It’s long past time to put the bike (myth) away.
Outside of certain urban centers, Millennials are cuckoo for cars. Jobs and families and lifestyles, you see. As more members of the youngest car buying cohort show up at dealers looking to sign on the dotted line, their method of payment is evolving, too. (Read More…)
The r/askcarsales subreddit is a great source of information about car buying and the inner workings of dealerships. Flaired users are verified to be actual salespeople, which makes for highly qualified car buying advice. They’ve helped a great number of people save money and help calm the adversarial nature of the buyer-seller relationship.
Buying a car is a big decision. We all like to think that we are unique in the choices we make and how we go about negotiating a sale, but buyer stereotypes do exist. When one subreddit user posted a question about typical buyers for each brand, many of the salespeople jumped in to offer their opinion on the type of buyer that shops each brand. Some of the opinions might cross into racial profiling territory, but many are just hard truths about the customer base each brand has built up.
Visiting a dealer’s Finance and Insurance office is usually the last excruciating step when buying a car. The F&I rep will go through an endless stack of documents to finalize the sale while attempting to sell as many pointless add-ons as possible.
Many of us know to avoid add-ons like pin striping, paint protection, and extended warranties since they are either overpriced or valueless — but we may be letting the worst offender of all slip by.
Car alarms seem like sensible choices, especially if they’re offered at a good price, but the alarm that many buy in the F&I office can barely be considered more than a dealer profit device. These alarms are often presented as add-ons to the factory alarm that are supposed to improve on the factory security system, but in reality are usually nothing more than a shock sensor and some hacked wires.
There’s been a slow, yet steady change in the automotive marketplace over the last eight years, and you, the consumer, have been the lobster sitting in the pot as the change has occurred. The market has gotten significantly worse for car buyers. The number of franchise and independent dealers has been reduced by almost half. And yet, those surviving dealers have had an unprecedented run of year-over-year growth since 2008.
But as that growth has slowed in 2016, car buyers find themselves paying more money for used cars than ever before. We know that the typical American household can’t afford the typical new car sold in America, but we may soon be approaching a day when that same household can’t afford the typical used car, either. In fact, according to NADA Data, the average used car transaction price in 2016 will crest $20,000 for the first time in history, and will be 59.1 percent of the average new car transaction price of $33,903.
What does all of this mean to you? That buying used may not be the smartest financial choice you can make. In fact, it might not be very smart at all.
If sales and service reviews were gold, Cars.com will soon the the richest third-party shopping website in all the land.
Cars.com plans to buy DealerRater, making it the largest soundboard of criticism and praise for dealers, salespeople and servicing in the industry, Automotive News reports. (Read More…)
Driving off the dealer lot in a longed-for new vehicle is one of life’s richest pleasures, but there’s no joy if a buyer can’t find the chariot of their dreams.
Now, imagine that your dream ride is a gray Chevrolet Malibu — a 1LT model with two common options. Doesn’t that seem like an attainable goal? Shouldn’t be too hard to find, you’d think, right? Well, one would-be buyer says otherwise. (Read More…)
After riding the sales roller coaster to dizzying, record-breaking heights, it’s only natural that consumers will bring automakers back down to reality.
This year will be a high water mark for new vehicle sales in the U.S., according to a new study by consulting firm AlixPartners (via Automotive News). Sales are forecasted to hit 17.8 million vehicles this year, but a downturn is on the way, and the industry won’t start to see a rebound until the coming decade. (Read More…)
Have you been considering a new BMW but only have enough coin to buy one of Bavaria’s finest? At least one BMW dealer in the U.S. might have a solution.
If you don’t mind buying a new BMW that’s been languishing on the lot for a year, Century West BMW will throw in a lease on a BMW i3 on the house.
How old do you think the average new car buyer in America is? Go on, take a guess. Based on all of the ridiculous advertising strategies you see lately, you might think that the average new car buyer was a hip, trendy, Generation Y hoopy frood, wearing his beanie to buy organic, fair-trade coffee at the Park Slope Starbucks. (Confession: I went to the Park Slope Starbucks daily during the New York Auto Show this year. Parking was surprisingly easy.)
But no! According to the NADA, the average new car buyer is 51.7 years old, and earns about $80,000 per year. In comparison, the average age of Americans is 36.8 years, and the median income is roughly $50,000. In other words, Baby Boomers are buying all of the new cars right now. There are all sorts of people on the Internet who will tell you why this is a horrible comment on today’s bleak economic landscape (oh, here’s one), but I’m here to tell you that the future of new car sales could be changed with just a bit of clever marketing.
Spending hours or days negotiating for a vehicle can be a taxing experience, so reaching an agreeable price feels like a big accomplishment for car shoppers. It seems reasonable to let your guard down and relax as you enter the F&I office to finish up the paperwork, but that can lead to a big mistake.
The finance manager or clerk will start going over the paperwork, representing the car as sold and financed while showing you a specific rate. You skim through the mountain of paperwork and quickly sign all of the forms so you can drive off in your new car.
At this point, most people are brimming with excitement — they show off the car to their friends and family and share pictures on social media — but that jubilation can quickly be deflated with a call from the dealer telling you that the financing has fallen through and you don’t own the car after all. (Read More…)