We had a caller on the nationally syndicated Car Pro Show this Saturday who told me he wanted to purchase a factory certified 2016 Chevy Tahoe, and wanted my advice on which one to purchase. My answer was “get a new 2017, it will probably be cheaper”. I could tell by his pause he doubted my answer, and I am sure many of you reading this may be, too.
I have written on this before, but today the problem is even worse because of the two recent hurricanes we had in Texas and Florida. Dealers are sending their buyers to auctions all over America with instructions to pay whatever it takes to be high bidder.
Even before the current car shortage, for this to make any sense to you, you really have to understand the structure of a new car dealership. In most metropolitan dealerships, you have an Owner, a General Manager (although some owners serve both positions), a General Sales Manager, new car sales manager(s), used car sales manager(s), and a finance director with finance managers under him or her. Today, most dealerships have an Internet manager to watch over incoming leads, and then there are other department heads for parts, service, and body shop.
In most dealerships, the used car department is separate from the new car department, and each has dedicated salespeople. In many dealerships, the used car department is not even on the same property as the new car showroom. Usually, they are nearby, perhaps down the road or across the street or highway, but rarely do the new and used car departments share space and have salespeople who sell both new and used cars.
In early January of each year, every department head in a dealership must present to the Owner/General Manager a month-by-month…