price is not the most important thing that motivates buyers of any product or service, especially not cars
Toronto, ON (PRWEB) May 30, 2012
Michael Turner (name has been changed at client’s request to avoid conflict at the dealership) had been looking for a new Toyota Camry. His wife knew someone at the local Toyota dealership so that is where they intended to buy. Prior to making his final purchase, he consulted his local automobile association website for any last minute guidance. There, he learned about Automall Network, an auto broker that provides buying advice and pricing data to consumers through their new web site, IVONTaCar.com.
The salesperson at the dealership had quoted Turner a price claiming it was “only $650 over their cost”. Just to make sure, Turner consulted with Automall Network to find out what a competitive price should be and whether the price quoted was truly only $650 over cost before signing on the dotted line. Automall Network advised that at the quoted price, the markup on the deal was actually $1100 over the dealer's invoice price, or there was an added fee on top of the $650.
Upon bringing this price discrepancy to the dealer's attention, Turner found out that there was, in fact, an extra fee built in to the price that he could “opt out of” if he wished. “I found the advice they provided extremely helpful regarding price” says Turner. “I saved over $400 extra based on that advice”.
The problem with buying a new car is that most dealerships won’t give you their best price until someone else has first. Then they will match it or slightly beat it just to get the deal while you’re in their dealership. Unfortunately, this means you are forced to spend unnecessary time comparison shopping from one dealer to the next and playing one against the other.
“Contrary to what most people may believe, price is not the most important thing that motivates buyers of any product or service, especially not cars” claims Viraf Baliwalla. Baliwalla is President of Automall Network, an auto broker of 12 years that has clients throughout North America. “Car buyers are looking for trust, integrity, respect and a long term relationship for service” he explains.
Based on Baliwalla’s experience with car buyers, he believes that most understand that a dealership is a business and it has to make a profit to survive. What the buyers don't want is that the dealership's entire year's profit be made on their deal.
"The lure of saving that extra little bit is always there, however what buyers really want is to know that when they drive away with their new car, they have paid a fair price that is competitive with the market" says Baliwalla. "Unfortunately, too many people drive away with an uneasy feeling of whether or not they paid too much or if they really needed that rustproofing package or extended warranty".
“It’s the commission based mentality in the industry that has created a negative environment” claims Baliwalla. “Salespeople need you to ‘buy today’ because their commission is riding on it. This is the root cause of the high pressure sales tactics. If you walk out the door to think about it, they are worried that you may just get sold at another dealership”.
Baliwalla believes that new car buyers would love nothing more than to simply walk into their preferred dealership, speak to someone they feel they can trust and that respects them, do a deal at their own pace, and all at a fair price. That may be too much to ask in today’s competitive environment, however it would save everyone, including the dealership, a tremendous amount of time and aggravation.
To help make that happen, Automall Network provides new car buyers with Competitive Market Price Reports. For $50, the report tells a buyer what a competitive retail price (or payments) range is in their market for the vehicle they want, be it a cash purchase, finance or lease. This information serves as a much more accurate starting point for negotiation. Upon request, Automall Network will also take care of the negotiation on the buyer's behalf for $195.
Free sample reports can be found at http://www.IVONTaCar.com.
Automall Network Inc. is a full service auto broker with their head office in Toronto, Ontario and a virtual office in Ft. Lauderdale, Florida. For media inquiries, Viraf Baliwalla can be reached at (866) 310-8701 ext. 303 or viraf(at)automallnetwork(dot)com.