I learned something today...where the price of the car is nonnegotiable and everyone in sales are on a salary basis. Can this be true?
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No Haggle Price dealership
- Thread starter PoohBEAR
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Yes they exist and are very profitable. Although the salemen are on a salary there are bonuses for the top sellers of the week, month, year. This lights a fire under them to sell more cars even though they are not compensated per individual sale. Also you'll usually get the best deal on a car at these dealers. If you value your time you'll always get the best deal.
I have a friend who runs a multiple make dealership using this model and he does quite well. He sells just about every major make, with the exception of Honda, but he is currently trying to purchase a Honda franchise. Even though he and I are friends and my family buys several cars from him a year they don't discount the cars anymore then what is on the window. It's one price and that's it. He moves hundreds of cars a week.
I have a friend who runs a multiple make dealership using this model and he does quite well. He sells just about every major make, with the exception of Honda, but he is currently trying to purchase a Honda franchise. Even though he and I are friends and my family buys several cars from him a year they don't discount the cars anymore then what is on the window. It's one price and that's it. He moves hundreds of cars a week.
I believe Tesla follows this model as well. This sales model is far better than the normal dealership sales model where you constantly feel pressured by the salesmen. Instead, the Tesla dealerships try to educate the consumer on the product instead of trying to make a quick sale.
Tesla dealerships are factory owned as well. They've been getting a lot of flack from dealer associations because of this.
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- 9 January 2013
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Don't forget a very big one: Carmax. I bought a car from them a couple years and I enjoyed the experience.
Yes it's true. Right after high school I went to sell cars for a little while with the one price Subaru Dealership. It was actually nice and both sides of the experience 9/10 times was positive. But there will always be that 1 person that doesn't understand the concept.
i didn't think this business concept exist in used car....but like i said, i learned something.
I believe i heard of a used car place in PA that does this. they sell an incredible amount of cars from what i was told
AFAIK, they started the trend.
I have never encountered any salary car sales position, if that is the case, the dealership will likely not survive the market. Commission sales is what drives the income.
However, there are many dealerships I know of, have haggle free pricing. These dealership usually set the price based on the % mark up over the invoice, and the selling price of the vehicle usually stays below MSRP with the exception of specialty/rare cars.
lastly, just because a dealership has a haggle free, firm price on their cars, that will not prevent them from "stealing" your trade-in or rip you off on backend deals.
That is why when they claimed it is commission free, I don't think they're telling you the truth because that type of business model will only have one result, the death of the business.
However, there are many dealerships I know of, have haggle free pricing. These dealership usually set the price based on the % mark up over the invoice, and the selling price of the vehicle usually stays below MSRP with the exception of specialty/rare cars.
lastly, just because a dealership has a haggle free, firm price on their cars, that will not prevent them from "stealing" your trade-in or rip you off on backend deals.
That is why when they claimed it is commission free, I don't think they're telling you the truth because that type of business model will only have one result, the death of the business.
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