Car Buying Tips Grand Rapids MI

There is an old saying in the car business that states the "best price" during a sales transaction is the one that makes the dealer and the customer both happy"regardless of the actual dollar amount. During the negotiation process consumers are focused on maximizing the discount. The dealer, on the other hand, is interested in making the customer happy while still earning a profit.

23 Unlimited
(616) 243-0521
1037 Burton St SE
Grand Rapids, MI

Data Provided by:
Car City Supercenter
(616) 249-2000
1515 28TH St SW
Wyoming, MI

Data Provided by:
Delamar Car Co
(616) 530-9544
3949 S Division Ave
Grand Rapids, MI

Data Provided by:
Messina Imports
(616) 241-6200
830 28TH St SE
Grand Rapids, MI

Data Provided by:
A Lot Of Cars LLC
(616) 892-2277
5566 Lake Michigan Dr
Allendale, MI

Data Provided by:
Niewiek Auto Sales Inc
(616) 455-7540
7063 Division Ave S
Grand Rapids, MI

Data Provided by:
Motor Mall Of Grand Rapids
(616) 241-6200
830 28TH St SE
Grand Rapids, MI

Data Provided by:
J D Byrider Auto Sales
(616) 241-5400
3462 Division Ave S
Wyoming, MI

Data Provided by:
Grand Rapids auto auction
(616) 669-1050
2380 Port Sheldon Ct.
Jenison, MI
 
Marv's Car Lot Inc
(616) 772-4684
2 W Washington Ave
Zeeland, MI

Data Provided by:
Data Provided by:

Car Buying Tips

Provided by:

Click here for more content from JDPower.com



There is an old saying in the car business that states the "best price"during a sales transaction is the one that makes the dealer and thecustomer both happy"regardless of the actual dollar amount. During thenegotiation process consumers are focused on maximizing the discount.The dealer, on the other hand, is interested in making the customerhappy while still earning a profit.

Automobile dealers are operating a business. Like most otherestablishments, they must generate enough revenue to cover overheadexpenses. At a car dealership, these include payments on the property,loans on the vehicle inventory, insurance premiums, advertising costs,and wages for the staff in the business office. In addition, cardealers must pay a percentage of every transaction to the salespersonand finance manager. Industry-wide, there is no simple rule to put adollar amount on how much a dealer should make on the sale of one car,but they assuredly deserve to make something (especially if one expectsthe dealer to be in business for service and warranty work thefollowing year).

It is important to know the ballpark invoice price of the new vehicle,and the value of any incentives and rebates offered by the manufacturerto the dealer or to the customer. However, you should also be awarethat most new vehicles carry a "holdback" amount, which is typically apercentage of the invoice or MSRP that the dealer draws upon to financethe loans used to stock the vehicles at the dealership.

You should also know that the vehicle manufacturer frequently pays"spiffs" to the sales staff in amounts ranging from $50 to much morethan that, depending on the make and model, and how well the model isselling. The more cars a salesperson sells in a month, the higher theper-car "spiff" amount is. Sometimes additional "spiffs" are in effectfor just a day, or just a weekend, as an additional incentive to getthe sales staff to move the metal.
...

Click here to read the rest of the article at JDPower.com