Choosing your best dealer !
Why do you need to choose your right dealer ?
In this section, we will explore who are the different type of dealers. How do you distinguish them from each other? Who could be a better choice for you? Finally, what are some important facts that you need to be aware of about dealers?
What do Smart buyers have in common? They do thorough research, avoid impulsive buying, are very patient and are flexible on their choices. These traits come handy while dealing with your dealers. Utilize your resources to choose your best dealer and be better equipped to benefit from their strengths.
If you know your opponent well, you are better equipped to handle them.
Not all dealers fit nicely into one category and you’ll come across many that overlap. In general, you will encounter three types of dealers, while shopping for a vehicle. To help you choose your best dealer, here is an insight into their major distinguishing traits :
They are the most common types.
As a strategy, they target customers to somehow attract them into their showroom, and once you’re there, they engage in high pressure tactics to convince you finalize deal with them.
Most commonly tactics used include:
A- Bait and Switch –
A sales tactic in which a customer is attracted by the promotions of a low-priced item (bait) but is then encouraged to buy a higher-priced one (switch).
B- Four-square Method –
Is a negotiation technique, that is designed to confuse you, by mixing 4 – elements. For instance, the price of the car, down payment, trade-in value, and monthly payment into one sheet of paper.
This technique is used to keep your attention on the monthly installments, and downplay on other three aspects.
As a smart buyer you must always discuss all four elements separately. — https://youtu.be/1gtmij_uNuE
C- Deposit Requests –
They somehow try to convince you, for a deposit to ensure your commitment on purchase.
Bad Credit Dealer
They target customers with bad credit history, as they can be easily manipulated, and offer least resistance when it comes to price negotiation.
Strategic liaison with banks, makes them experts in arranging car finance at high-interest rates, and thus generate profits.
They also focus on selling unnecessary add-on products and accessories.
Amongst the lot, they are the best type of dealer, but can still rip you off.
They actually care about their reputation and character within the community. And mostly try to build their business with repeat buyers.
They are able to lure you into their straight forwardness and offer “no-haggle” pricing. As a result you get trapped, and become less resistant when it comes to actual negotiation.
Their major profits come from the trade-in, financing, and other add-ons they sell along with the cars.
Important Facts About Dealers :
While you choose your best dealer, just remember some of the important facts about them.
Low margins on New Car sales :
Most of the dealers don’t make big margins by selling cars alone. However, there are more profits associated with Trade-Ins or used cars sales, financing, selling add-ons, after sales service and sales of parts etc. Therefore, you need to be extra careful, while these elements are discussed.
Operate under pressure :
Every dealer aims to sell cars as quickly as possible – to reduce inventory and other overhead costs and increase profits. That’s why you’ll notice them to be always under pressure to get the deal done as soon as possible. In other words, situations like these may offer you an opportunity, of a good deal.
Aware of your weakness :
Dealers have perfected their selling skills, as they know your weakness. One such weakness, common in most car shoppers, is their excessive focus on the price alone. As a result, dealers usually allow deals to happen at smaller margins. However, they make all possible efforts to trap you in other profit making areas. These are usually like the financing, your trade-in, accessories, paint protection, glass tinting, extended warranties, service contracts etc.
Prefer Finance Deals :
Buyers looking for finance, are preferred by most of the dealers as compared to cash purchasers. Therefore, we recommended not to disclose your mode of purchase if it is cash.
Monthly Targets :
It is important to time your purchase near the month-ends, as each car dealer operates on monthly sales targets. As a result, you can expect a better deal from the dealer, who is short by few units from their desired monthly targets. Beside main dealers in Abu Dhabi city, you should also explore dealers located in Motor World – Shamkha area and discover surprising deals.
With the above inputs, you are now surely ready, to choose your right dealer, and equipped to negotiate better.