It has now been 3-4 hours, you have negotiated and initialed the deal, you are mentally, physically and emotional drained… now all you have to do is sign a few papers and you are out of the dealership with your new vehicle. NOT!
Buyer Tip: The Finance Business Office is just the next step in selling process. A significant portion of a dealerships profit margin is made by the Finance Business Office. They make their profit selling items like financing, various types of insurance, extended warranties, rust proofing, paint protection, security systems and etching.
After negotiating for hours on a vehicle which cost thousands of dollars, these add-ons might seem minor in comparison to the price of the vehicle. Unfortunately, this is where many buyers give back to the dealership the dollars they just saved buying the vehicle.
These buyers haven’t researched the prices of the add-ons before coming into the dealership.
The dealership usually sells the add-ons at a substantial premium over items, of equal quality, which can be purchased elsewhere. They use a technique in the industry lingo known as “loading the payment”. The price of each add-on when spread over sixty (60) months seems fairly small e.g. $5-15 per month. It is easy to get someone, who is tired after 3-4 hours of negotiating, to agree to purchase these small items
Buyer Tip: Before you go into the Business Finance office you should know which items you are interested in buying. You should have quotes from other companies for each of these items in your Buyer Information Folder.
Buyer Tip: The items sold by the Business Finance Office can be purchased elsewhere and for less. Don't get caught by "It will only cost you $5 per month." Multiply the monthly amount quoted by the number of payments to get the true cost of the over-priced item.
Comment: Absolutely … If the dealership offers a better deal for items of equal quality take them and save some additional money.
Classic Dealership One-Liners.
“The price of these items is not negotiable.”
Comment: The price of everything is negotiable.
“Your Bank/Credit Union/Internet financing source always requires (Name of add-on).”
Comment: Determine if your financing source requires Add-on before going to the dealership. See Financing a New Vehicle, Item #4 or Financing a Used Vehicle, Item #4.
“You can’t drive your vehicle off the lot without (Name of add-on).”
Comment: Determine if your financing source requires Add-on before going to the dealership. See Financing a New Vehicle, Item #4 or Financing a Used Vehicle, Item #4.
“The police department recommends all vehicles be (etched or have their parts registered).”
Comment: Contact your local police department for their opinion before going to the dealership.
“Your insurance source (agent, company, Internet site) has a poor reputation for paying their claims.”
Comment: Always check your insurance company’s rating during your insurance research.
Submit a Classic Dealership One-Liner to be included here.
Something missing? Have a comment about the site? Email it to us at comments@eautoadvantage.com.
Please Visit Our Site Sponsors:
