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Consumer Info

What is a “Car Deal”?

We all know that when buying a car we want a “deal”, especially when it comes to purchasing from a car dealership.  Today with multiple online resources, it’s relatively easy to research new car prices before you visit the dealership.  If this is the answer to a great deal, why do we still dread the process of dealing with car dealerships?  Well, the answer is that just being armed with a “best price” deal on a car doesn’t necessarily mean you are getting a “deal” nor does it make the buying process any easier.

The reason for this that there is more than just the price of the car that makes up a “car deal”.

What if you are financing.  One of the most profitable departments in a car dealership is the Finance Office (F&I).  The F&I Manager’s job is to add profits on the back-end that the guys up front couldn’t get.  For example, the dealership will typically get two rates from a lender.  A “sell rate” and a “buy rate”.  The sell rate is what the dealer charges the consumer, the buy rates is what the lender charges the dealership.  The difference is the dealership profit margin.  Like the price of the car, the finance terms are negotiable too.  Negotiating the finance terms could save you thousands of dollars over the life of the loan.

How about a lease?  Leasing is a great way to enjoy a new car every few years with less cost of ownership.  However, leasing can be highly complex and confusing to a consumer that doesn’t understand leasing terminology.  And yes, a lease is negotiable just like the price of the car.

Let’s say you have a trade-in.  Well this is also a highly profitable opportunity for a car dealership. Most of the time the reason consumers trade in their old car is because they either don’t want to hassle with selling it on their own or they owe more on the vehicle than it’s worth and need to trade it to “get out of it”.  This puts the consumer in a vulnerable position as they can lose thousands of dollars in trade equity.  A savvy Sales Manager is going to take advantage of this and use it to increase his profit margins on the deal.

Another thing to consider is “add-on” products being offered by the dealership.  Products like Extended Service Contracts (extended warranty), GAP insurance, Pre-paid service packages, paint and interior protection, roadside assistance, LoJack, etc. etc.   All of these products offer great value to the consumer but it’s all on an individual needs basis.  For example, if you lease a car for three years and it comes with a three year warranty from the factory, you don’t need to buy an extended warranty.  If you are in a position where you feel it’s necessary to protect your purchase with one or all of these products, you CAN negotiate the costs.  Many times the F&I Manager will push them on a monthly payment basis. “For an extra $15 a month you can extend your warranty”. Be careful here because at “$15 a month” it sounds very reasonable and from a monthly stand point, it might very well be.  However, negotiating it as part of your payment could end up costing you more than you need to pay.

Much more than just the price

So, with all this said, you can see that a “car deal” is much more than the price on a car.  Sites like TrueCar and Edmunds give you data on what “others pay for the car” but this is highly subjective as this is only 20% of the transaction.  In fact, a car deal could be as many as 4 transactions (Price, financing, trade and add-on products) and the data given by these sites don’t provide you with the rest of the “deal”.    So, that leaves it up to you to typically spend 4-6 hours at a dealership trying to negotiate these transaction and more often than not you get beat down so much you just want to get out of there.

This is why using an auto broker like Access Autos makes so much sense.  At Access Autos, we make sure you get a “completely” good deal.  First off, we only deal with the dealership’s Fleet Manager.  Unlike the dealership sales person or Sales Managers, the Fleet Manager’s primary focus is to move as many units out the door for the dealership’s owner as possible, regardless of profit (or losses).   He has a high volume target to reach that, if achieved, will result in a substantial financial bonus paid from the manufacturer to the dealership’s owner. So, with that in mind, he is not focused on gross profit per car but more on moving cars off the lot.  The average consumer cannot work with the Fleet Manager, but Access Autos is Los Angeles’ premier auto broker and has relationships with over 300 Fleet Managers in California.   Access Autos services extend beyond the price of the car.  We help negotiate finance terms with the dealership as well as locate external financing to allow you to get the lowest rates as well as all of the factory cash incentives. Something you can’t do inside the dealership.  Access Autos also helps you with your trade-in.  We have several buying sources that are eager to bid on your car guaranteeing you maximum trade equity.

Combine our expertise in negotiating ALL the numbers along with the convenience of delivering the vehicle and paperwork to your front door, we have eliminated the unpleasant part of the new car purchase process.