If You Know Their Rules ...
You Can Play Their Games

3. Understanding How a Dealership Operates
In business, in life, and W the car business, good negotiators like to yet into the heads" of their opponents and learn as much as they can about how they operate, how they do business, and how they plot their negotiation strategies. In this segment we're going to show you the world from the dealership's perspective in the belief that the more you :~now about the car business, the more prepared you'll be to deal with - heir tactics.

ldentifying the Enemy
They have identified the enemy and he or she is you. " (Or at least one of the enemies.) From a car dealer's perspective (and fortunately :.is not universally true) there are two kinds of enemies:

Enemy #1. Those customers who have taken the time to do their network, who refuse to accept less than the true wholesale value for their trade-in, and have established a budget beyond which they will not go. These people are also the type who maintain a pleasant, even attitude-no sign of anger or malice in these folks-and they make it clear they are prepared to walk out and shop another dealer if they don't get what they want.

Floor Planning
The manufacturer sells its vehicles to dealers at set invoice prices. But since most dealers don't have the kind of money it would take to buy and hold a full inventory, they enlist the help of their bank or other financial institution. This is called "floor planning."

Salespeople will, in private, also reveal their feelings about customers with the expression: "Buyers are liars." In truth, sometimes they are. As you learn, there are times when a white lie-or at least an avoidance of the truth-works very much to your advantage.

Enemy #2. Any and every competitive dealership. Most salespeople are firmly convinced that a competitive dealership will all but "give away their vehicles" if that's what it takes to "steal" a customer. Make note: This very real and often fierce competitiveness is one of your best weapons.