Reality Check

Every once and a while I need to do a reality check. I take the route most people do when shopping for a new car. I pick up a friend who is in the market and head over to a dealership on a Saturday. I then work a deal from scratch. No connections, not knowing anyone and never visiting the dealership before.

Last weekend I chose a Jeep dealer in Queens, NY. I called them an hour before just to make sure they had the car in stock that my friend was looking for. I spoke with a Danielle, she confirmed it and said to ask for her when we came in.

We drove up and there was no parking anywhere. After 15 minutes we found a spot. We entered the dealership and it was a zoo. You couldn’t tell who worked there and who was a customer. I went over to the reception desk and asked for Danielle. She was nowhere to be found and after 15 more minutes we were passed on to a salesman. I did the normal back and forth between the salesperson and the guy hiding in the back providing the numbers. An hour later, he tried to broom us out the door after telling us he couldn’t go any lower because he was losing money. I then found the Owner/Manager and after another hour I was able to work out the deal. I got within $253 of the selling price and deal structure I wanted. It took a total 3 ½ hours to completed the purchase order, credit application and insurance. We were told to come back tomorrow to pick up the car and everything would be ready. My friend went back the next day and the car was not ready.  After another 3 hours of waiting, he finally had the car.

The total process took 6 1/2 hours not including 30 minutes to and from the dealership twice, totaling another 2 hours. Mind you, this was me working the deal and we didn’t spend the 45 minutes to an hour on the test drive because it was done already.

There are 2 ways to get a new car. The rocky path up the side of a mountain (you going on a Saturday without my knowledge) or the escalator (sign up here)! Which path will you take?

Over Mileage Negotiations
Many clients find themselves over their contracted mileage amount when it’s time to turn a leased car back into the dealer.  Some people look to roll the over mileage amount into their next lease deal. Then receive a check on delivery of their new car to pay for the over mileage on the old car.

You then wind up paying the full amount of over mileage without a break. 95% of the time these End of Lease bills are all negotiable. If you’re going into another lease with the same bank you can usually get the bill knocked down by 30 – 40%. If you’re going into a different bank you’re still usually able to negotiate 15 – 20% off the bill.

Tip:  You may not realize that the over mileage is negotiable. Rather than rolling the amount due into the payment of your new lease, you should negotiate it separately after you turn the car in. Start the negotiation at 50% of that total and let them work you down. Let them know it can be paid while you’re on the phone with them. This saves them time and money later by not having to re-bill you.

I’d be more than happy to discuss your individual situation and how to best handle the over mileage on your current leased vehicle.  Just give me a call. (877) 338-3896

 

False Advertising
My client had a very bad experience with a local Mercedes dealership. I helped him order a car from scratch, waited 2 months for it to come in and while we were driving to the dealership to pick it up, I received a phone call from them. The Manager was calling to tell me that unless my client was willing to pay an additional $70/mo, they were not going to honor the deal. We continued to the dealership and spent an hour speaking with the Manager and eventually got the original agreed upon price. While I was sitting in the dealership, I noticed this sign and I had to take a picture of it so I could show you.

It might be a little hard to read in this newsletter, so here is what it states, “Our goal is to provide a “stress free” purchase environment.  No Pricing Games, No Negotiating Contests, No Guesswork.”   I had to laugh when I read the sign, as it was the complete opposite of the experience my client was having at that moment.  The dealerships really dislike an educated consumer. When you go armed with all the information from a  DIY Report ® you can expect the games to begin!

I would love to hear your car buying stories, send me an email.

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