | | execute the deal efficiently. There is a lot |
| your deal than the other dealer made on the | | | | of bad information out there for buyers and |
| other dealor | | | | tools like the Kelley Blue Book require real |
| | | | training to use properly. In fact, the raw |
| B) extremely happy knowing that you bought | | | | KBB numbers work to the advantage of the |
| your car at a great price. | | | | seller every single time, so folks using |
| | | | those numbers to build their budget are doing |
| If you answered 'A', you are suffering from | | | | themselves a disservice if they do not learn |
| 'beat the dealer' syndrome, a | | | | more. |
| self-destructive, ultimately self-defeating | | | | |
| attitude about life in general that requires | | | | A dealer or an individual should determine |
| that someone else must lose in order for you | | | | when they will sell a vehicle at any given |
| to win. You will never be happy in any deal | | | | price. A buyer should determine what a good |
| of any kind, because you will always worry | | | | price is on a given vehicle, then should |
| that you 'left something on the table', that | | | | offer to purchase the vehicle for that price |
| you could have gotten a better deal if only | | | | or better. If the research isn't sound, it is |
| you had done something differently or if | | | | possible to end up with a conversation that |
| everyone wasn't out to cheat you. | | | | goes something like this: |
| | | | |
| If you answered 'B', you understand that the | | | | Buyer: " I'll offer you $10000 for this car |
| profit made on the sale of an individual | | | | right now..." |
| vehicle has nothing to do with you getting a | | | | |
| great deal. You are halfway down the road to | | | | Dealer: "Fantastic! Just sign here and here |
| car buying serenity. | | | | and off you go...!" |
| | | | |
| These two entirely separate topics must stay | | | | Buyer: "Um...on second thought... |