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What The Dealers Won't Tell You

May 16, 2008
There are two things car dealers would like for you not to know. The first is how they are evaluated and the second is how they are rewarded. The evaluation process is based upon their sales goals. The dealership is given annual sales goals to meet and they are on a monthly, quarterly and annual basis. The number of sales set forth in these goals will ultimately effect the dealer and make a difference on the price you are quoted for a new car.

This is very important to keep in mind, when looking for a dealership. At the end of each month there are some dealers still trying to meet their goals, while others have already reached or even gone past them. Research on reputable Internet sites like http://Edmunds.com and http://Automotive.com will give you a better perspective about which dealers are trying to meet their sales goals, and will most likely sell you at car at or below the invoice price.

The Customer Satisfaction Index is another factor involved in evaluations. The CSI ratings are taken from surveys sent out after a car has been purchased. One company that surveys customer's opinions is J.D. Power and Associates. They typically send out a questionnaire or contact you over the phone, taking information that will help shape the direction of car dealer's future business.

The opinions towards the car buying experience and dealership overall are very important. Be aware when dealing with salespeople, some might try and influence your answers on this survey. Keep this in the back of your mind when you are negotiating your new auto purchase. Consider taking the time to complete this survey. You will have an effect on the Customer Satisfaction Index, and ratings toward dealerships.

Dealers will be rewarded based up their performance on these surveys, their CSI ratings and if they reached their sales goals. The results of the CSI ratings can have a big impact on the car dealership. This will determine any incentives paid to the dealers, if the dealers are invited to car auctions and if the dealership is able to expand their business. If a dealership scores low in its evaluations it will be very costly in the long run.

A big source of income for dealerships is car auctions. By obtaining cars at cheap prices they are able to sell them for a profitable amount. It can work against them though, if they depend too much on auctions and shift their focus off selling new cars that will ultimately hurt their sales goals. Dealers will receive rewards from manufacturers when their sales goals are met. The dealer would like to reach their goals, and then some every month. It will not only benefit themselves, but their dealership. And if you do your research and choose a dealer who is ahead for the month, it will ultimately help you.

Through manufacturer-to-dealer incentives dealers might receive as much as $100,000. These incentives are not usually made known to the public, but through internet research you might be able to find out what some dealers receive. Dealers would like to keep this information to themselves as best as possible.
About the Author
Christina Costa, a freelance automotive writer, recommends Equotegrabber where you can get an automotive quote online in seconds! Visit Equotegrabber.com
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