I am going to send you some emails that are excerpts from my digital ebook.
They are from parts of chapter 5 which is titled "The Art of Psychological
Warfare Inside the Auto Dealership!"
The reason I am giving away parts of this free chapter is that I am hoping
you enjoy it so much that your doubts about my book are laid to rest and you
go immediately to my website and invest in the full digital ebook.
Thankyou for signing up for these fre*e emails and I hope you enjoy them!
Sale Promotion Scams
Let's talk about auto dealer promotions and the psychological effect they have
on unsuspecting customers. There are many different kinds of "sales" auto
dealers perform. A few of the different types are the Super Sale, Credit Union
Sale, Slasher Sale, Push, Pull & Drag Sale, $29 Acquisition Sale, the Pre-Approved
Sale, recent Bankruptcy Sale, Give Away a Gift Sale, and the list could go on for
many more.
As sales go, you would think if you went to one you would be saving money. When
it comes to auto dealers, nothing could be further from the truth. Never waste
your time going to a sale from an auto dealer. Let me give you a brief description
of how some of these sales work and you will see why you won't be saving any
money at them.
The Super Sale: This is a relatively new kind of sale that started several years
ago. Usually what happens is an auto dealer will hire an outside group sales team
to come to the dealership and conduct the entire sale. The company hired to
perform and conduct the Super Sale will come to the dealership with extra sales
people, a finance manager, two or three closers, and of course a desk manager.
The sales plan will include the dealership spending about $10,000 in advertising,
which mostly consists of a flyer that will be inserted in all the surrounding local
newspapers as well as radio ads and an editorial looking newspaper ad in the paper.
The outside company will typically add $5,000 to the cost of each vehicle and then
figure payments based on the longest term possible and only $29 down payment.
They will then put the payments in each vehicle on the lot hanging from the mirror on
a hang tag advertising "pick a payment, pick a vehicle."
As you can see there is no discount. The public thinks there is a sale and that they
are going to get this great deal, but in reality if they fall for the "payment only
thinking" they will end up paying way too much for the vehicle. The real price of
the vehicle is never displayed at these kinds of sales. Only the payment.
Dealerships, during these Super Sales will make from 50% to 100% of what they
normally would make in a month in only a four-day sale period! Needless to say, it
is one of the most profitable sales for an auto dealership to conduct.
The dealership must pay the outside company between 20%-28% of the gross profit
from the sale. Therefore, if the outside company made the dealership $100,000 in a
four day sale, the dealership would pay them $20,000 to $28,000 for that sales
event.
There is a saying among car dealers that goes like this, "A sale is only a perception."
It goes hand in hand with another car dealer saying, "A good deal is a state of
mind." There are people who pay a huge profit to the dealership and they are the
happiest people on earth because the dealership did a great job of making them think
they got a great deal!
These are the kind of customers car dealers love. Those people who focus on
payment only and are oblivious to anything else. They don't pay attention to how
much they really paid for the car or how much they received for their trade-in car.
These are the people who cause auto dealers and commission oriented sales people
to thrive.
Watch for my next email where I discuss the "Pre-Approval" Sales Scam!
Take care,
Peter Humleker
www.CarBuyingScams.com
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