The Profitable Dealer

In today's competitive market, dealers are lookingsalesperson's job is to get as much for the car as
for every edge to increase the profit they makepossible while the customers goal is to pay the
on each vehicle sold. Trying to up sell andleast amount so you should be getting ready for
convince customers that all the extras are goodwar.
for them allows a dealer to get that little extraNot all dealers operate in this adversarial manner.
that they deserve. But how much profit is fair forDealer in particular regions of the country, Audi
a dealer to make when they sell a car?and Honda Dealers operate under a different set
With all of the information that is available to theof rules. These dealer do not view purchasing a
average consumer today, they can very easilycar as a game, it is a serious business transaction.
figure out what the fair price for a car should be,Dealers have terms for certain types of
but when you listen to what people are saying,customers such as "Minnie the Moocher" for
they seem confused about the car buyingcustomers who want everything, but are not
process. Toyota Dealers believe that negotiatingwilling to pay for anything and "I'll Be-back" for the
the right price for a car should be easy, and yes,customer who wants to make multiple visits
the dealer should be allowed to make abefore closing the deal. Customers should not
reasonable profit.allow themselves to be rushed.
Each customer can pay significantly differentDealership sales people have known for many
prices for the same car, at the same dealer, onyears how to push the buttons that will make
the same day, depending on the level ofcustomers want a car so much that they will be
knowledge each customer has of how car pricingready to drive it home that very day. They still
works. Dealers expect most customers toknow how to get the most of you if you let your
negotiate price but unfortunately, negotiating isguard down. For every dealer, the real money is
not the easiest thing to work through. Dealersmade with the back-end charges. With a good
seem to be able to quickly spot those customerssalesperson who knows how to sell, customers
who are not as good at negotiating well and ascan find themselves paying for extras that they
we all know, knowledge is always the key.may or may not really need, such as an
Though the process can be difficult, buying a newextended warranty, rust-proofing, undercoating,
car shouldn't be thought of as a war betweenpaint sealant, servicing and parts sales - even an
customer and dealer. Instead, it's really more likeantitheft system or a power sun roof if they're
a game so the sooner customers recognize this,not in your budget.
the sooner they will realize how they can win theSo as many of us have heard time and time
game by simply being prepared. Remember, theagain, "Let the buyer beware".