Auto dealership Jargon?

[Legend]

I want to know more about dealership jargon in an attempt to sound educated when negotiating cost of a vehicle purchase.

So what are the dealerships internal phrases and what do they mean? For example I have heard the following:

Dealer cash
Advertising holdback
Manufacturer incentive

What else is there and what do they mean?

 

[GSPHUNTER]

Here comes another sucker. Self explanation.

 

[survivalistd]

You can get all the bottom line pricing off the internet. Just tell the sales guy you got a better price from a fleet dealer and you need to come way down. The salesman needs to move cars and the manager they always run the numbers. Hold your ground with them. Tell them I guess you don't want to sell a truck today.

 

[wyosteve]

Short answer-those are extra dollars the dealer gets beyond the profit he sucks from you!

 

[idig4au]

Do your market research on prices using Edmund’ for out the door prices. Look at dealer inventory online. Make offer online on vehicle your are after based on fair market price and see if they accept it. Go to dealership, sign papers and drive off the lot.

I don’t deal with sales people and their crap anymore. I do all my research ahead of time and come from an informed position.

 

[coloradodrifter]

I go into an auto deal with just one concern. What is the out the door price, and I shop around. I will drive along ways if needed to get the best deal.

 

[Ucsdryder]

New or used?

New
Msrp
Invoice
Triple net

Used / your trade if you have one
Car gurus
Kbb fair purchase

Financing
Pre approval

Shoot me a DM if you need some guidance on pricing.

 

[mxgsfmdpx]

Cash or loan? If loan, get approved ahead of time before having them shop your credit around to 10 banks.

We pay cash for our vehicles and already know the price we are paying ahead of time. I tell them, this is the price I’m paying for that vehicle. This is what my local sales tax is, and this is the estimated title/license fee. So the total will be no more than $XX,XXXX. I’m bringing a check for that amount and leaving with the vehicle. Call and talk to the finance manager ahead of time and tell them this is plan.

Lots of times they will bring the vehicle to your home and you hand them a check and they leave. My last 3 trucks have been delivered to my house and I handed them a check for the pre-determined amount. Sometimes you’ll get a few bucks back for title fees in the mail like a month later.

 

[NRA4LIFE]

Give them a price you want to pay, and your phone number. You'll get a call in a few days.

 

[MountainTracker]

Don’t get into the game of “well what do you want your monthly price to be?”


Sent from my iPhone using Tapatalk

 

[Fowl Play]

I never negotiate in a dealership. They play games with interest rates, monthly payments, etc If you know the vehicle you want, email a dealership and ask for their best price. Then email that quote over to another dealership and see if they'll beat it. Continue until someone won't beat the price, viola you now know you have the best price possible. Walk in, complete the transaction, walk out. I have done this with my last 5 vehicle purchases...

 

[Bluumoon]

I had a buddy that actually enjoyed negotiating deals for friends in new cars. He’d call at least 6 different dealerships, up to 6hrs away, tell them exactly what he wanted, they were told they have one opportunity to provide their best price. Funny enough, sometimes a car sitting on a local lot would get shipped 4hrs away and sold to him for 5-10k less.

 

[LongWayAround]

I love some of these comments.

My dad owned a dealership so I got to see some of this stuff play out from his side.

I don't have anything useful to add, just that I like your strategies.

 

[IowaNative]

From a guy that works at a dealership

-Go in 4 days before the end of the month and start talking. Do not buy on the first day.
- Find a salesman about 28-34 years old. They are hungry for the money and probably want to get every sale.
- Feel free to take a demo home for the night and see how you like it. No we don't care and it's encouraged.
-Seriously look at financing(if doing) through the dealership, just make sure they don't hold points(extra interest rate). I use my same bank, but the dealer gets the loan. They make a tiny bit of of it and it helps out the sales.
- NEVER BUY ANYTHING IN FINANCE... PLEASE. Everything from windshield protection, dents/dings, tire protection is a scam. I deal with these products in service and they are a joke. You can buy a reputable warranty for 1k versus the 2-4k at the time of purchase.
- Cash sales don't mean anything for the salesman, in fact, they actually turn some off if they get a finance kickback.
- 2nd to last day is the day to purchase. They will move mountains to get the sale(if they haven't already hit numbers)
- Go in with a fair offer. Your not getting 10k off the vehicle because we like you. I know some people talk about that, but it's not reality on most units. Think 1500-2500 off. Enough to show your actually serious and keep the guy working. If you get to a number you can deal with, but feel as though it could be more, ask for some free service items (oil,filter,rotate), or accessories.
- A good salesman can smell a cob roller a mile away and if you are not ready to make a decision, let them know that you will need some time and schedule it when they are slow instead of the busy times.

 

[Yoder]

Only negotiate the total cost of the vehicle. Not monthly payments. Don't buy any extra nonsense. I had a Honda dealer tell me how they are the most reliable vehicles on the road, then ask if I wanted and extended warranty. I told him I didn't need it since Hondas are "the most reliable vehicles on the road".

 

[Ucsdryder]

I love some of these comments.

My dad owned a dealership so I got to see some of this stuff play out from his side.

I don't have anything useful to add, just that I like your strategies.

PHD!!

 

[UKwildcatfan]

All the dealer add ons are a rip off for the consumer.

 

[5MilesBack]

Just tell them what price you're paying, and they either accept it or they don't. When I bought my old '89 Toyota 4x4 I told them what I was willing to pay. They refused. I left. They called me several times over the next 6 months before I heard the right words........"come on down, we will meet your price". Then I told them to switch out the tires and rims from the stock ones to the aftermarket ones they had on another truck.......just for making me wait 6 months. They changed them out.

In all negotiations........always be willing to walk away.

 

[Billy Goat]

With the issues people are having with new vehicles, does anyone consider a local dealer for the service after the sale?

Last truck I got a loaner for 3 years or 75k miles I think if it was in for warranty work. Luckily haven't had to use it.


I have been pushing that with equipment more than with vehicles, I have other vehicles/trucks. But I'm finding more and more I'd rather deal with a place local to me that I'm buying from and having any warranty work done at. Instead of just dealing with service, the sales department is helping to keep me happy too. I get an idea of what prices are before I'm ever asking for a price, I might pay a little more, but with issues that arise I feel like I'm getting way better service than someone who purchased something from 6-8 hrs away to save a little.


Or ima 'tard.

 

[Fowl Play]

A dealer is required to service your vehicle per the manufacturer regardless of where you purchased it from. Your warranty is with the manufacturer, not the dealer. I have been to several that say they only work on vehicles purchased with them, that is a BS sales tactic and will get them in hot water with the manufacturer if they attempt to follow through.

For out of warranty work, I always use a local shop. Every dealer service department I have ever used has sucked. If you do find a good one though, stick with them.