Finding the Best Deals on New Cars
With fleet sales, it’s possible to find cars at a great price, but you have to be careful and know the details of the sale. A car dealership wants to make as much money as possible on each car they sell, so they will be less likely to negotiate a better deal if they know that you’re shopping around. When you’re looking to buy through fleet sales, you can Amazfit to negotiate a deal once you’ve done your homework and found the car you want at a price you’re comfortable with. It’s likely that fleet salespeople will try to make as much money as possible, so you should be fully prepared before entering negotiations.
During Fleet Sales Time
When fleet salespeople set up a fleet sale, they will often try to do deals during busy times like the middle of the week. They’ll also try to do deals during slow periods like the end of the month or the last week of the year. It’s during these times that dealerships may be more willing to agree to your deal due to fleet sales influence. It’s also likely that fleet salespeople will try to do deals during slow periods for several reasons. On the last week of the year, sales may be slow due to many dealers reaching mid-year quotas for sales. All of these factors lead to an idea of a “dinghy” fleet sales strategy where salespeople work on a frequent basis and dealerships are highly motivated to do well each month.
Car Dealership scheduling is also influenced by a current distributor “package” that may have survived past “offenses.” Dealerships want policy violation citations collected as much as possible because suspensions can be cited on each unit sold in the future. If you are stopped with a vehicle that has a “pinging” sound from the airbag, s/he will be suspended without any warnings. While a concerned parent can tell their child what to say at the bargaining table, an executive may talk the price down further to accomplish the sales goal.
Gap coverage is almost always included in a fleet sales agreement. If the salesperson is required to give you gap coverage for a vehicle that they sold, they will do so. Having gap coverage means that if you were to lose the vehicle with 30 days remaining on a vehicle lease, you would not be out of luck. The prospect of losing the vehicle may be more important to a salesperson than his or her own job, so they may be more willing to negotiate with you to lower the price.
It’s All About Trade-Numbers
Most general managers and sales leaders depend on a system called “vehicle give and take.” If a dealer gives you a target sell price on the car and allows you to make a counteroffer, it’s a win-win situation for both parties. The dealership gets a sale and you both win. Dealerships like to discuss trade-in numbers with potential buyers, as it allows them to show Rod lenses (or ratios) on their bottom line. Typically, the numbers listed on a vehicle trade-in are odometer readings from the time the vehicle was bought, usually around one year old. It is the odometer reading that is determining the value of the vehicle, not its resale value.
Taking Trade in’s off of a vehicle
Before you start your vehicle search, know that most dealers will employ what is called a “dealer buckle.” They place an exemption sticker on your car allowing them to take the trade-in no matter how low their offer is. The dealer keeps the money; they just want to make sure they get their money back on the trade-in. Tell the dealer that you are not looking for a trade-in value on your vehicle but rather looking for the value of your three-year-old car. If the Bureau of Labor Statistics (BLS) says your vehicle is worth less than $8,000, they will not offer you a trade-in. The dealerships are looking for near, or exact trade-in values because they will then CarFax to validate the price. This is also why you will often hear of a dealership charging a premium on trade-ins because they will then use CarFax to determine the value of your trade-in. Binders are also used at some dealerships to control float costs.
Knowing what your trade-in is worth is essential to know what your dealer is willing to offer you for it. Before you start your vehicle search, know your vehicle’s approximate trade-in value at the dozen of used car dealers in your area. Binders are also essential to researching the blue book value; they will help you find out the average price over the life of your vehicle.