The "controller" issue is refered to as "control of the sale" in the car business. Just about everything that they do is designed to try to gain control of the sale. The amusing part is that, if the buyer is astute, they can't ... ever. The buyer is the one with the check book, not the salesperson. Buy smart and you own the deal every time.
The point in "setting up an appointment" to come to the dealership is twofold. First, if you set the appointment, you have mentally begun the buying process and are likely to show up. Getting people in the door of the dealership is half the battle. Second, you will probably find that, during your phone conversation, they want to get enough information to run your credit. Somewhere during that time, they will most likely ask you directly for permission to do so. The objective is to "qualify you" as a potential buyer or, perhaps, disqualify you as a "bog" (pronounced bow-g, as in "bogus," as in terrible credit, as in "couldn't buy a car with cash") so they don't waste time with you.
Then there is my favorite - the "bump sticker." That is the smaller, additional window sticker with things like "Paint & Fabric" on it, usually for about a grand. Paint & Fabric pretty much consists of wax and Scotchguard. Since any car manufactured in about the last 25 years or so has been clearcoated, special paint treatment isn't needed. Neither is the Scotchguard but, if you really feel you need it, save yourself $997 and go buy a can to spray the seats yourself! BTW, the reason why these stickers are called "bump stickers" is because, for other than a custom vehicle with real added items (custom van, etc.), they are just there to bump the retail price up and then be sacrificed in the haggling process. Amazingly, many buyers aren't even smart enough to do the haggling and they actually pay full MSRP, plus the bump.
And, since I am on a roll ... be aware of the difference between the "worksheet" that the salesperson does with you in the booth and the actual buyers agreement. The buyers agreement will have a lot of stuff on it that the worksheet doesn't. That starts with tax which, while it is to be expected, often isn't on the worksheet because the idea at that stage is to make you feel like the vehicle is "much less expensive than I thought it would be!" Next is "dealer prep." Most manufacturers actually pay the dealers for this and it doesn't add up to the $500 that is often asked for. When I was selling, it was about $100 and my dealership listed dealer prep at the $500 number. Beyond those two items, you may see "mysterious add-ons" that you never discussed in the deal making. Paint & Fabric often shows up here. Since salespeople are often commissioned based on the difference between the final reatil price & "dealer cost," there is a lot of incentive to throw crap in at this point. One salesman that I worked with, actually used to print in a line with an unidentifiable name, which was made up from his initials and the letters "f" & "m." I'll give you a hint .... "m" stood for money. The amount he put in was usually about $500, and he often got away with doing this.
Another reason why salespeople will try to raise the price is because they know that the "business manager," who is really the finance manager, will cut his/her deal to shreds if that's what it takes to get the buyer to use dealer financing. Finance managers make their money from selling financing - the dealer "buys money" from the bank at "x" percent and the car buyer pays "x" plus something. Out of the difference comes the finance manager's commission.
Hmmmmmmm ..... what else? ....... Ah, yes. Dealer cost! There are usually two - the real one and the one that the salesmanager uses (it will actually be on the dealer paperwork). The reason why the sales manager uses the higher number is because that is part of where his/her commission comes from.
Now that I have revealed some of the secrets and games, and all of the car salespeople at iboats are calling hitmen to make sure I never post again, I'll give you the other side. Car dealerships are in business to make money, just like everyone else. If you give them the fake "dealer cost" price, plus a couple of percent, and make sure that you are not paying for anything else, you are probably only paying about a five percent markup - maybe a little less, maybe a little more. If the dealership does well in that month, they will make more based on volume. All in all, they will do well but probably not any better than many other types of companies. If you do this, however, tip your salesperson on the sly because they aren't going to make much of a commission.
