Re: New car discounts??

[Michael Williams <mike@urquattro.com>]

Jeff Goldberg decided to speak these words:

>Looks like the best you can do in this area is about 5% above invoice.
>Pretty decent discount for a hot selling car. Also looked at Maximas. Most
>dealers refuse to discount at all. What a joke!


Ya know....

As a VW/Audi salesman, i have a pretty unique perspective on the buying 
and selling experience.  That said, 5% is pretty good, i dont deal in 
percentages, i have seen A4's go for as little as 500 over invoice at my 
store, although 1500 is the usual low deal...

but as far as sticker price being what you pay, big deal...  That is what 
the MSRP is, as in manufacturers suggested retail price.  Yeah, i have no 
problem with haggling a bit, it gives me something to do, but, i have had 
people offer me, in all seriousness, invoice cost for some cars.  Im 
sorry people, but i make my living off of the profit on these cars, which 
surprisingly, isnt all THAT much.  

I actually make alot more selling VW's than audis.  That is the way that 
the commission schedules work out....  For me, a good deal is if the 
dealer gets about 1500-2000 dollars profit off of a car, depending on the 
car...that gets some sort of discount for the customer, and some sort of 
profit for the dealer.  It costs ALOT to own a dealership.  A statistic i 
learned:  for each person, buyer or not, who walks through the door, it 
costs about 600 dollars or so for that person...  Figure that maybe 40% 
on a good day will actually buy a car, that doesnt leave much profit 
margin does it?  Figure that the salesman gets 25-30% of the gross, and 
then paying the manager part, the general manager part, the finance 
manager part, any bonuses on top of that.  Then you have to pay 
secreteries, book keepers, and whoever else works there...

Some cars will be given away.  Brand new models, silver cars, 1.8t 5 
speeds w/ sport package, A4 Avant 1.8t's and silver jettas, and VR6 VW, 
will not.  We want sticker on any silver jetta, no matter what the 
equipment level.  And we get it.  If you want a color or something 
specific, especially if it isnt all that common, be prepared to pay the 
initial asking price for it... But, if you are willing to take something 
less hot, and something that is in stock, then we can talk a good deal...

That is the inside from where i sit...i make my money selling cars, and 
when i ask above sticker, it basically asks the customer to pay for my 
time with them.  I spend about 75% of my day talking to people who have 
no intention to buy a car, who want to just play around with the cars, or 
waiting for people toshow up.  If im lucky, i have maybe 4-5 good 
prospects a WEEK.  If they all ask invoice, i make 150 a pop...that 
doesnt make too much money for me does it?  Im sorry, but selling cars is 
still a business and money still has to be made...

if that pisses you off, sorry.....i will give good deals to people i know 
and are friends with, that is no problem, but i cant give every car away. 
 I would simply starve if i did....



later...

Michael Sheridan Williams
San Francisco, CA
ICQ# 11740998
1983 UrQuattro, MC--1.8 BAR, borla, 2B Coilover, 16x7.5 OZ Mito's w/ Yoko 
A520's, Cibie H4/H1's, K&N (blah)
1985 4000S Quattro, Koni Yellows/Coilover (2B), strut brace, Sport 8000 
Tires, K&N
http://members.aol.com/daserde2