the canadian car market

[aniceguy]

so my lease is coming due and Im in the market for a truck. I walked into a local car dealer and saw a really nice truck, it had 11,000k on it and its asking price was 27900, I offered 25,000 for it, he told me that left them 1000 profit roughly, I pulled out my credit card and said I ll pay tonight no financing required...the business manager refuesed my offer....

 

1000 profit ( Im sure there was a little more though) instant payment and he said nope.............am I missing something

[danc]

The credit card charges that the dealer has to absorb?

[Paully]

you were gonna give him 25,000.oo on the spot?...

 

I must be missing something..

[uglyfish]

i need new tackle... can i borrow ur card?

[aniceguy]

yes its a large dealership Im sure my money is pittence to them, I offered money for the car right then and there, and would take delivery asap....ugly I wish but my boss would have to approve your transaction and .....well...........ahh.......

[Roy]

I'm sure he makes a slice from the financing. Cash means zilch today.

[Sinker]

What roy said is so true. When making a big purchase it used to be cash was the way to go if you could. Nowadays, they make all the money on your payments. Its Bull. I try to own everything I have. I don't have much, but I don't make payments on anything either.

 

The planet is going to crap, I tell ya!

 

S.

[irishfield]

At least 2% fee to them on the card... with my low volume here selling aircraft parts... for CC acceptance I get nailed for 4.65 % on VISA cards and 4.76% on M/C. and why I try to get guys to do their payments by paypal, as that only costs me 2.3 or so.

 

The world has gone to hell though Louis.... in the GOOD old days.. you could have pulled out a roll of cash to pay for it. Can't do that anymore either....

Edited January 26, 2010 by irishfield

[uglyfish]

yes its a large dealership Im sure my money is pittence to them, I offered money for the car right then and there, and would take delivery asap....ugly I wish but my boss would have to approve your transaction and .....well...........ahh.......

 

 

lol fair enough

[aplumma]

Car dealerships are funny about the credit card thing. I wanted to buy A Mini Cooper and was going to pay for it using the card so I got a 1% discount back. They informed me that I could only charge $3000.00 max the rest could be a personal check... go figure. I guess that they can't absorb the percentage or don't want the risk of it being a bad card?

 

 

Art

[Gerritt]

Did you leave them you're name and number... I bet if the truck has not sold in a week or two you will get a call... in which case you offer 24,000.00 for you're hard earned time of course!

 

G.

Edited January 26, 2010 by Gerritt

[Roy]

You're generous, Gerritt. If a dude wanted to make me wait for the honour of fondling my cash...it would be a little more expensive for him.

[Gerritt]

I agree... but they wont sell it below dealer net.... if indeed that is his net price, which is doubtful.. there is alot more margin in used then new... and it is more then likely from auction? I would offer him exactly what he said he paid for it... mind you I have not seen what the "book" value is on this particular vehicle... Perhaps the OP should look it up to see what it is worth...

 

G.

[perchslayer666]

What was the car/truck?

Everyone is in business to make money, that's why you are in business in the first place. If I sell you something that I make no money on, why would I sell it to you? If the car has 11K's and has been through no accidents, the resale value is high, thus no need to accept low-ball offers, it will move fast. A potential win for the dealership.

[craigdritchie]

Roy hit the nail squarely on the head. The dealer makes squat on the vehicle itself. The profit comes primarily from financing and surcharges, especially in the case of pre-owned.

 

Other major sources of profit include:

• Service packages

• Rustproofing

• Interior treatments (Scotchguarding, etc)

• Extended warranties

• Optional dealer-installed accessories

• Life insurance on your loan/lease

• Trade-in valuations

• After-sale service (oil changes etc)

 

They will pitch all of these things to you as you write up the paperwork with the business manager (English translation - best salesperson in the shop). You can't buy a vehicle without having all these things pushed on you. Most represent pure profit for the dealer.

[Gerritt]

Roy hit the nail squarely on the head. The dealer makes squat on the vehicle itself. The profit comes primarily from financing and surcharges, especially in the case of pre-owned.

 

Other major sources of profit include:

• Service packages

• Rustproofing

• Interior treatments (Scotchguarding, etc)

• Extended warranties

• Optional dealer-installed accessories

• Life insurance on your loan/lease

• Trade-in valuations

• After-sale service (oil changes etc)

 

They will pitch all of these things to you as you write up the paperwork with the business manager (English translation - best salesperson in the shop). You can't buy a vehicle without having all these things pushed on you. Most represent pure profit for the dealer.

 

 

Unless your buying a Dodge... in which case it is a loss leader.

Edited January 26, 2010 by Gerritt

[cmelnyk2]

Please pm me. Would love to discuss this with you!!!

 

or email me

 

 

 

Cheers

[cram]

carcostcanada.com. Sign up and you'll knwo the difference btwn their invoice price and MSRP. Find a way to pay through your bank instead of a visa card...and you may h ave a deal.

[FUSION]

so my lease is coming due and Im in the market for a truck. I walked into a local car dealer and saw a really nice truck, it had 11,000k on it and its asking price was 27900, I offered 25,000 for it, he told me that left them 1000 profit roughly, I pulled out my credit card and said I ll pay tonight no financing required...the business manager refuesed my offer....

 

1000 profit ( Im sure there was a little more though) instant payment and he said nope.............am I missing something

 

Louis, the number they are looking for is $26,400 for the Truck. Anything over that is gravy and anything under is cutting into sales commision and dealer profit. You have to remember sales commision and dealer profit are two different things.

If you really want the truck go in with a certified check made out to the dealership for said ammount and you will be driving home in it the same day.

The margin for "negotiation" these days is not what it used to be, especially on used at a major dealership.

Edited January 27, 2010 by FUSION

[Greencoachdog]

Go in with a wad of Maple Leafed backed dollars instead of the credit card tomorrow and see what they say.

[irishfield]

Go in with a wad of Maple Leafed backed dollars instead of the credit card tomorrow and see what they say.

 

They'll probably tell you they can't take the cash thanks to our wonderful anti-laundering laws Glen.

[Greencoachdog]

They'll probably tell you they can't take the cash thanks to our wonderful anti-laundering laws Glen.

 

 

Well then, seems like a certified check or bank draft would be in order then.

[aniceguy]

ohh god Wayne your dead on with the cash not that I ever have any of the real green stuff lyin around

 

I had a friend who buys from the auctions from time to time I thnik I ll go that route seems my 08 f 150 with 11k sells for around 21 to 23k at the auctions

[Greencoachdog]

They'll probably tell you they can't take the cash thanks to our wonderful anti-laundering laws Glen.

 

 

I don't see a problem with cash if you have a proper and timely bank withdrawl reciept.

[irishfield]

I don't see a problem with cash if you have a proper and timely bank withdrawl reciept.

 

 

That is the problem... Big Brother expects you to keep it in the bank!