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Internet vs. Traditional Car Buying

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  • blufz1blufz1 Member Posts: 2,045
    Thanks,shoparound.
  • jeffyscottjeffyscott Member Posts: 3,855
    care to share your formula or calculations?

    Based it on what they did last year.
  • jeffyscottjeffyscott Member Posts: 3,855
    The luck part I referred to was the timing, being in the right place at the right time. I am pretty confident that rebates and incentives would eventually get to my target price...which was to be a moving target, to some extent. I was eventually going to be willing to go about $500 higher, if that became necessary to get a car by about June. I was lucky to get the price I wanted on Jan 31.

    I had also sought out prices in Dec. because I had a $250 extra discount certificate that was expiring. At that time, for various reasons, I was only willing to go to a price $1000 below my Jan price.

    It was a convenience to get the car now, because another vehicle used by my kid needed a repair that we do not plan to do. But I was willing and expecting to need to wait to get to my price. I did not need to buy a car now, but I was willing to at the right price.

    Actually that breakdown was the only reason I was shopping for price in Jan...after Dec, I had intended to check in again, if there was an auto show rebate in Feb.

    Now if the guy who is supposed to buy my broken down teen-mobile tomorrow comes through, everything will have fallen into place nicely.
  • blufz1blufz1 Member Posts: 2,045
    You did everything right,were patient,and found a dealer,out of the 3 or so that you contacted, who just wanted to move 1 more unit that month. Congrats! Doing so many things right gave you the chance to get a great deal. You never know exactly how the deal will work out but by doing enough things right you maximize your chances that it can work out. Hope you enjoy the car
  • thenebeanthenebean Member Posts: 1,124
    man, i haven't been here in a little while, but it seems as we have some new "experts" who will shoot down other's ideas because they do not mesh with their own. love people like that.

    car buying is unique to everyone's skills and needs. some people dont WANT to spend 3 hours haggling, some people don't WANT to email every dealer on the left coast, some people just WANT to buy a nice car at a reasonable price and get on with their lives...

    i would be one of them. i would rather do other things than haggle with a salesperson for 3 hours to get them "vested" in the deal so they have to practically take the shirt off their back. being as though i've been on both sides of the desk (where some of our new experts cant say they've been...) i don't see any reason to be a grinder. life is too short. i couldn't imagine if any other career paths dealt with the same kind of crap that salespeople deal with. its easy to point fingers and assume things, but like the old adage says...try walking a mile in someone else's shoes...

    i know most of this will fall on deaf ears, and many of the veterans of this board have said this before to me. but, i always like to throw it out there for the newbies...

    my two cents...

    -thene :)
  • shoparoundshoparound Member Posts: 47
    ... and then again we have some old crusty "experts" who come back from the dead and who will repeatedly shoot down other's ideas just because they do not mesh with his ideas. gotta love that too!

    I'm shopping until I drop. And I'll drop my money on the table when I find the best deal on the car I want. It could take me a week, month or year. Why? Because a new car is expensive! I'm buying the car I want and I am paying the least amount for it. When I ask my sales person "Is that the best you can do for me" and he/she says "Yes", because I am dealing at arms length distance I will not accept the sales person's words as gospel because they have a vested interest at inflating the price so they get a bigger commission. No problem. I get it. I will not believe them because it is more probable that the buyer before me paid less than I did. And many times it is just not hundreds less, but thousands less. Saving hundreds or thousands of dollars matters to me. And all I have to do to save hundreds or thousands of dollars is shop 3-4 dealers in a 30-50 mile radius to my home or work. All I have to do is watch for the dealers who have full page color ads in the weekly paper - I KNOW they have to sell cars! I can shop around! That's easy! I can do that! Some people obviously don't need to save money, but I'm not one of them.

    Average selling price of a new car is $27,800 (see Edmunds.com, How to Get a Used Car Bargain by Philip Reed and John DiPietro).
  • british_roverbritish_rover Member Posts: 8,502
    If it takes you more then a month to buy a car, unless it is something really obscure and you just can't find it, then you are doing something worng.
  • abraindrainerabraindrainer Member Posts: 312
    Information gathering that includes "shoparound" is key... to any good decision. We can all agree that the true cost is really the price plus consumers' search effort/time and that is the sum the buyers are attempting to minimize.

    In the traditional space, sellers have worked for decades to maximize the selling price as sellers/marketers work very hard to maximize the search effort of all other alternatives: they are different, far, not nice, crooks, etc. If the search effort of shopping around is high, the aforementioned sum of price+search is attractive because the search at the most local MY dealership is relatively low. Those are the actual "goals" behind lying, telling you other deals will fall though, bait and switch, etc. All these tactics make searching more difficult and "expensive" for the buyer and thus lower competitive forces and raise the selling price.

    Let us consider the impact of the Internet! It gives consumer pretty cheap (but not yet quick enough) access to dozens of dealers. Understandably, many sellers will want to try to switch you into the traditional space: "Should expect to see you here in 2 hours?". Understandably, not all dealers choose to "fully" participate in price disclosure: "I do not email my best prices". Obviously, what are they emailing then and why? Do you know that many dealerships and even manufacturers still do not offer inventory information? Luckily, more and more sellers in this market place are seeing the light that if they want to move enough volume they have to cooperate with online buyers... and offer more concrete details or information... thus they are forced into a competitive space where most NEW vehicles are treated as they should be: as pure commodities! Remember, which segment is growing at a faster rate?

    "Resistance is futile, you will be assimilated!"
  • jeffyscottjeffyscott Member Posts: 3,855
    I bought my car for $16,000.

    The edmunds TMV, less rebates is about $18,300.

    Invoice minus rebates is about $17,400 to $17,800, depending on whose invoice figures you use.

    By emailing a handful of dealers, near the end of Jan. it was easy to get offered the car for about $16,900. This was because there was a $500 per unit cash to dealer incentive, if they hit their sales quota.
  • bobstbobst Member Posts: 1,776
    "i don't see any reason to be a grinder. life is too short."

    Well, Thene, I guess some people just like to grind. I can enjoy playing golf for four hours and, if they can enjoy grinding out a deal for four hours, more power to them.
  • thenebeanthenebean Member Posts: 1,124
    hey, if thats what they want to do then fine.

    the only grinder i like is a nice tuna grinder with melty cheese and lettuce and onions! ;)

    -thene :)
  • shoparoundshoparound Member Posts: 47
    "Do you know that many dealerships and even manufacturers still do not offer inventory information?"

    no i didn't know that... what i've been told is a manager type can use their computer to logon to their car allocation and i've heard that they can see all the inventory in the region, plus they can see 2-3 months out (wow, i guess that explains why they can take ORDERS for cars!) i guess that explains why there are so many dealer trades and swaps between dealers; no dealer can have one of everything...

    i'm still shopping 3-4 dealers in 50 miles radius, i'll use internet to get price quotes (and I Just Might Find a Dealer That ROCKS online to Buy From - hello!), and i will drive 50-100 miles or more for the right deal, of course i will, why won't i? i need to save money man, and for every thousand dollars i save off the sticker price equels $20 a month - that is HUGE over 5 years!!!! you bet i'm shoppin around, it's worht it... check those full page color ads, those dealers rock!!!! they have to... usually they are shooting for #1 in region to get choice of cars... this is what i have learned on edmunds.com...
  • bobstbobst Member Posts: 1,776
    Shop, I like your attitude.

    You are willing to drive 100 miles to save money and you like dealers that have screamer ads, which goes against what a lot of people seem to think. However, you seem to enjoy your method of car buying, and that is the main thing. Keep on truckin.
  • jipsterjipster Member Posts: 6,299
    If it takes you more than a month to buy a car... then you are doing something worng(wrong)

    Couldn't disagree more. Some people like to take a day to buy, some a week, some a month... others a year. It's a personal preference thing... right or "wrong" doesn't apply here.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • mikefm58mikefm58 Member Posts: 2,882
    check those full page color ads, those dealers rock!!!!

    I stay away from dealers who run screamer ads. I have yet to find one that is legit.

    usually they are shooting for #1 in region to get choice of cars... this is what i have learned on edmunds.com...

    Really? Maybe you should go out in to the real world with one of those screamer ads in hand. Oh, and if you can find it in the ad, don't forget to read the fine print for the price with an asterisk next to it.
  • thenebeanthenebean Member Posts: 1,124
    there's a local dealer here that advertises some of the lowest prices on their cars, all with a little asterisk - bascially, you can get that ridiculous price, but you have to buy their service plan, extended warranty, mop and glo, scotchguard, etc in order to qualify. but people go there anyways because the price of the car is so great...it amazes me.

    we used to have people come in toting that ad, and we'd point out all the fine print that people refuse to read. then they'd still ask if we could do that price (uh, no...we arent using all those other items to make up the loss on the price of the car like they are)

    i had one of my former colleagues call me the other day after my team lost the superbowl (they knew i'd be in mourning) and we chatted for a bit. told them i miss sales, but i didn't want to go back to it. he said "you always get sucked back at some point!" ha!

    anyways, just some thoughts...

    -thene :)
  • jeffyscottjeffyscott Member Posts: 3,855
    I spent a year+ and we took about a 9 months for wife's car. But it's not like we were constantly looking and certainly were not negotiating price for a year.

    I test drove a Fusion soon after they came out...maybe Dec 2006, then the following spring and summer test drove cars on maybe 3-4 occasions. Took a second look at Fusion/Milan but did not drive in Fall of 2006 and also test drove 2007 Mazda6 at that time.

    Contacted dealers regarding Mazda6 pricing last summer, because I thought of moving up purchase due to the rebates. Contacted dealers end of Dec. for pricing because I had an expiring $250 certificate for Mazda. Contacted again for pricing end of Jan. because of problems with another vehicle led to decision to consider purchasing now if price was right...which it was on Jan 31 :) .
  • british_roverbritish_rover Member Posts: 8,502
    Errr what I actually said was...

    If it takes you more then a month to buy a car, unless it is something really obscure and you just can't find it, then you are doing something worng.

    You left out a fairly important part in the middle. If you are interested in a car that is hard to find or are cross shopping a couple of vehicles that are not out at the same time then I can see it taking longer then a month or so.
  • jipsterjipster Member Posts: 6,299
    I believe I read your post correctly. You were saying the buyer is doing something wrong if it takes more than a month to buy an easy to find(non obscure) car. That was the part I disagreed with.

    Now if someones "goal" is to find and buy a easily available vehicle within a month, and are unable to do so, yeah... then they may be doing something wrong.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • abraindrainerabraindrainer Member Posts: 312
    no i didn't know that... what i've been told is a manager type can use their computer to logon to their car allocation and i've heard that they can see all the inventory in the region, plus they can see 2-3 months out (wow, i guess that explains why they can take ORDERS for cars!) i guess that explains why there are so many dealer trades and swaps between dealers; no dealer can have one of everything...

    I meant that at some dealerships/automakers the inventory information is not directly available to the consumers. :surprise: Furthermore, some automaker sites disclose more details but make it pretty difficult to do a very broad searches without looking up dozens of zips... :cry:
  • shoparoundshoparound Member Posts: 47
    that's why after you finally land on the type of car you want, then you go for options, the dealer will discount the car they have in stock OR you can ask them to run a "locate"; this is SOP. any dealer who complains is blowing smoke... because they do it all the time. al the top dealers know what's "out there" or goin' in. respectfully, this is not a deal breaker. the dealer will whine and complain and tell you you'll pay more to locate the car... don't fall for that. just hold tight. ONLY leave a deposit when you have a purchase contract with VIN on contract... otherwise the dealer might play a game... might.
  • lrguy44lrguy44 Member Posts: 2,197
    the dealer will whine and complain and tell you you'll pay more to locate the car...

    If the car is found locally, not a problem - no charge. However if there is freight involved, the customer will be charged. Also, if the other dealer wants a car back from our stock, the return freight is also passed on to the customer.
  • thenebeanthenebean Member Posts: 1,124
    many dealers won't do a locate until they get a deposit. they are not going to go through the hassle and the time to get you your car (especially if its an oddball) if there is no commitment to buy. dont expect a dealer to go ahead with a swap if you don't leave a deposit. if the swap cannot be made, the dealer refunds the deposit. best to leave deposits via credit card, so its just a matter of swiping it through and issuing the refund. when i was at our dealer at least, there was a lot of hassle with regards to refunding deposits that were cash or check.

    -thene :)
  • boomchekboomchek Member Posts: 5,516
    TRUE..... because cash or check ndeposit eeds to be refunded by a check from accounting and that takes one or two business days.

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • thenebeanthenebean Member Posts: 1,124
    our dealership was much slower than that for some reason when it came to cash/check refunds. it was frustrating really.

    too many people need to approve, sign off, get the right paperwork, use the right accounts, get the owner to sign the check...

    red tape everywhere!
  • thenebeanthenebean Member Posts: 1,124
    our dealership was much slower than that for some reason when it came to cash/check refunds. it was frustrating really.

    too many people need to approve, sign off, get the right paperwork, use the right accounts, get the owner to sign the check...

    red tape everywhere!
  • lrguy44lrguy44 Member Posts: 2,197
    We are much slower on a check as the customer's check has to clear before we cut one back to them.
  • lrguy44lrguy44 Member Posts: 2,197
    We are much slower on a check as the customer's check has to clear before we cut one back to them.
  • blufz1blufz1 Member Posts: 2,045
    You must have been ground as a child.
  • thenebeanthenebean Member Posts: 1,124
    no, not really...
  • abraindrainerabraindrainer Member Posts: 312
    I guess some people just like to grind. I can enjoy playing golf for four hours and, if they can enjoy grinding out a deal for four hours, more power to them.

    In truth, most people do not want to grind. OK, there are a few who love that but majority of the people certainly do not want to resort to nastiness, lying, etc.

    Over the years, if someone constantly tries to overcharge, the other side will eventually resort to grinding when it "determines" it has been screwed over a few times... Facilities like "prices paid forums" disclose some pretty reasonable discounts. Thus, increasingly internet enabled buyers believe that grinding is the only way to get a good price, you are not going to get enough folks to lay down and take the first offer. Just like many salespeople, many buyers work very hard to earn their wage and some are equally resistant to letting go of that cash.

    I do not like to grind, I know that much and I have done a modified and online version of the bobst method in the past. However, if you tell me that if I grind for 2 hours I get to keep $1000 of my hard earned cash: I am willing to do battle for that kind of wage. Who would not?
  • shoparoundshoparound Member Posts: 47
    "...run a "locate"..." is *not* the same as doing a dealer trade or swap for a car. running a locate is the action it takes to logon a computer and check inventory anywhere in USA; running a locate is carsales 101, i read it on edmunds so it's gotta be true.

    I'd never leave a deposit for a car unless I had a VIN number on the contract, estimated miles on the car, and a reason time in which a full refund from the dealer was due if dealer cannot perform (contract null and void?); I would also write on the contract "subject to inspection" (i've heard most trades go smoothly); are there any lawyers in the house? help on that verbiage ("subject to inspection") would be ... helpful.
  • british_roverbritish_rover Member Posts: 8,502
    I will check around and see if a particular car is avaliable without a deposit but that is it.

    If you want me to actually call around and start trying to work a swap then I want a deposit.

    That means you aren't getting a VIN because I don't know which of the cars avaliable I am going to be able to bring in.
  • lrguy44lrguy44 Member Posts: 2,197
    I will tell you what cars are out there, but if you want me to obtain a car, it will take a non refundable deposit. Also, freight can be an issue.
  • boomchekboomchek Member Posts: 5,516
    Ditto last two posts. Our car inventory online shows what other dealers have, BUT it won't tell you if the cars are sold or not. Many times deposits are put on cars in inventory, with finance pending clauses and so on.

    The car does not go off the inventory list until it's registered, and delivered to a customer.

    So, many times we have to call another dealer to confirm it's availability, which requires some time and effort.

    I know some of you shoppers will say that a phone call is no big deal, but think about it if the manager has 15 locates to do from the weekend for SOLD customers, and we have to trade cars for them as well, and some dealers might be busy so we have to wait for them to call back, it is actually very time consuming.

    Therefore when a call is made and they're willing to trade, we do the swap right away, hence the deposit requirement.

    Otherwise we can be calling each other (dealers) back and forth and asking for cars that we're not sure we want to trade, or "maybe, we'll think about it". It's time consuming and time wasting unless a deal is in place.

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • shoparoundshoparound Member Posts: 47
    "non refundable deposit", awesome, I'd have to pass then and keep my feet shufflin' to the next store...
  • lrguy44lrguy44 Member Posts: 2,197
    With our cars, the next store that has the car you want may be 1000 miles away, or at port
  • cccompsoncccompson Member Posts: 2,382
    Hmmm....when I got my Mustang last summer the Ford store traded two cars for it - all just on my word.
  • lrguy44lrguy44 Member Posts: 2,197
    Big difference between a Ford dealer and a high end dealer - and how much did he make on thew deal - was it a special Mustang - was is a local or long distance trade?
  • british_roverbritish_rover Member Posts: 8,502
    And to add to that how well does that ford dealer know you?

    I have done swaps just on a person's word before but those are people I have sold multiple cars to.
  • thenebeanthenebean Member Posts: 1,124
    if you want a dealer to swap for you without a deposit, you'll be shufflin' for a while...

    unless you know a dealer and have done lots of business with them before, chances are slim to none that they'll do a swap without a deposit.

    put yourself in the dealers shoes. if you sold something, and people always wanted you to get that same something but a different color from someone else, wouldnt that be frustrating and tiresome? you have plenty on the lot to pick from...

    dealers do swaps, but some dealers don't swap with others. also, most dealers lose holdback on swapped cars too. less money makes the transaction less desirable.

    some things you should think about...
  • jeffyscottjeffyscott Member Posts: 3,855
    if you sold something, and people always wanted you to get that same something but a different color from someone else, wouldnt that be frustrating and tiresome? you have plenty on the lot to pick from...

    Ridiculous...you think the customer should settle for the color you happen to have on the lot, instead of the color they want. Fine why don't you just say "no, we are not going to get that other car for you, if you want it go to the other dealer and buy it".
  • abraindrainerabraindrainer Member Posts: 312
    JeffyScott is right!

    If full inventory information in the whole region is available to consumers, there is much less reason for internet shoppers to bother with transaction that involve swaps. It does make trasaction more complicated, tricky, and risky for all parties involved. If the informaiton on all stock is available, internet consumers need not outsources these tasks to dealers. Paying one dealer is probably enough, why involve two?

    Obviously, there are still traditional buyers that may utilize the swapping services.
  • Kirstie_HKirstie_H Administrator Posts: 11,242
    As a consumer, I really don't want to think about how tiresome it might be for a dealer to get a vehicle that meets my wants & needs. It's a lot of money, and I intend to get something that makes me happy.

    If the dealership isn't interested in helping me in that quest, no problem. I'll just "bobst" it down to the next place.

    MODERATOR /ADMINISTRATOR
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    2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
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  • thenebeanthenebean Member Posts: 1,124
    i didn't say anything about settling, i am just asking if you would get frustrated if YOU were the dealer. does anyone ever put themselves in anyone elses shoes anymore? no need to jump down anyone's throat...
  • abraindrainerabraindrainer Member Posts: 312
    Giving non refundable deposits to dealers is pretty risky practice for buyers! Why? Some have been known to keep them for their own screw ups!

    Doing swaps without agreement (from consumers) is equally risky practice for dealers! Why? Consumers have been known to walk away... for better deals elsewhere.

    How do we overcome dishonesty and distrust? If we stick to contract "rules", we need to have dates, VIN, miles, & dollars before any kind of agreement becomes legally binding.
  • lrguy44lrguy44 Member Posts: 2,197
    The numbers are always worked out before the deal is consummated. The options and price are agreed to. We the do a buyers order and state disclosure that defines the terms. We may not have VIN and miles as there may be several possible cars out there. If there is to be a deviation for some reason to the agreed to terms, we will refund the deposit and not get the car if required. But I am not going to add 50k to 90k to floorplan without a customer non refundable deposit before I seal the dealer trade.
  • thenebeanthenebean Member Posts: 1,124
    thats a good question abraindrainer - unfortunately, too much distrust has grown over the years, and these days, too many people on both sides just assume that nothing's changed. too many times these things are perpetuated by bad dealers and consumers alike.

    i am, by no means, telling people not to be careful when purchasing a car. I am, however, asking people to sit on the other side of the desk, and try to understand what the other side goes through.

    there's just so much anger and hate, and there really are some good caring salespeople out there, who really want to help you get the best car for the best price!

    -thene :)
  • lrguy44lrguy44 Member Posts: 2,197
    Amen!!! A typical dealer trade may involve many calls. First, the manager on the other end may:
    A. Be with a customer
    B. Day off
    C. Out to lunch
    D. Not returning calls

    Once you make contact, the answer may be:
    A. Car sold last night
    B. We are working a deal on it, call me back in 3 days
    C. Just put it into loaner or demo service
    e. We added $3000 worth of kit to it
    f. You don't have a car I like to trade back

    It is not an easy, one call process in most cases
  • jeffyscottjeffyscott Member Posts: 3,855
    As I said if it is too much trouble just say "we don't have that car, maybe dealer X has one, why don't you check over there"

    This is the way it works with other products...it's the dealers that are always saying "we can get you whatever you want". I have even said to a salesmen "you don't have what I want but dealer X does, so I think I'd get a better deal over there as they have it in stock". The salesman then tells me it does not matter the price will be the same whether they have it in stock, locate one, swap, or order.
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