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Started By
Message
The new/used car sales business model is broken and defies logic
Posted on 11/7/17 at 8:48 am
Posted on 11/7/17 at 8:48 am
1. Drive up to the dealership, immediately get approached by an overaggressive salesperson.
2. You scoff at the high sticker price, which is almost immediately followed by the salesman telling you not to worry about what the sticker says.
3. Walk inside and be sat at some half-arse shared desk while the salesman disappears for at least 10 minutes.
4. Salesman reappears with a printout listing the exact same high price that was on the sticker, plus some bullshite fees and payment options.
5. You tell the salesman that the price is too high, remove the fees, and that you have secured your own financing. They then go talk to the dude in the LSU polo and khakis behind the glass. Repeat this process 5 times.
6. Get up and walk out due to them not wanting to meet you where you want to be on your trade plus they want too much for their vehicle.
7. Drive 10 minutes down the road until the salesperson calls your cell and says they managed to find another couple thousand on the trade. Hang up.
8. Drive another 10 minutes until the salesperson calls you again to say they can also come down on the vehicle to almost where you wanted. Turn around and head back to dealership.
9. Return to the dealer, finally get the pricing you want. Negotiate for free oil changes, some floormats, and maybe an extra key fob. Stand up to leave again. Manager looks like he is having shite cramps from the anxiety of having to give away so much. He agrees to it and you finally have a deal.
10. Wade through the minefield of the Finance guy, slapping away extended warranties, tire replacement certificates, his daughter’s girl scout cookies, etc. and walk away with your brand new ride that only took an entire day or two to buy.
There's got to be a better way.
2. You scoff at the high sticker price, which is almost immediately followed by the salesman telling you not to worry about what the sticker says.
3. Walk inside and be sat at some half-arse shared desk while the salesman disappears for at least 10 minutes.
4. Salesman reappears with a printout listing the exact same high price that was on the sticker, plus some bullshite fees and payment options.
5. You tell the salesman that the price is too high, remove the fees, and that you have secured your own financing. They then go talk to the dude in the LSU polo and khakis behind the glass. Repeat this process 5 times.
6. Get up and walk out due to them not wanting to meet you where you want to be on your trade plus they want too much for their vehicle.
7. Drive 10 minutes down the road until the salesperson calls your cell and says they managed to find another couple thousand on the trade. Hang up.
8. Drive another 10 minutes until the salesperson calls you again to say they can also come down on the vehicle to almost where you wanted. Turn around and head back to dealership.
9. Return to the dealer, finally get the pricing you want. Negotiate for free oil changes, some floormats, and maybe an extra key fob. Stand up to leave again. Manager looks like he is having shite cramps from the anxiety of having to give away so much. He agrees to it and you finally have a deal.
10. Wade through the minefield of the Finance guy, slapping away extended warranties, tire replacement certificates, his daughter’s girl scout cookies, etc. and walk away with your brand new ride that only took an entire day or two to buy.
There's got to be a better way.
38
Posted on 11/7/17 at 8:49 am to toosleaux
quote:
There's got to be a better way.
There are several.
Carvana, CarMax, etc.
Posted on 11/7/17 at 8:50 am to toosleaux
quote:
dealership
stealership
quote:
There’s got to be a better way
Carvana
Posted on 11/7/17 at 8:50 am to toosleaux
Never been my experience. I find the car I want online and a price I like. Then I go buy it. Easy enough.
Posted on 11/7/17 at 8:52 am to toosleaux
quote:
10. Wade through the minefield of the Finance guy, slapping away extended warranties, tire replacement certificates, his daughter’s girl scout cookies, etc. and walk away with your brand new ride that only took an entire day or two to buy.
This to me is the most frustrating step.
Just STFU and print the Bill of Sale, you classic example of "Giving up on Life"
Posted on 11/7/17 at 8:54 am to toosleaux
Always go to the online manager first
Posted on 11/7/17 at 8:59 am to toosleaux
quote:You could always just pay sticker price. Carmax advertises that they are going to screw you and people here always claim that as a good way to buy a car.
There's got to be a better way.
This post was edited on 11/7/17 at 9:10 am
Posted on 11/7/17 at 8:59 am to toosleaux
the car dealership model is one of those symbols of class/intelligence divides
the lower you get in SES or intelligence, the more these people want to haggle. it's part of their irrational confidence and completely misunderstanding of the value of their time (reinforced by economic variables that tell them each hour is only worth $10 or so)
this has been made exponentially worse by social media. anytime a person I know starts selling cars they get removed from my notifications. i don't care that you have a deal on a car during the 99.9% of my life that i'm not looking for one. i don't care that you sold a car to somebody and they got a great deal.
however, the lower SES/intelligence crowd eats this shite up. they have no objective concept of a "good deal' but are highly swayed subjectively both of seeing others get "good deals" as well as their ability to "get a good deal" (often, believing they can do even better)
this + the "what can you afford a month for a note" + 60-72 month finance is basically a psychological manipulation of these people
the lower you get in SES or intelligence, the more these people want to haggle. it's part of their irrational confidence and completely misunderstanding of the value of their time (reinforced by economic variables that tell them each hour is only worth $10 or so)
this has been made exponentially worse by social media. anytime a person I know starts selling cars they get removed from my notifications. i don't care that you have a deal on a car during the 99.9% of my life that i'm not looking for one. i don't care that you sold a car to somebody and they got a great deal.
however, the lower SES/intelligence crowd eats this shite up. they have no objective concept of a "good deal' but are highly swayed subjectively both of seeing others get "good deals" as well as their ability to "get a good deal" (often, believing they can do even better)
this + the "what can you afford a month for a note" + 60-72 month finance is basically a psychological manipulation of these people
Posted on 11/7/17 at 9:00 am to toosleaux
The finance guy is the fricking sleaziest guy in that whole damn scenario. In my limited experience. I fricking hate haggling and I hate dealing with bullshitters, thus the dealership experience irritates me to no end.
Posted on 11/7/17 at 9:01 am to SlowFlowPro
quote:I bet car salespeople love you. You've convinced yourself you are too smart to negotiate on price.
the lower you get in SES or intelligence, the more these people want to haggle. it's part of their irrational confidence and completely misunderstanding of the value of their time (reinforced by economic variables that tell them each hour is only worth $10 or so)
This post was edited on 11/7/17 at 9:02 am
Posted on 11/7/17 at 9:03 am to toosleaux
There is a very easier way. Pay what the car costs and be done ? If the price of the car is too high for you, buy a cheaper car. The model is broken because you are content with paying "sticker" for nearly everything in your life but find the need to negotiate off the price of probably one of the most useful purchases you make.
Posted on 11/7/17 at 9:03 am to toosleaux
Don't even bother setting foot inside a dealership until you get the price you want, unless you live in a rural area and there is no competition. Email all dealerships within a distance you are willing to drive. Ask them for the best price they can give you and make it clear you are asking for bids from several places. Make them fight against each other, all at the comfort of your own home.
Posted on 11/7/17 at 9:04 am to toosleaux
The best way I’ve bought trucks for work was to tell each of the three dealerships we buy vehicles from that I am going to cut a check for “X*” on a new vehicle within 3 business days.
What vehicle will they sell to me for that price?
One of them always blinks.
Usually Ram but sometimes GMC.
Do I leave money on the table? Maybe. Maybe not.
I’d rather take my chances do it this way than go through the haggling dance.
*I tell them to include tax, prep, freight, whatever else, but the check will be exactly for X and not a dollar more.
What vehicle will they sell to me for that price?
One of them always blinks.
Usually Ram but sometimes GMC.
Do I leave money on the table? Maybe. Maybe not.
I’d rather take my chances do it this way than go through the haggling dance.
*I tell them to include tax, prep, freight, whatever else, but the check will be exactly for X and not a dollar more.
Posted on 11/7/17 at 9:05 am to TigerRob82
quote:
The model is broken because you are content with paying "sticker" for nearly everything in your life but find the need to negotiate off the price of probably one of the most useful purchases you make.
Posted on 11/7/17 at 9:05 am to TigerRob82
quote:
TigerRob82
Car salesman?
Posted on 11/7/17 at 9:08 am to TigerRob82
quote:
There is a very easier way. Pay what the car costs and be done ? If the price of the car is too high for you, buy a cheaper car. The model is broken because you are content with paying "sticker" for nearly everything in your life but find the need to negotiate off the price of probably one of the most useful purchases you make.
We've found the salesman.
ETA: And to reply to your actual point. Perhaps if manufacturers set the MSRP to a more reasonable level, people would do that. Sticker prices are inflated on many lots. And don't even get me started on the "market adjustment" add ons that some dealers tack on every vehicle on the lot (looking at you Lakeside Toyota)
This post was edited on 11/7/17 at 9:11 am
Posted on 11/7/17 at 9:08 am to toosleaux
quote:
There's got to be a better way.
There is.
1. Go test drive whatever vehicles you’re interested in. Then leave. Now you know what you want.
2. Do online research and find the car you want and calculate the price you’re willing to pay.
3. Call your bank to do pre approval just so you have a rate as backup.
4. Call dealership with car you want, state the price you want.
5. Haggle 2-3 times until they agree.
6. Go in, drive car one time, sign paperwork. Leave.
Did this 2 weeks ago.
Posted on 11/7/17 at 9:09 am to PearlJam
quote:
You could always just pay sticker price. Carmax advertises that they are going to screw you and people here always thought that as a good way to buy a car.
The car prices on the window stickers at CarMax are for the most part set at blue book value. It's the warranty, finance and service where you get screwed at.
Posted on 11/7/17 at 9:09 am to LNCHBOX
On the first page too.
Posted on 11/7/17 at 9:09 am to SlowFlowPro
Just like casinos, the car dealerships are solely designed to make money and they have a very real reason for everything they do. You don’t think that whole system is backed by psychological studies and tests? There have been models that show trying to make the process more efficient and less painful leads customers to feel they aren’t getting a good deal. The idiots feel like they have to go through this whole get angry and threaten to leave BS to get the best deal. If they don’t get that experience then they won’t buy. Meanwhile, those of us that know better are forced to take the same ride as the ignorant masses.
My buddy owns a large dealership and the stories he tells are hilarious. Believe me, they would like nothing better than to sit people down and treat it as a straight business transaction but the fools won’t allow it. Here’s a fun fact for you. They won’t ever lose money on a car deal. Just isn’t done. So any time they tell you they are losing money, they are straight lying or it really is below their cost and they will let you leave.
My buddy owns a large dealership and the stories he tells are hilarious. Believe me, they would like nothing better than to sit people down and treat it as a straight business transaction but the fools won’t allow it. Here’s a fun fact for you. They won’t ever lose money on a car deal. Just isn’t done. So any time they tell you they are losing money, they are straight lying or it really is below their cost and they will let you leave.
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