It’s that time of year when I cough a lot. Not because of a cold or flu, more because I am allergic to Bullsh__. Auto dealers seem to be putting together the most ridiculous advertising. Especially in states that have less than desirable consumer protection. Florida is a good example of that fact.
Today I was jamming to a tune when an ad from a Chrysler dealer came on the radio. It was all about making them an offer and how they will take ridiculous offers. After the ad there was a fast-moving disclosure that was almost as long as the ad. There are other ads, by other dealers, that offer similar, incredible, money savings or crazy trade in values. Five or six thousand for any trade? Do you really think they will give six thousand for a worthless trade or do you think the mark up and factory incentives are so high that they can knock off almost that much in a discount? The truth is that manufacturers push-pull the dealers by tying the money back to the amount of units sold or they have temporary dealer incentives that are not offered to the public. If it all became public knowledge, like it should, it would make a number of facts obvious, like, which manufacturers had distressed merchandise, what is the real cost of the unit including incentives, who is the up=front and honest. The more the dealer sells, the more they get back from the factory. Chances are, almost any offer will lead to a deal because the mark up room is so huge when you factor in all of the consumer rebates and the dealer incentive money. Another reason any offer usually means a sale to the dealer is because they do this type of negotiating every day. They are trained negotiators so most consumers will be manipulated and pushed to an acceptable deal that provides a large profit for the dealer.
Making an offer is tempting because it seems like you are getting nearly the deal you want but the truth is, you can usually do better by shopping the way I have suggest in some of my other blog posts or by reading the book “The Informed Buyer.”
Good products and services don’t advertise with crazy schemes or phony offers. You can get just as good a deal and the great companies explain their products and the value before they talk price. An example is Mercedes-Benz. Do you ever see an advertisement that talks about trade in or offers a discount? No , you don’t. The only price they generally advertise, other than MSRP, is the lease payment price. Other great companies are the same way. Honda generally offers low-interest or a lease payment and shows MSRP. Sure there are individual dealers that go beyond this with these franchises but they are few and far between. If you follow the plan I suggest you can’t get burnt. Try it and see