Thread: need advice
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Old 07-17-2009, 12:05 PM   #8 (permalink)
edeeZee
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Check this out, I was a car salesman for 3 years and I know what goes on as an insider. Yes, you guys are correct when you mentioned they try to sell you "BS packages" i.e. "desert" for car washes, etc. Yeah, it's a crock of sh&t I agree. But when customers grind and try to steal the car at invoice, these "desert packages" are another way to try to make up for the void from MSRP to invoice.

Some people talk about "holdback." This is what "holdback" essentially means, I believe Nissan corp for the 370 is around $1,000: "thank you Nissan of ABC-land for selling our 370's, this $1,000 is in case you lost the profit from MSRP to invoice or perhaps didn't, and it's to cover your overhead for that dealership." Holdback is essentially a "flat salary" for car dealerships. A new car dealer does not own all the new cars on the lot, it's rare that a dealership will. They pay something called "flooring" and this is essentially a fee they pay the banks that own the new cars outright. Anways, a dealership pays out its nose to keep the doors open. A typical dealership in S. California pays around $500,000 per month to keep its doors open, yes 1/2 million $ PER MONTH. You see how expensive it is?

I agree that they're gonna try to rip you off. But you got to play the game if you want to grind at invoice. I'm not saying to give in and let them rip you off. Mightybobo is correct, it's a lot easier said than done when you scream "invoice, invoice, invoice!" They got so many tricks up the sleeve to get around this e.g. "what payment do you want, it's not the price cause you're not paying cash?...." And if you offer cash and try to grind, they'll BS you and tell you that this low price can only be had in conjunction with the dealership's financing entities....blah blah blah.

I should offer my services to people for a fee, and I can guarantee that I can grind and get the "invoice target" without playing their games.
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