Options

Internet vs. Traditional Car Buying

1474850525361

Comments

  • mattandimattandi Member Posts: 588
    LOL, yeah those are not prime examples of what I consider a great online experience. All I was recognizing was that they have figured out a way to work, even if I would personally choose to take my business elsewhere or choose a different route altogether.

    To each his own I suppose.
  • amad1amad1 Member Posts: 123
    Fandango is a terrible example posted by our consumer advocate hero. He knocks the biz but then pays an extra $1 for a movie ticket to keep from standing in line.
    ------------------------------

    That's right. When I want to see big budget blockbusters like Star Wars, Spiderman, Transformers etc. paying 1 extra dollar isn't a big deal to me.

    Besides, the let you know up front, before you pay, there will an extra charge. (honesty is the best policy because honesty builds trust and trust inspires action)

    Same with pay pal, instead of paying an extra dollar for a stamp and a money order he goes and pays 3% or whatever it is.
    ------------------------------------------
    That's right, its so convient. When I want to buy something online from a private party, Paypal is tremendous. I love how it works. Again, the key word here is trust.


    All he has proved is that he is willing to pay above sticker for the convenience factor

    -----------------------------
    The vast majority of the time, online purchase are much cheaper than B&M stores. A lot of times there is no sales tax associated with online purchases. But again, the key word here is trust.

    I have had nothing but positives expiriences from the above online vendors.

    As far car sales, there simply no trust from the public, whether that be internet or traditonal sales.
  • amad1amad1 Member Posts: 123
    A salesperson doesn't want to waste a lot of time on a mini, whether its face to face time, or internet time.

    So they prefer not making a sell at all. You rather let car sit of the lot and lose its value instead selling it to that grinder because you he wants you to drop another $100.

    Classic!!
  • amad1amad1 Member Posts: 123
    Let us see - low ticket items and no negotiation. I wonder what the profit % is. I'll bet it is greater than the 9% most invoice to MSRP markups are. Now who is fleecing you?

    There is no fleecing, why? Because in that industry you're not intentionally being lied to. If I wanted to buy a high-end 60 inch 1080p Plasma online, I could save thousands of dollars as opposed to buying from a B&M store. I just use my credit car, pay for shipping (no taxes) and its done. No lies, deceit, pressure, none of that nonsense.
  • mattandimattandi Member Posts: 588
    Of course. There is a point at which a deal can not be done. Once you reach that point, the amount of difference is really irrelevant. No one in any business wants to spend time when the benefit drops too low.

    Simple really.
  • Kirstie_HKirstie_H Administrator Posts: 11,242
    And lowering the price on an item or on a brand can de-value your product. Sure, you can sell a new Lexus for $15,000 if you like, but do that enough times and you're not going to be perceived as "luxury" anymore.

    MODERATOR /ADMINISTRATOR
    Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
    2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
    Review your vehicle

  • lrguy44lrguy44 Member Posts: 2,197
    Because in that industry you're not intentionally being lied to.

    I have been in the business (and successful) for 15 years and have never had to take advantage of anyone to make a deal. I am also sure that the same is true for all the salespeople on this forum. Since much of my business is repeat and referral, I guess I have built trust and relationships with my clients.

    We do not generalize our customers, why should you have the lack of respect and the audacity to condemn all sales people because you are bitter and have an axe to grind. Take your anger to an anger management class - it will do you much more in the long run than your rants about fictitious silth lords.
  • amad1amad1 Member Posts: 123
    Of course. There is a point at which a deal can not be done. Once you reach that point, the amount of difference is really irrelevant. No one in any business wants to spend time when the benefit drops too low.

    Simple really.


    What point is that? On a new car, my point is invoice or below. If you can't do a deal on based that, in my opinion the dealer is being greedy.

    You have think about something. Look at the market. Car sales are down throughout the country. It looks as though we're headed for a recession. Sorry, this is not a sellers market, get over it. The smart consumer knows this!!

    Look at the housing market. This is not a sellers market. Home prices have dropped tremendously, especially here in California. Folks are holding on to their money, these are shaky financial times. The car sales industry doesn't seem to realize this. If I can't get the deal I want, I'll wait it out until the recession take full effect and those same dealers who were thumbing their noses at me will be calling me trying to make a deal.

    A car does a dealer no good if is still on the lot, month after month. What does "luxury" mean we luxury is not generating sales do to a sluggish economy.

    Here's my suggestion for the car sales industry. 1) Switch your salepeople to noncommissions sales (like Best Buy and Circuit City), pay them a salary or hourly. 2) If not, bring in a 3 day cooling off period for car purchases.

    I think both those suggest world revolutionize (for the better) the car buying expirience for the consumer. Happy consumers usually result in happy sales staff.
  • joel0622joel0622 Member Posts: 3,299
    If I have 1000 Glickenstien Widgets that the net cost on is $1 and I sell them all for .90 cents to $1 how much money did I make?
  • lrguy44lrguy44 Member Posts: 2,197
    my point is invoice or below

    So to do a deal with you I have to lose money? I pay invoice. I need to generate a profit. Contrary to your doom and gloom, we have done ok in tough times before and this period will be no exception. If you want me to be a non profit organization, please go elsewhere.
  • lrguy44lrguy44 Member Posts: 2,197
    By the way, if the company you work for (we assume you are employed) sold products at cost or below, how long would you be employed?
  • jb_turnerjb_turner Member Posts: 702
    "Switch your salepeople to noncommissions sales (like Best Buy and Circuit City)"

    Salespeople do get hourly or salary pay in addition to commission. If no commission no incentive to sell cars.

    "If not, bring in a 3 day cooling off period for car purchases."

    You mean let freeloader Mike use the car for 3 days to visit friends ... go drifting and return the car?
    There is no need for a "cooling off" period you should know what you want... if not do research.
  • greanpea68greanpea68 Member Posts: 1,996
    Car sales are down throughout the country.

    Yes are sales are down. If you do the research you will find that it is mainly "Domestic Vehicles"....

    GP

    "New York teams are superior"

    "Toyota is the superior import"
  • mattandimattandi Member Posts: 588
    What point is that?

    Different for every situation.

    You will only do invoice. Dealer will only do invoice plus $10. Deal will not be done, and only $10 apart. You both move on.

    Like I said, simple.
  • [Deleted User][Deleted User] ColoradoPosts: 0
    You will only do invoice. Dealer will only do invoice plus $10. Deal will not be done, and only $10 apart. You both move on.

    Agree, and the next guy will gladly pay $100 over invoice and gladly provide a good survey, unlike...
  • mackabeemackabee Member Posts: 4,709
    Toyota Division
    Toyota Division passenger cars recorded January sales of 83,409 units, down 3.8 percent from last January. Passenger-car sales were led by Camry, which posted best-ever January sales of 31,601, an increase of 0.4 percent over the same period last year. Camry Hybrid reported sales of 3,750 units in January, up 34 percent over January 2007. The Prius hybrid gas-electric mid-size sedan posted best-ever January sales of 11,379, an increase of 37.1 percent over last January. Yaris reported best-ever January sales of 7,666 units, up 30.6 percent over the year-ago month.

    Toyota Division light truck sales were up 1.6 percent, with best-ever January sales of 68,141 units. Light truck sales were led by the Tundra full-size pickup with best-ever January sales of 12,073, an increase of 91 percent over last January. Highlander and Highlander Hybrid posted combined best-ever sales of 12,323 in January, up 19.4 percent over the year-ago month. The Highlander Hybrid gas-electric mid-size SUV reported sales of 2,143 units for the month, an increase of 18 percent over the year-ago month. Sequoia posted sales of 2,377 units for the month, up 15.5 percent over the same period last year.

    Scion posted January sales of 7,872 units. The xB urban utility vehicle led the way with January sales of 3,319 units, an increase of 17.2 percent over last January. The tC sports coupe posted January sales of 2,947 units.
  • jipsterjipster Member Posts: 6,299
    Salespeople do get hourly or salary pay in addition to commission. If no commission no incentive to sell cars.

    You pay a high enough salary, and the incentive would be not to get fired. If you're making good money you will want to sell as many cars as possible to keep your job.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • lrguy44lrguy44 Member Posts: 2,197
    A commissioned sales person (regardless of industry) will outperform a salaried one every time. Hunger breeds activity.

    The sky is the limit for commission, and the more you sell the more you make. A salaried sales person can be content with making quota.
  • tidestertidester Member Posts: 10,059
    I think its time for car dealers to put up or shut down.

    Since the topic is "Internet vs. Traditional Car Buying," which one do you recommend and why?

    tidester, host
    SUVs and Smart Shopper
  • jipsterjipster Member Posts: 6,299
    A commissioned sales person (regardless of industry) will outperform a salaried one every time. Hunger breeds activity.

    The sky is the limit for commission, and the more you sell the more you make. A salaried sales person can be content with making quota.


    You pay me $150,000 to sell cars and I'll be hungry as hell. I would certainly not be content with making quota, especially since quota would be a minimum.

    But, there is another things commisioned sales breeds, and that is unethical behavior... in all fields of sales. I think a hybrid version would be best. You get a good salary to sell cars, then so much extra per vehicle sold. That way you take out some of the unethical behavior... and keep the salespeople hungry.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • volvomaxvolvomax Member Posts: 5,238
    You pay me $150,000 to sell cars and I'll be hungry as hell. I would certainly not be content with making quota, especially since quota would be a minimum.

    How do you plan to generate the profit to pay that kind of a salary???

    But, there is another things commisioned sales breeds, and that is unethical behavior...

    What evidence do you have to support that?
    How would a salraried salesperson, say your hypothetical 150,000 guy differ?
    He would still have to sell enough cars to keep his job.
    Ethics is up to the character of the individual,not the job.
  • verdugoverdugo Member Posts: 2,288
    it will do you much more in the long run than your rants about fictitious silth lords.

    You've done it this time. He's going to send the consumer advocate sith lords after you :P
  • lrguy44lrguy44 Member Posts: 2,197
    commissioned sales breeds, and that is unethical behavior

    1. Since all of us in the biz are commissioned, are you saying we are all unethical.

    2. In my many years in the corporate world and this biz, I have seen unethical behavior from both salaried and commissioned individuals. It is the individual, not the pay plan.

    3. Let us say that high salaries like $150k are possible, then if I had a commission plan $200-$300k would be possible. Who has the most incentive?
  • greanpea68greanpea68 Member Posts: 1,996
    That is pretty good that you can research that information since it is public domain. But you failed to look at what percentage of Autonation was down... If you look some more you will find that it is domestic...

    ( For the record I am not trying to start anything Joel... Just repeating what they tell us in our meetings)

    I know my source is valid.

    GP

    "New York teams are superior"

    " Toyota is the superior import"
  • jeffyscottjeffyscott Member Posts: 3,855
    On that 3 day cooling off period, since this applies only to sales made entirely at your home, I guess you just need to get a salesman to be willing to come to your home to sell you a car :) . Of course, you can only return something under that law if it is in the same condition as when purchased...so better not drive the car during your cool down period.

    You could just buy a used car at carmax, they let you return it for 5 days "no questions asked":

    http://www.carmax.com/dyn/research/warranty/moneyback.aspx?nav=0

    Also, no haggling at carmax. And I bet if you went to most dealers, they'd be real happy to match Carmax pricing on similar used cars.
  • lrguy44lrguy44 Member Posts: 2,197
    Actually, one price dealers tend to make a higher gross profit per car than a traditional negotiating dealer
  • jipsterjipster Member Posts: 6,299
    How do you plan to generate the profit to pay that kind of a salary???

    Diversify. Get about 10 tanning beds, train all the salespeople in message therapy etc.... lots of downtime you know.

    What evidence do you have to support that?

    About a million posts here on Edmunds about how people feel they were ripped off or misled. Commissioned sales works on the premise that you will only work your hardest under certain conditions. It's like paying teachers an end of year bonus if their students perform well on a standardized test. You can't expect a teacher to do their best unless they are paid extra? That's bull. Pay a good salary to your salesperson, if they don't perform satisfactorily then they get fired... like most other professions.

    How would a salraried salesperson, say your hypothetical 150,000 guy differ

    If I'm on straight commission, I would certainly be more tempted to do unethical things, to get a sale, if I had a house and car payment coming up, a baby to feed... and it has been slow going around the dealership. Desperate people will sometimes do desperate things. If you are paying someone a decent salary (the $150,000 number was for dramatic purposes) then this is less likely to occur.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • lrguy44lrguy44 Member Posts: 2,197
    Jip, One thing I have observed through these many years is that the most talented (that does not mean unethical) sales people in many industries (Real Estate, Technical Sales, Pharmaceutical Sales, etc.) prefer an open ended compensation program as opposed to a salary. Dangle the green carrot and they shall perform. The unethical ones in ANY industry are the ones who work in an environment that tacitly or overtly supports such behavior.

    If you think about it, many lawyers, doctors, dentists etc are basically on a commission. What business they bring in determines the income.
  • jipsterjipster Member Posts: 6,299
    Since all of us in the biz are commissioned, are you saying we are all unethical

    Yes! ;)

    In my many years in the corporate world and this biz, I have seen unethical behavior from both salraried and commissioned individuals. It is the individual, not the pay plan.

    I think it is a combination of both. If you show up for 8 hours and do your job to the best of your ability, then you should get paid.

    Let us say that high salaries like $150k are possible, then if I had a commission plan $200-$300k would be possible. Who has the most incentive?

    I think too much incentive is a bad thing in the car biz. Not everyone is ethical. You'll get people being murdered for $200-$300k sales jobs. I think the average joe car salesman would work just as hard to keep an $80k a year salary job as someone with the potential to earn $300k in commissioned sales. Certainly better financially for the dealership to do it my way.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • mikefm58mikefm58 Member Posts: 2,882
    But, there is another things commisioned sales breeds, and that is unethical behavior... in all fields of sales.

    That is especially true in service departments that pay on commission. I can't tell you how many times I've been given an upsell on repairs, "replace rotors instead of turn them", change perfectly good tranny oil because it "looks brown" when it's actually dark pink.
  • amad1amad1 Member Posts: 123
    I'll get back to the topic at hand. If sales are down nationwide, would not that have an effect on the overall sales be it Internet or via traditional means? In all due respects, I cannot understand why you don't see how that issue relates to the topic at hand. It has a profound affect on the topic at hand, you to have discuss it because of its impact on the car buying expirience.

    Anyway, I'm going to lets stay on topic. I agree.
  • mikefm58mikefm58 Member Posts: 2,882
    Hmmm, if overall January sales were down 3.8%, but all of the models you listed had large increase in sales, which models didn't do so well? If the overall is down 3.8%, some models must have taken a huge hit.
  • jipsterjipster Member Posts: 6,299
    is that the most talented (that does not mean unethical) sales people in many industries (Real Estate, Technical Sales, Pharmaceutical Sales, etc.) prefer an open ended compensation program as opposed to a salary. Dangle the green carrot and they shall perform.

    I can certainly see why that would be true. I just think it puts too much pressure on the ones that aren't at the top of their field. Maybe, I should stop feeling sorry for the poor s.o.b's? :confuse: ;)
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • amad1amad1 Member Posts: 123
    Here is an example of email I received from a local Infiniti Internet :

    I wanted to thank you once again for the opportunity to earn your business. I hope I have provided you all the information you want and need to make a well informed decision.


    I would also like to ask you a favor. Please present me with a challenge that I would need to overcome for you to take delivery of the New 2008 Infiniti G37 Coupe 2dr Base. It can be anything: price, trade-in value, payments or perhaps you are now interested in a different vehicle. I promise I will do my best to exceed your expectations.

    I will be in touch shortly. Should you want to speak with me sooner, please feel free to call or e-mail at your convenience.

    Respectfully,

    Shaun Dortch
    Internet Sales Specialist


    I ask, how would you respond to such an email? As an FYI, this was sent in 08.

    Is this slippery slop or what? Stay tunned!!
  • jipsterjipster Member Posts: 6,299
    I ask, how would you respond to such an email?

    Well, what infornation did you ask for? He wrote he hoped he had provided you with all the information you wanted. Sounds like a nice guy that will do anything to get your business. :)
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • mattandimattandi Member Posts: 588
    This thread is about the relative merits of shopping/buying via the internet or more traditional methods. Kind of a comparison of the two. How are they different and how are they the same? What's the benefits and challenges of the two? That kind of thing. I am having a difficult time understanding how slowing sales overall really relates to that discussion. How the economic environment is affecting car sales and how the manufacturers and dealers may respond is definitely a topic worthy of discussion, but probably better suited to another board.
  • amad1amad1 Member Posts: 123
    Well, what infornation did you ask for? He wrote he hoped he had provided you with all the information you wanted. Sounds like a nice guy that will do anything to get your business

    I believe I asked a question, however you did not give an answer. btw, I don't care about being nice as I do about being honest.
  • jipsterjipster Member Posts: 6,299
    I believe I asked a question, however you did not give an answer

    For me to answer your question you need to answer mine.

    I cannot post a reasonable response to what the salesperson provided, unless I know what you wrote in your initial inquiry. Post or write word for word what you sent the nice salesperson.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • amad1amad1 Member Posts: 123
    I cannot post a reasonable response to what the salesperson provided, unless I know what you wrote in your initial inquiry. Post or write word for word what you sent the nice salesperson.

    Come on!! Now you're playing the typical sales shark game. I think what I was inquiring about is mentioned in the email. A base model 08 G37 Coupe price quote.

    I put in bold the key parts of his email that I wanted someone to address. All of these pure and honest salespeople posting in this thread that should come easy.
  • qbrozenqbrozen Member Posts: 33,749
    I'm with jipster. Its impossible to say "this is how I would respond" when I'm only seeing one portion of the entire conversation.

    For instance, he says he provided you information. Well, did he? If he didn't, that would obviously change my response to him at this point because I'd have to call him out on not providing anything I asked for.

    '11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S

  • greanpea68greanpea68 Member Posts: 1,996
    would also like to ask you a favor. Please present me with a challenge that I would need to overcome for you to take delivery of the New 2008 Infiniti G37 Coupe 2dr Base. It can be anything: price, trade-in value, payments or perhaps you are now interested in a different vehicle. I promise I will do my best to exceed your expectations.

    All the guy is trying to do is find the hidden objective. Not a bad idea. Once he finds the hidden objection he can close you. :shades:

    I might start using that :surprise:

    gP

    "New York teams are superior"

    "Toyota is the superior import"
  • jeffyscottjeffyscott Member Posts: 3,855
    Actually, one price dealers tend to make a higher gross profit per car than a traditional negotiating dealer

    Hence my comment that: I bet if you went to most dealers, they'd be real happy to match Carmax pricing on similar used cars.
  • mattandimattandi Member Posts: 588
    I ask, how would you respond to such an email?

    Well, as I see it you have a few options.

    You can simply not respond. That reinforces the image that most e-leads are weak leads.

    If this person did indeed provide you with all the information you requested, then you could thank them for the information. If in addition, you are not really ready to buy any time soon, you could let them know that.

    If this person did not provide you with the information you requested, you could ask for it again. If you need additional information you could ask for it.

    If you do have some additional concerns, you could let the person know what they are. Just like they asked.
  • madmanmoomadmanmoo Member Posts: 2,039
    If Amad1's main goal is honesty, then I think that is covered under the blanket statement from the salesperson. The salesperson wants to meet ALL of his needs.

    I don't see anything wrong with this response and I see a lot right with it.

    If you initially requested that he not answer any of your questions and that he not be helpful at all, then I see a reason to be angry with him.

    -moo
  • volvomaxvolvomax Member Posts: 5,238
    About a million posts here on Edmunds about how people feel they were ripped off or misled.

    Well, considering that @ 16 MILLION new cars are sold each year, thats not too many unethical transactions, is it? :P
  • ediamiamediamiam Member Posts: 17
    But if only 10% of the new car buying public posted on Edmunds that would be an extremely high percentage, wouldn't it?
  • volvomaxvolvomax Member Posts: 5,238
    But if only 10% of the new car buying public posted on Edmunds that would be an extremely high percentage, wouldn't it?

    I'll bet that less than 1/2 of 1% of the new car buying public posts on Edmunds.
  • mako1amako1a Member Posts: 1,855
    amad, you're making a few points that get the sales guys going, but that 3 day cooling off thing has got to go. It makes no sense and will never happen unless you make it happen. You want 3 days...just let them work the deal, prepare the papers and when they hand you the contract to sign just grab the pen and papers, get up and say "I'll be back in 3 days when I'm cool". Run for the door. They'll be chasing you, but don't be deterred. Get in your car, turn the stereo up real loud and floor it. You'll assume they're trying to better the deal, but that won't be why they're chasing you. Just because they make 100k plus, they still take that 29 cent pen seriously. :shades:

    2013 Mustang GT, 2001 GMC Yukon Denali

  • lrguy44lrguy44 Member Posts: 2,197
    You would not believe in this depression when nobody is buying a car because amad scared the heck out of them how much that 29 cent pen means to us
  • mvs1mvs1 Member Posts: 462
    As a recent buyer of an Infiniti G35 over the internet I received emails such as these also. Sometimes they lead in different directions. I'll offer my opinion.

    What you should know is that dealers are aggressively pricing the G35/37 (at least in the north east). If you check the G boards you'll see deals ranging from a few dollars under invoice (mine turned out to be exactly $11 under including all doc/prep fees) to about $500 over invoice including all fees. Lease rates in Feb are better than last month, residuals the same, money factors lower, i.e. lower monthly payments.

    This sales person quoted you a price correct? You did not buy. I would reply with what you would pay for this vehicle relative to invoice including all fees. Take a shot at a few hundred under invoice...I wouldn't go any higher than $200 over including all fees, but that's just me.

    It looks like you have a trade in correct? If so state what your buy out is and what you want vs. what they offered. Trade ins to me are tricky, you might be trying to roll negative equity into a lease or FI term or want a check for the positive difference in value if any. Use KBB, Galves, etc as a reference as to what your vehicle is worth in a trade in. Keep the two deals separate.

    I'm not a fan of car sales people, and now only negotiate over the internet, it serves me well. Honesty goes both ways, you tell them what it would take to make a deal, they'll state their position, most likely counter offer, and you're not obligated to buy.

    You want the car, they want to sell you a car.
Sign In or Register to comment.