Tony Hyundai experience

[craigwatanabe]

Re: Tony Hyundai experience

I agree with this. Salespeople are folks whose time are just as valuable as anyone else's. They work at their job to put food on the table, and that is something that should be respected. If every relative, in-law, high school classmate, neighbor, fellow church member, etc. expects their "friend in the business" to cut them a deal that takes a bite out of their commission, then how do they expect their friend to pay the bills?

Interestingly, one of my best friends in high school has a father who now owns a Nissan dealership (among other businesses). I had always assumed that my friend could obtain a car "at cost." But I was wrong, as he recently told me that even immediate family members could not purchase a car for personal use at dealer invoice prices.

As a rule I try not to take advantage of my friends. A discount is granted when it is deserved such as bad customer service or simply a bad experience, but to demand or expect a discount when it will cost the seller or the salesperson their income isn't fair to even suggest. Car salespeople work long hard hours (I worked 11-hour days six days a week). Minimum quota for most dealerships are 10 units per month. So that means selling one car every three days. Manpower-wise that's 33-hours of effort for every car sold at a minimum. During that time you're on the phone calling everybody you've met on the lot or off the lot. You're calling every person selling their cars in the classifieds, you're pounding the pavement doing outside sales to anyone willing to listen to you.

I did my 20-30 calls per day then I loaded up my business cards and went out to the hardware stores, farmer's market, you name it to generate business. It's hard work. When you work commission only, it's nice when you can bring in the income. Once in a while you take a loss with a customer drilling you down to what they want and then walk away telling you their not interested. That's not fair to the salesperson who took their time and their integrity to get that price you wanted. MSRP is fair. Going below it takes food off the salesperson's table. You wouldn't do that at Longs Drugs right? MSRP is Retail pricing and it is fair. Anything above it is negotiable. You should start below MSRP but that means you also understand that the compromise price will be somewhat higher than it or right on it but never below it. MSRP profits take into account the service you will get from that dealership when you will need it later.

[cynsaligia]

Re: Tony Hyundai experience

never once did i say that one should expect a discount when using one's personal relationships when pursuing the best deal possible in buying a car. there is, however, never any harm in asking, especially given certain (yet not uncommon) circumstances.

if, for example, your family's had a decades-long relationship with a CPA both for personal and business matters, and that CPA is a member of the corporate board at servco, you're neglecting to do yourself a favor for not asking the CPA if he can help you get a deal on a camry.

the fact is, many salespeople choose to give certain customers the professional courtesy of a discount because they have their own motives. why not take a certain dollar amount off that G35 you're selling to a realtor, especially if the two of you have hit it off and you're in the market to buy a house? one auto sales manager i know was able to throw his wedding ceremony and celebration at the kahala hilton for a very good price because years ago, he gave the hilton's manager a great deal on a vehicle purchase.

on the other hand, the salesguy who's barely logged a year on the lot and whose brother's best friend you went to high school with twenty years ago isn't likely in the position or disposition to cut you a deal. in that case, gear yourself up to play the game.

[dick]

Re: Tony Hyundai experience

I hate shopping for cars.

Why can't it be like buying anything else: The price is the price. This Chevy is $18,000. And that's it. Take it or leave it.

People wonder why car salespeople have such a bad rep. Well, it's because everyone knows that there's a good chance you're getting ripped off.

Get rid of the shady "negotiation" scheme, and maybe people will have better things to say about dealerships and salespeople.

[oceanpacific]

Re: Tony Hyundai experience

I hate shopping for cars.

Why can't it be like buying anything else: The price is the price. This Chevy is $18,000. And that's it. Take it or leave it.

People wonder why car salespeople have such a bad rep. Well, it's because everyone knows that there's a good chance you're getting ripped off.

Get rid of the shady "negotiation" scheme, and maybe people will have better things to say about dealerships and salespeople.

Several dealerships have tried the "no dicker, pay the sticker" approach. The salespeople were salaried (no commission), but eligible for bonuses. One such dealer was PACIFIC MAZDA in Waipahu, then part of the Tony Group. The prices were set BELOW MSRP and ADM was eliminated. They found that this "humane" approach didn't work - many people still wanted to negotiate for even LOWER prices. Probably because of decades of conditioning, the consumers did not believe that the dealers were not "ripping them off." So, they went back to the old system.

Another dealer who embraced the "NO ADM" approach was Honda Windward. That didn't work, so the "second sticker" is back on their cars. They did offer me "below MSRP" pricing on several potential deals, but I found the trade-in allowances on the low side ($3000, while Tony Honda offered $4000).

Then, there's Saturn and their one-price dealing. But, the dickering is done on the trade-ins.

[Nords]

Re: Tony Hyundai experience

They found that this "humane" approach didn't work - many people still wanted to negotiate for even LOWER prices. Probably because of decades of conditioning, the consumers did not believe that the dealers were not "ripping them off." So, they went back to the old system.

Imagine if Sears, Lowes, and Home Depot applied car-dealer negotiation tactics to their appliances.

Ooops, bad example.