Got a Quick Question for a Car Dealer?

snakeweasel

I've used the same State Farm agent for over 20 years.

I'm with you on that, we've had the same State Farm agent for about 15 years. See him maybe once a year or so but he knows us and understands our situation. Plus its nice to know that such a person is just one phone call away to help us whenever we need it.

Just can't get that type of service from an internet site.

siba

bolivar

"I've used the same State Farm agent for over 20 years. "

I used the same State Farm agent for almost 30 years. From about 1968 to about 1997. Multiple vehicles and the house. We drove in a new (used) truck and went in. We were asked to sit down across from a lady that finally found out was his wife that was working in the office. He was working in another office with another customer. All I wanted to do was have them write up a new policy on my new/used truck sitting outside. This takes about 10 minutes.

After about 30 minutes, with the wife placing several phone calls, it became apparent that she was much more interested in co-ordinating the upcoming trip to one of the university football games with their friends/family/whoever, than give any attention to the couple that was sitting across the desk from her. She finally got all the loose ends tied up on the phone calls, and wrote up the policy.

We walked out. Before reaching our vehicles, I told the wife "We are changing agents. I don't care how long I've been with Wes, he's lost my business." A day or so later, I went to another agent in town. I think I was probably the first person she had ever seen that wanted to change agents. She said she would have to look into what was needed to get this done, and would get back to me.

State Farm must also not have many people change agents. I got a call from someone in the district office, asking why I wanted to do this. I told him why. He also seemed like this was something that was just not done. I didn't flex on it, I said that I was not going to be totally ignored while someone placed multiple personal phone calls about attending a football game. I wanted someone else to have my business.

They made the change. I don't know how much an agent makes on a renewal policy, but I didn't want one more penny of my money going to Wes.

fushigi

Not really. With the talk about customer retention & repeat business being how dealers really stay in business, doing warranty work is an opportunity for the service department to do their part to help ensure repeat business. And make some money at the same time.

A good service experience will have me coming back the next time my car needs something. It also means I'm more likely to buy that brand next time as I know it'll be well taken care of.

imidazol97

>much more interested in co-ordinating the upcoming trip to one of the university football games with their friends/family/whoever, than give any attention to the couple that was sitting across the desk from her. She finally got all the loose ends tied up on the phone calls, and wrote up the policy.

One of our State Farm agents was out of town on a soccer trip for his son when we needed an insurance proof document for a mortgage or closing on this house. No one in the office was able to provide that. No alternative was offered other than wait until too late when he got back.

I went to another agent. He provided the document required for the house purchase. He required a signed statement saying that he had not solicited our business to take it away from the other agent. I believe we also got a phone call later from someone higher up.

We've been with the new agent ever since. His understudy who is the secretary does most of the work that we need. She does better than the agent at having answers.

isellhondas

Why would you take the time to go in when a phone call would have done the same thing? I have NEVER been in my State Farm office nor have I ever met my agent in person.

this is what telephones are for.

oldfarmer50

Is this the wave of the future or is this buying a pig in a poke?

http://www.autonews.com/article/20110923/VIDEO/309239871/1219

How many dealers are really buying used cars like this? How much information do you actually get on a car's condition?

I supose this is similar to buying a car off e-bay but I think that's crazy too. At least with e-bay you have some feedback on sellers. I can't imagine you could track all the sources of auction vehicles the same way.

isellhondas

We bought a few cars this way and I can't remember a case where we got burned.

The big danger is you can't poke your head inside and smell the interiors.

If you get a car that is "smoked out" or a car that has had a smelly dog inside, that would be a very bad thing.

jwilliams2

We used the MBCC auction to buy lots of cars. These were all MB lease returns, and the pictures and inspection reports were quite comprehensive. Plus, with the Vin's, we could see every service performed on the car. And MB did have a remediation program if there was a serious discrepancy.

During the years I was used car manager, I think we only had maybe one or two cars that weren't completely up to our expectations. But we got mostly really nice cars which were used to supplement our local trade ins. The program worked great for us.

oldfarmer50

"...a car that is "smoked out" or a car that has a smelly dog..."

Yeah, that's what I mean. I guess dealers have some sort of deodorizer smoke bomb that they can use to de-stink a car. When I bought my Cirrus the previous owner must have died from lung cancer because it stunk of smoke. The salesman said they would throw a couple of "bombs" inside to fix it. Worked pretty good.

Do these online reports include any accidents? I'd hate to buy a car and then find it had an ugly Carfax.

oldfarmer50

"...MBCC..."

MBCC? Mercedes Benz Certified Car? If you could see all the service records that would be a big plus on any car. That would make me more likely to be a buyer of a lease return if I knew that the lessee actually changed the oil and did other required stuff.

kyfdx

MB Credit Corp.... the bank that owns the leased car....

jwilliams2

Sorry, MBCC is Mercedes-Benz Credit Corp....should have spelled it out. And yes, we could see the complete dealer service record of any car before we bought it, as we were an MB dealer only buying off-lease MB's. And of course we ran a carfax on those we were interested in. Also, these cars were generally still under warranty.

isellhondas

Nothing gets rid of cigaratte smoke and dog stink is envn worse. Much worse!

bolivar

State Farm agents around here want to do a 'walk around' of used vehicles to check for prior damage.

idic5

I was thinking of buying a new 2011 cr-v honda , and I wanted to know get some info on extended warranties - warranties , that is, that go beyond the normal 3/36 b-b and 5/60 p-train.

about how much money do they cost and what are some typical terms?

do they vary by honda dealer or does each hondas dealer sell the same kind of extended warranty give or take a few dollars?

im_brentwood

The online condition reports will indicate paintwork, panel replacement and unibody damage, if any.

Carfax may or may not report an accident. Seen LOTS of cars with unibody damage and clean carfaxes.

isellhondas

My State Farm agent has never done that. I guess he trusts me?

isellhondas

That's right yet some people treat Car Fax like the bible.

Insignificant body work will flag "ACCIDENT REPORTED" and scare people away from what would have been a great car for them.

Car Fax runs constant TV ads which just about force the car dealers into signing up with them at whatever they feel like charging.

Auto Check stopped a lot of this which is a good thing.

Mr_Shiftright

I'm working on a case right now of an exotic car with a "clean CARFAX" that in fact suffered $40,000 worth of damage. So much for that buyer's piece of mind.

isellhondas

Car Fax ought to be responsible for something like that but, of course, that won't happen.

lemmer

You can't expect a reporting service to know about unreported damage.

Carfax is just one small piece of a buyer's research, not a replacement for a proper inspection.

isellhondas

They don't mind reporting AN ACCIDENT when a key scratch was repaired.

I agree, a quality inspection is still needed.

That was my point.

houdini1

Working on a case? You moonlighting now? More info please !!

Mr_Shiftright

I was just looking at a 2010 Subaru for a friend. I could tell it had been hit in the left rear quarter---clean CARFAX, dealer swearing on Bible---but it can been hit, there is not doubt in my mind---AND--from the glues, sealer and brand new inner fender lining and new alloy wheel, I'd say smacked fairly good---but sheet metal only.

im_brentwood

My Lexus has a dirty carfax from a scuffed bumper.

I just took in a 2010 Odyssey that needs a new hood, new bumper skins and every single panel other than the roof and the LF door need paint.

Clean Carfax.

lemmer

My neighbor just traded in a Pilot that probably has a clean Carfax but doesn't have a single straight panel on the entire car. She just constantly bumped and scraped the poor car on a regular basis, but never actually had any type of accident that would require a police report. And the individual incidents didn't cause enough damage to make it worth filing an insurance claim.

andres3

State Farm agents around here want to do a 'walk around' of used vehicles to check for prior damage.

Some insurance companies are scandalous and less useful to this country than the Taliban and other terrorist networks.

I had an agent that was inclined to take Polaroids of my vehicle, I think 4 pictures from all exterior angles to "prove" it didn't have prior existing damage, yet the insurance company stalled and delayed claims payment by writing up everything as "prior existing damage" even though the pictures were taken by the agent only 2 months prior.

snakeweasel

My State Farm agent did no such thing when I bought the Sebring. Just dumped the old car and put that car on our policy.

kyfdx

If my agent wants to see a used car, I'll let him....

Don't think that's happened since about 1990, but anything that helps prevent fraud saves all legitimate policyholders money..

Of course, I've only been with my State Farm agent since 1985...

henry_n

QUOTE:
Ultimately, there is only one way an automobile dealer will stay in business---in spite of perhaps a short 'boom time"---and that is.....REPEAT BUSINESS....
END_QUOTE

In this day and age, I don't think that holds true any more. In 2000, I purchased a new Ford F150 Lariat from Lone Star Ford in Houston. It was an advertised special (newspaper). I showed up, showed the newspaper ad, chose my color (they had 6), and drove it home. All in about 2 hours, including paperwork. A very pleasant experience.

Flash forward to 2011. I spot an attractive price on a new F150 from Lone Star Ford, remember my past experience, and drive across town to get the deal. I wasted 3 hours of my life (which I will never get back), and did not get the deal. I don't think the dealers care any more about repeat business. When I mentioned that I had purchased a new vehicle previously from their dealership, they were completely uninterested.

Mr_Shiftright

I'm not sure where dealers are planning to access this "endless" supply of new buyers if not from some repeat business. If they are relying on a business model whereby, like musical chairs, buyers jump from cheapest chair to cheapest chair every buying cycle, this suggests to me an ever-dwindling profit margin for a dealer---a death spiral of price-cutting.

I think you're right that the modern car buyer is less loyal to brand of car, and definitely he/she is armed with better pricing information, but I'm not so sure they would chuck a dealer who gave them good service in order to buy something across town for $150 less.

disregarding the concept of repeat business implies that you think that the pool of buyers is either infinite or that it seeks its own level and evenly distrubutes among all dealers.

I'm not so sure about that.

obyone

Dealer's look at repeat customers as one who buy's within three to five years. At an eleven year cycle I seriously doubt that anyone who was there in 2000 was still there in 2011 GM included.

Would Wal-Mart consider you a repeat shopper if you shopped there once a year?

Mr_Shiftright

There's also family buying. One family could buy 3-4 cars from a dealer in the span of 3-4 years.

isellhondas

I had that happen a lot. I had a lot of wonderful customers that I still consider friends.

Then there were the "loyal" ones who would drive 200 miles because their neighbor told them Hondas are cheaper in Oregon.

fushigi

Family buying and referrals.

Repeat customers are far more common in the service department than sales.

Mr_Shiftright

Well that's okay. Service is the main profit center at most dealerships.

the_big_al

I bought a truck from a Chevy dealership probably about 9 years ago now. I'd give them first chance to get my business next time I need a truck (who knows when that will be). Every time I've been in there for what ever reason, sometimes to browse and kick tires, other times for service, I've been well treated. So I wouldn't mind giving them my business even if their price is a couple hundred more than the next guy 20 minutes away. If I'm paying $thousands of dollars for a car, whats a couple extra hundred? I'm not worried about wringing every last dollar out of deal. I just want a fair price and to be treated right.

houdini1

I got to thinking about that advertising fee. Are you guys sure that the "ad fee" doesn't mean administrative fee?

oldfarmer50

A friend went to a local car dealer to look at a particular SUV and was shocked at how filthy the car was. One car was dirty and had coffee spilled across the seats. Another had the headliner sagging.

Talk about a bad first impression.

Is this some new marketing plan? Do dealers figure that buyers are so cheap that they would buy a trashed car to save a hundred bucks?

wlbrown9

Ad fee. Where I would expect it to come in is someone wanting to buy at 'invoice' or 'invoice' plus a $ amount. Pull up Edmunds or one of the other resources on-line and get the invoice price. BUT, this does not include any ad fee. I think Edmunds has or used to discuss that. So, the standard invoice price plus any AD fee included on the invoice to the dealer could be different from what the buyer found while researching. So buyer's idea of invoice would be differnet than what the dealer could claim and prove.

That discussion is here: http://www.edmunds.com/car-buying/what-fees-should-you-pay.html

placeboeffect

Hi there. I will be buying a used car for the first time in 11 years. We haven't even owned a car in all that time so I have no idea what I'm doing.

What kind of fees will I be asked to pay when I make my purchase? Are there any that I can decline? Do dealers try to sell you needless things on a used car or is that just when you are "building" a new car?

Please help. We are going to have to do all of our car shopping *and* purchase a car tomorrow. Thanks in advance.

qbrozen

could vary by where you live, but there will most likely be a documentation fee (will vary by dealer; i've seen as little as $80 and as much as $300), DMV fees (exact cost passed on, so that's the same everywhere), and of course tax.

Yes, they can try to add stuff. Typically not accessories, but they can and will still try to sell you a maintenance plan or extended warranty, maybe even spit shine. Politely decline it all.

Good luck. Hope you researched the real-world trade-in values of the car(s) you are shopping for.

henry_n

There is a very simple answer to this: negotiate the bottom line, or OTD (Out The Door) price.

"How much do I have to write a check for in order to drive this car home today?"

qbrozen

Personally, I don't like working that way. I am just the type of person that needs to know every little detail. So i have to work on the price of the car only. When it comes down to the fees, if they are out of line, I ask they be removed/reduced or I walk. By this time, they've invested just as much time in me as I have in them, so they are not usually willing to let me walk over something like $100 at that point.

benrey23

I know this is late but I wanted to respond. As a salesman I am glad you even thought about going over his head. What I would've suggested is just call the manager and tell him how you want to work the deal but with the salesman included. No hard feelings that way.

benrey23

Agree it is a very nice thing to do. However as a salesperson I would thank her and simply talk about the survey and referrals. You never know what is going to happen in the future when in service, or a friend or family member is upset with the dealership. You don't need them going around saying "I wish I didnt give the salesman 500".

286

I am considering buying a used BMW which is a lease return. I know the car's residual value that was negotiated for the original lease. Is that residual value the amount the dealer has to pay BMW Financial for the car?

The reason I ask is because for the car I am investigating, the lease's residual value is actually much less then the current market value of the car. If it was the dealer who stands to capture this profit rather than BMW Financial, then I have more room for negotiation.

benrey23

If the BMW is from a BMW dealer expect to pay close to what they want. It will be certified which is a good value and worked on by BMW Master techs. When it comes to BMW's you want the right people looking it over. Curious as to how you knew what the residual value was... Either way it doesnt matter. The BMW dealer would of had to buy the car before the lease expired from the lessee. When the lease expires the vehicle is soley in BMW Financial's hands and they sell it at auction which means more than likely when bought if the residual was low like you said, the buyer would of bought it for more than the residual value. I would worry less about that and more about the condition and overall price. With BMW's the resell is always usually good. Just make sure it is certified with extra warranty because those cars aint cheap to maintain and fix.

benrey23

If that dealer doesn't care about repeat buyers then they are crazy. However I believe you will find less and less dealers that focus on customer service and repeats, because the way people buy is different. They are much less loyal these days and expect zero margin deals all the time regardless of the car. They will drive 1 hr to get it. Smaller dealers will be gone in time because they can not afford to reduce the price as much as large dealers with more inventory. Not saying the customer is wrong, but ultimatley we are talking about $500 to $1000 difference at times and that equates to $12 to $20 a month. Is it worth spending extra for a small local dealer than go elsewhere and spend taxes in another city or county. Well there is not right or wrong answer. what kills me is when you buy elsewhere but bring the car back for local service and warranty work.