Frankly I think it is a pack of lies from a disgruntled loser.
YEAH, PUSH THEM INTO 25% APR!!
No dealership will survive legally if 1/10 of what this supposed “insider” blog says.
I know there is a lot of push-push-push but even an elementary school child can think to come back the day after a “free car for the right key” promotion to ensure the car was given away.
If dealers are that clueless about the law and how to sell, then we would all be driving Fords.
Actually this is pretty much how a basic car dealership works. The sales reps learn the "four-square" approach and quickly determine what motivates this particular buyer. In most cases, it's the monthly payment as that is what most naive buyers focus on (and many buyers are naive). So if you fall into the trap of saying you want to pay no more than $400 a month, you WILL pay $400 a month and the other numbers (down payment, trade-in, car price) will be manipulated to get to that monthly payment. Only you might be making that monthly payment for 60 months instead of 48 if you had only negotiated a better deal.
You also have the manager "in the tower" making the real decisions. The rep on the floor is just playing a classic "good cop/bad cop" scenario. The old "Well we've never done anything like this before so I'll have to run this by my manager" routine is played out over and over again every single day.
Towards the end of the deal, the sale rep is sure to mention how he's "getting killed" on this deal because you, the customer, "really drove a hard bargain." Sadly, that is partly true because the rep on the floor will be lucky to make $300 commission on a $20,000 car sale.
It's a nasty business but a great experience for a young buck who wants to get a crash course in the wonderful world of sales before moving on to something more lucrative. If you are over 30 and still selling cars, well I feel your pain.
By the way, some of the buyers are no picnic either. Many of them strut in there thinking they are going to "wheel and deal" because they looked at a few internet sites. These types can be insufferable to deal with. They always think they know everything and that you (the rep) are trying to pull a fast on on them. They end up making ridiculous claims about what they feel the price should be.
In those cases, I like the comeback line mentioned earlier in which a sales rep told a customer "If you can get it at that price down the street, go ahead and buy one for me too while you're over there."