Tips/questions about buying a car?
 

If a dealer is straight out telling me that its the end of the month and he has not met quotas and he needs to sell.... Is that just another tactic or is he letting go of his leverage by saying there are no other buyers.

It's another tactic. It's called an exploding offer. Basically he's trying to pressure you into buying now.

A salesman will never give up leverage.

If you're interested in a BRZ, send @HeubergerMotors a message. They can almost certainly beat your local dealer, and even if they can't, it's good to get extra quotes.

edit: If he's using an exploding offer, you can feel free to play hardball with him. "You know, I'd really like to help you meet your quota, but I just can't do it at that price. If you could get me a limited at that price or 2 grand off, we may be able to work something out..."

It could be, but it isn't necessarily. The end of the month is often the very best time to buy a car. There are some interesting incentives at play here on the dealer's side.

Many car dealerships have sales goals each month set by the manufacturer. If the dealership sells its quota, the manufacturer will pay a bonus. If the dealership falls short, no bonus. For example, suppose a dealership has a quota of 30 cars and a bonus of $60,000. That means that if they're at 29 on the last day of the month, they can practically give the last car away and make money. That makes them very motivated sellers and very likely to make a better deal.

Most people don't know about these incentive programs, so my gut tells me your guy is probably not bullshitting you. He probably really is willing to make you a deal on the car, because he'll make the money back on the bonus. But if you wait until after the first of the month, there's no longer any incentive for him to take a beating on the price of the car.

The best way to take advantage of this is to shop earlier in the month and get them to throw out a quote, then come back in on the last day of the month to see if they're willing to deal. That way you know what their normal bottom line is to compare the end of month offer. What you have to decide in your situation is whether this is really a good deal and whether you can take it (or risk that it evaporates Wednesday).

Usually when a salesman gives you a take it or leave it offer, he's just trying to pressure you. In this case it's very likely the salesman is the one under pressure. So go with your gut.

It doesn't matter what he tells you. Ignore it all except for the price.

And, if it's a Scion you talking about, don't believe the "fair pricing". You should be able to get $1000 off the sticker. I did. Just be willing to walk away if you don't get it.

Phil

I agree. I got $1500 off my FR-S. It's amazing how getting up to walk out changes their tune on the "fair pricing" scheme. Especially when there's a Subaru dealership around the corner selling the exact same car and they are willing to deal.

Also, buying when the next year's model is coming out helps too.

If they won't budge on price you can always try too get them to throw in a bunch of goodies and no/reduced cost. That worked out very well indeed for me.

It is true. Dealers are working with bonus schemas. They have to reach specific targets every month. Of course, there is always the risk to oversell one month and lose the backlog of the next month. So, I'm not sure how much they focus on the targets. I guess, it depends the dealer. Additionally, be aware that the twins are not selling very well lately. This might be another reason for your dealer.

The problem with that overly simplistic advice is that the price offered is likely to evaporate. As I wrote above, dealers are more likely to deal at the end of the month because they are trying to meet their sales quotas and get the manufacturer bonus. The salesman put a time limit on the price he offered because tomorrow he'll be working on the October quota and there will no longer be any incentive for him to deal until the last few days of October. Sometimes dealers are willing to almost give the cars away on the last day of the month to get that bonus, because they make more money from the bonus than they lose on the price of the car.

If OP "ignores it all except for the price," he'll come back tomorrow to find that price gone and a higher one in its place.

Some radio reporters "embedded" with a car dealer last year and produced an hour-long piece.
The report was a fascinating look into how dealers operate -- salesmen buy cars to ensure they make a bonus, etc. And the end of the month can be crucial for them.

Listen here:
http://www.thisamericanlife.org/radi...e/513/129-cars

Well I didn't entertain the offer as I had some other priorities. I sometimes wonder if everyone goes to buy the car on the last week of the month (because its good advice) and it renders it useless? When is the actual peek time when dealerships get the most traffic?