Looking for your best new car deal? Look no further than the comfort of your home or office while you work your deal online. People who use the Internet to purchase their new vehicle get the best deals…period. Here are some principles that make this easier to understand.
Principle 1 Dealers Spend Money to Get Customers In
The average dealer spends a great deal of money to “drive” customer traffic to their dealership. It could be advertising from newspapers, television, radio, billboards or a multitude of other mechanisms, but dealers understand that they need to spend money to get people to their dealership. When customers arrive at the dealership, management wants to be sure that the customer is properly assisted because they know they have spent a great deal of money to get them in.
Principle 2 The Informed Buyer Always Gets a Better Deal
Always has, always will. Information is power. Who gets a better car deal than car salespeople who buy vehicles for themselves. Why? They have all the knowledge about how a deal is constructed, where the profit is, and what the dealership wants. In short, they have information. Dealers have a term for buyers who have labored to understand how car deals are builtl…they’re called educated buyers. When a salesman walks in to the manager’s office to work a deal, they will usually let the manager know the customer is an “educated buyer”. For this reason they usually cut to the chase and give their best price.
Principle 3 Never Let a Customer Leave Until You’ve Given Your Best Shot
What car dealers look for has never really changed. Like all businesses they would like to maximize profits. The average car deal has always been about holding as much profit as possible. “Sticker is quicker”, we say, meaning that a deal can be quickly worked out as long as the buyer agrees to what the dealer wants. In the real world though, selling at sticker price is usually not attainable, so buyers and sellers mingle in the negotiation tango until both agree, or the buyer walks. Dealers don’t like it when buyers walk, because they know, (1) the buyer almost always has other options (2) the buyer will not likely come back to their dealership, and (3) that buyer, with statistical certainty, will buy elsewhere, usually with 72 hours. The dealer, therefore, will put their best foot forward before allowing you to leave the showroom.
Enter the Web.
Your Internet lead doesn’t just float in to the dealership. Internet salespeople and managers don’t walk in, turn their computer on and marvel at their good fortune because someone has wandered by their dealership via the Internet, as if that lead were over and above the customer base they already have and whatever they make on an Internet lead is gravy. No. Principle 1 is alive and well. The average dealer spends a great deal of money to acquire leads from Internet sites. They have to take your inquiry seriously, they’ve spend money for it, and most dealerships have dedicated Internet salespeople to follow up on the leads.
The Informed Buyer Always Gets a Better Deal. In the dealer’s mind the person looking for a quote via the Internet is an informed buyer. You may be a seventy year-old grandma pounding the keys of your first computer, barely knowing how to navigate the friendly waters of the World Wide Web…no matter, the dealer assumes you are an “educated buyer”, and educated buyers go right to the front of the “good deal” line.
Finally, Principle 3 is lived out daily at the dealership– Never Let a Customer Leave Until You’ve Given Your Best Shot. Ever wonder why there is so much “going back and forth” during the car deal, or why the “closer” conveniently shows up when the deal is stalled, or why the salesman goes back and forth to a manager? And who hasn’t gotten up to walk away from a deal without the dealership asking you to sit back down while they look at “one more thing”? The cyber customer is still a customer, and since there is little ability to go “back and forth”, and because dealers know you are likely contacting other dealerships via the Net, guess what? That’s right, you get the best price up front because they have just one shot at your business…and you are informed…and they’ve spent a great deal of money to get your lead to their dealership.
The dealer’s Internet salesperson, by the way, is usually a senior salesman (in terms of dealership experience). These salespeople are considered high-volume, as opposed to high-profit. The sales generated from Internet leads represent lower front-end profit for the dealer, but the profit structure is justified because it is a revenue stream the dealer knows they might otherwise miss. Therefore dealerships usually assemble their most informed salespeople for this task. Very simply, if the dealer is not competitive, they miss the business.
In summary, when you are looking to buy your next vehicle, go Internet!