Question about purchasing and hyundai circle program

[BRJACKET]

I started watching the new Genesis some time ago. I am hoping that I will be ready to pull the trigger around the end of September. There has been a sales person who has been great and I plan to work with him on the purchase. I have been doing a lot of research on my own and I will be able to purchase with the circle program price.

I haven't mentioned this to the sales person yet. I certainly plan on taking advantage of the pricing available (it looks like about $50,000 fior a 5.0 ultimate). How does this affect the sales person? Will his commission be compromised and will that make him less enthusiastic about working with me? I don't want to shaft him but I will want to get the best price I can and the circle program takes out the uncertainty of negotiation for me.

I am just trying to make sure I have a good handle on everything because I want to be up front with this.

 

[FlySwatter]

Okay, I'm jaded, but here's my opinion. Think about the bottom line for yourself, not whether or not the Salesman might get the shaft on a single sale. Believe me, no matter how nice he is to you, he's still trying sell you a 50,000 car, and you're just one of many customers he's gong to be earning his commission from this month. If he loses a few hundred on you, he'll make it back on someone else. Buying a car is a take no prisoners process. I've never bought a car where the Sales manager didn't have to get involved, and lamented they were "barely breaking even", or "losing money" on the sale. That's total BS. I don't drive that good a deal.

 

[BRJACKET]

Thanks for your input. I am all about fairness and everyone making their money. However, I am not going to pay any more than I have to. I wasn't sure how the circle program works and whether they reimburse for part of the price. I do want to be straight with the sales person but I do have a concern that his interest in working with me will be much less if I am getting a good price. I have been reading this forum on pricing and I have seen several people get just as good of a deal on their own. I would like to know where I stand on price and not have to go through all the negotiation games.

 

[Aquineas]

No matter what they tell you, remember that Hyundai pays the dealer 3 percent of the MSRP of the vehicle they sell you. This is known as "dealer holdback". Also, Hyundai pays the dealer the difference between invoice price and circle price. So at a bare minimum, the dealer is making $1552.50 off selling your car.

 

[Mark_888]

First, it is up to the dealer as to whether accept Circle Pricing. They have the right to not participate, depending on the model, etc.

Second, my understanding is that you are supposed to go the Circle website and get the price and print out the document, and then let the dealer know up front that you want Circle Pricing. I don't know for sure, but Circle Pricing may completely cut out the salesman. OTOH, I have seen people say they have purchased a 5.0 ultimate for a little over $50K, so maybe your salesman will do a deal close to Circle Pricing where he/she gets at least some commission.

 

[BRJACKET]

Thanks Mark. That is what I was curious about concerning shafting the sales person who has worked to sell the car. I need to check with the sales manager to see if they accept the circle program. Then I can at least show the sales person what I price I can get and see if he wants to meet that himself. At that point it will be up to him whether he wants to still work with me.

 

[Mark_888]

Thanks Mark. That is what I was curious about concerning shafting the sales person who has worked to sell the car. I need to check with the sales manager to see if they accept the circle program. Then I can at least show the sales person what I price I can get and see if he wants to meet that himself. At that point it will be up to him whether he wants to still work with me.

Sounds like a good idea. But keep in mind that very few sales people are allowed to do a deal without approval from the sales manager.

 

[BRJACKET]

Thanks again Mark. I will start with the sales manager.

 

[BRJACKET]

Does anyone know what the sales person's commission is on a $50,000 car?

 

[Seattle Genesis]

I got Circle pricing on my new 15 Genesis.

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[Mark_888]

Does anyone know what the sales person's commission is on a $50,000 car?

It is based on the amount of money the dealer makes on the car. If the dealer makes $1000 profit, then it is different compared to if dealer makes $2500 profit, etc. Dealer profit does include the 3% holdback (so dealer does not really pay invoice price). If you google, you may find an article about a reporter who worked in a dealership for a few months to learn how it works. There is a link somewhere on this site, but don't remember where.

 

[BRJACKET]

Seattle,
Did you deal with sales or directly with the manager?

 

[XBOHDPuKC]

First, it is up to the dealer as to whether accept Circle Pricing. They have the right to not participate, depending on the model, etc.

Second, my understanding is that you are supposed to go the Circle website and get the price and print out the document, and then let the dealer know up front that you want Circle Pricing. I don't know for sure, but Circle Pricing may completely cut out the salesman. OTOH, I have seen people say they have purchased a 5.0 ultimate for a little over $50K, so maybe your salesman will do a deal close to Circle Pricing where he/she gets at least some commission.

You do not have to let them know of the circle pricing upfront - if you have a trade-in they'll shaft you on it. Negotiate your tradein if you have one - negotiate as a completely separate deal, stating, "if I don't get what I think my tradein is worth - there'll be no deal" and then pull out the circle price. I'd suggest be flexible reasonably with the tradein, but then the whole package should be slated your way, not their way.

 

[FlySwatter]

You do not have to let them know of the circle pricing upfront - if you have a trade-in they'll shaft you on it. Negotiate your tradein if you have one - negotiate as a completely separate deal, stating, "if I don't get what I think my tradein is worth - there'll be no deal" and then pull out the circle price. I'd suggest be flexible reasonably with the tradein, but then the whole package should be slated your way, not their way.

Good advice. If you have a guaranteed discount in your pocket, never reveal it until you've come to an agreed price. I'm a military veteran, so I know I'll get that extra $500 off at the end of the bargaining process. If I pull it out up front, I've basically given $500 away. Remember, that money isn't coming out of the salesman's commission. It's a manufacturer's incentive.

 

[BRJACKET]

I will need to do a little research to clarify a couple of things here. It makes sense to hold back the circle price until I have a set trade in price. However, that would be working with the salesman. One post said that to use the circle price cut out the salesman and worked directly with the manager. So I guess the first step is to call and ask for the manager and without giving my information just ask whether they honor circle pricing. There are several Hyundai dealers around me although one seems to always have better inventory. Also I can get a CarMax quote which would set the low end of my trade value.

Then I need to find out what inventory is available and wait until there is the one I want. I doubt they will go looking for one for me if they know about the circle price. My choices are either Montecito Blue or black exterior and silver, beige, or black interior.

 

[FlySwatter]

I consider Edmunds as a good resource to determine your existing car's value. You can also see what Kelly shows (KBB.com)

 

[BRJACKET]

One more question about the circle pricing; for those who have used this, were you able to negotiate other items (such as wings on the trunk) or was the dealer cut and dry that after the circle price, everything else is an add on?

 

[Mark_888]

One more question about the circle pricing; for those who have used this, were you able to negotiate other items (such as wings on the trunk) or was the dealer cut and dry that after the circle price, everything else is an add on?

I haven't used the Circle Pricing (but I am eligible); however, I think most dealers would normally negotiate something small like that, IF they install rear wings for other Genesis cars. Not all dealers will install the wings, since it is not a USA OEM part. If they are used to installing them for other customers, you could probably get them to do it for free, or a small charge. Most members of this forum have done it themselves (there are lots of instructions on how to do on this forum, and is not that difficult).

 

[BRJACKET]

Thanks again Mark. The dealership I am looking at installs the badges if the buyer wants it but I wasn't sure how they treat the buyer if they are getting a good discount on the purchase price.

 

[BRJACKET]

Mark, If you don't mind me asking; why didn't you use the circle pricing?