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Thursday 17 August 2017
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Common Car Dealer Myths – Car Pro Commentary

car dealer cartoon 09_23_13There are way too many myths about car dealers to address in one article, but I thought I would give it a shot, to call attention to some of the most common misconceptions.
Financing is cheaper outside the dealership. Not always the case, dealers have a lot of sources for financing, and often they have lenders competing for the best rate for you. It’s a good idea to know what you can get on your own, but often the dealer can offer a rate as low as 0%.
Don’t tell the dealer you have a trade until the end. Generally, this just slows the process. You don’t want the dealer playing games with you, don’t play games with them. Your trade-in is worth the same no matter when you reveal it.
The end of the month is the best time to buy. Generally, this is true. Dealers, managers, and salespeople push harder the final week of any month. Everyone in the car business has a goal to reach and the end of the month is crunch time.
Dealers never lose money on a new vehicle. They wish! Many dealers take deep loses on vehicles often. It might be on a demo, a vehicle that has been in stock too long, or a designated loss-leader, but it happens way more than you think.
If I know what the dealer paid for the vehicle, I can get a better deal. There is some truth in this one. It is easier to negotiate from dealer invoice up, than it is from MSRP down. Offering the dealer a decent profit can get you a fair deal quicker and with less hassle. Starting at dealer invoice and going down will end in total frustration for the buyer.
Going through the Internet Manager is always cheaper. Internet Managers are salespeople who can type. Most of the time, their job is to get you into the showroom to go through the normal process of purchasing.
Paying cash always saves money. Not true. Many times it can actually cause you to pay more. There are extra incentives often for financing with a captive lender like Ford Credit or Toyota Financial. You can often take $1000 or more off the sales price.
Buy on a rainy day. Seriously? Dealers need to sell cars every day, the weather makes no difference whatsoever.
Dealers need to move the old models out when the new models start to arrive. This is absolutely true. Dealers make it a mission to move out old inventory. There is a saying in the business, “cars are not like wine, they don’t get better with age”. The dealers know the longer they have a car in inventory, the less profit it makes or the bigger the loss. Also, there are often factory-to-dealer hidden incentives that they can use to make the deals better.
There are a lot of “experts” out there that give you advice on car buying, unfortunately a lot of that information is false, or often outdated. If you use such advice, it can make car buying unnecessarily difficult and can even cause you to pay too much for your next car.




3 thoughts on “Common Car Dealer Myths – Car Pro Commentary

  1. Byron Hodges

    I have a dealer, Ron Carter Cadillac, that is just 2 miles from my home. I have been going there for about 8 years. I bought a 2002 Certified Cadillac DHS from David Taylor Cadillac in 2004. They did not put my car in the VIZ system, so when the original warranty expired, I was out of luck and they would do nothing. Ron Carter Cadillac was not available then at this location. I started taking my Cadillac to them until it was too expensive to maintain. I had 166,000 miles on the car. I traded it on a 2011 DTS Premium edition, wanted a Platinum, but could not find one except in the northeast part of the country. I have had the 2011 almost a year. Bobby Miller, my service advisor, has taken excellent care of both me and my car. I put about 20,000 miles on my car each year. I bought my car from Ron Carter because of the service provided. I have found that the salesmen don’t know as much about the car as I do. This may not always be the case, but it has been the case with me. Is there a company that will find a used car if I tell them exactly what I want and have one of their agents check it out. I understand that if a dealer brings a car from along distance for me I have to buy it, even though it may not be as described.

    Thank you very much for your assistance. I listen to your show in Houston every Saturday.

    Byron Hodges

    Reply
  2. Steve Shaper

    I bought an SUV about a year ago. I went to the Car Pro dealer for a quote and it took five calls to get a price, and the price was not very good. I ended up buying at another dealer. Incidentally, that dealer is no longer your recommended dealer for that brand of cars. They shouldn’t be. About a month ago I wanted to lease another car, a Ford. Over the internet Ford suggested a large Houston dealer, and I also visited a Conroe dealer since I have a lake house in Conroe. I had a difficult time getting a lease price from either one. In desperation I decided to try a Car Pro dealer once again so I dropped into Lone Star Ford one Saturday afternoon after working in my yard in Conroe. What a fabulous experience. Lone Star Ford could not have been more helpful or prompt. The sales rep was excellent and the Car Pro representative got me a lease price within ten minutes—and it was a good one. I agreed to the lease that afternoon and got the car the next week. I am a regular listener, never a caller, and my faith in the Car Pro system is restored. Incidentally, the first dealer was your Mazda dealer at the time. Thanks for all you do to keep us informed.

    Reply
    1. Jerry Post author

      Thanks for letting us know. SO GLAD Lone Star took care of you, it is an awesome dealership. Sorry it didn’t work out the first time, that’s why they are no longer one of our dealers.

      Always let me know if you need anything at all!

      Jerry Reynolds, President
      Car Pro Radio Network

      Reply

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