I want to clarify a few items of interest before I get too deep into the sales processes at any dealership, including automobiles, recreational vehicles, boats, motorcycles, and even furniture or other big-ticket items. A business has to turn a fair profit to stay in business, and I believe that they should make this profit and use it to pay better quality employees a premium wage to serve you better. The financial strengths or weaknesses of any business can definitely dramatically affect your customer service and satisfaction. In any shape or form, I do not wish to hurt a dealership’s profitability, as it is essential for its survival. I merely want to advise people how to negotiate better to make the profit center more balanced.

Finance and Insurance - The Profit Center 1

Let’s get right down to this! Every dealership has a finance and insurance department. This department is a huge profit center in any dealership. In some cases, it earns more money than the sale of the automobile itself. Profits are made from many things that most buyers do not understand Graet Gossip. You as a consumer should understand the “flow” of the sales process to understand the profit centers that are ahead of you. Most negotiating from the consumer seems to stop after the original price is negotiated and agreed upon. Let’s examine just a small portion of what leads up to that point.

The first thing that every consumer should understand is that several things come into play when you go to a dealership. One of the most important things that I could point out to you is that you are dealing with a business that has been trained to get the most amount of money from you as they can. They are trained and practice these tactics every day, day after day, week after week, month after month, and year after year. Let me point out a couple of important facts that I have said in this paragraph. First, you’ll notice that I said a dealership and not a salesman and secondly, I emphasized times of day after day, week after week, etc. etc. This was done to let you know that the salesman is working very closely with the sales managers to make as much money as possible. Your interests are really not their objective in most cases.

One tactic used heavily in the business is that the salesman says he is new to the business. This may be true or not, however; keep in mind that he does not work alone. He works with store management, who gives him advice on what to say and when to say it. These guys or gals are very well trained to overcome every objection that you may have to buy from them. They have been trained in the buyer’s psychology and how to tell what your “hot buttons” are. They listen to things in your conversation that you may say to one another and the salesman. They are trained to tell their desk managers everything that you say and then the desk manager is trained to tell the salesman exactly what and how to answer you. A seasoned salesman does not need as much advice from his desk and may negotiate a little more with you directly without going back and forth.

The negotiation process begins the moment that you walk into the front door or step foot out of your car and begin to look at vehicles. Different stores display inventory in different ways. This is done for crowd control or more commonly known as “up control.” Control is the first step in negotiating with a customer, and whoever asks the questions controls the situation. Let me give you an example: A salesman walks up to you and says, “Welcome to ABC motors, my name is Joe, and what is yours?” The salesman has just asked the first question- you answer, “My name is George.” He then asks you what you are looking for today, or; the famous “Can I help You?” As you can see, step by step, question after question, he leads you down a path that he is trained to do.