So, let's assume that the Used Car Manager (UCM) on staff is sharp and knows the business flow. He still has (about half) of his inventory in the 30-60 day old status. Obviously, the closer to 30 days old, the higher the asking price and the closer to the 60 days old mark, the lower the asking price. Logical. However, the 30-60 day old units can be had as a pack deal unless the car has something "special" about it. No one may be able to put their finger on it but when you look at it sitting there, you say "that's a nice car". Maybe the color, maybe the paint is just extra special in the right sunlight, etc. Nothing specific but it has "something about it". I know that, many times, if a Used Car Manager worked at a different brand when he cut his teeth and he is partial to their inventory. I cut my teeth at a very large Chevy dealer and, for some reason, I liked the Chevy trucks more than the Ford truck and priced them a little different. Even when I worked at a Ford dealer, I still over valued Chevy trucks.
So, if you know a car has been on the lot +30 days, it's time to make a move (if a pack deal works for you). However, with few exceptions, no one really knows what pack is on a particular car. You can't look it up on the 'net. Very few non-managers at the dealer have access to the numbers. So, how do we know just what the pack number is? You don't. Pack deal or full retail deal, fair market value is what that vehicle is worth. It is only worth what someone will pay for it. If it's +30 days old, the UCM feels his fair market value was too high and he adjusts his sights.
Let' talk about this. Let's say that you are in the market for a nice, used truck. Not the $60,000 type but a truck that you can love AND afford.
You drive by a Chevy dealer every day on your way to work and one day a truck appears that you never saw before (one reason they move the lot around 1x to 2x a week). It looks like something you may be interested in but you are in no hurry because your old work horse is still running just fine. It has been used and abused and looks like it and you know that the trade value is going to be nothing (and you are right). So, when the right truck comes along, you will see if it works. You decide to stop by on your way home from work.
You hit the dealer on the way home and thru the usual chit chat the salesman finds out that you are looking for a nice, used truck in the $12,000 to $15,000 range. You are not in any hurry (good for you, bad for the salesman) and that you know your way around trucks. You also allow him to see that you know the going rates for various trucks since you've been "shopping" for about 3 months. Ok, table set. The salesman knows that you aren't a "laydown" (term used to describe a buyer who will put up little to no resistance and "lays down" for a good sales pitch).
The salesman asks that if the right deal was made would you buy today. (Usual question and very important). If you say it's a good bet, he'll get serious. If you say no, that you are still a month away, he changes his posture to be more informational and less pushy (a good salesman) or he'll get an attitude and basically brush you off (a bad sales man or a slimy star looking for a deal right now). If the good salesman treats you right, you could come back when you are ready and see him. Many studies have shown that 80% of car buyers decide on that specific car because they liked the salesman. Price is second. Go figure!
Since you said it's a good chance, the salesman take you to test drive it. Before you get in, you ask the selling price. The salesman says that he believes the asking price is $16,995 but needs to check with the UCM to be sure. "Ok", you think, "we're close enough to take a test drive". SO, you drive it and see that it is a nice truck, basically what you need and want. The miles are higher than you expected (it looks very nice) but the salesman assures you that they are all highway miles (like he really knows, right?). Nothing says "WoW' about it but that's what you want. You don't want to pay for "WoW", you want a nice, clean, reliable truck for your needs. So you feel it's worth talking about (knowing it starts a process but you have time).
So far the salesman has been fine. No pressure or sliminess. Not offensive. He knows you were not in a hurry and just want a good deal. He relays this to the manager; he'll buy today if the price is right or else he will just move on. He's not a rookie buyer or a laydown. No BS, let's see where he stands. Ok, the UCM opens the deal up at the $16,995 the salesman quoted. Pack is $13,500 but the salesman does not know this nor do you (obviously). So the deal is opened at MSRP and he tells the salesman to find out where this buyer's figure is to see how far apart we are. SO, the salesman sits down and says that we understand that he is shopping but will buy at the right price and you will leave if a deal isn't made with no hard feelings.
Great, we all are on the same page. The manager wants to know what that price is that will make a deal today, right now.
So you know how this works and you give him a low figure to see where they are at. The games begin but this seems like it will end soon, one way or another. So, why not low ball them. You tel him you will buy it right now for $12,000+++. The salesman writes it down but says that they don't mark up their trucks $5,000 (but they do, sometimes), but he will take it to the UCM but doubts there is a deal here. Ok, he goes to the UCM who sees the offer and says that the salesman told him he was a serious buyer and this number is a stroke job. So he counters with his best price to either sell this truck or to move on. So, the UCM writes down $15,000+++ (he knows pack is $13,500 but it's <30 days old so he is holding out for more).
So, the salesman returns and tells you that the offer he made was rejected and wasn't even close. The UCM says his best price is $15,000 and not a penny less. You jump up and tell him that we aren't close but you are prepared to go $13,000+++. The salesman goes back and the manager tells the salesman to thank him and to give him his card but no deal. So, the salesman comes back with the news and hands you his card. On the way out he asks you if there is a number that could work if he works on the UCM. You tell him that $13,500 is your best price and to call if you can get to that number, otherwise, do not call. You are ok with all that went down and liked the salesman. Sometimes a deal can't be made.
No hard feelings on either end. That's the car business, after all.
Ok, the purpose of this exercise is to show how a UCM will turn down a pack deal if the unit is <30 days in stock. Fast forward a month later and as you drive by the dealer every day going to work, you see the truck is still there. You know it's more than you are willing to pay because of the miles but you did like the truck. Maybe another visit to see your salesman? Nah, you say, he has your number and price. Too rich for your blood.
So, this car hits the 31-60 day old mark and you, as the salesman, know that they move some more on these units. It's still only 36 days old but the UCM now has different eyes on his inventory. Time to sell these units. As the salesman walks the lot (as he should do every day) to see what's new and to check for low tires and missing Buyer's Guides (AS IS-NO WARRANTY signs required by law), he sees that truck and remembers you.
A good salesman keeps the old worksheets with your name and number on it and the prices you discussed. The number $13,500+++ is circled as your last offer.
The UCM calls a brief meeting to give a rah-rah speech. He tells ever salesman there to pull out their old, unsold deals and to call every one to see if they are still in the market. Tell them we have a huge sale coming up (may or may not be true) and that we are dealing! So, you contact the truck buyer (you) and he tells you that they have a big clearance sale coming up and that you are confident that you can buy your truck for close to your latest offer. You, knowing they let you walk at $13,500 but really don't want to spend any more, tell the salesman that you are pretty firm on the $13,500 and to not waste your time. The salesman tells you that this is going to be a good sale and it will be worth the time it takes for the manager to say yes or no if you are at the store, not over the phone. Story policy is that we don't negotiate over the phone (a very real policy and smart business (pre-internet payments and deposits).
So, you are still looking and have some time to kill. So far, the salesman has treated you right and the experience has been OK so you agree to stop by after work. So, the salesman has a porter pull the car from the line, wash the road dust off, wipe down the dash with some Armor All, shines the wheels and parks it by the front door. He's trying to entice you, as you know. So you walk in, exchange pleasantries and tell him you haven't changed your mind, The price was, and still is, $13,500++. The salesman asks if you will buy it today at this price and you (reluctantly) say yes.
The salesman starts a new worksheet with $13,500+++ written and circled with the note "Will buy today at this price". He runs up to the manager with the new and old worksheet to remind the manager that you were there before and how it went (you walked). He reminds the UCM of the meeting to get "be-backs" back in to make deals and here he is, ready to buy, (A be-back is someone who was there before who said he would "be-back" later). You tell the UCM that he has one chance to make this deal. So, the UCM sees that your offer is at pack (a coincidence on your part) but he always wants more so he writes $13,995+++ and writes "Today Only".
...(con't)..