Re: Just laughed myself out of the local dealer... - Saab General Bulletin Board - Saabnet.com
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Re: Just laughed myself out of the local dealer...
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Posted by Jim K. (more from Jim K.) on Fri, 5 Aug 2005 14:24:40 Share Post by Email
In Reply to: Re: Just laughed myself out of the local dealer..., Kenf, Fri, 5 Aug 2005 14:02:42
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Nope, I don't expect full sticker. I merely point out that a sticker is a basis against which a deal is constructed. The fact is, if we have more room in the deal, we can afford to make a hgher trade offer. The GM promo cut our latitude way down. I think it is fair to say we deserve a reasonable profit on a transaction (if not, why are we here?) and the less restrictive the promotion is, the more latitude we have to build a deal that makes everyone happy. I'm glad you responded, because even Saab dealers have to overcome a presumption of mistrust when selling a car. Such is the legacy from the bad old days of car sales.
It's also true that many customers over-estimate the value of their trade. We as dealers are forced to recondition, repair, and offer a warranty on any vehicle we keep on our lot for resale, and to do it at a price point that allows us that "reasonable profit". The resale price also needs to be in line (not to say less than) that same Book Value. The sword cuts two ways. If we can't make some money on the trade aspect of the deal, we aren't going to be in business long.

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