Dealer Scam?

RyanZ71 · October 4, 2007

So I went into the local GMC/Buick/Pontiac delear at lunch to pick up a packet for the 07 GMC Sierra, and of course before I could even make it in the door, I had a salesman all over me. Just told him I wanted to do some research and wanted a packet on the Sierra. He gave me one and then proceeded to point out a few things, ask me about my current truck, told him that I could probably sell it off of EBAY and get at least $7000-8000 off of it compared to the $6000 I was willing to bet they would offer for it... tried to sell me on the 0% financing crap, told him I was going to probably finance it through my bank or insurance company (State Farm Bank) he seemed a little disapointed in that. He admitted to me he was a new guy, took down my cell phone number asked to call me Saturday, asked for me to wait by the door while he went and told the Sales manager about me... THen said thanks and see ya Saturday. Then a few hours later he leaves me a voice message on my cell phone telling me that there was someone who just came in who is looking for a used truck like mine, and wanted to see if I would be willing to sell it through the dealer. RED FLAG.

What do you guys think. This is GO GMC in Littleton/Highlands Ranch Colorado (used to be under the John Elway name)

mcreyaufmiller · October 4, 2007

So the same day you walk into the showroom another person walks in and wants a truck exactly like yours and there are no others any where to be found? Nah, it is a sales trick. There are a lot of good deals on the 07's right now.

07-Z71 · October 4, 2007

Yes, it's a sales trick. However, if you plan to finance any part of the truck, why wouldn't you take 0% crap from GMAC ..... I just did. Cant see how any bank could get lower then that?

Zembonez · October 4, 2007

He's working you.

Salasmanship 101 directly from a new recruit! Dearship probably sent him through sales school somewhere. If done right, you can use his excitement in your favor...

I don't blame the dealer for trying. They are in the business to sell trucks and they make money on trades. You can't fault them for that.

Lay it on the line with him and tell him you aren't interested in the sales line bullsqueeze or the old "let me ask my manager" bit. Go in informed with details about what you are willing to pay and what you want for your trade. (be realistic) If he's straight up (or not) he'll show his colors pretty quick. Be willing to walk if the deal sucks. There are plenty of dealers wanting to sell trucks.

God luck!

cmfnc · October 4, 2007

He's working you.

Salasmanship 101 directly from a new recruit! Dearship probably sent him through sales school somewhere. If done right, you can use his excitement in your favor...

I don't blame the dealer for trying. They are in the business to sell trucks and they make money on trades. You can't fault them for that.

Lay it on the line with him and tell him you aren't interested in the sales line bullsqueeze or the old "let me ask my manager" bit. Go in informed with details about what you are willing to pay and what you want for your trade. (be realistic) If he's straight up (or not) he'll show his colors pretty quick. Be willing to walk if the deal sucks. There are plenty of dealers wanting to sell trucks.

God luck!

I follow his plan...Give them a chance but don't take to much of their going back and forth.

Schmids5.3l · October 4, 2007

Lay it on the line with him and tell him you aren't interested in the sales line bullsqueeze or the old "let me ask my manager" bit. Go in informed with details about what you are willing to pay and what you want for your trade. (be realistic) If he's straight up (or not) he'll show his colors pretty quick. Be willing to walk if the deal sucks. There are plenty of dealers wanting to sell trucks.

Completely agreed. You have to jump on them, and not play their games. Lay down the law 1st thing, this is how much I'm going to pay for it, I'm not paying any more bla bla. There is no negotiating, they need to sell cars, you don't need to buy one. Thus, you have the upper hand. Their games usually work on the uninformed, which is the vast majority. There are no special deals, no special sales events, they always have their lowest point of selling a vehicle, reguardless of a random '4th of july' or 'end of the year' sale.

Walking away if they don't quit on the B.S. is a very powerfull strategy, it shows them you dont give a f***, maybe even know their b.s. games. Just make sure they have your number, because they will call back later down the road saying they can work with what you offered.

therapy · October 4, 2007

There's no sense in financing through your bank when GMAC is doing 0% for 60 months.

Normally I'd go through my credit union, as their rates are good and better than most other places, but they can't beat 0%.

C & A s Dad · October 4, 2007

Yes, it's a sales trick. However, if you plan to finance any part of the truck, why wouldn't you take 0% crap from GMAC ..... I just did. Cant see how any bank could get lower then that?

Brian, I hope you got a great deal on your truck but I have to tell you tht 0% financing is not free. Have you ever noticed when the big big discounts and rebates are running, the 0% is nowhere to be found. The rebates go away or the discounts are not quite so good, then the 0% is once again avail. I can almost guarantee that you can get a much better price if you do not go for the 0%. I hope you got both, a great price and the 0%, but I doubt it.

rogerf · October 4, 2007

....and maybe that salesman can sense that you are not ready to buy, at least not at the price & terms they are prepared to put in front of you. Sometimes it's better from a sales perspective to take a pass based their evaluation of your first personal interaction, then call back later. A skillful sales negotiator won't go anywhere near price if you aren't ready to buy the product (today, as in right now). He called you back....ball is in your court now.

Sold lots of products over the past 20 years. Trust me, call him back and ask specifically what they can do to get your business (be prepared to answer them with your terms and be ready to act). It may appear like they are baiting you but you now have the upper hand as they made the last contact.

kilo5 · October 4, 2007

Don't go in telling them what you are willing to pay for the truck. Do your research

and figure out what model and options you want. You can get a basic idea on the price from

several sites on the web. When you think you have enough for the truck, contact the Internet

sales person, via email and have them email you the trucks on the lot that meet your criteria.

It will list the GMS (employee) price, the Supplier price, and MRM (MSRP) price.

A good deal will be one or two hundred above the supplier price.

-Devil- · October 4, 2007

eh, i got better numbers .. taking the rebates ... and financing elsewhere ... i do not trust any dealership to handle the financing .. and do the figures correctly ... if they do them, it will always fall in their favor ...

therapy · October 4, 2007

Yes, it's a sales trick. However, if you plan to finance any part of the truck, why wouldn't you take 0% crap from GMAC ..... I just did. Cant see how any bank could get lower then that?

Brian, I hope you got a great deal on your truck but I have to tell you tht 0% financing is not free. Have you ever noticed when the big big discounts and rebates are running, the 0% is nowhere to be found. The rebates go away or the discounts are not quite so good, then the 0% is once again avail. I can almost guarantee that you can get a much better price if you do not go for the 0%. I hope you got both, a great price and the 0%, but I doubt it.

If you have to finance and aren't paying cash, there's a point where the rebates don't make up for the finance charges.

For example. Let's take say you're paying $35,000.

Let's say that rebates from the manufacturer add up to $4,000.

So if you pay cash, obviously it makes more sense to just pay $31,000 and walk out the door.

But let's say you finance it.

$35,000 @ 5% for 5 years is $660.49 a month, or $39,629.40 total.

Let's say you take the cash.

$31,000 @ 5% for 5 years is $585.01 a month, or $35100.60 total.

If you take the 0%, then $35,000 @ 0% for 5 years is $583.33 a month, or $35,000 total.

That's about the break even point, where it's only $100.60 more over 5 years to take the cash. Especially if you think you might pay it off earlier.

But keep in mind, most times interest rates are higher, anywhere from 6-8% is typical, which makes a bigger difference. Also, most times rebates are smaller, making a bigger difference.

So it always makes sense to educate yourself and run both sets of numbers. Find out what the total payoff amount with the interest and the cash is, and take the lowest. Never negotiate by monthly payments, always negotiate by total purchase price.

If you're going to pay it off early, always take the cash.

07-Z71 · October 4, 2007

Agree, the promo I got was 0% for 60 months, or $3,000 off. My truck - 07 LTZ, Z71 Crew, loaded with everything, minus Navi. I got it at 36K + tax (not sure if this was the worlds best deal, but seemed ok )

So it was either -3,000 = 33K cash (which I could have done) or finance 36K at the 0% .

It made better sense to hold on to my 33K in cash and make a 5% + return. In the long run, it pays more.

Yes, it's a sales trick. However, if you plan to finance any part of the truck, why wouldn't you take 0% crap from GMAC ..... I just did. Cant see how any bank could get lower then that?

Brian, I hope you got a great deal on your truck but I have to tell you tht 0% financing is not free. Have you ever noticed when the big big discounts and rebates are running, the 0% is nowhere to be found. The rebates go away or the discounts are not quite so good, then the 0% is once again avail. I can almost guarantee that you can get a much better price if you do not go for the 0%. I hope you got both, a great price and the 0%, but I doubt it.

RyanZ71 · October 4, 2007

Thank you for all the great info. I am learning.

07-Z71 · October 4, 2007

It's true Ryan, I just got it. The deal is ( if the promo's are the same) you can take 3K off the price if you decide not to use it. But if your not paying cash for the truck, the GMAC offer can't be beat. Bottom line is that they need to sell trucks and move 07 inventory...... not sure if this is avaiable on the 08, very well could be.