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Sliver · 12-01-2010, 06:35 AM

Since when does wanting the best price make you a dick? There are nice ways to negotiate and lame ways, but arming yourself with facts about a car before haggling make you smart, not a dbag.

Plus, although you're right the dealership only makes a couple hundred off the sale of a car, that's not the whole story. Dealerships also get paid by the manufacturer by meeting certain thresholds (eg. they'll get bonused less money for moving 100 units per month vs moving 150 per month). So to the buyers, don't worry about being a tough negotiator, the owners of these dealerships are filthy rich (the two I know, anyway) and will make money on you beyond the mark up on the price of your car. A sales guy I know also gets compensated based on the number of units he sells per month on top of a commission on each vehicle but I don't know if this is standard practice.

Pylon, do dealerships get paid a commission by a lender as well when a lease or financing is set up? I think so.

Edit^ I'm talking about new cars here.

12-01-2010, 06:35 AM	#124
Sliver evil of fart Join Date: Sep 2009 Exp:	Since when does wanting the best price make you a dick? There are nice ways to negotiate and lame ways, but arming yourself with facts about a car before haggling make you smart, not a dbag. Plus, although you're right the dealership only makes a couple hundred off the sale of a car, that's not the whole story. Dealerships also get paid by the manufacturer by meeting certain thresholds (eg. they'll get bonused less money for moving 100 units per month vs moving 150 per month). So to the buyers, don't worry about being a tough negotiator, the owners of these dealerships are filthy rich (the two I know, anyway) and will make money on you beyond the mark up on the price of your car. A sales guy I know also gets compensated based on the number of units he sells per month on top of a commission on each vehicle but I don't know if this is standard practice. Pylon, do dealerships get paid a commission by a lender as well when a lease or financing is set up? I think so. Edit^ I'm talking about new cars here. Last edited by Sliver; 12-01-2010 at 06:42 AM.