By on December 6, 2016

deal1

“Character is what you do when no one is watching.” This quote, ascribed to John Wooden, C.S. Lewis, and others, is doubly true when it comes to the oft-reviled profession of automotive sales. Any dealer can be “ethical” when they are facing an informed consumer with money, credit, the ability to hire counsel, and the self-confidence to fight for own interests. I’ve had plenty of trouble-free transactions with dealerships that had well-earned abysmal reputations for ethics. Hell, I’ve even managed to buy some new motorcycles over the years without getting raked over the coals too hard.

You can’t judge a dealer based on how he treats a middle-aged white guy with a spotless credit rating, a laptop full of information, and a thorough knowledge of the laws in his state regarding new-car sales. That would be like the Misfit having a good opinion of the grandmother in the Flannery O’Connor tale. Rather, you judge a dealer by how he behaves when there is nobody of consequence looking. Given a dark-skinned female customer with a decent co-signer and some down payment money but no genuine idea of how the process works, how much advantage will a dealer take?

The answer might shock you, as they say — but it probably won’t.

(Read More…)

By on December 5, 2016

Insane People at the Stock Photo Dealership

Industry watchdogs are becoming increasingly concerned that salespeople are misrepresenting new vehicles’ semi-autonomous features to customers. Considering that most salespeople work on commission, consumers are used to hearing that prices are non-negotiable or that they will get a “great deal” on their trade-in. Dealer fibbing is par for the course.

However, claiming a car’s safety capabilities are more robust than they actually are — either due to greed or ignorance — can cost both parties more than a few extra bucks. (Read More…)

By on November 23, 2016

2017 Cadillac XT5 luxury crossover

Cadillac has delayed the launch of its dealer incentive program for another three months. Brand president Johan de Nysschen says the delay is all about giving dealers more time to understand the program and has nothing to do with its potential illegality or the extensive dealer backlash against it. (Read More…)

By on November 23, 2016

2018 Genesis G90 – Image: Genesis Motors

There are 350 Hyundai dealers in the United States currently offering vehicles from the automaker’s new Genesis Motors brand inside Hyundai showrooms. It’s a model Genesis wants to change — simply too many stores for a fledgling auto brand; too much affiliation with proletarian Hyundai.

It’s also entirely unlike the non-dealer model Genesis Motors began employing in Canada on Monday, November 21, 2016. Genesis began business operations 48 hours ago with no physical locations whatsoever.

Dealers? Pfft. Someday.

Not today. (Read More…)

By on September 23, 2016

2017 Cadillac XT5, Image: © 2016 Matthew Guy/The Truth About Cars

If dealership owners spring for a recent offer by the president of Cadillac, expect to see a vastly reduced brand presence in towns and cities across the U.S.

Johan de Nysschen is offering 400 low-volume Cadillac dealers cash to close up shop and walk away, Automotive News reports. (Read More…)

By on September 21, 2016

Tesla Supercharger With Model S At Tesla Dealership

Jeff writes:

I recently started shopping for my first new car in a decade. I have looked at Infiniti, Audi, VW, Cadillac, Genesis, Tesla and BMW.

Something that really stuck out about the process was the different dealership experiences. The quality and happiness factor of each dealership seemed to coincide with the price of their cars.

(Read More…)

By on September 8, 2016

dealership

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.

(Read More…)

By on August 12, 2016

All-New 2017 Ford F-150 Raptor

“I do see people buying Chevy trucks all the time, but I call them victims, not customers. That’s different than what I’m trying to do.” Thus spake Scott Adams, known to most of us as the creator of the “Dilbert” comic strip. As someone who has made his living as a commercial UNIX sysadmin, I’m not much of a “Dilbert” reader, for approximately the same reason that Jodie Foster probably doesn’t read The International Journal Of Pinball Table Collectors. There’s only so much trauma that anybody should be forced to relive.

I do, however, read Mr. Adams’ blog, mostly because I’m fascinated by his particular approach to understanding the current Presidential election. In a pair of recent posts, he has taken a break from discussing the “Master Persuader” strategy to complain about the process of buying a new truck from a Chevrolet (or Ford) dealership. Mr. Adams describes himself as a “certified genius,” but as you will see below, the old dealership chestnut that “buyers are liars” applies to even those of us who find the WAIS-IV to be a trivial challenge.

(Read More…)

By on August 5, 2016

Alarm Valet, Image: Dr. Katherine Nell McNeil/PriusChat

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.

(Read More…)

By on July 29, 2016

Data, Image: rh2ox/Flickr

I’m back like a rebel making trouble with another installment of Dealers Are The Worst Businessmen. Today, we’ll be talking about the information that most dealers use to make every decision in the dealership, and how it’s completely and utterly useless.

To those of you who’ve worked in the dealership world, you already know what I’m talking about, right? Yep. The CRM (Customer Relationship Management) tool. Doesn’t matter whether it’s VinSolutions, DealerSocket, or any of the other popular software solutions on the market. Nowhere will you find a more prominent example of “garbage in, garbage out” than in the customer data mining that occurs at every dealer group. It’s a wonderful example of how most dealers spend thousands of dollars on tools they believe they need and then neglect to learn how to properly use.

But first, a story.

(Read More…)

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