In Today's Apple Store, Amazon Prime Style World, WHY Is Dealing With Car Dealers STILL A Horror Show?

In Today's Apple Store, Amazon Prime Style World, WHY Is Dealing With Car Dealers STILL A Horror Show?
I love randomly going out and checking out car dealers in different areas of the country to feel the pulse of the business and hear the latest sales pitches.

And this morning, I was reading an interesting article on a guy who owned a lot of car dealerships that sold most of them in 2016, because he saw the business as a "Horror Show'.

Well, after my visit to a local Hyundai dealership, I can report the 'Horror Show', is still in full effect.

Lack of product knowledge, shady website ads and a puzzle as complex as reaching a human being at Google when you try to figure out the 'bottom line' price are just part of the dentist-like experience.

In the words of George Costanza from Seinfeld, "It's like entering the THUNDERDOME."

I felt sorry for the sales guy because you could read the un-comfort of having to do business this way in his face.

Which made me wonder...With people having years of experience of things like going to the Apple store, ordering something on Prime and having on their doorstep in less than an hour, WHY does THIS experience STILL exist when you go to the car dealer?

EVERY step of the way is a hassle at the car dealer. From the moment you walk in to the moment you leave. And if you think it's over once you've negotiated the deal, oh no, you're about to go into the finance office to deal with the grim reaper hammering you on LoJacks and warranties.

Spies, tell us WHY must it be this way? It MUST be working because it's not only going on at the Hyundai dealer I visited.






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CANADIANCOMMENTSCANADIANCOMMENTS - 8/19/2019 4:24:41 PM
+7 Boost
Hmm. I have bought / leased 3 vehicles. 2 Toyota's and a BMW. Never was it a hassle or a hardship. I feel sorry for those who have had the opposite experience.


PUGPROUDPUGPROUD - 8/19/2019 4:52:36 PM
+4 Boost
While the service departments in my area tend to be excellent the sales departments are generally poor to pathetic. Lack of product knowledge, no follow up, appointment scheduling errors, no returned calls, etc etc. After you blow them off because of issues they created they hound you trying to get you back to the dealership. I now go to dealers only for test drives and do all ordering on the internet without giving out my phone number.


SanJoseDriverSanJoseDriver - 8/19/2019 6:32:15 PM
-7 Boost
That is a great question... going to a dealership is one of the most painful sales experiences possible. It is just slightly better than going to a Timeshare presentation or a middle eastern bazaar. Some dealerships are less worse than others (Lexus), but this is an area prime for disruption.


vdivvdiv - 8/19/2019 7:07:03 PM
+2 Boost
You lost me with the bazaar comment.


SanJoseDriverSanJoseDriver - 8/19/2019 8:01:52 PM
-6 Boost
Haggling. Can replace bazaar with flea market or garage sale.


mre30mre30 - 8/20/2019 8:23:52 AM
+3 Boost
SJD - if you don't like (or don't have the ability) to haggle, then I imagine you end up 'overpaying' for many things you purchase.

Let me know if you ever visit NYC, I have some real estate, in mind for you, that I want to show you, that would be perfect for you.

Haggling is an essential 'adult skill' and if you reject it or don't master it, you will be more easily separated from your money.


MDarringerMDarringer - 8/20/2019 8:31:51 AM
-1 Boost
SJD needs a safe space.


SanJoseDriverSanJoseDriver - 8/22/2019 3:31:30 PM
+1 Boost
Oh, I have definitely mastered it. The last two ICE cars I bought I contacted 10 different dealers (online/fleet sales), got the best price, sent it to everyone else for counteroffers, and repeated the process until I got the definitive lowest price. Takes 6-10 hours, which is a huge pain in the ass. It is not a very customer-friendly process.


ggrcrashggrcrash - 8/19/2019 6:41:55 PM
-4 Boost
Because they have contributed to specific political parties, to see that laws are written to keep the status quo exactly like that.


MDarringerMDarringer - 8/19/2019 6:45:25 PM
+7 Boost
If price fixing is what you think is a wonderful consumer boon, then call me. I'll sell you anything at full list price.


malba2367malba2367 - 8/19/2019 7:34:04 PM
-5 Boost
@Mdarringer if dealers are eliminated prices will go down, while the prices of individual models will be fixed the automakers will still fight each other for market share. The dealership model is largely inefficient, and adds huge fixed costs to maintain showrooms and all the staff. I am not saying it is a good thing macro-economically as there will be huge job losses, but it will be better experience with lower costs for the end consumer not to have to deal with the games at car dealerships.


MDarringerMDarringer - 8/19/2019 9:31:55 PM
+5 Boost
Where do you get that bullshit from?

Prices to YOU are LOWER because of DEALERS and COMPETITION.

If you're a panty-pissing unicorn that gets stressed out at the notion of doing your due diligence to shop the lowest price, then once again. I'll sell you ANY vehicle in our dealer group for list price.

Moreover, demographic research continues to underscore the fact that people want to see their actual car before they buy it rather than order on, it arrives whenever, and you're stuck with it as is because you bought it.


MDarringerMDarringer - 8/20/2019 8:31:01 AM
+2 Boost
The notion that if dealers disappear the manufacturers will say "You know what? Let's drop our prices 20%." just isn't going to happen.

Apple products are not less expensive due to their price fixing in company stores. Tesla prices would be more reasonable if customers could make dealers compete for the sale.


RunamukkRunamukk - 8/19/2019 7:45:34 PM
+8 Boost
MSRP = Manufacturers Suggested Retail Price. Price fixing by eliminating franchise dealers will never benefit the consumer. The manufacturers would still foot the bill for the dealerships which would be factored into the cost of the vehicle and ultimately paid for by the consumer.


ricks0mericks0me - 8/19/2019 9:04:04 PM
+3 Boost
AGENT001: Great question that you ask. There is no 1 answer to that question. Part of the reason why buying a car can be a bad experience is because the salesperson is trying to make a 1 time conquest instead of a longtime customer. There are many other reasons.


SanJoseDriverSanJoseDriver - 8/23/2019 3:35:48 PM
+1 Boost
Great point!
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