Book values on your trade-in, and are preapproved on a loan, you’ll be in avery strong position to whittle away at any remaining extra margin.
If you find you’ve been given a fair shake by the dealer, feel free to ask fora bit more, but don’t be insulting—save that angst for the huge number of
unscrupulous dealers out there. Everyone deserves to make (at least in my opinion) and buying a car or truck shouldn’t have to be a some profit
negative experience. You can actually leave happy and excited about yournew wheels!
dealer profits are up.TIP: While the average gross profit on cars is shrinking, other^
Much of a dealer’s profit is made in other ways than gross these days, suchas D&H, interest rate markup, and things they’ll sell in the finance office (as
I cover in next chapter). Many of the more successful dealers advertisetheir cars using what’s called “market based pricing,” where they use
complex software to track what cars and trucks are selling for both locallyand nationally. Then they set their ad prices to within $3-$500 of what they (^)
expect to sell for after negotiations. These lower, more accurate ad pricesgenerate more showroom traffic.
I try to do the same (without the software), and I am always happy to try tomeet realistic demands from clients new to me, who might have come in to (^)
buy one of our cars via Internet ads. But I do ask them why they think I