Join Date: Dec 2005
Location: Madisonville KY
Mentioned: 4 Post(s)
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Re: Why do negotiations always take long?
Guy's I love everyone sharing their opinion's regarding us car dogs and there are sure some varied opinions. I think the tribeman has done a great job of describing my perspective on the business. I just two hours ago offered a local physician a Highlander limited, quoted purchase and lease at 3% over invoice (showed the guy the Vehicle inquiry, including the ship it rode in on) and was competing against an X3 and a CR-V or Pilot.
I quoted the deal at around $1200 profit (3% over) on say a $36,000 vehicle.
I do not feel this is an unreasonable profit level. If I sell this vehicle (ultimately) to this gentleman, my compenstion will be at most $324 (if I max out my comp percentage at 18 units) If I ultimately have to "give a vehicle away", I earn $75 for my time. $75.00, and that's against the minimum wage I'm "guaranteed" for just hangin out!
I am not naive enough to try to buy anything for less than a seller has invested in it, unless there is some reason for it, and most people will understand this and want to pay some profit if given an opportunity to deal with a professional that they have confidence in.
I let my customer walk away tonight at the offer I made to sell (with profit) upon initial contact. I am certain he knows his invoice, cap cost, what he has as a residual value, and why it is low relative to the one offered by BMW. Why let him run wild researching when I can help him research the true facts of his own deal on a real car.
He has a complete and total description of his deal in his hands. If I see him again, I want it to be short and sweet on the way to the business office.
I never wait on walk-up traffic and our internet department is not expected to. I feel those that still do it that way (waiting on walk-ups) are " bird hunting" and I'd rather sit at my desk "fishing" and make some good friends along the way and sell cars with some integrity, like a gentleman.
Love Ya Mean it!