Being this is supposed to be a car blog of sorts- I was going to write about my life as a "prosumer photographer" and my recent adventures of 1) accessing what I really need in life and 2) finally making good on healthy wants and desires in a world of technology, in an art form that's constantly changing (and it may not be for the better- I still haven't decided that one yet); I came across an article on Yahoo!, content originally "powered by" (provided by) our friends at Edmunds.com. (Great site, Edmunds.com- one of the best of it's kind!)
The article featured on the front page of Yahoo deals with one little extra piece/slip of paper besides the MSRP window sticker of a new automobile- sometimes known as the Maroni sticker for you car historians. They called it the "rip-off sticker" I haven't seen one of these addendum stickers (as I like to call them) in years- but in a recent trip to a Honda dealership in Jacksonville, Florida- I noticed one dealer is using them to "build value" into the art of the deal.
I say "build value" because- when I was in the car business- that's just what our managers would tell us to do to the customer to make more money on the deal. Sell the goods- and get some money out of it.
(If it's one of the many things I hope to do on this site is to empower you. Use my hard-earned and sometimes painful experiences and share them with you so you make good decisions- particularly with cars. From time-to-time, I'm going to write posts on How To Buy a Car)
Okay- back to the "Rip-Off Sticker" as Edmunds put it best- the little slip of paper that most always shows an "adjusted MSRP" and additional features built-in to that value-packed brandy-new car you're buying. An original photograph of one is displayed below- courtesy of my friend Jim; however- this is an a-typical "rip-off sticker..." more of a market adjustment.
Truth be told- on most new cars- the real money is not made by selling cars, but rather- dealers make their real money on selling extras.What kind of extras? It used to be on things called "undercoating" and "floormats," although- nowadays- floormats have given way to the nice rubber, all-season floormats everyone who loves and wants.
(Yeah "undercoating"- I'm dating myself back to the days when dealers sold Ziebart TidyCar undercoating and rustproofing packages- back when cars actually rusted; but truth be known- most times the undercoating wasn't applied correctly- and the cars rusted anyway- only quicker.)
But there are a lot of other kinds of extras like pinstriping, accessories like mudflaps, rubber-door edge moldings, window etching, wheel and tire insurance- that kind of stuff. Things easily installed at the dealer in bulk, at a low cost- often times at pennies on the dollar if you sat and actually broke-it-all-down.
In the car sales world of "flats and minis" (I'm referring to the commissions they're making- minimal amounts of money- often times less than $100 before taxes) a lot of dealers are fitting every car they put on the floor and out the door with a laundry list of extras- in hopes of actually making money on a deal.
This one Jacksonville, FL dealer put about $1,500 worth of crap on this "rip-off sticker" on every car they had on the floor.
So what was it? Rubber floormats, a rubber trunk/rear package tray, pinstriping, sunroof visors, wheel locks, paint protection, rubber door edge guards, paint protection and window etching. All-in-all, they called it the "protection package," and in my effort to protect you- don't buy it.
Sure- you may want all that crap on your car- hell- I love rubber mats, sunroof visors, wheel locks and pinstriping- if you look at my two cars- I have everything on that laundry list of bullshit between them on either one or both of my cars; the only difference is- I wasn't forced to buy it.
A lot of dealers are putting "the protection package" into every car they sell- and they have to write-it-all-down on one of those "rip-off stickers" (adjusted MSRP stickers) because it's the law to do so- they have to give a listing of all the features and specifications along with a suggested retail price.
(Most times- sticker or not- when you talk to the finance and insurance guy the "F & I Guy" as he's known- of if you were a car salesmen the "F'n I Guy" he's going to try to sell you this crap too.)
So what does the "protection package" really cost dealers? Maybe a few hundred dollars but they'll charge you over a thousand to build the value and pad the deal- chances are, they're not holding a lot of gross- or the spread between sticker and tissue.
My advice to you? If you don't want it- don't pay for it. None of it- have them take the shit off the car (it went on easily enough- it will come-off just as easy) or simply walk away and buy the car somewhere else.
If you do like the "protection package," simply negotiate it- though unlike the car's price with is roughly 5-10% from MSRP ("sticker") to invoice ("tissue"); the spread on accessories and extras is much wider- sometimes up to 40%- hence- this is the real money maker in the deal.
I'd gladly pay $500 for $1200 worth of stuff I'd have to pay for later if I really wanted it...
Or do what the really shrewd would do- say you want it all thrown-in... or no deal at all. (And if you actually believe you're getting this for free- well- good for you too!)
But remember this one most important fact in the art of the car deal: most times "you're gonna get screwed... if you get kissed it's a good deal..." (something like that anyway, it's the G-rated version of it).
I just want to help you pucker-up and get a little kissed from time to time.
Now, in talking about addendum, rip-off stickers, and the like- there's something also called an "adjusted market value." But that's another post, for another time.
Rip-Off Stickers- The Car Guy Gets It.
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