Everybody wants to have the best month possible, so if you're ready to buy at the end of the month...they probably will deal a bit more than normal. However, that all depends on the vehicle. Sales incentives from the factory or dealer can happen at any time, and that is a great thing to know when you are about to buy....

 

I'm not "certain" but it could be...if it is true then I would agree.

 

There is no quota that they have to meet. Rather, they have incentives. At the dealership I work at, it depends on how many cars you sell. At the end of every month, they tally all of your deals and will give you a bonus depending on your productivity. Basically the first bonus is given at 8 cars sold, then 12, then 16. They can earn over $1000 in bonuses on top of commission when they sell large amounts of cars in a month.

 

I see.. well do you know if its like that for every dealership or just yours?

 

All dealerships have different pay plans for salesmen, but it really depends on the dealership. High volume dealerships will do the same deal at the beginning of the month that they would do at the end of the month.

 

Our dealership which is top 3 in the state will do the same deal first middle end of the month doesn't matter. When you are trying to sell 350-400 cars a month(CO) you can't really pass on to many.

 

When I had put in my deposit for the FIT, my dealer had told me that when Honda distributes their cars to the dealership, the dealership is responsible for a small percentage of the total cost for the car (15-20%). If the car is not sold within 30-60 days, the dealer becomes responsible for the full amount of the car. That is why they push so hard to sell their cars, otherwise it becomes theirs at full cost. The holdback cash that everyone hears about is when Honda is trying to move out a quota of cars per month and therefore allows the dealership a certain amount of money to play with. Whatever the savings passed on to the customer, Honda refunds the dealership on the holdback money for moving inventory.

 

When I was looking for my car the salesman said.. "we aren't getting alot of these Fit's neither is anybody else because Honda is giving them out as like a prize for selling a certine amount of cars for the last year..." They suppsodly got only 4 Fits.. but I doubt that.

 

there is no quotes you have to meet. but if you suck for 3-4 month straight and dont sell anything, you'll get fired.

going in at the end of the month is just a myth. you get the same deal in the beginning of the month as you get at end of the month.

 

The dealership I was working with didn't give me a good deal on my trade in at first. They called me two days before the end of the month with a better trade in amount and a lower interest rate to get the car out the door before end of month. Unfortunately it's harder to use this information with the Fits, because they're running off the lots as soon as they come in. I got lucky, for sure.

 

Is it true? Well, kind of. At my dealership, salesmen are paid additional bonuses after they sell 13 cars. Most dealerships pay some kind of incentive on units moved. I've found that the salesman's "Quota" is generally irrelevent. Most of the time, it's the salesmanager that writes the deals and gives value on the trade in, not the salesman. Now the sales manager is paid a large bonus on units moved and if you happen upon a manager who's 10 or 15 units away from bonus on the 27th of the month, he may write some "net/net" (Net on the car / Net on the trade")deals. IT does depend a lot on the dealership and also alot on the area. In my area, there are 6 Honda dealerships within 30 miles, so we like to stay well ahead of them on units sold. Sometimes, that leads to better deals.

My observations....
PAHD

 

really which dealership did you goto?