Sales Techniques Used On Me At Local Car Dealership

18 replies
I don't get much interaction with sales people, so whenever I have the opportunity, I love to engage myself in the process to see what techniques they employ.

And this weekend I was in need of a van, as my van rental was due back this week Thursday.

So, in brief, here's some of the sales techniques and processes they used on me:

a) This particular dealership uses a "no-haggle," upfront pricing approach. Pfft -- like I believe that load of malarchy.

b) The salesman was pretty good in my estimation. He used my first name when addressing me; he took control by telling me where to go, where to sit, what to look at. Basic sales control stuff.

c) I missed it originally, but he pre-qualified me pretty well up-front. He asked me where I worked and how long. I realized later that financing ability weighs differently for length of employment, as well as self-employment. If I didn't have a job for long, or only been in my self-employment situation for several months, I imagine he might have started to get rid of me.

d) He wanted to get commitment on what I wanted my payments to be at. I know enough about financing that giving that information up front is leverage against me, so I snaked around that one.

e) When we were test-driving the car, he was asking me why we wanted the van versus the SUV. I had told him it was up to my wife, who was at home tending to the twins. He said, "Let's drive over and show her the van!" Of course, not wanting any leverage, I told him no, in so many words.

f) Once we went inside, he offered his initial price, and asked to sign off on it. Apparently they separate the financing side versus the sales side. Don't know how much water it holds, but they wanted me to sign off on the price of the vehicle, all before getting pricing on warranties. I told him I wasn't prepared to sign anything without all the pricing. So he sent me back on to Financing.

g) Financing presented the warranties tied into the monthly price, not separately. They gave me the monthly figure, and I told him I was firm on a certain loan length, and asked for a $100/month cut. Financing immediately dropped the warranties I selected dramatically, literally $2000 to $3000 what they originally showed me, just by asking for a lower monthly rate to close the deal.

h) Once they lowered the price and couldn't meet my budget, I told them I'd guess I'd think about it, but then they called in the Financing Manager to salvage the deal. He claimed he couldn't lower anything else more (warranty-wise), and I suggested he cut the price of the vehicle. He called in the salesman, asked for adding a few months to the term. I gave him the silent treatment to see if he'd speak before me (about 90 to 120 seconds of silence). I spoke first and offered a slightly higher amount. Then the sales manager came in, and at that point, I gave in a met somewhere in the middle.

They did a pretty good job over regarding sales techniques. I feel like I did a decent job getting the numbers down, although I wish I would have stuck it to them a little more to work the sales price on the van down a bit more.
#car #dealership #local #sales #techniques
  • Interesting. It's fun to car shop and go through the whole gauntlet, although it can be exhausting.

    I love all their techniques, like "initial the price," and the semi-puppy dog close he tried with your family.

    Years ago, before widespread wi-fi, mobile devices and when internet shopping wasn't an everyday thing, I remember one sales guy got mad when I pulled out my laptop to compare his prices with other dealers. He literally yelled out to the showroom with disdain, "See that! He's on the internet!", like I stole some stuff from the parts department or something.

    Little did they know what was coming technology wise.

    Another time I waited until the last minute of the last day of the month and made a lowball offer. Most of the staff had left. It was the sales manager, one assistant and me. He started yelling like I was insane. I probably was.

    Good times.
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    • Profile picture of the author Claude Whitacre
      I've talked to one good car salesman my entire life. I walked in to buy a $7,000 new car (this was in the early 1980s). I said "Knock off $500, and I'll take it".

      He said "No. We make about $1,000 on the car. I have to pay the salesman, overhead, and I want to make a profit".

      I said "Good answer", and I wrote the check.

      I watch sales training tapes from different industries. Every sales trainer I ever watched in the automobile business talked like a Las Vegas hustler, and dressed like he was in the Mob.

      And every car salesman, I've ever talked to (except the one above) followed the same script. It's painful.

      I know here are great salespeople in the car business. I've just never seen one. (the above example, was an example of refreshing honesty, not sales technique)

      When was the last time a car salesman actually sold a car? Meaning they made you want that car so badly, that they were relieved when they found out they could buy it? I mean salivating......

      No. Load up on fake charges for warranties...and then shave until the buyer says "OK". How depressing.

      The last time we bought a car, saw the PT Cruiser (I know, I know) in an ad. It was a loss leader at a local dealer. We walked in and asked to see the car. My wife said (It was for her) "OK, we'll take it".

      We had to pick it up the next day (something about prepping). And I looked at her, as we drove away..and said "You know, if that salesman had any skill at all, we would have spent several thousand dollars more on a higher end model. Oh well".
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  • Profile picture of the author Aaron Doud
    Claude that is because most sales people in the car world have been taught two things. Both of which hurt their ability to sell.

    1.Price Sells:
    Rather it be price, payment, or etc they always focus on price. They are taught to get off price by moving to payments. To which I have to point out.... ummm payment is a price. So even those trainers who promote getting off of price often just use a different price number. Hell all their advertising tells them people only buy for price. So why wouldn't they sell based on price, payment, or etc?

    Sure some people will tell you to sell Value but they don't even know what Value is. In fact you can sell 10 cars in a day and it's likely all 10 of those people would give you different answers to why they bought. Because Value is very subjective.

    If you never find out what that prospect values you can never build Value.
    And the truth is for most clients Value has absolutely nothing to do with the price they pay. Consciously they may think it does but deep down it had nothing to do with price.

    Which is why any kind of price negotiation is pointless for the vast majority of people. Yet how often when you buy a car do you spend a long time (if not the majority of your time) negotiating price?

    2. ABC: Always Be Closing: Sales in general have this problem. Which is simply that people think Closing is Selling. It's not. Closing is merely a step in the sales process. One that if you know how to sell well becomes little more than a formality.

    ABC in my mind is ABA, Always Be Annoying. Closing too often and too soon is pointless. Closing is the stage in sales most about YOU, the sales professional. Closing is how you get paid.

    Think your prospect cares about you? Cares about how you get paid? Cares when you get paid? Of course not!

    Spend more time focusing on the prospect and you will find out what he wants and values. Once you do that it is easy to create a Presentation that is full of Value for the customer. Once he truly wants the car the closing is a formality. In fact if it wasn't for the bad name that car salesman have the customer likely wouldn't even negotiate on price. All they would ask is "what can you do on this?" Then once you brought back the price they would be done.

    Sound like BS? I never tracked it (wish I had) but I would say 60% of my in person sales here at the RV dealership closed just like that. And I'd say another 20% closed with one back and forth. IE they countered and my boss took it or countered back and they took it. That includes counters that were the original offer from my boss again. Aka we held. The last 10% I normally would just bring the boss in and remove me as the "middle man".

    I can't think of a closing that took more than 10 to 20 minutes. I know there had to be some but for me if it took much longer than that it simply wasn't going to close. The guy just wanted to have an excuse to walk away.
    • "They wouldn't deal with me." (Sorry were wouldn't keep lowing our price and held at our number.)
    • "They let me walk over $500." (You walked over $500. No harm no foul but that was your choice not ours.)
    • "Blank gave me more for my trade." (And you only paid $1,500 more after trade. Sorry we didn't mark ours up to MSRP so you felt better about your trade allowance. And yes I have had people literally pay more because the only number that mattered to them was the trade number.)
    • "They wouldn't match Blank's price." (Sorry I wouldn't match a price for a lower priced model with less features. Or I'm sorry you spent $700 in gas and 2 days of your times to buy theirs for $1,000 less.)
    They want to pretend it was logical but they really just didn't want to buy. It was the wrong unit, I was the wrong salesperson, or we were the wrong dealership. Again no harm no foul.



    Some of my best customers didn't buy from me the first time. We simply didn't have what they wanted and I cared enough about them to be honest with them about that. Yet when it came time to buy their next unit they came to me first, not the guy who sold them. I even had one customer who every time I saw them they always would apologize for it despite me telling them it was fine.


    Customers have long term value and you can often still earn their long term business by helping them buy the right product even if it is something you don't sell. People remember great sales people often because it's so rare to find a truly great sales person who cares about you not themselves. And once you find one you buy from them again and again.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by Aaron Doud View Post

      Sound like BS? I never tracked it (wish I had) but I would say 60% of my in person sales here at the RV dealership closed just like that. And I'd say another 20% closed with one back and forth. IE they countered and my boss took it or countered back and they took it. That includes counters that were the original offer from my boss again. Aka we held. The last 10% I normally would just bring the boss in and remove me as the "middle man".
      Aaron; Very similar numbers with me. The vast majority close without one objection, and the rest give one (usually token) objection.

      Years ago, I would give a quick demonstration, and then close, close, close. Sometimes for a few hours. It wore them out and it wore me out.

      At a seminar I was giving, I asked the audience to think of something very expensive..that they really wanted...a car...a new home..

      And I said "How many closes did it take?" Nearly everyone said "None" or "One".

      Of course, in buying cars, the customer has been trained to negotiate, and been conditioned to think the salesman is evil. Have you ever seen a movie where the car salesman is a nice caring guy that gives great service? No.

      By the way, it's the same in vacuum cleaner sales. Every trainer I've ever seen (in home sales) is the same guy. They talk like a hustler, dress like they are in the Mob, and close, close, close.....

      Everything that fights human nature, and how people want to buy.

      Sad.

      By the way, I hope you know, I didn't mean any offence. I knew you were in that business, and I knew you weren't average.

      Claude "Sucking up to Aaron" Whitacre
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  • Profile picture of the author Aaron Doud
    It's ok I have never technically sold cars just RVs and the occasional truck or boat here. I actually applied years ago at a car dealer and the manager told a friend he didn't think I was driven enough by money to sell and didn't hire me. Wasn't till years later that friend told me what happened.

    All because he asked me, "How much do you want to make?" and I answered honestly with, "I need to make at least $30k." He thought that meant I aimed low. He also never asked me about my love of cars. I didn't drive the Vette that day so he didn't know I needed to make $30k just to pay my bills. I merely meant I can't take this job if I can not quickly get to $30k.

    Oh well I would have hated the hours and quite anyways. But it kept me out of truly selling (vs managing) for over 5 years. As I assumed they paid so little commission that $30k was too much and he didn't hire me for that reason. I was young and didn't know what car guys made.

    Jobs paying too little is very common in Retail Management (my experience at that point). I've actually had hiring managers faces change as soon as they knew what I was making at my current job. One even ended the interview at that point and admitted I made more than he did and he knew that his company wasn't the right fit for me. Another started asking me about my current job and how I liked it. Clearly seeing if it would be worth him applying there.
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  • Profile picture of the author ronrule
    I've found the tactics used by auto dealers aren't really relevant to most other types of businesses because the majority of auto buyers are shopping by payment instead of price.

    The #1 way to throw them off their game is to be a cash buyer, it breaks the whole process down to two numbers: the price of the car, and the value of your trade.

    When you take away the ability to bury extra charges, unnecessary extended warranties, etc. into the financing the numbers are plain as day. If you can't afford to pay cash, work out your financing with your own bank before you go to the first dealer.

    I've often wondered if a similar model could be applied to web work ... instead of charging $10,000 for a website, charge $300 per month including hosting (allowing you to repo the site if they stop paying). You could even come up with a "trade in value" of their existing site based on what graphics and text you can use.
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    • Profile picture of the author Aaron Doud
      Originally Posted by ronrule View Post

      I've found the tactics used by auto dealers aren't really relevant to most other types of businesses because the majority of auto buyers are shopping by payment instead of price.

      The #1 way to throw them off their game is to be a cash buyer, it breaks the whole process down to two numbers: the price of the car, and the value of your trade.
      May throw them off their game but you will pay more for the car. Never ever admit you are a cash buyer till you get the lowest price. If they think they will make money on financing and warranties they are more likely to sell the car cheaper.

      The dealerships where that would not be true would overcharge you no matter what as they haven't moved on from the old days of every department for themselves. In which case the manager and the sales person only care about the gross they can make. These are the places that hold onto a car for 120 days or more and often will raise prices because the costs have gone up vs. selling it for a loss.

      A related note: Don't tell me "I'm not going to buy today" or "The pencil better be sharp" or etc. All those tell me is giving you the best price off the bat isn't in my best interest so I will always aim high to start. And in my experience the harder you negotiate the more you pay as the only person going to bat for you is the sales person. Once you lose him all he wants is to maximize his time and since most get paid off gross he wants to hold gross or make you walk so he can get to the next (and better) prospect.

      EDIT: I honestly think the "cash buyer" myth was started by people in the car industry. The only person who can benefit from knowing you are not financing is the dealer who can make sure to not go to low on the car in hopes of getting the back end.

      Remember in most transactions the back end is much more profitable than the front end.
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      • Profile picture of the author ronrule
        Originally Posted by Aaron Doud View Post

        May throw them off their game but you will pay more for the car. Never ever admit you are a cash buyer till you get the lowest price. If they think they will make money on financing and warranties they are more likely to sell the car cheaper.
        I always thought that would be the case, but it never seemed to pan out in practice. Then again I'm pretty direct so maybe it was me When I've tried it that way they would usually back down off the price and refuse the sale - one even told me that was exactly why, that they could offer that price because the dealership got a commission from the bank, and if that was off the table they couldn't do it.

        The other trick I would try would be to make them come up with a trade value before I told them what I was buying - if they won't do it, I know they're playing a numbers game and pick out a car that's more expensive than what I actually plan on buying. Sometimes that would work, but just as often they would back off the trade value, acting as though they were "doing me a favor" because of the tax differences regarding trade equity, but can't do it if I'm getting a lower priced vehicle. Can't fault em for trying though.

        I've had more luck just walking in with a target number (having done my homework in advance) and see if they'll accept it - "If we can make this work, I'll write you a check and be on my way, if not I'll see if XXX up the road will." It puts the decision back on them whether they want to make less money, move some inventory, gain a customer and the future revenue of warranty/recall/TSB work that comes with the territory, or make zero. When they know I can get the exact same car up the road they'd rather have the customer - I've bought 3 Jeeps from the same dealer this way. I can't say with 100% certainty that I got the best deal possible but I paid what I wanted and they got a customer, so I'm OK with it. Although I'll admit this same strategy doesn't work at all on Corvettes or other high-end cars - not sure if that's manufacturer price controls, or just because they know the buyers are out there and hold out, but I'm on my 5th vette and have never gotten the price I wanted
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    • Profile picture of the author Claude Whitacre
      Originally Posted by ronrule View Post

      I've often wondered if a similar model could be applied to web work ... instead of charging $10,000 for a website, charge $300 per month including hosting (allowing you to repo the site if they stop paying). You could even come up with a "trade in value" of their existing site based on what graphics and text you can use.
      Ron; I finance for 12 months for $699 a month, and if they stop paying (only happened once) I turn everything off, and delete everything I've posted. That's the threat, anyway....I would probably leave most of the work alone, because it's too much effort to go to all the accounts and delete everything.

      But the client knows they can't just stop paying, and everything will stay.

      By the way, it's far easier for me to sell the $699 a month, than the $5,999 up front fee. So I sell the payment first, and then upsell to the lump sum up front payment, after they have already bought.

      The "trade in" idea is unique. I've never seen that before.

      Of course, if you are selling leads off of a site you own, none of this comes up.

      I always thought "Buying based on payments" was a very bad way to buy.
      Of course, I sold that way for decades...but I never thought it showed good judgement to buy that way.

      I actually had a customers (in home vacuum sales) say to me "Well,we can't really afford another payment right now...so I'll just pay cash"

      Of course, I acted like that's what everyone says, and it was a normal response. Ahhhhh selling.:rolleyes:
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  • Profile picture of the author Aaron Doud
    Coming in with a number that is fair and asking if it works right off the bat is great.

    When I did internet sales I got a lot of those. Loved the whole 15 min sales process. Literally would take me longer to do paperwork than the selling did.

    1. Given price.
    2. Ask Manager.
    3. Tell Customer Yes or Counter with our best.
    4. Customer says yes or never hear from again.

    Doesn't get much easier than that. Of course our dealership doesn't pay on gross. I made the same for the unit no matter what they made.

    Favorite story about that was a motorhome that I sold right as the recession was starting. It was the last $100k plus item we had on the lot. Guy in CA made me an offer that he and I both knew was under cost.

    I went into the bosses and laid it out. "Do you want to sell it for a loss of $8k now to a guy ready to buy or sit on it for months and than take the loss? Either way we are likely taking a loss on it. Only two questions left are how much of a loss and how long it takes to sell."

    I made $1,000 on it plus the guy tipped me $200 for dinner when he came to pick it up.
    Company lost $8,000 on it but knew it was the right deal.

    We still don't keep new motorhomes in stock. We can make better deals for the customer by ordering them specifically for them. They simply sit too long and cost too much for floor planning to stock.

    EDIT: On Corvettes unless you happen to live by one of a few dealers there is simply nothing a normal dealer can do. Only a handful sell the volume needed to price low on Vettes. You either buy local and pay more or buy from places like Criswell and drive or ship it back.

    When I buy my first new vette (always had used) I will give my local dealer a shot but will likely order from one of the big boys and just do Museum Delivery. That is something cool any ways and will make the drive worth doing. I'll just fly into Boiling Green.
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  • Profile picture of the author misterme
    Originally Posted by Claude Whitacre View Post

    it's the same in vacuum cleaner sales. Every trainer I've ever seen (in home sales) is the same guy. They talk like a hustler, dress like they are in the Mob, and close, close, close.....

    Like this guy? He's a baaaaaaaad boy.

    Originally Posted by Rearden View Post

    So, in brief, here's some of the sales techniques and processes they used on me:
    Interesting observations. I worked at a Chevy dealershiop for a while and I get a different intrepretation.

    Originally Posted by ronrule View Post

    I'm on my 5th vette and have never gotten the price I wanted
    They always have to get that dollar more than you offered.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by misterme View Post





      Interesting observations. I worked at a Chevy dealershiop for a while and I get a different intrepretation.



      They always have to get that dollar more than you offered.
      Misterme; I get nothing? I pour my heart and soul out...hoping you will grace me with a single word? Anything to show you still care? And I get a broken image link?

      I think we should start seeing other people.
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  • Profile picture of the author kenmichaels
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    • Profile picture of the author midasman09
      Banned
      Thanks for the "memories".

      Occasionally, US entroopeneers need some Income for our next project.

      Well....years ago...I found myself in need of some Buckeroos. So....I went to a Jeep Dealership in Aspen CO (where I was a "Ski Bum") and applied for a Sales spot.

      Well.....they hired me and gave me some minimal "training" on how to sell!

      Well....as a good afternoon "Beer Buster" (Michelobs)....I stopped into a local pub that afternoon for a few Mics and....because I was "excited" about landing a JOB.... I started getting "wound up" about my new job and, after buying a round for the house..... I asked if anyone had any experience selling cars.

      Well....a few minutes go by and an older guy comes up to me and thanks me for buying him a beer and he asks if I'd be interested in learning how HE became the TOP Car Sales Guy in our area.

      Holy Camoly! I just got hired as a Car Sales Guy and....you kidding me? This guy comes over and tells me HE....used to be the TOP Car Sales Guy in the Aspen area and...what am I going to do?....NOT listen to him?

      No Way, Jose!

      So....a few more beers and I find that he REALLY was the TOP Car Sales guy in the area and....his wife's mother died recently and left HIM and his wife with a bundle.

      So....I ask him, "OK! I'll bite"....what will it cost me to learn how to be the TOP Car Sales Guy in the Aspen area!"

      He responds with, "Zero, Nada, Nothing"! I just happen to like "Your Outgoing Style and I think you will do well in Car sales!"

      So....he sits down in a barstool next to me....grabs a napkin and writes down 2 phrases;
      1) "What was THAT noise!"
      and
      2) "Shoes!"

      Ok....(I looked at what he wrote down and asked).....what does this mean?

      So....any of you readers, If you'd like to know how "Little ol' ME became the TOP Car Sales Guy in the entire State of Colorado in 1979....make a copy of the following to give to anyone you know who are or would like to be....Car Sales Guys!

      1) OK...there were 4 sales guys in the Dealership; Me and 3 other guys. When my "UP" (my turn to make contact with the human entering the Car Lot).....came into the lot, I went out and introduced myself and when he said, "I'm looking for the BEST Deal I can get for my "Trade"!

      So....he told me he was interested in a New X and wanted to knowwhat I'd give him for his older vehicle....in Trade.

      Well.....here's where my "Bar Buddy"....GAVE ME THE SECRET to selling vehicles when a Trade is involved;

      OK....I get into the Trade in the Driver's Side....the owner gets into the Passenger side.

      I start the vehicle....rev it up a little then....at the Instant I turn off the ignition I YELL....."WHAT WAS THAT NOISE?"

      I have a loud, deep voice and....when I YELLED out those words when I shut the car off....the owner, in the passenger seat ALMOST had a Heart attack!

      When he calmed down....he started to rattle off ALL the things WRONG with the vehicle....as if he had just been "found out"!

      And....when the conversation got back to him "Trading In THIS vehicle"....it was NO longer "How Much" he could get for his trade, it was "OK! I'll take WHATEVER you wanna give me for this "piece of junk"!

      So....I was able to SELL almost everyone who let me "Check Out His Trade"!

      2) Being in the Aspen area there were LOTS of rich folks who did NOT want to make it obvious that they were RICH. They'd wear scuzzy Levis and pullovers to camouflage.

      BUT....the rich will ALWAYS take good care of;
      ....their TEETH
      ....their FingerNails
      and....
      ....their FEET!

      So....as my "Top Car Sales Guy Bar Buddy" told me....the next day, here come a "Scroungy" looking guy with white wavy hair....a crappy looking t-shrt and....yucky Levis.....AND....a $1,000 pair of Tony Lama cowboy boots!.. walking in with a nice-looking blonde, who was also wearing a "Scuzzy" outfit.

      Well.....it was not my turn (my up) to go out and meet this guy but....Tom (who's up it was) took a look at this guy and turned to me and said; "Hey! Donnie...YOU can take this one!"

      I looked out the window and saw the Tony Lama boots and said; "OK Tom, I take em!"

      Well....turns out this guy's name was "Leon Uris.....the guy who wrote EXODUS!...and, not onlydid I sell him 2 Pick-ups and 2 fancy-schmancy sedans (at FULL price)....I also sold friends of his living in the aspen area
      Jack Nicholson
      Jill St John
      Robert Wagner
      Buddy Hackett
      George Hamilton
      Goldie Hawn
      Don Johnson (Miami Vice)
      and MANY other celebrities and "Hollywood" people

      ALL from "knowing" HOW to Spot the "Niche-Grabber"!

      Thanks for reminding me of one of my successes,

      Don Alm....STILL using "Niche-Grabbers"

      PS...as I am delivering one of my MANY "Inside" or "Secret" ...what I call, "NICHE-GRABBERS".....I EXPECT someone here to be motivated enough to want to pick this term up and run with it!
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      • Originally Posted by midasman09 View Post

        I start the vehicle....rev it up a little then....at the Instant I turn off the ignition I YELL....."WHAT WAS THAT NOISE?"

        I have a loud, deep voice and....when I YELLED out those words when I shut the car of....the owner, in the passenger seat ALMOST had a Heart attack!
        I'll be honest, reading your posts is a challenge, but this made me laugh out loud.
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        • Profile picture of the author midasman09
          Banned
          I'm "TRULLY SORRIE"...Joe Golfer....for "offending" your visual sensitivities!

          I do NOT want to be around when and if you get "off da links"....and go out and make "physical contact" with other Humans and.....they tell you to "Kiss Off Buddy!...."Git Outa my Space!"

          Wow! You would "go into orbit"!

          And....PULEEZE.....on any of my future posts or threads...would you Save yourself .....AND others......some TIME...from having to read how my "SEE-MANTICS" offends you!"

          JUS....DON'T CLICK ON MY POSTS!

          Don Alm.....still riling up dee sensitivos
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          • Originally Posted by midasman09 View Post

            And....PULEEZE.....on any of my future posts or threads...would you Save yourself .....AND others......some TIME...from having to read how my "SEE-MANTICS" offends you!"

            JUS....DON'T CLICK ON MY POSTS!

            Don Alm.....still riling up dee sensitivos
            Relax, Señor Midas. Hey, I said your story made me laugh out loud. You know how rare that is? The last time I laughed that hard was watching them deny the basic rules of physics in Fast and Furious 6.
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            Marketing is not a battle of products. It is a battle of perceptions.
            - Jack Trout
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  • Profile picture of the author Aaron Doud
    Ken,

    That would have pissed me off too. Clearly the kid had heard about the "Shame Close" but didn't have a clue how to use it properly.

    A little knowledge can be a dangerous thing in the wrong hands.
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  • Profile picture of the author Davidteinke
    If your offer is possible, the opportunity to do one more deal before the end of the day might compel them to work with you, especially if the dealership is having a bad weekend.
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    Sell and buy your car here http://www.rdsauto.com/
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