This "One Price" / "No Negotiation" is Getting Tiring

[yates ™]

There is a significant variance in prices based on the dealer.

I understand these dealers have significant overhead (in fact, I frankly have no idea how any of them actually stay in business from a financial perspective), however, keeping one price on a vehicle that has been in stock is not a wise financial move.

In my business, there are situations where I have to make an educated decision with my clients to accept an offer of settlement rather than wait and wait for a potential better outcome that may or may not ever come--in the form of a jury verdict.

They make a ton of money, just not in the form you think they do. A volume dealer will routinely lose money on a new car deal to make it up by hitting an incentive. Basically, and this will be a rather general example, they need to sell 30 Tahoe's in the LS variance for the month of November and they receive an incentive from GM. The incentive may be $30,000 30+ but if they sell 29 they get $0.00. So this month they have a sale on that particular model and give their lowest price which is $500 over invoice so that they can make quota. They now have only made $15,000 off actual sales (without factoring in commission, overhead, etc.) but they were able to make their quota and the dealership gets a check for $30,000 thus making it $45,000. They also make bonuses (or whatever you want to call it) off financing you in house, warranties, etc. which can help further their profit.

 

[WillCO]

The new car dealers that do the no haggle crap we deal with in the family hate us lol

We get GM family pricing due to having a GM executive in the family and they've grown to hate/love us. One particular dealer in town really, for a new car, they have a really good service department and that's why our family goes there exclusively

Why do they hate you if they know that you're very likely to buy a GM car, you're going to pay a price slightly south of average, and you will take up close to none of their sales team's time in an unchallenging transaction?

There are dealers all over Michigan whose entire business model is built around customers just like you.

 

[Garandman]

How was your experience dealing with Banks? Toying with the idea of upgrading/downsizing the wife’s Caddy to a Traverse/Acadia

I have purchased a truck and two cars from them. They “Cut to the chase” quickly without a lot of haggling.

 

[Onebadsss]

I have purchased a truck and two cars from them. They “Cut to the chase” quickly without a lot of haggling.

By “cutting to the chase” do you mean they deep discount right off the bat to make the sale? And do they make decent offers on trade-ins? I’ve pretty much made up my mind that I’m going with a GMC Terrain Denali for the wife, just trying to find the best deal on one!

 

[SippiBelle]

Same here. I’m looking for 2018 Yukon SLT. I’m emailing asking for quotes and they are being stubborn with providing quotes. I’ve set my baseline at $55625 which is the sales price I currently see online at a local dealership. Vehicle includes open road package and entertainment system. What do you guys think I realistically get them down to?

 

[yates ™]

By “cutting to the chase” do you mean they deep discount right off the bat to make the sale? And do they make decent offers on trade-ins? I’ve pretty much made up my mind that I’m going with a GMC Terrain Denali for the wife, just trying to find the best deal on one!

From my experience, when most companies offer the lowest price they are willing to go they typically try to make up by offering less on a trade in. Not sure you will get both ways without a fight if you're able to at all.

 

[Boatguy]

We bought a new Honda this year. We used Costco to get the best pricing. But they will do better. My wife and I settled on the next to the highest trim level, and were going to back to the dealership the next day to close the cash deal. In the meantime, I got with the salesman and told him I wanted to surprise the wife with the touring trim, but it wasn’t worth the $2000 premium (forgot the numbers exactly). Told him it’d be worth another thousand to me for that trim level. They met it, and the wifey got a nice surprise. The salesman made all of a hundred dollars off the sale (as he did for all internet sales) but he sold five cars that night.

I sold her car the next day on Craigslist for the asking price.

We also used Costco to connect us with a salesman when we were shopping for a new Tahoe Premier in case my search for a slightly used ‘17 Denali didn’t work out. The prices were excellent too. Lower than the “no haggle” sticker price.

I found CarGurus.com to be a great resource for both new and used Cars. One thing I found to be constant was dealers’ unwillingness to budge on price on new stock no matter how long it had been sitting there. I tried like crazy to get a new Tahoe Premier that was sitting on the lot a whole year in Podunk, Az for no love. The only time the prices changed was when GM had incentives. Maybe it’s because there was basically zero cost of money back then, or there’s some arrangement between GM and the dealers re: sitting inventory. Not knowledgeable in how that works. I always drove company wheels and got the wife early lease returns.

 

[At Law]

This dealer sent me a text message this afternoon re the leftover 2018 Tahoe they have had for a year.

They advised that their "one price" that they have not moved on is only valid if I finance with GM for at least six months.

I am so very excited. It sounds like they are really anxious to put a deal together....

 

[Onebadsss]

This dealer sent me a text message this afternoon re the leftover 2018 Tahoe they have had for a year.

They advised that their "one price" that they have not moved on is only valid if I finance with GM for at least six months.

I am so very excited. It sounds like they are really anxious to put a deal together....

Lol some dealers baffle me with how arrogant and obnoxious they are about their pricing. Tell them to enjoy carrying the interest on that inventory into 2019!

 

[Onebadsss]

I’ve been curious about the Costco car buying program. How is it? I have been looking for a good reason to renew my lapsed membership there and a local GMC dealers is advertising an additional $2k off list price for “Costco Lease Loyalty” on 2019 Terrain Denalis