The customer experience is important to some dealerships. Some. Most consider it a positive if it happens, but not a necessity. Good news for the consumers is that more dealers are becoming aware of the importance of good customer service.
Even better news for the consumer: you can usually determine if the dealership you are considering will give you an easy transaction, which in the end is what the consumer really wants.
It costs the average business 7 to 9 times more money to acquire a customer than to keep a current one. This holds true in the car business. Until recent years and the advent of the Internet, many car dealers did not practice this philosophy. The ones that do can be easily found through their automotive website and their Internet Sales Department.
The key to finding out is asking questions. In the old days (3 years ago) dealership’s employees, including the Internet department, were taught that less information is better. The goal was to get the customer to come to the dealership while giving out as little information as possible.
The thinking was that cars weren’t sold on the phone or over the Internet. Gross profit, on the other hand, was lost on the phone and over the Internet.
Flash forward to today and the facts have changed. People do buy cars on the phone and over the Internet. It just isn’t hard. Car dealerships who are willing to do this are also the ones that are willing to make the overall transaction easier.
Ask questions. It’s easy. Find automobile dealership websites that you are considering,search their inventory for vehicles, request information, and see what happens. Be honest (believe it or not, many dealerships are promoting honesty in their sales team). If you are wanting to buy a car within the next 3 days, tell them. It it’s something you are just starting, tell them. How they handle your needs is an important sign of their quality.
Once you have identified a vehicle of interest, go after the hard questions. How much, bottom dollar? What does the vehicle history report say? Dealers like Portland Honda Dealers and their fellow auto group stores Portland Toyota Dealers and Portland Lincoln Mercury Dealers are willing to get their customers vehicle history reports upon request.
Was it a trade-in, a local auction vehicle, or a program auction vehicle? These answers should come out easily and within an hour of asking (time enough to talk to the sales manager about pricing).
Trade-ins and interest rates are the only “cloudy” areas that the vast majority of dealers, even honest ones like Used Cars Shreveport, must try to avoid whenever possible. It is a trap, and too many people dishonestly catch dealers in it to the point that they must be defensive about it.
Consumers call regularly asking for a ballpark figure on their excellent condition vehicle and an average rate for their excellent credit. When they come to the dealership in their good (but not excellent) credit and in their nice (but not excellent trade-in), they make demands and threats, creating a bad experience for everyone involved. Within a week, 10 people that the customer knows will never shop at the crooked dealership again.
The best thing a consumer can do for trade-ins and interest rates is to check independently. Banks, credit unions, and online lenders can give a rate, while there are several trade evaluation sites on the web.
FINAL THOUGHTS
Ask the tough questions. Get answers or move on to another dealership. Buying a car can be easy in today’s market for anyone willing to make it so.
Several automobile dealer websites like New Jersey Chevrolet Dealers will use honorable methods to sell you a car. To find dealers like this in your area, you just have be willing to ask the questions.
Saturday, August 16, 2008
Sunday, July 27, 2008
Some Humorous Dealer Scams and Secrets
Whether they try to hook us with a "Push, Drag, or Pull" sale or guarantee to pay off our trade no matter how much we owe, car dealers often use less-than-honorable methods to get us to come down to their dealership.
This article talks about 10 of the best ones. I wanted to add a couple:
11) Special Inventory Sales - With this scam, an ad company advertises their "event" as something coming from someone else. "Trader Bob" or "Repo Harry" is in town with his traveling circus if cars that are, for some special reason, marked way down. They normally don't even mention the name of the dealership until the end, as it is a canned media production with the recipient dealer inserted at the tail.
In reality, they are bringing in 5 or 10 extra cars and just putting balloons and red tags in the cars that the dealer already has on the lot.
12) Lenders on Hand - This is probably my personal favorite; it makes me giggle every time. Bankers and lending institutions are sending representatives from across the country to sit in a tiny room and sign off on your loan application. It's hilarious.
Technically, the lenders are always at hand. The internet, fax, and telephone makes it to where 95% or more of the lending institutions in the industry can approve or deny a loan in minutes. There are special finance companies that have to verify information and take longer, but for the most part, anyone with decent credit or better can get an answer while they wait, despite the fact that the dealer doesn't have to have a representative from Ford Motor Credit in the closet to stamp his approval on a contract.
Read the first 10 Dealer Scams.
Dealing with Car Dealers
This article talks about 10 of the best ones. I wanted to add a couple:
11) Special Inventory Sales - With this scam, an ad company advertises their "event" as something coming from someone else. "Trader Bob" or "Repo Harry" is in town with his traveling circus if cars that are, for some special reason, marked way down. They normally don't even mention the name of the dealership until the end, as it is a canned media production with the recipient dealer inserted at the tail.
In reality, they are bringing in 5 or 10 extra cars and just putting balloons and red tags in the cars that the dealer already has on the lot.
12) Lenders on Hand - This is probably my personal favorite; it makes me giggle every time. Bankers and lending institutions are sending representatives from across the country to sit in a tiny room and sign off on your loan application. It's hilarious.
Technically, the lenders are always at hand. The internet, fax, and telephone makes it to where 95% or more of the lending institutions in the industry can approve or deny a loan in minutes. There are special finance companies that have to verify information and take longer, but for the most part, anyone with decent credit or better can get an answer while they wait, despite the fact that the dealer doesn't have to have a representative from Ford Motor Credit in the closet to stamp his approval on a contract.
Read the first 10 Dealer Scams.
Dealing with Car Dealers
Sunday, December 2, 2007
The Worst Way to Buy a Car - A Brief Bad Experience
If it's too good to be true...
Anyone who reads this blog regularly knows that I've mentioned that line before and it never needs to be finished. Just heard of another "technique" that absolutely appalled me.
A friend goes to a dealer in a major east coast metro, drawn in by an ad that says "Drive home in a new (brand withheld so I don't get a lawsuit) today for $13,400!" The cars mentioned normally retail around $20,000.
Upon arriving at the dealership, he finds a friendly salesperson who confirms that it's not a scam and that the deal is real. "I'll own this car for under $14K," my friend asked.
The salesperson, perfectly trained to word it just right, says, "Yep, if you write me a check for $13,699 ($299 doc fee) it'll be in your driveway this afternoon."
You probably see where this is heading.
After a couple of test drives, the negotiations started. He opted for one with more than the basic options, which the salesperson said would be sold comparably but just a it higher than the one in the ad. No problems yet.
Finally, the negotiations. The first pencil comes back at $23K. My friend started to object, but the salesperson cut him off nicely and said that it was just a starting point and that they had to list MSRP for paperwork purposes. He crossed out the number, turned the worksheet over, and typed the following statement for my friend to sign:
"I will be the driver of this ________ for $15,384 cash or check."
My friend was relieved. He signed, called his wife, and waited for the finance department to call him back for the paperwork.
This is where it got ugly.
Versus going into the details of the 2 hour exchange that followed, let me give you the details of the scam and you can use your imagination to fill in the blanks. It's a single pay lease option. A consumer can "lease" a car for three years, paying only the price of the lease itself. At the end of the 3 years, they can either turn it back in, trade it in, pay off the balance, or finance the balance.
The single pay lease in itself is not a scam. For many, it's a great way to "hedge your bet" that the car will depreciate quickly. Most trade or replace a vehicle every 2-4 years anyway, so it's an easy way to pay for a car and not have to worry about trade values or anything like that later.
The scam is, of course, in the way the mesage was delivered hours after the exchange began. The ad is misleading. The salesperson was misleading. The negotiations were misleading. It wasn't until the final stage when the "trap was set" that the truth finally came out.
This is a bad practice, indicative of the techniques used in the 80s and 90s that gave the car business such a bad reputation. When investigating deals and specials on vehicle, remember, if it's too good to be true...
This article is sponsored by honest dealers and automotive companies such as New Hampshire Volvo Dealers, Toledo Dodge Chrysler Jeep, and Beaumont Chevrolet. People have choices when buying new and used cars. It's up to you to get the information necessary to make a good one.
Car Buying Tips
Anyone who reads this blog regularly knows that I've mentioned that line before and it never needs to be finished. Just heard of another "technique" that absolutely appalled me.
A friend goes to a dealer in a major east coast metro, drawn in by an ad that says "Drive home in a new (brand withheld so I don't get a lawsuit) today for $13,400!" The cars mentioned normally retail around $20,000.
Upon arriving at the dealership, he finds a friendly salesperson who confirms that it's not a scam and that the deal is real. "I'll own this car for under $14K," my friend asked.
The salesperson, perfectly trained to word it just right, says, "Yep, if you write me a check for $13,699 ($299 doc fee) it'll be in your driveway this afternoon."
You probably see where this is heading.
After a couple of test drives, the negotiations started. He opted for one with more than the basic options, which the salesperson said would be sold comparably but just a it higher than the one in the ad. No problems yet.
Finally, the negotiations. The first pencil comes back at $23K. My friend started to object, but the salesperson cut him off nicely and said that it was just a starting point and that they had to list MSRP for paperwork purposes. He crossed out the number, turned the worksheet over, and typed the following statement for my friend to sign:
"I will be the driver of this ________ for $15,384 cash or check."
My friend was relieved. He signed, called his wife, and waited for the finance department to call him back for the paperwork.
This is where it got ugly.
Versus going into the details of the 2 hour exchange that followed, let me give you the details of the scam and you can use your imagination to fill in the blanks. It's a single pay lease option. A consumer can "lease" a car for three years, paying only the price of the lease itself. At the end of the 3 years, they can either turn it back in, trade it in, pay off the balance, or finance the balance.
The single pay lease in itself is not a scam. For many, it's a great way to "hedge your bet" that the car will depreciate quickly. Most trade or replace a vehicle every 2-4 years anyway, so it's an easy way to pay for a car and not have to worry about trade values or anything like that later.
The scam is, of course, in the way the mesage was delivered hours after the exchange began. The ad is misleading. The salesperson was misleading. The negotiations were misleading. It wasn't until the final stage when the "trap was set" that the truth finally came out.
This is a bad practice, indicative of the techniques used in the 80s and 90s that gave the car business such a bad reputation. When investigating deals and specials on vehicle, remember, if it's too good to be true...
This article is sponsored by honest dealers and automotive companies such as New Hampshire Volvo Dealers, Toledo Dodge Chrysler Jeep, and Beaumont Chevrolet. People have choices when buying new and used cars. It's up to you to get the information necessary to make a good one.
Car Buying Tips
Tuesday, November 27, 2007
Car Buying Tip: The Best Time to LIE is Now
Almost all of the manufacturers and their dealers say the same thing during many of their commercials.
"Now is the best time to buy."
"Don't wait. This offer will pass you by!"
"Hurry, before the best deals are gone."
As buyers, it's in our best interests to wait for the absolute best deals. That's a no brainer. The tough part is sifting through the good deals to get to the great deals. If every deal is the best according to the advertising, how can we recognize the real gems?
First, a bit of history about how it works. The car business is impatient. All of them, from the CEO down to the salesperson, wants action immediately. They are compelled to "whip the horse" at all times. It's a constant sprint despite the fact that they are in it for the long haul. Thus, all advertising, all inquiries, and all contacts are treated in a way that will generate revenue in the shortest time possible.
The way that consumers can get the very best deal is to lie. No, I don't mean the lies propogated by other car buying advice websites, such as hiding the trade until the last minute, getting financing ahead of time and not telling the dealer, or making up numbers that you were "quoted." I'm referring to lying about the urgency of your purchase.
Set up an email account specifically for your inquiries. Once you've identified the make and/or model that you want, start contacting everyone and their dog from the dealers to the manufacturers to the third party websites such as Edmunds and Automotive. When prompted about time-frame on making a purchase, check the box for "Now."
Why? The simple fact is that people who are in the market today are the ones that get the most attention. They are the ones that can put money in everyone's pocket. They are forces to be reckoned with and demand attention.
After this is established, it's time to switch gears and wait. You should receive a ton of responses. Stress the fact that you are looking for the absolute best deal. Be polite in your responses, keep in contact regularly, and let them know that you can pull the trigger at any moment.
The deals will roll in. Compare them with each other. Research them on the Internet. Then, you wait again. What are you waiting for? You want the best deal, right? When the best deal arrives, EVERYONE you've contacted will let you know in unison.
In 2006, Ford was really pushing their low interest rates. It wasn't making a dent because almost everyone had low interest rates available at the time. So, they announced very abruptly that they were offering 0% for 72 months on most makes and models. This sent a ripple effect through the industry. In a week, I received contacts from everyone I'd been in contact with: several dealers, Ford, Lincoln, and Mercury, three 3rd party websites, and even a classified website. This resounding proclamation told me what I needed to know: this was the real deal.
In conclusion, don't lie to car dealers just because you think they are lying to you. BUT, it's acceptable to feign your interest to get on the lists that will let you know that the real "best time to buy is now!"
Car Buying Tips
"Now is the best time to buy."
"Don't wait. This offer will pass you by!"
"Hurry, before the best deals are gone."
As buyers, it's in our best interests to wait for the absolute best deals. That's a no brainer. The tough part is sifting through the good deals to get to the great deals. If every deal is the best according to the advertising, how can we recognize the real gems?
First, a bit of history about how it works. The car business is impatient. All of them, from the CEO down to the salesperson, wants action immediately. They are compelled to "whip the horse" at all times. It's a constant sprint despite the fact that they are in it for the long haul. Thus, all advertising, all inquiries, and all contacts are treated in a way that will generate revenue in the shortest time possible.
The way that consumers can get the very best deal is to lie. No, I don't mean the lies propogated by other car buying advice websites, such as hiding the trade until the last minute, getting financing ahead of time and not telling the dealer, or making up numbers that you were "quoted." I'm referring to lying about the urgency of your purchase.
Set up an email account specifically for your inquiries. Once you've identified the make and/or model that you want, start contacting everyone and their dog from the dealers to the manufacturers to the third party websites such as Edmunds and Automotive. When prompted about time-frame on making a purchase, check the box for "Now."
Why? The simple fact is that people who are in the market today are the ones that get the most attention. They are the ones that can put money in everyone's pocket. They are forces to be reckoned with and demand attention.
After this is established, it's time to switch gears and wait. You should receive a ton of responses. Stress the fact that you are looking for the absolute best deal. Be polite in your responses, keep in contact regularly, and let them know that you can pull the trigger at any moment.
The deals will roll in. Compare them with each other. Research them on the Internet. Then, you wait again. What are you waiting for? You want the best deal, right? When the best deal arrives, EVERYONE you've contacted will let you know in unison.
In 2006, Ford was really pushing their low interest rates. It wasn't making a dent because almost everyone had low interest rates available at the time. So, they announced very abruptly that they were offering 0% for 72 months on most makes and models. This sent a ripple effect through the industry. In a week, I received contacts from everyone I'd been in contact with: several dealers, Ford, Lincoln, and Mercury, three 3rd party websites, and even a classified website. This resounding proclamation told me what I needed to know: this was the real deal.
In conclusion, don't lie to car dealers just because you think they are lying to you. BUT, it's acceptable to feign your interest to get on the lists that will let you know that the real "best time to buy is now!"
Car Buying Tips
Tuesday, November 20, 2007
New Campaign Uses Penguins to Save Environment
Okay, so this has nothing to do with car buying tips, advice, or even dealing with car dealers. Please indulge me, as this is hilarious.
The American Bus Association has launched a new campaign with brochures featuring penguins as the reason we should take the bus. By taking the bus, we will reduce carbon dioxide emissions and help stop the destruction of the penguin habitat. Now, while I am definitely in favor of saving the environment, this newest promotion to "go green" strikes me as hilarious.
Clever, yes, but ultimately, our motivation as humans is to save ourselves. The penguins will get hit first if we don't improve, but let's look at the big picture. We want to live. We want our children and their children to live. It's a cute ploy, but is it really the best approach to get more people out of their cars and onto buses?
read more | digg story
The American Bus Association has launched a new campaign with brochures featuring penguins as the reason we should take the bus. By taking the bus, we will reduce carbon dioxide emissions and help stop the destruction of the penguin habitat. Now, while I am definitely in favor of saving the environment, this newest promotion to "go green" strikes me as hilarious.
Clever, yes, but ultimately, our motivation as humans is to save ourselves. The penguins will get hit first if we don't improve, but let's look at the big picture. We want to live. We want our children and their children to live. It's a cute ploy, but is it really the best approach to get more people out of their cars and onto buses?
read more | digg story
Monday, November 12, 2007
Before the Dealer, Try the Automotive Classifieds
In this competitive market, car dealers are starting to rely more and more on third party websites to generate leads. They need to be in front of the customers in any way they can, so having their inventories available on automotive websites is important.
The consumer can take advantage of this. There is, of course, the obvious benefit of being able to search through multiple inventories simultaneously, but there is one thing that people don't often know. Because internet departments are often fighting to justify their budgets, leads that come to them from automotive classified websites are often "worked harder" so they can have stronger statistics.
In other words, you may be able to work a slightly better deal going through these automotive portals than you would have had you gone straight to the dealer. Sound crazy? It absolutely isn't.
Try it. You'll probably be surprised.
Car Buying Guide
The consumer can take advantage of this. There is, of course, the obvious benefit of being able to search through multiple inventories simultaneously, but there is one thing that people don't often know. Because internet departments are often fighting to justify their budgets, leads that come to them from automotive classified websites are often "worked harder" so they can have stronger statistics.
In other words, you may be able to work a slightly better deal going through these automotive portals than you would have had you gone straight to the dealer. Sound crazy? It absolutely isn't.
Try it. You'll probably be surprised.
Car Buying Guide
Thursday, September 13, 2007
From the Web: Mike Hamel Car Buying Tips
This blog was initially created as an insider's perspective on the car business to help consumers get the best deals from the dealers. As a former member of the industry, I felt I could offer everything that people would possibly need regarding advice.
From time to time, I come across articles that are insightful that I didn't write myself. Since this blog is about the consumer and not about me, I will occasionally post links to other author's work that I feel is pertinent and informative for people buying cars.
Instead of reposting their articles, I prefer to link to them. Most articles written and posted on the internet are done so to give links and credit to other websites. Since I do not endorse websites with which I am not familiar, I have decided to link directly to the articles themselves. That way, I am simply promoting the content and not necessarily the websites associated.
Read this article -- good stuff! Tips on Buying your Next Car
Cay Buyers Guide
From time to time, I come across articles that are insightful that I didn't write myself. Since this blog is about the consumer and not about me, I will occasionally post links to other author's work that I feel is pertinent and informative for people buying cars.
Instead of reposting their articles, I prefer to link to them. Most articles written and posted on the internet are done so to give links and credit to other websites. Since I do not endorse websites with which I am not familiar, I have decided to link directly to the articles themselves. That way, I am simply promoting the content and not necessarily the websites associated.
Read this article -- good stuff! Tips on Buying your Next Car
Cay Buyers Guide
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