Tag Archives: trade

Car Buying Tips Focusing on Trade Difference

Car Buying Tips Focusing on Trade Difference

Four-Square. It’s one of the most common car deal worksheets used today. It’s been around since the 80s. It’s designed to rip customers off. How? Normally, the 4 numbers in the squares do not directly include the only one that is important: Trade Difference.

It is an extremely competitive market, more so than ever before. The internet has made it increasingly difficult for car dealerships to make money.

Consumers have access to online inventories and classified sites like Los Angeles Used Cars.

They can get ideas of their trade values at Black Book Online.

They can check loan payment calculators, find affordable warranties, and get a used car’s vehicle history report. For all of this, we can thank the Internet.

Having car buyers at the dealership, at the negotiating table, excited about a vehicle and ready to make a purchase is the only time the dealership has a chance to really make some money. The best way they can do this is by making consumers focus on payments.

This is where the four-square worksheet and other tools like it come into play. Usually the four squares show their price, the value of the trade, the cash down, and the payment. Here is a normal method of presenting the deal:

The car salesperson walks in and puts the sheet in front of you, facing you. They point to each square as they go over the numbers.

“This is for ours… this is yours… with $3,000 down, your monthly payments would be $789 per month. Initial here and I’ll go get it cleaned up!”

Whoa, whoa, whoa! $789 per month? $3,000 down? What happened to zero down and $249 a month like the advertisement said?

And just like that, they have you. The last two numbers were so outrageous and spoken out loud. The first two we skimmed over and never spoken. You’re ready to leave, but before you can, the salesperson will identify the objection, which will usually be the payment and money down, and try to fix it.

After a few rounds of back and forth, they relent to $500 down and $279 per month, magically making the numbers acceptable for you. Still, at no time did they adjust the top numbers. They simply kept the customer focused on payment and cash down. They won.

The best way to prepare for car shopping and get the best deal is to focus on trade difference – the difference between their car and your car. You can also consider “total financed amount”, which is trade difference plus your trade-in’s payoff.

If you can find an honest car dealer that works strictly with trade difference, such as Oklahoma Town Cars, you’ll have a much more enjoyable experience.

If there are no dealerships like them locally, follow these steps and you’ll avoid getting redirected in the direction the dealership wants you to look:

1) Determine your likely interest rate. Better yet, get pre-approved at your bank, credit union, or other lending institution. The dealership will probably be able to get a better rate, but knowing what the current rates are for your credit situation and for the kind of vehicles you are considering will help dramatically.

2) Determine your monthly budget, desired down payment (if any), and desired term. Find a loan calculator and plug in numbers until you know match your budget. If you know going in that a total finance amount of $15,000 with zero down will be $311 per month for 60 months at 8.9%, you will be able to find the car that fits your budget.

3) Get all the numbers you need ahead of time. If you know how much vehicles you are considering are selling for at local dealerships, and you know how much your trade is probably worth, and you know your exact payoff, you can determine what your target trade difference and amount financed will be.

4) Try to get your trade evaluated first. Many dealerships won’t do it, plus it won’t help you in negotiating (despite other articles that claim the contrary), but it will tell you how much vehicle you can consider at that car lot. Do not make the mistake of trying to find the dealership that offers the most for your trade up front. If your car is worth $5,000, some dealerships will say it is worth $4,000, while others may say it’s worth $8,000. In reality, they are all giving approximately the same, but you’ll find that the dealership giving $8,000 is probably $3k-$4k higher on the price of their vehicles. Again, focus on trade difference.

5) As rough as it is to go to multiple car dealers, it is a good idea. Gather trade differences on similar vehicles, then go back to the dealership with the best one. Then ask them to make it even better. They may or they may not, but it never hurts to ask.

6) Talk payments with the finance manager only, and only after the trade difference is acceptable. If you know that a $15,000 loan will be around $310 per month, there is no reason to argue it with a salesperson who comes with numbers showing the $15,000 loan at $370 per month. They want you to agree to leave a “cushion” for finance to sell you a warranty, bump your rate, or sell some other products. Again, if the trade difference is acceptable, worry about the rest of the numbers with the finance manager.

7) Be strong. Focus on the prize. Do not let anything or anyone distract you from the important number: trade difference. That is the only number you need to negotiate on the floor. Bring a copy of this article if you must, but make sure they know you know what they know. You know?

I hope it helps.

Video Source: Youtube


The Latest Trend in Pos Software is Epos Systems

The Latest Trend in Pos Software is Epos Systems

Electronic point of sale is something that has become quite prevalent in the market in the recent past. The dedicated website for Epos solutions that could be regarded as the pioneer in the trade is just this one in special. You need to first understand the concept of epos systems before placing an order with the company. It is only then you will know on which particular system would be appropriate for your kind of trade and settings. To what extent the set up could ease the functioning as a whole should be compared and analysed with the quote that is obtained from the provider. When you select a particular electronic point of sale system for your business, you could ask the suggestion from the experts in the trade, your own technical back end supporters and the technical crew of the provider company. Knowledge sharing would yield the ideal solutions that are of the ultimate kind. Sophisticated epos software systems have evolved in the present day scenario.

1.There are a range of Epos hardware accessories in the market, still, some of the prevalent ones in the trade are listed below

2.Perfect Cash Draws

3.Pair of Chip and Pin

Digital Customer Displays

Public or private security Keyboards

The Mobile PDA’s in order to integrate the mobile and the Epos

The printers

The notepads and the Tablets

The Weighing Scales and so on, the list continues. If you are in the look out of ideal solutions provider in this segment then the best idea is to stop by here. You are in the ultimate site already. Without even an iota of doubt just go ahead and get it done with them. There are not too many providers with such exceptional skills though.

Understanding the selected systems in the business of POS as well as a general knowledge about the different types of epos systems, would allow you to find the right solutions. It would also ensure that you do not waste money other ways. Unless and until you are not sure about your choice do not go for it. The ultimate objective of the installation is to serve you with an ideal way of dealing with customers more efficiently and quickly as well. All those calculations that are involved in the process of sales, right from the totalling as well as the balance, generation of receipts should all be made easier and rapid as well.

Epos software should ensure that there is no difficulty in inventory control. Also the CRM functions should be taken care in an elegant way. In fact, the bottom line will showcase a significant difference after the installation of such systems for the customer relationship management operations.

Why use the epos systems, is an important question that should be asked several times ahead of the installation. The answer from all the sides should be convincing enough to go for the new installation. Neither from the side of the staff nor from the consumer side there should be any difficulty that is faced. In either of the situation, the objective of the installation could end up as a futile effort. It is why you should seek the guidance and advise of the expert solution providers in the trade for these special value additions to improvise your business prospects. Epos software should be custom made in such a way that it would be a compatible fit.

The Leo Joseph has been written about the EPOS systems and their benefits. He has also added regarding the EPOS software and their types. Overall, for business associates, the content is quite informative and meaningful. Author is a prolific writer and these days, he is employed for Talgara-epos.