| During the years of steady economic growth and | | | | negotiation workshop to assist North America's auto |
| rising home values, many Americans bought new cars | | | | dealers. Car buyers today are putting approximately |
| with little or no-money down. For the nation's auto | | | | 10% down on a car purchase, and reports that the |
| dealers and managers, it was also a time when many | | | | average down payment amount is up from |
| of their car salespeople simply 'took orders,' instead of | | | | September 2008 figures. |
| actually selling cars. Today, however, the reality at car | | | | In the wake of the federal 'Cash for Clunkers' program, |
| dealerships has changed, as buyers become more | | | | several of the country's largest auto dealer groups |
| cautious and lending institutions require more cash | | | | have posted quarterly profits, yet there is still a |
| down for financing. Some in the car industry believe | | | | concern that the months ahead may be challenging for |
| that 'Cash is King' once again when getting a deal | | | | the industry. Despite some signs that the economic |
| approved. | | | | recession is slowing, many Americans are still worried |
| "Some car dealers and managers developed bad | | | | about job security, leading to a more cautious car |
| habits during the good years," said one leading auto | | | | buyer. |
| sales training expert. "As a result, many dealers are | | | | This caution is echoed in a recent survey by J.D. |
| now looking to train their managers on how to properly | | | | Power & Associates (The 2009 Web Site |
| close transactions with cash down." | | | | Performance Tools), which found that nearly three out |
| In response to this growing need, one national car | | | | of four car buyers will shop prices on the Internet |
| dealer training firm has even created a desking and | | | | before making a commitment. |