Cars Sales Commision ?

[goat]

I am in the process of buying a new car. In a total pickle right now...my balloon has come due on my smart buy and I am going to return my car. Wednesday to be exact. I don't want to get locked into any long term deal right now (ie smart buy, lease) since I may get a company car in the next six months or so....I know terrible timing. But ? is will the guy I am dealing with at the dealership get paid more on a used car or a new car transaction? or will he get paid well on selling a demo? Is that the same as a used car for him? Don't want this to be a "how to buy a car" or a "lease vs. buy" just curious on the commission for this situation.

 

[Ramathorn]

Honestly, it depends how much margin is left on the vehicle. Just a guess, but I would be selling a used car is more lucrative per transaction.

 

[Gardner Barnes]

Man, i went in today to buy a car and was shocked at how inflexible these guys were. I was thinking that with the economy in the crapper and gas prices so high they would be more willing to deal.

I went in wanting to pay X amount which is about $400 over invoice and they would not budge from about $1200 over invoice. No deal and I walked out.

Then I called another dealer in Dallas offering a similar car and told him I would pay him about $500 over invoice (he is the one that gave me the invoice price and his offer was about $900 over invoice). Literally said, "can't do it" and hung up.

Oh well. I guess I will buy another brand of car.

 

[Bytor]

GB, what were you trying to buy?

 

[goat]

I am pretty curious to see how it goes with my process. I get the true GM family discount, sister works in Detriot with GM but since I may only need a car for 6 months or so....buying new makes absolutely no sense.....

 

[Roger]

goat, I hate to say this but if you truly think you are only going to be driving for 6 months you should look at a 1 or 2 year old car that is known for holding value such as a lexus or BMW, finance it at the lowest possible rate for the longest period possible.

 

[01 grad]

Enterprise? Should be a able to do a monthly rental for $4-500/mo. Return it when you done.

 

[txlonghorn4x4]

I work for Lexus, so can add some insight. Typically, there is more margin built into the price of a used car, at least in the luxury segment, and there is less negotiating. With a new car, if the one you want gets sold, chances are they have one with the same color, features, etc., or can get one pretty easily. Not so with a pre-owned. Now, as they sit on the lot and accumulate time, they'll be more aggressively discounted, as they want to move units. So, it's really hard to say which commission would be more. New cars come with dealer "packs" built into the price. New car salesman get paid based on the gross the car makes, etc. There is however, a floor on commission, and once he know he's going to get paid the minimum, the salesman, sales manager will be more apt to move the unit. The key is knowing at which point this will happen. They also get spiffs etc. from the finance dept. for selling extended warranty, protection packages, lo-jack etc. Hope this helps.

 

[Ramathorn]

I actually had car salesman not call me back. Just refused to meet my (reasonable) price point. They just moved on. I told them I was willing to buy, at a right price.



Jason Suchomel hooked me up with a toyota salesman. He took care of us the first time, but he didn't give me near enough for my trade after he had earned my business the first time.

 

[Gardner Barnes]

Bytor:

I was trying to buy an Infiniti G35S 6mt (g35 with man transmission). Funny thing, the dealer called me today and asked if I wanted to renegotiate as "a big rebate just came through". What the **** ever.

I was literally test driving my car when that clown called. Anyway, I bought a 2007 BMW 550i this afternoon with 9800 miles on it. ****** is FAST>>>>>

 

[txlonghorn4x4]

I just got to fart around in our IS-F. Talk about an *** kicker.

 

[Gardner Barnes]

That F looks like a monster. How did you like the paddle shifter?

 

[txlonghorn4x4]

Paddle shifter is a blast. I've used it plenty in the 250, and 350.....in the IS-F, that SOB moves so fast, it's hard to keep up manually.......

 

[Gardner Barnes]

I'll bet. If they weren't so darned small I would have bought one of those or an M3, As it is, I had to be able to fit 2 car seats in the back.

 

[eindiet]

The salesman will almost always make more money on a used car. It will be difficult to get rid of a car very soon if you buy from a dealership especially a new car.

 

[goat]

Yeah...looking at 2006 G35 and Cadilac CTS that are certified preowned....thinking I am better off with that type of car with that resale value.

I am turning my saab 9.3 today and have already picked up my rental car. love priceline.....midsize for 72/week...ends up being 120 with taxes fees etc....may do this for a bit or at least till the end of the month.

 

[Summerof79]

All I know is the caddilac dealer out by me is running out of space to keep the cars as their inventory swells. Seems as if some dealers won't negotiate at all, happened to my buddy on his Audi..and he checked around pretty well before ordering it.

I agree witht eh concsensus that there is generally more margin in the used car market.

 

[PhantomHorn]

I can't understand why anyone would ever flease a car.

 

[BattleshipTexas]

What I can't figure out is gas prices are high, Priuses are flying off the shelf, the WSJ says SUV sales are in the tank. So you would think this would be a good time to buy a used SUV like a Explorer or 4Runner. It doesn't seem like prices have come down on those at all. Why not?

 

[txlonghorn4x4]

We've become a lot more aggresive with what we accept on offer for our RX350's, and GX470's.

 

[bradford702]

"and there is less negotiating"

I hope there is at least some!