Decoding the dealers pricing scheme
#1
Decoding the dealers pricing scheme
All of us have seen pricing on used cars of all types that will end in 88 (i.e. $15,788). There are other pricing schemes that are used to price used cars so that the salesman/sales manager knows just by looking at the posted price that the price has $1500, $2000, etc. wiggle room in the price.
Is there anyone out there that knows what this scheme is and what the code is for different pricing? Joe Blow walks on the lot and sees $15,788 and may think he is getting a deal when he gets it for $15,200 when, in fact, he could have gotten the car for $14,000. There are other numbers that tell different stories but I used the above for an example.
I hope I have made this understandable as I know that this pricing game exists.
A current or former car salesman's input on this would be most helpful.
Is there anyone out there that knows what this scheme is and what the code is for different pricing? Joe Blow walks on the lot and sees $15,788 and may think he is getting a deal when he gets it for $15,200 when, in fact, he could have gotten the car for $14,000. There are other numbers that tell different stories but I used the above for an example.
I hope I have made this understandable as I know that this pricing game exists.
A current or former car salesman's input on this would be most helpful.
#5
i know that dealers have this thing called 4 square. i'm not totally clear on how it works, but i know thats the basis for their negotiation
What I was referring to is what you actually see on a car lot. As you walk amongst the acres of cars you see different prices on the window, on the sticker, etc. and each one of the prices ends in a number that is code for how much they can afford to come off of the price and still make a buck. The last digits ending in 88 (i.e. $21,488) means one thing whereas 95 (i.e. $15,995) means something else. It is all internal code and someone who has worked in the business is bound to know what this is.
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08-09-2012 04:06 PM