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The base stripper Aveo stickers for $9995 and has an invoice of $9640, not much mark-up eh? There currently is a $1000 rebate on the Aveo, so in theory you could get one for $8640, if you wheel and deal down to the invoice price and add the rebate, not the $7295.

Yeah the dealer is being a little crooked, but shame on the customer too, I can find this information in 2 seconds, if the car has an invoice of $9640 and $1000 rebate, do you really think that the dealership is going to LOSE money (about $1300) to sell you a car? Why? Because they like your face? There is no free lunch!!! Did they not think that there was a catch? Didn't they do any research? If they did then they would have known that there was something fishy.

Shame on the bottom feeder customers who believe every add for a low price from a shady dealer and would sell their souls to save $5 on a car.

There is nothing wrong with the dealer trying to bring people in, you cant sell someone who isn't there a car!


p.s. The statement above is the last time that the words "Aveo" and "stripper" will ever be seen together in the same sentence :roflmao:
 

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It's not a little crooked. It's a LOT crooked. If the dealer has no intention of selling cars at the $7295 price level, then he has no right to advertise it. To go out and blatently make a car ugly so that it doesn't sell just make the guy look like a jerk, not a shrewd businessman.

I would not buy a car from someone that practiced that way. Very few educated people will fall for a bait and switch.

Exactly as you said, you found out the price information very quickly. Others will do it as well. So if people aren't going to fall for the clown car scenario, why should he advertise it in the first place?

Furthemore, if someone is "cheap" enough that they don't care about the car's paint job, will he get it at that price? If so, how many Aveos at regular price does the dealer have to sell to pay for the loss he takes on that one?


No....it's shrewd...it's a dog eat dog world..buyer beware.


I dont recall reading the anywhere in the article that the dealer would NOT sell the Clown Aveo. If you dont care about the paint or the top, then you can own the car. It's that simple. It's a loss leader, the idea of a loss leader is that it brings people in.

True....educated people will not fall for it.....most of them...In my time selling cars, some of the stupidest people I meant were well educated, these are the people who thought they had all the angles. The other 90% were just plain regular stupid.

True story: We advertise a "loss leader" new car, the ad reads "full factory equipment" , it's a no a/c, manual car. It's the ad car. If we sell it for the price thats in the paper, we lose money, but the idea is that no one would buy a non-air conditioned, black car in an area of the US where the temperature is over 80 degrees throughout the year. It's not "Bait and Switch" , we did not advertise that the car had a/c-the ad reads "full factory equipment" , all the standard equipment.

So here comes Mr. Slick, he's smart, financially well off, he wants a car for his daughter, and he comes in with the "no a/c " ad with the loss leader low price. Now..the idea is of course to disuade the customer from buying THAT car, it has NO AC! , but if he wants it, he can have it, most people would then opt too look at something else with a/c. Mr. Slick starts off by blabing about all this mumbo-jumbo about leagal this and that...as if I am listening....how by law..if he wants the ad car...then we have to sell him the ad car...fine... I sell him the no a/c ad car...he KNOWS the car has no a/c.....we make him sign papework stating that the car has no a/c.....the fact is...the car has no a/c...and everyone knows it.

So what does Mr Slick go and do....he takes the car into our own service dept, and asks to have a/c installed in the car....he finds out that the cost to add a/c to the car plus what he actually paid for the car together would have been more expensive than purchasing an a/c and automatic transmission version of the same model car. So then Mr. Slick decides that he will purchase just the parts to install the a/c system in the car..and then find someone else who will install them and void the warranty all at the same time....still more expensive than just buying the same car with a/c...so no Mr. Slick decides to call an attorney and the police......when the police arrive...we show them the paperwork that he knowingly signed that states that the car has NO AIR CONDITIONING. They advise him that he has no legal leg to stand on...the customer is un-happy, causing a scene in the showroom in front of other customers...now we are asking the police to remove him from the property...along with his no a/c new car.....so what did Mr. Slick get out of this?.....he would have been happier if he would have bought the car that he wanted to get...at a fair price....instead of trying to be a scumbag smarta$$ and get one over on the car dealership.




Epilogue: Later the customer finally found some mechanic who did install a/c in the car for a still un-reasonable price....and that voided the warranty on the car.....I hope that it was worth it....now he has a new car without a warranty.....all for what?.....to save a few bucks....he wasted my time...time that I could have been with a real customer that was going to let me earn money..so I can make a living... and he ended up unhappy with the car and the dealership....I hope that they all get what they deserve.
 

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1. How is a car with base factory options a "loss leader"? There should still be a profit margin, unless the advertised price eliminates that profit just to lure suckers in, and then we're back to misleading avertising.

2. When you see Best Buy offering a Television on sale for $399 and go and try to buy it for that price, do you expect to face resistance, have to "fight" the salesmen, and be considered a "smart a$$" for trying to get the Television for $399? Or would you be pissed if Best Buy tried to pull a "no, no, you don't want THAT one" and got combative with you if you insisted on buying it without a remote control or HDTV support or whatever?

3. When you try to buy anything for an advertised price, do you walk in to a store and immediately start thinking about how you can profit the guy behind the counter, or how you can save money?

If you don't want to "fight" customers, don't advertise a misleading price.

Last point - that guy is probably financially well off *precisely because* he is a shrewd customer and watches how he spends his money. The installing the A/C stuff is over the top stupid, however. 




1-The car was a loss leader because we advertised the car at a price that was lower than invoice..to bring people in..if we sold the car..which we did and would have to if the customer insisted..we would loose money..but theme behind the loss leader ad was that even if you did sell the car..the traffic that it would generate should be able to bring in a few deals that are moneymakers. Where is it misleading? We advertised a 1996 Pontiac Sunfire for $X,XXX and we sold it to a legitamate customer for that much plus taxes and tags and ETC.

If a restaurant advertises Main Lobster for $1.00, but then you go and find out that the Lobster is 3 weeks old, someone tells you that it's old and can make you sick, but you still buy it because you want it for the advertised price, and then you get sick....who's the moron?


2-Ok...but when Best Buy advertises a TV for $59 and then you go and find out that is a black and white rabbit ear TV from Czechoslovakia, and they tell you that is is such....and your okay with the fact that the TV is black and white and you want to buy it.....whats misleading....? Did we want to sell it? Hell NO..do we have to..yes..but most people in Miami FL dont want to buy a car without a/c...so the car itself automatically disuades people from purchasing it and automatically makes them start "bumping" themselves up to a more expenensive and i.e desirable model.

3-I know that he was trying to save money...but I am there to make money..that is why I was there for 10-14 hours a day...to make a living. What I am saying...is that if the idiot customer would have removed his head from his a$$, he might have seen that he was no really making a good deal...but NO...he just saw that he "thought" that he was getting one over on the dealership. If he would have listened to my advice..he would have ended up with a car the he would have been happy with, I would have made some money..which is why I am there and everything would have turned out better

I am "financialy well off" too...but I don't make bonehead moves like that...he was middle-upper middle class...not Donald Trump.




In the meantime, your dealership sold a car and lost money on it.
Pissed off a client, that will NEVER buy from you again.
Possibly scared potential customers that were in the store when the Police arrived and commotion occured.

What good did it do?

I brought in TONS of traffic and we had one of the best months ever at that dealership with over 200 cars delivered....so what if that one a-hole never buys from us again....I personally don't need or want customers like that.



to me it's black and white. the dealer has a $7295 aveo. it likely won't sell (who wants an aveo with pink vinyl top?!?)... and as long as it doesn't sell they can advertise it. at the same time if someone wants they can buy it. if the dealership wants to risk losing money, who cares? let them!

Exactomundo!
 

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dealerships would get a lot further by being kind, and not haggling prices - make people feel welcome.


I agree....the no haggle price is on the window it's called "Manufacturer Suggested Retail Price" MSRP, thats what General Motors thinks that this what this vehicle should sell for...If you want to pay sticker...no problem..no haggling at all..you might even get me to do a little dance for you in the showroom...but as soon as you start taking money out of my pocket...now were going to tangle, and you better have gotten a good nights sleep...because this going to be a battle.


If you would care to read the post....the customer was the one that started all the crap.


Do you haggle on the price of a Big Mac? Do you think that it cost McDonalds $1.99 to make that Big Mac? Of course not!
 

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I understand where you are coming from, but this is a rather "hostile" attitude to take towards the customer.

You know all of the prices backwards and forwards, but the customer likely thinks that this car is on "sale" and has no idea that it is a loss leader, a sucker lure, or whatever. He might have gotten in the car and driven for miles, taking an hour or two out of his day. He/she goes in and thinks, "Wow, I haven't seen this price at the other dealers, what a great deal!" Little does he know the same optioned out Cavaliers selling at his local dealer for 17,000 dollars is the cheapest he'll find.

Meanwhile, the dealership is thinking Joe is trying to "get one over on them"?

Sounds to me like the only ones trying to "get one over" on anyone is the dealership.

The legitimate and fair sales tactic is for the dealership to offer more genuinely priced, low trim, base level cars, some even with just auto and A/C, which they often don't. Volume sales dealerships do this, and I usually buy from them. The worst are the small dealerships that will always be small because they try loading most of their small inventory of vehicles up, and then wonder why no one wants to buy a 35,000 dollar Astro... .

Actually he lived about 1 mile away from the dealership.

Please dont get me wrong....I was a memeber of the Pontiac Master Sales Guild-Silver lever, my customer satisfaction scores and those of my dealership were some of the highest in the Southeaster Zone for Pontiac Motor Division.

What my story shows is that its not the dealers fault...it's not "bait and switch" Yes the dealer can use some tactics...but the customers are not 100% innocent either...
 
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