This
is the meat and potatoes of the process. You need to be convinced that it’s
even worthwhile driving over to a particular dealer and what better way to do
so than give you a cash incentive! The Internet Sales Department is designed to
encourage you to come over to their dealership, even if it is a bit farther
away than you otherwise would go to look at a particular brand of car. In some
cases, it’s over in the next town or county (or state), and for obvious
reasons, management has authorized their Internet Department to provide you
with an attractive, competitive low selling-price UP FRONT in order to
attract your business.
Old
Method: Negotiating from the sticker price (MSRP) or “discounting” from the
price you see on the car window at the local dealer. You have no reference what
is an appropriate discount and no idea what others are paying for that same
car. Each customer is at the mercy of their own wits and patience and
negotiating skills (or lack of them).
New
Method: You walk in knowing in advance that the offer you were given over the
Internet is fair and appropriate under current market circumstances (vehicle
availability, overall demand, dealer profit margins, etc.) because you did your
Internet homework. You are fully aware of the published dealer invoice and
received a legitimate price quote that reflects a limited sales markup over
that figure (in some cases, you can buy a car below invoice, depending
on time of year, demand and supply).
All
dealers know that you are “shopping around” anyway (from dealer to dealer and
manufacturer to manufacturer) so their goal is to provide an extremely
attractive offer right from the start, to illustrate their seriousness and
their intent to avoid playing games with the numbers. They are assuming that
when you come in, you are an active buyer and not just a tire kicker. That
allows for the Internet Department to achieve a higher closing ratio. This is
what the dealership likes to see. This is the beauty of the Internet Quote
system. You win, they win.