Should car salesmen be allowed to profit?
Should you feel bad using a systematic car negotiation strategy because it’s unfair to car salesman? One might argue that salesman are people too and deserve to earn a living. What if we take away all of their profit and put them out on the street?
Well let me explain why you shouldn’t worry too much about car salesman and why the smart ones may actually like my car buying advice.
You’re not putting a gun to anyone’s head
First of all, I’m all for win/win negotiations and I believe that car salesman are entitled to get paid for doing their job (selling cars). With that in mind, you aren’t going to force anyone to sell you a car at a lower price than they can afford. If a salesman wants to be competitive, they’ll give you a low bid. If not, you can buy from someone else. The price they offer is their choice and you can’t force someone to lose money on a deal.
You’re an informed car buyer
When you start contacting multiple dealers you’ll already know exactly what type of car you want and will be able to get right down to business. The car salesman will have to do very little work educating you. There’s no lenghty Q&A period because you will have done your research in advance of the negotiation process. They’ll simply give you a price quote for the make and model you want and nobody wastes their time.
You’re a guaranteed sale
According to the Joe Verde Consulting Group, only 10-20% of walk-ins end up resulting in a sale. Yet salesman must spend valuable time (sometimes hours) with 100% of them. As opposed to you, the informed Internet car buyer, for whom they won’t even have to get up from their desk. Bottom line: if they give you the best offer, you’ll buy from them.
You may trigger a bonus payment
Lastly, in some cases the profit on an individual sale may not be a big concern for the salesman or dealership. Depending on how close they are to hitting an individual or dealership sales goal, they might be willing to sell a car cheaply in order to trigger a big bonus.
Just remember, don’t feel guilty about being a competitive shopper. You are entitled to find the best deal. And the best way to get a good price on a car is to make car salesmen compete.