| Re: Leasing vs. Owning Most "high line" autos you see going down the road are leased. If I were to go back into the business, I would only sell a "high line" product. It's so easy to tell a customer ..."you want to negotiate the payment on this car? maybe you should go look at that the other car you talked about"...and yes, I have said that to a customer who was beating my salesguy up over $15 a month. Another nice thing with "high lines" you deal for the most part with customers who have good to great credit and they can afford what they are looking at. There was nothing worse getting a "paying deal" and having the sales person all pumped up till we pulled credit and having to tell him all the profit was gone if he wanted a unit out for the day.
I remember when Phoenix only had one Mercedes dealership (that's all we needed) and only one Audi store. Now there are 4 Mercedes and 3 Audi. It's so competitive now and more and more consumers are getting internet quotes it has lead to this....
..."mr jones, i will sell the car for 28k".....mr jones goes to get the car, and sees the price is $800 more than the quoted price..."wth is this" mr jones asks, "well, the car the desert package (which is total bs) and I am selling the car for 28k as promised, but i have to add the $800 to cover the cost of the desert package"replies the sales guy.... I think 90% of the dealerships are doing this now. That's the only way they are able to hold any profit since they are quoting invoice or less on line.
If you are getting quotes on line, get the "OUT THE DOOR PRICE not the selling price, so you can have a fair comparison when shopping. |