At times I get so annoyed with information that is available to the public that I want to shout.  I came across an article that really struck a nerve.  Published on the Canadian Driver website, http://www.canadiandriver.com/articles/negotiatetowin.htm, this article makes auto dealerships sound like complete gluttens waiting to pounce on their customers like prey.  Admitedly, automotive dealerships are like any other business, they are there to produce a profit.  Thank goodness, or none of us would have a job, no ability to feed our families, pay our rent or mortgage, no disposable income to spend at the neighborhood restaurants or community centers.  The list could go on forever, I think you get my point.   What further disturbs me is that the author of this article is American.  No disrespect to our fellow North American folks, I have great friends and colleagues that are American.  The truth is though, business practises in the United States are different in some respects than Canada.  I am confident of that by some comments contained in this "Advice" to consumers article.  For example, the author describes that if the dealership arranges your financing it gets a ... "hefty referral fee from the bank making the loan"...  In today's market it is a rare occassion that our referral fees are "hefty".  In fact, with the subvened interest rates available, I don't know about any of you, but typically I don't see any bank reserve for those deals.  There are always two sides to every coin.  It would be nice if the entire story was told rather than just the dark tale. 

There are other comments in this article that I believe to be incorrect but I don't intend to rain on your parade all day.  I will say though, expecting to run a dealership on $300 to $500 profit per vehicle would leave a very lean business and it's unlikely that the dealership will be around the next time that customer is in the market for a car.  Quoted from the article, "Your goal is to pay from (U.S.)$300 to $500 above dealer cost, inclusive of everything but sales tax and vehicle registration fees. The only exceptions to this "$300 to $500 over" goal are top-end luxury vehicles (on which you can expect to pay as much as $1,000 over) and high-demand "hot" models."  I wonder, if the shoe were on the foot of the author, would he invest in a business that generated .9% to 1.5% profit on the main product they sell?!  (Average vehicle price is $32,210 as provided by Statistics Canada 2005).

This article is a little dated, October 2005.  It just reminds us that these messages are on the internet for our customers to read.  This article may be offensive to you but knowledge is a powerful tool.  Knowing why some people may approach you with their brakes on from get-go helps us to remember that their resistance is not personal, they are simply acting from a narrow scope of information.


Quotes taken from Canada's Online Auto Magazine, Canadian Driver, "Advice:  How to lower the cost of your next new vehicle purchase" by Jim Thomas, October 4, 2005