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Buying a 2007 Toyota
Toyota Discussions related to Toyota cars and trucks (alt.autos.toyota)
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#31
 
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Re: Buying a 2007 Toyota -
04-13-2007
, 03:01 PM
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"Jeff" <news (AT) googlemail (DOT) com> wrote in message news:ReQTh.26$807.16 (AT) trndny09 (DOT) .. There are three transactions that often go with buying a new car: 1) Buying the new car; 2) selling a used car (the trade-in) and 3) financing. Keep them separate. Preferably, go to a bank, and get a pre-approved loan. Then say to the dealer, "I already have financing." Before you buy the car, you can ask them what rate they can get after you have everything else done. The dealership makes money if they arrange financing for the customer, either through a loan or through a lease. If a dealer knows up front that they will not have an opportunity to make a profit on financing because the buyer has announced that he already has financing or is paying cash, they may be less likely to negotiate on the sale price. If the salesperson asks what you are doing about financing, tell them you will think about all that stuff *after* you have negotiated the price of the car. |
Jeff
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-- Ray O (correct punctuation to reply) |
#32
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"Ray O" <rokigawaATtristarassociatesDOTcom> wrote in message news:dba10$461fd24a$44a4a10d$18417 (AT) msgid (DOT) meganewsservers.com... "Jeff" <news (AT) googlemail (DOT) com> wrote in message news:ReQTh.26$807.16 (AT) trndny09 (DOT) .. There are three transactions that often go with buying a new car: 1) Buying the new car; 2) selling a used car (the trade-in) and 3) financing. Keep them separate. Preferably, go to a bank, and get a pre-approved loan. Then say to the dealer, "I already have financing." Before you buy the car, you can ask them what rate they can get after you have everything else done. The dealership makes money if they arrange financing for the customer, either through a loan or through a lease. If a dealer knows up front that they will not have an opportunity to make a profit on financing because the buyer has announced that he already has financing or is paying cash, they may be less likely to negotiate on the sale price. If the salesperson asks what you are doing about financing, tell them you will think about all that stuff *after* you have negotiated the price of the car. Good idea. Thanks. Jeff -- Ray O (correct punctuation to reply) |
--
Ray O
(correct punctuation to reply)
#33
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"Jeff" <news (AT) googlemail (DOT) com> wrote in message news:ReQTh.26$807.16 (AT) trndny09 (DOT) .. There are three transactions that often go with buying a new car: 1) Buying the new car; 2) selling a used car (the trade-in) and 3) financing. Keep them separate. Preferably, go to a bank, and get a pre-approved loan. Then say to the dealer, "I already have financing." Before you buy the car, you can ask them what rate they can get after you have everything else done. The dealership makes money if they arrange financing for the customer, either through a loan or through a lease. If a dealer knows up front that they will not have an opportunity to make a profit on financing because the buyer has announced that he already has financing or is paying cash, they may be less likely to negotiate on the sale price. If the salesperson asks what you are doing about financing, tell them you will think about all that stuff *after* you have negotiated the price of the car. |
Cathy
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-- Ray O (correct punctuation to reply) |
#34
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The dealership makes money if they arrange financing for the customer, either through a loan or through a lease. If a dealer knows up front that they will not have an opportunity to make a profit on financing because the buyer has announced that he already has financing or is paying cash, they may be less likely to negotiate on the sale price. |
Financing is a rather profitable part of the business, for sure. Your
trade-in
can be another. They try to get your car for nearly nothing, and they can
usually sell it at a good profit.
They offered me $3000 for a 1998 Buick LeSabre Limited. Selling price on
that
car is nearer $4700.
I negotiated no trade in, cash price, and got a 12% discount from MSRP.
I will sell the car myself, and either recoup some of the money, or give
someone
a hell of a good deal.
Remember that they want to make the most money they can, but they also
want to sell volume.
#35
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"Ray O" <rokigawaATtristarassociatesDOTcom> wrote The dealership makes money if they arrange financing for the customer, either through a loan or through a lease. If a dealer knows up front that they will not have an opportunity to make a profit on financing because the buyer has announced that he already has financing or is paying cash, they may be less likely to negotiate on the sale price. Financing is a rather profitable part of the business, for sure. Your trade-in can be another. They try to get your car for nearly nothing, and they can usually sell it at a good profit. They offered me $3000 for a 1998 Buick LeSabre Limited. Selling price on that car is nearer $4700. I negotiated no trade in, cash price, and got a 12% discount from MSRP. I will sell the car myself, and either recoup some of the money, or give someone a hell of a good deal. Remember that they want to make the most money they can, but they also want to sell volume. It has been a while since I counseled dealers on how to maximize profits and |
--
Ray O
(correct punctuation to reply)
#36
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It has been a while since I counseled dealers on how to maximize profits and sales, but I still remember ;-) -- Ray O |
Marketing and profit optimization (over the long haul) are very interesting
topics,
and it takes bright leadership to make a successful long term business.
I am too naively honest to have gotten filthy rich in my lifetime. But Ive
had
a heck of a good time.
#37
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"Ray O" <rokigawaATtristarassociatesDOTcom> wrote in message news:1b12c$4621994f$47c2b532 It has been a while since I counseled dealers on how to maximize profits and sales, but I still remember ;-) -- Ray O Im sure you havent forgotten a thing, RayO. Marketing and profit optimization (over the long haul) are very interesting topics, and it takes bright leadership to make a successful long term business. I am too naively honest to have gotten filthy rich in my lifetime. But Ive had a heck of a good time. |
the less-than completely honest ones seem to outnumber the honest ones.
I do not begrudge a dealer for offering less on a trade-in than the owner
would get by selling it himself. People who buy used cars from a new car
dealer expect the car to be in better condition, so the dealer will usually
spend as much as $500 more money reconditioning the car than a private
seller would, and he has to pay a salesperson as well as make some profit
himself on the sale of the car. If a private seller is willing to advertise
the car, recondition it, and deal with calls, test drives, etc., himself,
then he can get more money by selling it himself.
--
Ray O
(correct punctuation to reply)
#38
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Fortunately, there are completely honest dealers out there. Unfortunately, the less-than completely honest ones seem to outnumber the honest ones. |
And sometimes dealers do things that are less than honest, and you don't
find out.
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I do not begrudge a dealer for offering less on a trade-in than the owner would get by selling it himself. |
without going to the dealer.
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People who buy used cars from a new car dealer expect the car to be in better condition, so the dealer will usually spend as much as $500 more money reconditioning the car than a private seller would, and he has to pay a salesperson as well as make some profit himself on the sale of the car. |
lower the price. And there is a risk that there are major problems with the
car, like a rod bearing is about to go.
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If a private seller is willing to advertise the car, recondition it, and deal with calls, test drives, etc., himself, then he can get more money by selling it himself. |
the dealer.'
Jeff
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-- Ray O (correct punctuation to reply) |
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