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One of the most common scenarios that raise eyebrows is when a salesperson keeps lowering the monthly payment, often claiming they’re “lucking out” with their manager. While there may be genuine circumstances where a manager provides approval for lower payments, it’s also a strategic sales tactic.
Understanding Negative Equity Negative equity, also referred to as being “upside down” on your loan, occurs when the amount you owe on your vehicle exceeds its current fairmarketvalue. This often arises from: Rapid Depreciation: Vehicles typically lose value quickly, especially in the first few years of ownership.
Utilize tools like Kelley Blue Book (KBB) or Edmunds to determine fairmarketvalues. Highlight Vehicle History Providing a comprehensive vehicle history report can add value and justify pricing. Competitive Analysis Research competitors in your area to gauge average prices for similar vehicles.
If the dealer is so entwined in the day-to-day process, start changing that now by delegating key responsibilities to capable managers. When that gets created the store has a much greater value to the buyer.”
Typically, insurance costs are based on the car’s value, so a less expensive vehicle will often come with lower rates. This can lead to considerable savings over time, making car ownership more manageable financially. This will give you a baseline for negotiations and help you identify if the seller is asking for a fair price.
Imagine financing like this : It’s a way to break up the cost of the car into smaller, more manageable payments spread out over time. Understanding Dealer Goals Car dealers often have monthly or quarterly sales targets set by the manufacturer or their management. Who is the "sales manager"? What is "sales tax"?
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