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Posted: 10/22/2014 8:20:04 AM EDT
If You Still Think Car Dealers Rip People Off, You Don't Understand the Modern Car Buying Process
http://dealerbar.com/blog/if-you-still-think-car-dealers-rip-people-off-you-don-t-understan The internet killed the car business. Then, it built it right back up. We live in a world of retail transparency, shopping from the couch, and uber-competitiveness. Shoppers have the ability to get great deals every time they shop for a car and that has translated into a major shift in the way they're sold.
... If anyone is getting a "raw deal" in the car business, it's usually the dealership itself. As consumers, we don't blink an eye when buying a couch or a shirt that brings in 50% or more profit to the retailer, but car dealers often struggle to make 4% off of a vehicle sold. I'm not suggesting that they don't make money, but it's not the easiest business to operate in America today. View Quote This is a great article and definitely one that I think GD needs to read. |
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You know where I think car dealers stand on the 'Ron White microphone stand' totem pole?
Yeah..... No sympathy. |
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Truecar.com Know what price is a good price before you even go in.
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Hmmm? Four percent of fifty thousand or fifty percent of fifty bucks? -J
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Repeal the ridiculous laws which allow dealerships to exist in the first place and let the manufacturers sell directly to people.
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You're exactly the person this article was written towards. Did you even read it? View Quote View All Quotes View All Quotes Quoted:
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You know where I think car dealers stand on the 'Ron White microphone stand' totem pole? Yeah..... No sympathy. You're exactly the person this article was written towards. Did you even read it? Another, not a smidgen of corruption industry. |
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Truecar.com Know what price is a good price before you even go in. View Quote Also, check out Dealerrater.com when choosing which dealerships to visit. Read the reviews and ask to work with one of their highly rated salesmen before entering the dealership. As a salesman myself, I ask all of my customers to leave reviews of my service and their experience on there. It's a great additional tool in helping to provide yourself with a good car buying experience. |
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No sympathy. They will still try to "four square" you, or throw a gorilla mat set ontop of the carpet mats and claim they were factory,
And they cant take them off. |
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You're exactly the person this article was written towards. Did you even read it? View Quote View All Quotes View All Quotes Quoted:
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You know where I think car dealers stand on the 'Ron White microphone stand' totem pole? Yeah..... No sympathy. You're exactly the person this article was written towards. Did you even read it? shrug. don't really care. Until it's more costly to fix what I already have than it is to replace them......don't care. Not paying what they are asking, regardless of WHY they are asking those prices. I don't exist to buy things for the sake of industry. I don't feel sorry for any other industry that has priced itself into a market that is being pushed-back against by the consumer. |
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Or that 700 dollar wax job. Its totally worth it View Quote View All Quotes View All Quotes Quoted:
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No sympathy. They will still try to "four square" you, or throw a gorilla mat set ontop of the carpet mats and claim they were factory, And they cant take them off. Or that 700 dollar wax job. Its totally worth it Yeah, but that Truecoat. |
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What a load of crap. Yes, if you know a what you want, what the market is, dealer pricing, rebates, blah, blah, blah... you can usually get a decent deal.
So what? Do you think that these guys adapting to the current customer makes them any less slimy? Nope. I can guarantee that the sales staff still trains to take advantage anywhere they can get it. That is called business. That is why it needs to be adversarial, not cooperative. If I feel sorry for them, will that get me a better discount? lulz |
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At the end of the day, a car dealership is still a retail store and have the right to ask a retail price. What this article points out is that if you simply do your homework and enter into the dealership with that information, you're going to walk away with a good car deal and ideally a good car buying experience.
Many dealerships nowadays operate on a volume sales strategy. We just want to move units. |
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If a dealer told me to pick any car and gave it to me for free, I'd still drive away thinking "that guy screwed me somehow." Maybe that's an unintended consequence of buying cars before the internet age, but that's how it is for me.
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I only buy clothes off the sales rack......and no car payments either.
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There are probably more honest people in the illegal drug business than in auto sales.
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The sales model needs to change and move away from the traditional good cop (sales guy), bad cop (sales manager), high pressure, wear down the consumer and don't let them leave the lot without a sale way it still is today. As soon as that changes, perceptions will change.
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Last 4 cars I purchased, the salesman didn't sell to me. I walked in wanting and ready to buy, that day. It was just a matter of price and trade. The salesman did nothing but relay offer/counteroffer to the sales manager, and take me for the test drive. No more, no less.
I negotiated more with the girl doing my financing over the extended warranty than for the vehicle itself. All 4 were a pretty great and trouble free experience. I have noticed a shift in the car buying process. Dealers/salesman haven't just had a change of heart and their ways on their own, it's because they've had to. "Stereotypes exist for a reason", right? |
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Car dealers make more $$$ off the used car lot, and the service dept, than selling new cars.
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At the end of the day, a car dealership is still a retail store and have the right to ask a retail price. What this article points out is that if you simply do your homework and enter into the dealership with that information, you're going to walk away with a good car deal and ideally a good car buying experience. Many dealerships nowadays operate on a volume sales strategy. We just want to move units. View Quote But if you don't, pepper your angus. |
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At the end of the day, a car dealership is still a retail store and have the right to ask a retail price. What this article points out is that if you simply do your homework and enter into the dealership with that information, you're going to walk away with a good car deal and ideally a good car buying experience. Many dealerships nowadays operate on a volume sales strategy. We just want to move units. View Quote That's my point. They can ask whatever they want. They are also not entitled to my money unless I agree to a sale. That little bit of information is something that gets my goat every time I've ever walked into a car dealership. They always act like they are entitled to the sale way before it was ever completed. They talk about my money like it's already theirs, they manipulate the shit out of you, tell you whatever you want to hear, and are always trying to upsell. Until I sign on the line and take possession, it's MY money. The only way to convince me to part with my money is to provide a price that is agreeable to me. Don't do that/won't do that/can't do that, you don't get any money. Period. I'll keep what I have, tyvm. |
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I've bought two new cars in the past two years...both deals I knew what I was paying when I went in.
Wrote a check and drove away...no bad experiences. |
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If a dealer told me to pick any car and gave it to me for free, I'd still drive away thinking "that guy screwed me somehow." Maybe that's an unintended consequence of buying cars before the internet age, but that's how it is for me. I know your type. you mean the type of guy who's been fucked over by a car dealership and is therefore very wary of anything to do with them? that kind? |
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In my IT consulting days, I've visited the homes of a few owners of car dealerships. NICE million dollar mansions.
If that's a raw deal, well that's a raw deal I'd like too. |
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Err.. duh.
Dealers make their money on service and used cars. The only money making aspect of new cars is the addons like tint, floormats, that scam where they acid etch numbers on the window, and the biggest scam of all extended warrantys. In a odd twist of upsidedown dealer bs, the sales staff make big paychecks but they pay the techs crap. Techs actually work and sals staff just sit around till a custome comes in where all they have to do is NOT fuck up the sale. |
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The sales model needs to change and move away from the traditional good cop (sales guy), bad cop (sales manager), high pressure, wear down the consumer and don't let the leave the lot without a sale way it still is today. As soon as that changes, perceptions will change. View Quote The biggest reason for wanting to do business that day is because the dealership doesn't want to lose your business when you go down the street and shop them and that dealership undercuts them by $50 and they lose the sale over a stupidly insignificant amount of money. It happens daily and is honestly a shitty thing for the consumer to do. The salesman that just spent the past several hours with you showing you different vehicles and options, etc. doesn't get paid an hourly wage. He gets paid if you buy the car or not. |
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I have NEVER had a good experience with a can dealer. View Quote View All Quotes View All Quotes Quoted:
From the article:
If anyone is getting a "raw deal" in the can business, it's usually the dealership itself. I have NEVER had a good experience with a can dealer. Try SilencerShop. |
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They may only make 4% on the car, but they still try to sell you "protective coatings" at 500% markup, give you crap for your trade in, screw you on the financing, and push hard that extended warranty. |
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Err.. duh. Dealers make their money on service and used cars. The only money making aspect of new cars is the addons like tint, floormats, that scam where they acid etch numbers on the window, and the biggest scam of all extended warrantys. In a odd twist of upsidedown dealer bs, the sales staff make big paychecks but they pay the techs crap. Techs actually work and sals staff just sit around till a custome comes in where all they have to do is NOT fuck up the sale. View Quote Now they do, Ever notice how much they push their service dept |
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you mean the type of guy who's been fucked over by a car dealership and is therefore very wary of anything to do with them? that kind? View Quote View All Quotes View All Quotes Quoted:
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If a dealer told me to pick any car and gave it to me for free, I'd still drive away thinking "that guy screwed me somehow." Maybe that's an unintended consequence of buying cars before the internet age, but that's how it is for me. I know your type. you mean the type of guy who's been fucked over by a car dealership and is therefore very wary of anything to do with them? that kind? You do understand that most any salesmen today are not the "old guard" guys that were the ones who fucked people over... A salesman you're most likely to encounter today is one that started and was trained under this new business model of customer satisfaction. ETA: I see it a lot too... The "slimy saleman" types don't survive in dealerships anymore. When they start affecting a dealerships CSI scores, the get the boot. |
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The biggest reason for wanting to do business that day is because the dealership doesn't want to lose your business when you go down the street and shop them and that dealership undercuts them by $50 and they lose the sale over a stupidly insignificant amount of money. It happens daily and is honestly a shitty thing for the consumer to do. The salesman that just spent the past several hours with you showing you different vehicles and options, etc. doesn't get paid an hourly wage. He gets paid if you buy the car or not. View Quote View All Quotes View All Quotes Quoted:
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The sales model needs to change and move away from the traditional good cop (sales guy), bad cop (sales manager), high pressure, wear down the consumer and don't let the leave the lot without a sale way it still is today. As soon as that changes, perceptions will change. The biggest reason for wanting to do business that day is because the dealership doesn't want to lose your business when you go down the street and shop them and that dealership undercuts them by $50 and they lose the sale over a stupidly insignificant amount of money. It happens daily and is honestly a shitty thing for the consumer to do. The salesman that just spent the past several hours with you showing you different vehicles and options, etc. doesn't get paid an hourly wage. He gets paid if you buy the car or not. then be competitive stop trying to justify your anti-competitive strategies by blaming the customer when your policies and prices are the cause of the lost sale. and yes, I'm going to shop every single dealership that stocks the car I want because it's stupid NOT to. I wouldn't only go to one shop looking for an appliance, I shop around on those as well. When I find what I want for the best price I buy....but I'm not buying until I have a firm grasp on the market. Sure, it's good for the store if I'm uninformed, but it's not good for me. I don't care about your profits, I care about my financial position. Period. Stop trying to justify that shit. |
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You're exactly the person this article was written towards. Did you even read it? View Quote View All Quotes View All Quotes Quoted:
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You know where I think car dealers stand on the 'Ron White microphone stand' totem pole? Yeah..... No sympathy. You're exactly the person this article was written towards. Did you even read it? Its not an article, its a blog post with almost zero useful information on it. Dealership model should die, not because car salesmen are bad, but because the whole model is inefficient. The only useful thing a car dealership does that is beneficial to me is to let me do a very limited test of their products. That's a lot of overhead to do one semi-useful thing. |
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You do understand that most any salesmen today are not the "old guard" guys that were the ones who fucked people over... A salesman you're most likely to encounter today is one that started and was trained under this new business model of customer satisfaction. View Quote View All Quotes View All Quotes Quoted:
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If a dealer told me to pick any car and gave it to me for free, I'd still drive away thinking "that guy screwed me somehow." Maybe that's an unintended consequence of buying cars before the internet age, but that's how it is for me. I know your type. you mean the type of guy who's been fucked over by a car dealership and is therefore very wary of anything to do with them? that kind? You do understand that most any salesmen today are not the "old guard" guys that were the ones who fucked people over... A salesman you're most likely to encounter today is one that started and was trained under this new business model of customer satisfaction. Even if what you are saying is true.....It's going to take a bit of time and a lot of "give" on the dealership side of things for the old lessons learned to be wiped away. Those legacy issues don't just evaporate overnight. |
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I noticed that even in the internet age you still have a lot of bullshit artist selling cars . I was told theis gem when I was looking for my last car . They don't offer a manual transmission in a white car. Biggest WTF and I am leaving now moment of the bunch . The car in question is sitting in my driveway right now from a dealer 100 miles away . Every dealer is selling the same car , best price wins .
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BS.
The shark tank(so said because the sales people circle inside like sharks) in the next town over wanted to make 10 grand off of me... There are still dealers out there who operate as if the internet did not exist. And...drumroll please, if you are female you must be stupid and know nothing about cars right? Like in 'when can you come back with your husband'? |
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Spend generations earning a rep as an industry of scum, don't be surprised when it doesn't wash off overnight.
See also: General Motors. |
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This, dealerships need to go away. Manufacturers could operate factory service centers and or pay independent shops that conform to standards for training/service for warranty work.
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Repeal the ridiculous laws which allow dealerships to exist in the first place and let the manufacturers sell directly to people. View Quote |
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The biggest reason for wanting to do business that day is because the dealership doesn't want to lose your business when you go down the street and shop them and that dealership undercuts them by $50 and they lose the sale over a stupidly insignificant amount of money. It happens daily and is honestly a shitty thing for the consumer to do. The salesman that just spent the past several hours with you showing you different vehicles and options, etc. doesn't get paid an hourly wage. He gets paid if you buy the car or not. View Quote View All Quotes View All Quotes Quoted:
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The sales model needs to change and move away from the traditional good cop (sales guy), bad cop (sales manager), high pressure, wear down the consumer and don't let the leave the lot without a sale way it still is today. As soon as that changes, perceptions will change. The biggest reason for wanting to do business that day is because the dealership doesn't want to lose your business when you go down the street and shop them and that dealership undercuts them by $50 and they lose the sale over a stupidly insignificant amount of money. It happens daily and is honestly a shitty thing for the consumer to do. The salesman that just spent the past several hours with you showing you different vehicles and options, etc. doesn't get paid an hourly wage. He gets paid if you buy the car or not. Oh, I know. But it doesn't have to be that way. For example, I have a jeweler I trust. Because of that relationship, I'll usually just tell him what I want and buy it, no questions asked, no time consuming sales process. I used to do the same for guns before I moved and would do the same for cars. It's just a matter of knowing that if the dealer needs to make 4% or whatever, I'm can trust him not to make me the sucker paying 5%. Loyalty is not earned through the wierd games that (most) car dealers play. (E.g. Good cop/bad cop, acting offended when you bring up price, trying to create emotional attachment with the car) |
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I tried to buy a vehicle two years ago, both a Ford and VW. Both dealerships lied in email to get me in the door and the price was jacked by 30% or they tried to give me MSRP. I let a ford X Plan pricing number go to waste because of how much disrespect I reprieved from those lying assholes.
I'm in the market again and the first dealership I email, MSRP. Fuck the dealership, even if they only make 4%. |
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