Cadillac -- Standard of the World
Just look at these: You can buy a Mercedes.
Go ahead, but you can't beat the quality, luxury,
and most importantly the value and reliability of the Cadillac that GM
crafts today.
Cadillac STS 2005 -- set the new |
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Was available for |
Based on my experience with
a wide variety of cars and trucks,
as you have seen, or will see when you
visit the Numbers page,
I have certain preferences. You
may agree or not, but then,
everybody is entitled to, and has his
/ her own opinion.
Let me digress. I have
always LOVED automobiles, tractors,
trucks, cars and everything about them...
When I grew up in a
rural area of western New York State
I learned to drive the 1954 Ford tractor
we used to farm our
9 acres of vineyard. Then I learned
to drive that big old 1940 Chevy.
That was an experience that would fill
a whole web site. If you know
what I mean when I use the term “double
clutch” you’ll know that it
took a lot of coordination to handle that
piece of machinery.
Then I moved away from
New York and went to college in Virginia.
I had a Plymouth in New York because my
Dad was a personal
friend with the dealer. When I moved
to Virginia I found that Virginia
in the 1970’s was indeed “For Lovers”
of Ford products. At that time,
everybody and anybody had a Ford, or two
(and maybe another vehicle).
So I bought my Mustang
II. It was a truly fun car, but not the
muscle car of the earlier genre Mustang.
But it was good on gas
(24 mpg at the time).
Then I moved to Mississippi.
After almost 2 years in Mississippi
I moved to Illinois. It was in Illinois
that I tried something I would
recommend to every person who loves cars
or trucks. I applied
for and was accepted as a new Chevrolet
truck salesman. My only
reason for leaving that job was that I
didn’t know at the time I should
live within 5 minutes of the dealership
in order to make enough sales
to make enough money… Get the picture?
However, it was in Peoria,
Illinois that I took General Motors
automobile sales training from a Buick
dealer from Chicago.
I spent two days learning how General
Motors intends it’s fine
automobiles to be marketed. I also
learned how Ford approached
the marketing of its fine automobiles.
I also learned how Chrysler
Corporation approached the marketing of
its fine automobiles.
- NOTE: I still believe that cars
are cars (and trucks are
trucks). It really doesn’t matter who builds the vehicle.
It’s the dealership that makes the ultimate difference,
and if a person really “has to have” a certain automobile
– “price is no object.” Where there is a will, there is a way.
- BUT: I am also a firm believer that
certain cars
(and trucks) are highly over-rated and over-priced for
what they actually deliver.
Back to General
Motors… The main sales approach of any
GM-trained sales person is to get to know
the customer
(name, address, phone, interests, favorite
color, etc.) and
using that information to direct the customer
to “touch, feel,
smell, sit on, sit in, caress” the automobile
that meets their
needs and then to inform them that the
“sticker on the window”
is a Manufacturers Suggested Retail Price.
You can get this
sensuous auto for less money than the
“sticker on the window”
suggests. In fact, you can get a
bit more in this car than a
similarly “stickered” Ford or Chrysler
(or any other brand you
care to name) product.
On the other hand, Ford
Motor Company’s main sales
approach is… You want to pay how much?
Okay, but let
me show you how much more you can get
in a car with a
slightly higher “sticker” than what you
are planning to spend,
and I’m sure we can get you into that
vehicle for what you’re
planning to spend. (In other words…
you can get more car
for the “sticker price” of the lightly
equipped Ford in the more
heavily endowed Ford. So if you
have $17,000 to spend,
let’s look at the car not with the $17,000
“sticker” but a car
with say $19,000 “sticker” and we’ll get
you in it for the $17,000.)
On the third hand, Chrysler
Corporation (now Mercedes-Benz
owned) used to have the cars with the
“lowest sticker price” but
sold at that “lowest sticker price” and
did not suggest that they
could “dicker with the sticker”.
[This is the current approach of
Saturn (a GM non-union corporation sub-entity).]
The result was very
confusing to auto buyers of the 1960s,
'70s, and 80's. Those who loved
a challenge would shop Ford
or GM and come away feeling like a “champ”
having “beat the
dealer down”. Those who couldn’t
stomach bartering back and
forth would shop Chrysler Corporation
and know that they could
buy this car (equipped just like the Chevy)
for less money than
the Chevy (not in fact, true). But
at least they didn’t have to ask
for a discounted price!
So you have three approaches
to the same buyers all
resulting in the same approximate profit
to the dealer and the manufacturers.
What about rebates?
Well a rebate is what a dealer
might ordinarily receive for having sold
a car for the
manufacturer; only now a portion of that
money is bringing
the customer into the dealer’s “house”
and goes to the
customer. The idea is that the dealer
DOES make the
difference, and once in “house” the customer
will be
satisfied, and return in three years to
buy another new
vehicle to replace the one that is now
aging.
How does a dealer stay
in business then? Doesn’t he
make his profit only from the difference
of what he pays the
manufacturer and what he sells the car
to the public?
- NO.
A dealer has several
means of making money. Without
going into “floor plan” and “dealer incentive”
and etc.
There are four main ways dealers make
money. The most obvious,
but overlooked one is the Service and
Parts Department(s).
They make marginal profits on every service
performed, and
if they perform well, they can make a
LOT of money servicing
those “deals” they sold.
A dealer also makes
money in the difference between
what he pays “on paper” or the invoice,
and for what he
sells the automobile to the public.
(But remember, he also
gets a “commission” if you will from the
manufacturer for
having sold an automobile within a set
period of time, so
that money is or should be profit, as
well. It is from that
money that the REBATES come, and it is
from that money
that they dealer has actual “room” to
sell “below invoice”.)
A dealer also makes
money through the Financing
arrangements made with local lending institutions,
and
the manufacturer’s finance branches.
A certain percentage
is included to the dealer for handling
the transaction, and a
dealer can further his earnings if he
sells you any of the
following: extended warranty (which
seldom if ever is necessary),
undercoating or rust-proofing, additional
accessories
(from the parts department), credit life
on your financing
(especially if the credit life is handled
“in house”).
A dealer can sell you
“below invoice” any time he so
chooses, without “losing the shirt off
his back”. You just
have to be aware of how he makes his money.
Oh, did I mention that when you trade your car in, the
dealer has two more chances to profit from you?
If you know the
value (wholesale) of your vehicle, and the
value (wholesale or invoice) of the vehicle
you want to purchase,
then what you are “dickering” for in any
transaction is the
difference between those two values.
The smaller the difference,
the smaller the profit your dealer can
make from you directly.
When you get a “HUGE
TRADE IN VALUE” on your old
clunker, consider if you also got a “HUGE
SALE PRICE” to
be financed. In other words, the
figures can be “juggled” if
you will, to make it possible to purchase
a new vehicle with
nothing down but your old clunker (which
may be sold at
auction and not even prepped for resale).
CHECK OUT THE CAR BUYING TIPS on the LINKS page. ** new **
BLACKHORSE
- Ever wonder how some salesmen know the
price of every
used car on the lot without having to ask? Ever wonder
how they can look at the description of a used car window
sticker and spew out the price and always be right?
Some dealers code the prices they want
to ask for the used car
on the used car window sticker in a number
of ways. One of
the easiest and most commonly used is
BLACKHORSE.
Associate B=1, L=2, A=3, C=4, K=5, H=6,
O=7, R=8, S=9, E=0
and you have the magic code.
A used car with an asking price of $15,500
would be
BLACKHORSE coded as
BKKEE (which translates into 15500)
Sometimes the year of the car will be included
around
this code to make it innocuous to the
buyer.
A 1998 for $15,500 might be
1 9 B K K E E 9 8 .
“19” and “98” surrounds the price “BKKEE”.
Other dealers just split the year in reverse
(with the “98”
at the front, and the “19” at the end).
Still other dealers
don’t use BLACKHORSE, and split the year
with the
asking price as all numbers. 191550098
Or 981550019.
Some use BLACKHORSE for the year, and
stick the
asking price in the middle like this:
BS15500SR .
These are often disguised as used car STOCK
numbers in
addition to the VIN, and MODEL, and COLOR.
A blue 1998 Buick Park Avenue for $15,500
might be STOCK
STICKERED like this
- ParkAveBlu
19BKKEE98
So, now when you want to cruise the
used car lot after hours,
or on Sundays without the assistance of
any salesmen, you
may be able to “price” the cars without
pressure. Often times
the "asking price" for a used car is often
about $2000 more
than what the former owner got (wholesale).
Check out the
pricing guides to be sure. Give
the dealer an offer with at least
$500 profit, and you're apt to get a bargain
used car! Provided
it's what you really want. Don't
forget to check the Kelley Blue
Book values and Edmunds appraisals, too!
(Check out the LINKS
page when you finish here.)
- Not all dealers do this however.
Some use the pricing stickers
like a new car might have.
Others still keep hand-written lists with
each salesperson,
copied each day… messy!
How unprofessional some dealerships are.
money, but the dealer’s ultimate goal is to make you a member
of his “house” and a repeat customer. And that’s not bad.
Ever wonder what cars
are worth more money at trade in
time? Well usually a Chrysler Corporation
vehicle only gets
what it was “worth” at a Chrysler Corporation
dealer. I don’t
know why, but I do know it is so.
So if you don’t really get to
know your Chrysler Corporation dealer,
then are you sure you’re
going to be happy with the dealer’s “house”?
It goes for Ford
Motor Company and General Motors and ANY
manufacturer’s dealer.
I am often asked, “What
car should I buy?” To which I
always answer “The one you think you’d
like to drive for
10 years, no questions.” Then if
you’ll ask me what dealership
to buy it from, I’ll tell you a specific
answer.
Why do I like the brands
that I do? Specifically, I like the
brands I drive because of the dealer,
and because of the
characteristics of the handling of the
vehicles. I have driven
a lot of cars and trucks, and some caused
my back to hurt
after just an hour behind the wheel.
Others (like my Cadillac)
could be driven on extended trips for
12 or more hours at a
time, and when I step out from behind
the wheel I feel as
fresh as if I had just headed to the grocer
for a quick trip.
I like the way some
cars look. I like the way some cars ride.
I like the way some cars are convenient
to operate. I like the
ease of entry. I love convertibles
for every reason! I loved the
fact that my Chrysler LeBaron was a convertible,
but I hated
that I spent more in nickel and dime repairs
every month
than the monthly note was.
Finally it was the unreliability of that car that caused me to trade it.
I bought a Saturn because
it was the first year of the new
“jelly bean” shape. I kind of like
that look. I think with the price
of gasoline going higher I'm going to
buy another Saturn after
I'm through with the Century. It's
a BEST BUY in MY BOOK
of BEST BUYS. CLICK
HERE to see what I consider BEST and why!
I’m also a cheap skate.
I don’t want to have to spend every
nickel and spare dime on a car or truck.
I am happy behind the
wheel of a 3-speed manual on the column,
no power anything,
Ford F150 or Chevy W/T that rides great
and has aV8. I am
also happy behind the wheel of my luxury
Buick Century.
I prefer cloth seats, because of any number of reasons.
I would never get white
leather or vinyl interior again, because
if you spill anything, you have to clean
everything to get the car to
look good again. I had that in the
Plymouth Satellite Sebring.
Ycch! It only looks nice when it's
new and clean!
I never keep anything
in my car, except napkins and pens in
the glove box (along with the necessary
identification papers, etc.).
I don’t like a dirty car inside or out.
I wash my car and wax it
regularly, and keep the windows, lights,
and mirrors spotless at all times.
I vacuum out the interior
regularly. I don’t like to eat in my car,
or have passengers who do.
One last thing: advertisement
for automobiles. I live in Virginia.
I commuted for three years to Washington,
D.C. daily to work.
I travel on vacation to Mississippi, Illinois,
New York State, Georgia.
I have yet to travel on a daily basis
(or even just once), on a winding
coastal freeway void of automobiles, or
up some dirt trail to the top
of the Rockies, or along the sand dunes
of a beach, or any winding
road through a verdant lea. What is a
verdant lea anyway?
Why don’t they show
automobiles where we drive them?
(Only a few manufacturers are daring enough
to really show
automobiles how we drive them.)
What’s wrong with extolling
the comforts of air conditioning, CD players,
and plush seats,
riding bumper to bumper at 10 miles per
hour, riding the brakes
during rush hour? Or what about
driving at 70 mph with 3
lanes of parallel traffic and no room
to change lanes? Or in
family neighborhoods at 20 mph with children
darting out in
front of you all the time?
Ford does a good job
of advertising realistically. GM does
a good job of advertising realistically.
Most of the other
manufacturers do “image” advertising that
does not do a good
job of advertising realistically, and
in fact “turn me off” especially w
hen these are the “luxury car wannabes”
that are doing the advertising.
OFF ROAD? Forget
it. If I truly had to drive off road, or in
Colorado where a majority of roads are
gravel, and meant to
be that way, I’d drive a Subaru (probably
the Outback). But
neither am I particularly impressed by
the Subaru styling.
If they were not all-wheel drive and practical
cars I don’t see
how they could sell any of them.
Now, as to Mercedes...
One name, dozens of cheaply built
cars parading as luxury.... The
truly luxurious Mercedes are
beyond the realms of financial viability
of the average “Joe”.
In other words, why spend $30 on a piece
of Mercedes that
could have been named Corolla? I
could buy a plain (Toyota)
Corolla with as many features for half
the price and I’d have a
better-built car.
Seriously! Nobody
who is frugal with his or her money spends
more than $45K on a luxury vehicle that
will be replaced in 5 to 6
years. People who spend big bucks
on Mercedes (and Lexus a
nd Infiniti) for the “image” could just
throw me a few thousand
dollars a year and I’d be “impressed”.
I drive a Buick now,
because it is a frugal luxury vehicle. And I
personally think it is good looking, too!
I don’t care what others think.
I know it’s a luxury car, but it doesn’t
have “wipers” on the headlights.
They’re about as useful as “deer whistles”
on the bumpers of cars I’ve
seen, and equally effective. However,
I think they cost a bit more.
And as far as I know they work equally
well at keeping deer away,
as the whistles do at keeping the headlights
clear. If you can’t see
well at dusk, then buy a Cadillac with
the “night vision” system.
I thank you for suffering
through this little experiences page.
If you wish to write me, I will be glad
to answer.
Thanks!
G R Damoth
WANT MORE CAR BUYING TIPS based on an entire
web site
devoted to these things? CLICK
THIS!
