Truth About Dealer Advertising

You are bombarded with advertisements on a daily basis from car dealerships. Car companies and dealerships advertise more than almost all businesses. It seems that every dealer is shouting the same message, that they have the best deal in town. It's obviously not possible, someone has to have the best price right?

Let's talk about the different kinds of advertising. There are 3 tiers. Tier 1 is for the brand itself, IE the "buy a Ford" tier. Tier 2 is for the local dealer groups and consists of your Presidents' Day, Memorial Day sales etc. This is typically called the "buy it now" tier. Tier 3 is the individual dealer's advertising and is the "buy a Ford from us" tier.

Each one has different thrusts but the most dangerous one for consumers is the tier 3 advertising as the other two have to be approved by the manufacturer's law team. Tier 3 is your local radio, the dealer's own website, newspaper and similar ads.

The first thing to realize is that all dealers pay the exact same price for their cars. The dealer may suggest that because they are a high volume dealer they buy them cheaper but it is not true. Because of fair trade practice law all dealers, large and small, pay the exact same price. Once you understand this you can see through most of the dealer advertising.

The second thing to realize is that nothing is free. If the dealer is advertising to double your down, extra money for any trade, a free cruise etc, all these things come out of their profit and that reduces your negotiation room.

The last thing to understand is that any dealership can give you the best deal. The employees may have sales incentives put on by their managers that push them to sell a car cheaper, or the unit may be ageing in their inventory which motivates them as well.

The lesson here is not to be suckered in by any advertised deals and shop around to all your local dealers for the car you are looking for. Compare those offers and make your best decision.