Originally posted by mookie1995
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Business, Economics, and Taxes: Capitalism. Yay? >=(
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“Demolish the bridges behind you… then there is no choice but to build again.”
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Screw Subaru. Buy a Mazda instead. More fun to drive, and their head gasket won't explode on you like a Subie.
And they're making a lot of all wheel drive models now, so there goes your only reason for wanting a Subie in the first place.What kind of cheese are you planning to put on top?
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Originally posted by aparch View Post
Unless that specific dealership is a direct sponsor of Fox/FoxNews, that doesn't hurt Subaru Inc. one bit. That just hurts the dealership itself.
Huh. I never realized that. No wonder dealers are such sleazeballs -- that's terrifying for them.Cornell University
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Originally posted by Kepler View Post
Is that true? If the dealership can't move the unit it's all their loss? Like, they buy their inventory from the auto manufacturer and then the latter is out of the picture?
Huh. I never realized that. No wonder dealers are such sleazeballs -- that's terrifying for them.
Kinda like how gas stations make their profit on convenience store sales, dealerships make their profit on accessories and maintenance.
Some dealers will mark down their vehicles at the end of the quarter just to make a sale and clear their books so they can purchase new inventory. One dealership near me says if they don't sell a vehicle in 90 days, they send it to an auto auction.
Small town dealerships will sometimes purchase inventory from these auto auctions because they can get "new" vehicles on their lot cheaper than buying through the manufacturer.
“Demolish the bridges behind you… then there is no choice but to build again.”
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Originally posted by aparch View PostSmall town dealerships will sometimes purchase inventory from these auto auctions because they can get "new" vehicles on their lot cheaper than buying through the manufacturer.Cornell University
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Originally posted by Kepler View Post
Is that true? If the dealership can't move the unit it's all their loss? Like, they buy their inventory from the auto manufacturer and then the latter is out of the picture?
Huh. I never realized that. No wonder dealers are such sleazeballs -- that's terrifying for them.What kind of cheese are you planning to put on top?
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Originally posted by Kepler View Post
Where do they offload their unsold inventory?
Not sure if it still works this way, but used to be, the manufacturers had a thing called "dealer holdback" which was like 2-3% of the car's wholesale cost. Dealer sells the car, pays off the manufacturer, but gets that 2-3% back for every vehicle they sell. Usually was only for American manufacturers, like Ford and Chevy, don't think the foreign guys did that. Or at least not as much.
That, and other incentives like I mentioned above, are how dealers can sell "under invoice" and still make a profit on each car. Also helps you when buying. If you know the car's wholesale cost(places like Edmunds or Consumer Reports can give you that info) and know that the dealer already has a profit of 3% coming, even if he sells the car to you at cost, you can bargain harder for the best price.Last edited by rufus; 01-09-2021, 07:27 PM.What kind of cheese are you planning to put on top?
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Originally posted by rufus View Post
Auction houses. Or the dealer offers them more money upfront so they can afford to sell them for less.
Not sure if it still works this way, but used to be, the manufacturers had a thing called "dealer holdback" which was like 2-3% of the car's wholesale cost. Dealer sells the car, pays off the manufacturer, but gets that 2-3% back for every vehicle they sell. Usually was only for American manufacturers, like Ford and Chevy, don't think the foreign guys did that. Or at least not as much.
That, and other incentives like I mentioned above, are how dealers can sell "under invoice" and still make a profit on each car. Also helps you when buying. If you know the car's wholesale cost(places like Edmunds or Consumer Reports can give you that info) and know that the dealer already has a profit of 3% coming, even if he sells the car to you at cost, you can bargain harder for the best price.
Where they tried to get us everytime was on the "additional" items to be tacked on before the final price (like 'da tru-cooaaat' from Fargo). And they d*cked around with the financing, but we made it work. (Funny the things they'll do to cut the price an hour and a half *after* closing at the end of the quarter when they need to make one more sale...)“Demolish the bridges behind you… then there is no choice but to build again.”
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Absolutely theatrics.
The last new car I bought, while I was at the desk negotiating, they had the car driven up and parked right outside the showroom windows where I couldn't help but see it. Then, the salesman got a phone call, "Yep, we have one, but I have a guy right here looking to buy it right now", which was either his manager or no one on the other end.
At first, I was like, oh crap, someone else wants to buy it, I have to hurry and get it, but a second later, I thought, no, this is the game they play to make me think if I don't do everything I can to buy this, pay whatever I have to, I'll lose it.
Crooks, every one of them.What kind of cheese are you planning to put on top?
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Originally posted by rufus View PostAbsolutely theatrics.
The last new car I bought, while I was at the desk negotiating, they had the car driven up and parked right outside the showroom windows where I couldn't help but see it. Then, the salesman got a phone call, "Yep, we have one, but I have a guy right here looking to buy it right now", which was either his manager or no one on the other end.
At first, I was like, oh crap, someone else wants to buy it, I have to hurry and get it, but a second later, I thought, no, this is the game they play to make me think if I don't do everything I can to buy this, pay whatever I have to, I'll lose it.
Crooks, every one of them.
The newest car, the one that was done an hour and a half after close, my wife and I both, repeatedly, offered to come back the next day to finish the financing (the payoff of her old car was in question and the bank (that this dealership financed her through) only discussed payoff over the phone during business hours).
The finance guy, exasperated, finally went "do you remember how much is left? Even if you say there's less, I'll eat up to $1500 over what you say is left just to get this done."
I looked at my wife and told her to get that in writing; but they were good for their word, and did wind up eating almost a grand.
Every time we've bought a car through them, they're always 2-3k lower than other dealers when we compare. But they also do *way* more volume than the other dealers so they can cut their profits a little thinner every so often.Last edited by aparch; 01-10-2021, 01:03 AM.“Demolish the bridges behind you… then there is no choice but to build again.”
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Originally posted by rufus View PostAbsolutely theatrics.
The last new car I bought, while I was at the desk negotiating, they had the car driven up and parked right outside the showroom windows where I couldn't help but see it. Then, the salesman got a phone call, "Yep, we have one, but I have a guy right here looking to buy it right now", which was either his manager or no one on the other end.
At first, I was like, oh crap, someone else wants to buy it, I have to hurry and get it, but a second later, I thought, no, this is the game they play to make me think if I don't do everything I can to buy this, pay whatever I have to, I'll lose it.
Crooks, every one of them.
One of the VA dealerships that tried that on me was hit with a massive class action finding against them a few years later. It was the type of place you would see ads for them in every car on the Metro orange line (where rich bureaucrats who are still a little too poor to have drivers commute).Last edited by Kepler; 01-10-2021, 02:21 PM.Cornell University
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Originally posted by walrus View PostGoogle floor plan if you want to know how new car dealerships put cars on the lot.North Dakota
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Holy hell, I never learned about this in school. (Hat tip: Charley Patton, Deep Water Everywhere Part 1)
This happened in my (still living) Mom's lifetime. Black sharecroppers were legally held by landowners -- they did not have the right to leave.
Those were the days when successful job creators weren't held down by gubmint red tape and job killing regulation.Last edited by Kepler; 01-10-2021, 02:56 PM.Cornell University
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Originally posted by Kepler View PostHoly hell, I never learned about this in school. (Hat tip: Charley Patton, Deep Water Everywhere Part 1)
This happened in my (still living) Mom's lifetime. Black sharecroppers were legally held by landowners -- they did not have the right to leave.
Those were the days when successful job creators weren't held down by gubmint red tape and job killing regulation.I swear there ain't no heaven but I pray there ain't no hell.
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