I were only available in the retail auto business in 1968, about 49 years ago almost, and I’ve seen a lot of changes in the way we sellers sell vehicles and the goals of our customers. My remarks in this column are created and with an optimistic purpose toward you and your customers sincerely. I am not wanting to let you know how to run your business; I am suggesting a big change that will encourage both you as well as your customers. The argument which i hear from most car dealers after i raise this problem would be that the dealer charge is fully disclosed to the buyer on his buyer’s order.
But, most car purchasers are totally unaware they are paying this. Who reads every one of the voluminous paperwork associated with buying a engine car? The few who notice it assume it is an “official” charge like state sales tax or license and registration fee. Those few astute buyers who do question the fee are told that your dealership must charge this fee on very car.
This not true. These astute buyers are also informed that other car dealers charge similar fees. This is true almost, but, you may already know, my dealership does not. The reason why you charge this charge is simply to boost the price of the car and your revenue in that manner that it’s not noticed by your customer.
- 3 a few months ago from Kaufman, Texas
- Away from potential gasoline concentrations, flammable materials, vehicles and dangerous materials
- Preferably have a little footprint
- Excluded goods that are never included
- 6 – Synthio
- 2B 10 2011
- Business involves two types of goods that is Consumer goods and manufacturer goods
- The field becoming edited is not saved
This is just plain wrong. Dealers will confess this if you ask me in private interactions and some will admit that they have considered eliminating the charge as I have, but fear so much the drastic impact to their important thing. 899 in revenue that the customer is unaware of or is convinced is an “official fee”, it is possible to quote a cost below cost and finish up making a revenue. Or, if the price you estimate the customer will pay you a nice income, you can increase that by several hundred dollars. This “extra, unseen” profit is better still for you because you don’t pay your salesmen a commission on it.
That’s being unfair to your employees plus your customers. When the rare, astute buyer objects to the dealer fee, the law permits you to reduce the quoted price of the motor car by the amount of the dealer fee. This would have the same net effect of removing it.
The salesman won’t permit this because he’ll lose his commission rate (typically 25%) on the reduction in his commissionable gross profit. If you don’t know me, I will tell you that I don’t profess to be some “holier than thou” car dealer who was simply always perfect. I am not necessarily proud.