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Dealers Too Busy For OnLine Shoppers

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Comments

  • bobstbobst Member Posts: 1,776
    Here's my advice:

    1) Decide what car you want.

    2) Determine a price you are willing to pay.

    3) Find a dealer who has the car you want.

    4) Go to that dealer and make an offer.

    5) If the offer is accepted, pay for the car and drive it home. If the offer is refused, then leave and come back here for some more advice.
  • tucson_girltucson_girl Member Posts: 11
    You have to know what you want and state that you are prepared to buy. We got quotes via email from 3 of 4 dealerships that we emailed. Had them bid against each other and bought from the lowest (this particular dealership also had the fewest complaints against it according to BBB).

    Drove to the lowest bidding dealer, test drove the car, and drove home with new car within 2 hours of arriving. No four square negotiations, already had my financing lined up with an email from the bank, dealership got a sale helping them to another year of leading sales in the county. :shades:
  • angy168angy168 Member Posts: 18
    Just bought a new car from a dealer that is 300+ miles away. All the advices provided here are valuable. The car I am looking for is the end of year model and all local dealers in my area are out of them. One dealer located one in another dealership, but he will not discount too much since he has to do a swap, so he adds ad fee, prep fee & $350 swap fee (total $1k) on top of the invoice. Now thru Internet I found that dealers in another nearby state have excellent web sites that provides online inventory search and several of them do have the car (with the exact color and 5 speed that I want) on their lot, and they are eager to get them off their lot due to the 2nd quarter end(6/30). Two dealers emailed me with their quotes and I was able to lock in the deal with the business manager over the phone with an excellent price that dips below the invoice into the holdback region. My experience is that not many dealers are eager/serious to do sales over email but if you put in your time to find those willing ones and having the car in stock, you hit the jackpot. Of course you need to do your homework and have all the numbers sorted out & know what price you want to pay, cause that's how the Internet sales work.
  • grabowskygrabowsky Member Posts: 74
    Negotiations and sales are so complicated? Really? I wish I had a dealership because if you really believe that I'd make a mint off of you!
  • mirthmirth Member Posts: 1,212
    You wouldn't make a mint off of me, but, as I was saying, you wouldn't be able to do the whole deal over the internet either. Which was my point.

    And yes, car sales are complicated. First you decide what car and options you want. Then you try and find a dealer that actually has this car (if any). Then you take a test drive. Maybe you have to come back again and have your spouse test drive it, too. Then you negotiate the price. Maybe you don't like the price and have to go to another dealer. Then you negotiate the trade-in. Maybe you don't like the trade-in number and have to go to another dealer. Maybe you like the price and trade-in number but the dealer has to make a swap to get the car you want. Maybe they can't find the color you want - will you accept silver? Then you have to decide whether to pay the "document fee" that they spring on you at the last moment. Then you go to your bank to get a certified check for the deposit. Then you get your insurance company to fax the proof of insurance. Then you sit through F&I. Maybe you buy an extended warranty.

    Then you finally get your car. I can see now that you're right - it's a very simple process. You should open a dealership - I bet you'll make a bundle! :shades:
  • jmurman42jmurman42 Member Posts: 675
    We do pretty much the entire deal over the web/phone/fax now.

    With Honda most people that have owned them don't even test drive them, they just buy another.

    We make it pretty easy.
  • mirthmirth Member Posts: 1,212
    ...the trade-in? How do you handle the appraisal and the payoff?
  • jmurman42jmurman42 Member Posts: 675
    Internet customers are smart enough to know close enough what their car is worth. The final numbers are done with a simple appraisal at the dealership...the payoff is determined by calling the finance institution.

    This isn't rocket science, and if yor dealership wanted to they could certainly do more online/phone/fax than most of the ones out there currently do.
  • roundtriproundtrip Member Posts: 105
    tucson_girl
    Your story about e-mailing sounds just like mine. I used it because I didn't want the dealer to know I was a woman, and I can't deal with the high pressure pitch.

    However, I was skeptical to begin with. Didn't think it would actually work. In the end, I wound up getting a deal $150 below my OTD price (which was based on Edmunds TMV), my color choice, 3 free oil changes, and the dealership is 8 miles from my house. I was tickled pink and expect to get a Christmas card from the dealership.
  • nortsr1nortsr1 Member Posts: 1,060
    "Internet customers are smart enough to know close enough what their car is worth" When you use the words "close enough' that's usually 1,2 or 3thousand dollars "Higher' than what a dealer offers. We don't have privy to auction prices (and the dealer almost always gives an auction price appraisal even if the car is in "excellent or very good condition with low miles. They almost always say" we have to get rid of this at the auction".
    I cannot agree with your analogy about the trade-in. Let's face it, usually there is very good money (profit) to be made on the trade. Not always, but most of the time!!!!!!!
  • isellhondasisellhondas Member Posts: 20,342
    A lot of people will check with the various sources in an attempt to find out what theri trade is worth. The higest number is the one they will bring to me!

    Some cars are worth what the guides say they are and many are not. A lot of trades make us cringe because we know they are bring 3000.00 "back of book" at the auctions if they sell at all!

    And, the auctions prices do reflect what the cars are really worth! Why would a dealer pay 10,000 for an undesirable trade that are bringing 7500.00 on a good day at the local auctions?

    Heck, I don't mind printing a recent Manheim aution report and showing it to my customers, That way they ARE privy to auction prices.
  • audia8qaudia8q Member Posts: 3,138
    Internet customers are smart enough to know close enough what their car is worth.

    Now that was funny!!

    Is that the same internet customer who searches 400 websites to find the highest trade in value, classifies his high mileage,gas guzzler with smoke smell as excellent condition' and says "well, this one is the highest, so it must be right." ....This is the typical internet buyer we see...

    my sarcasm aside....quite a few vehicles right now are $1000-5000 behind book value..no consumer on the planet ever got that right. Many industry studies show that most consumers overvalue their trade values from $1000-3000 more than actual cash value. Oddly enough, this amount hasn't changed much over the years. You would assume with the internet the spread would be a little closer but its not the case.
  • british_roverbritish_rover Member Posts: 8,502
    Yeah but then you know they will just say you made those prices up.

    I had a guy actually bring in local auction prices to show that we were trying to steal his trade. The problem was he was not reading the report correctly. We said his trade was worth $15,000 and we were stretching at that.

    He wanted about $17,500 for it. He had an auction repor that did actually show that the average for the six vehicles that ran through the auction was around $17,500. The problem was his car was an outlier compared to the sample of vehicles he was looking at.

    His had 20,000 more miles then any vehicle that had gone through the auction.

    It was a bad color this puke green nastyiness.

    Needed tires, brakes and some body work. The interior was filthy and the leather was faded/stained in several places.

    No way his truck would bring 17,500 at auction. I think it was a stretch to get to 15,000 personally.
  • nortsr1nortsr1 Member Posts: 1,060
    audia8: That is my point. We, the internet buyers, "DO NOT KNOW" closely enough what out car is worth. I certainly agree that places like Edmunds, KBB, NADA, etc., give us what they think our trade-in is worth...but it usually (and I repeat)...USUALLY),is 1,2 or 3000.00 "OVER" what we get. I am not complaining, just stating the facts. When we get those internet KBB, Edmunds, NADA, etc.,prices and then go for the trade...most buyers think they are being low balled when really they are not.
    Isell: yes, ONCE IN AWHILE, a dealer will give an amount about the same or more as the aforementioned websites...and even sometimes MORE...but the odds are few and far between.In fact, some dealers even advertise that they give the KBB trade-in amount..it is usually those same dealers that then charge $499.00 dealer fee,plus have an ADM sticker with window etching, pinstripes, paint sealant, etc.
    I fully realize that the trade-in vehicles condition, mileage, make, model,and now the gas guzzlers SUV"s all play a major role in the trade-in experience. Let's face it, almost ALL customers probably think their car is worth MORE than what is offered,,it is all part of the haggling way of trying to pay less and get more.
    All I initially started out with in this original discussion was disputing the fact that most internet buyers know what their trade-in is worth. I still say, hogwash, we DO NOT KNOW!!!! and we will probably NEVER REALLY KNOW!!! As long as I am happy or satisfied with what I am offered on my trade-in, then I really don't care what amount it is resold for (at auction or on your lot or someone else' lot.
    I am not saying this in a smart manner as I respect all of you sales people that help make us smarter buyers (even SOCAL). I enjoy these forums. Keep up the good work. I know, with some of the smart remarks that are directed at some of you...you really have to have thick skin.
    NORTSR!
  • grabowskygrabowsky Member Posts: 74
    The new truck I bought 3 months ago:e-mailed dealer with what I was looking for. Dealer found it. Offered to sell it to me for $200.00 over invoice plus incentives. Went to dealer.Have excellent credit. Signed a few papers. Drove home with vehicle. Yep,that's real complicated. I've bought my last four vehicles just like that.And I don't tend to have problems making descisions either.
    If you wish to make the process overly-complicated that's your choice. Not not all of us feel that is necessary.
    Now about this cool car you want to buy.Don't worry,I'll take care of EVERYTHING! :shades:
  • mirthmirth Member Posts: 1,212
    So you had excellent credit, no trade-in, and the dealer had the exact car you wanted. Let's take a guess how many car deals fit that scenario (hint: it's a very small percentage).
  • theflushtheflush Member Posts: 100
    Why aren't auction prices readily available to consumers? It would help give them more realistic expectations for their trades.
  • jipsterjipster Member Posts: 6,296
    Why aren't auction prices readily available to consumers?

    Because people would never trade-in at dealerships if they knew they weren't going to get squat for their vehicle. Dealerships turn around and put a $17,999 price tag on something they paid $10,000 for. Then end up getting around $14,000 when said vehicle is sold. Sounds like a sucessful formula for profit to me...if you're the dealership.

    The vast vast majority of time it is more financial advantagous for someone to private sell their vehicle, as opposed to trading it in.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • roundtriproundtrip Member Posts: 105
    So you had excellent credit, no trade-in, and the dealer had the exact car you wanted. Let's take a guess how many car deals fit that scenario (hint: it's a very small percentage).

    I fit in that category and also had an easy time buying from Internet sales. (I could have traded my car but got a much better deal through a private sale.)
  • bretfrazbretfraz Member Posts: 2,021
    Why aren't auction prices readily available to consumers?

    Why aren't cost prices available on ALL products, not just cars?

    I had lunch at Chik-FilA today and paid full retail for my nuggets and lemonade. Having their cost prices would have made it easier for me to decide which meal was the best value for me.

    The vast majority of consumers have no idea how to place a value on their used cars without having auction prices. Giving them this piece of info would be like pouring nitromethane on a fire. Even seasoned dealers screw this up. Of all the people I know, NONE of them has two clues about used car valuations. Auction info would just screw them up even more than they are now.
  • dkarschdkarsch Member Posts: 72
    Most dealers sell trade ins to a wholesaler who then turns it around to someone else. The reason why is because the dealer doesn't want to have joe customer come back a few weeks later to get service, etc.. and see his former car now marked way up with a no haggle price sticker on it.

    by the way, the above is straight from the mouth of one of those wholesalers whom I happen to know.
  • british_roverbritish_rover Member Posts: 8,502
    Thats not really true. I would much rather have a nice tradein to sell that I know the history of and probably own for less since I didn't have to compete for it at an auction and pay auction/transport fees.
  • bretfrazbretfraz Member Posts: 2,021
    Dealers will wholesale cars they don't need or they feel won't sell to their local clientele. If a dealer has 5 Accords on their used lot, do they want #6? Maybe not. That Accord gets wholesaled. Same with cars that are potentially hard to finance due to age or mileage.

    In '96 I traded a 2 year old Dodge on a new Nissan. That car had 48K on the clock, a replacement windsheild and a leaky tire. Dealer gave me what I wanted on trade (payoff) and I figured they wouldn't keep it. But they put it on their lot and tried to sell it. I don't recall the price but I don't think it was astronomical. Anyway, after 4-5 months the car was still there, complete with a flat tire. Wonder why they didn't wholesale the car right away?
  • isellhondasisellhondas Member Posts: 20,342
    Sometimes, we take a chance and figure we wil try to sell these cars ourselves.

    We run them through the shop and if they check out well, we will put them on our lot.

    It seems (for us) that everytime we take a chance on a domestic, we end up taking it to the auction in the end.

    No matter how nice they are, or how low the miles are, nobody seems to want them.
  • imidazol97imidazol97 Member Posts: 27,675
    Is there a factor that people looking for used domestic brands tend to look at domestic dealers? People looking for used foreign brands look at a foreign brand dealer?

    My logic would be someone trading a domestic that I might want used for a different type of car, foreign brand, more likely was having something about the car with which they were unhappy. Someone trading a foreign brand at a domestic brand dealer probably is more likely to have had problems with that car. I.e., to find a domestic used, I'd look at a domestic dealer; to find a Honda used, I'd look at the Honda dealer.

    2014 Malibu 2LT, 2015 Cruze 2LT,

  • isellhondasisellhondas Member Posts: 20,342
    And exactly why we wholesale most of the domestics.

    Still, once in awhile we will take in an especially nice one or a very low mileage one and we will take a chance on it. So we pay our detailers to detail it, pay our shop to inspect it, maybe spend a few hundred dollars fixing small stuff to get it in top shape.

    And sometimes these sell! Other times we end up taking them to the auction, pay the auction fees and hope we can break out of them.
  • jlawrence01jlawrence01 Member Posts: 1,757
    It seems (for us) that everytime we take a chance on a domestic, we end up taking it to the auction in the end.

    No matter how nice they are, or how low the miles are, nobody seems to want them.


    I have always found that "odd balls" are the best used car deals. Fords on a Chevy lot. Non-luxury cars on a luxury lot.

    Most dealership groups move cars between lots to avoid such mismatches.
  • volvodan1volvodan1 Member Posts: 188
    I sell Caddys and this is true for us. I take in a Lexus or BMW and it may be perfect, but it is a tough sell. The older the import, the better it will do, IMO. I have an 04 Land Cruiser w/ 29,000 miles. It has the bells, the whistles, everything. Mint..........No Action.

    The reason it sits is the reason 03 & 04 Caddys sit at non-caddy dealers, Certified Pre-Owned. I can include an extension of the factory warranty to 6yr/100,000 miles. They can't. Just like I can't go 7yr/100,000 powertrain on the Land Cruiser.

    If I get a nice 96,98,00 Lexus, Merc, etc. I am on more equal footing with others. Then I just have to get them to look.
  • jennafo3jennafo3 Member Posts: 3
    Sent a bunch of emails out requesting quotes for new kia sedona. No #'s back, just questions about possible trade -- this is my first time buying a :new" car via internet. how do i nail them down to a number without bringing the trade into the pic? :confuse:
    thanks in advance
  • grabowskygrabowsky Member Posts: 74
    Tell them you aren't considering a trade at the moment. Trade-in value has nothing to do with the price of a new car. ALWAYS negotiate them separatly.
    If they don't want to give you any kind of numbers then go to a different dealer. Remember: a salesman/dealer is NOT your friend and they DON'T have your interests at heart. Good luck. :)
  • bobstbobst Member Posts: 1,776
    "how do i nail them down to a number"

    Well, it looks like you can't do it. You asked them for quotes and got nothing. I guess you better try another method of car buying.
  • jipsterjipster Member Posts: 6,296
    Go out to a couple kia dealerships, get vins from the cars you like. E-mail dealership back, with vin from their vehicles in stock, and ask for a price. If they still won't give you a price, make an offer.
    2021 Honda Passport EX-L, 2020 Honda Accord EX-L, 2011 Hyundai Veracruz, 2010 Mercury Milan Premiere.
  • captdavecaptdave Member Posts: 4
    I've been looking on line for a used pickup. I'm in a reasonably sized metro area (OKC) and I'm trying to save on gas and time by locating a few trucks before I hit the dealers. I've been visiting Autotrader.com and the dealer's web sites and I simply send an e-mail that says "I'm interested in this particular vehicle. I'd like to come in and look at it. Is it still in stock?" I'm not negotiating price. I just want to know if I should take the time to drive out to the store. BTW I'm not talking about "Bubba's Used Cars" , but major multi-brand dealerships.

    About half the time I get a reply saying that "We're sorry the truck has been sold, but come in anyway and we'll make you a great deal on some other vehicle." Okay, I understand that. Trucks get sold every day. I just have a problem when the same truck that was "sold" stays up on Autotrader and the dealer's web site for three or four weeks after I was told it was no longer for sale. I've even done a Sunday lot walk (no car sales on Sunday in Oklahoma) to see if the vehicle is actually still on the property. And these vehicles are almost always particularly good deals - very clean looking, low mileage vehicles (2000 models w/30K miles for example), at reasonable prices. That kind of a deal gets web traffic, but eventually people will start to check the ads and do a little homework over what is actually in stock.

    So friends it looks like the old game of bait and switch is still alive and well here in central Oklahoma.
  • jmurman42jmurman42 Member Posts: 675
    Ok, so do you know the process for Used Inventory to get into the Autotrader site?

    When a car comes in on trade in or a purchase that the dealership makes, it is entered into inventory via the Reynolds system. It then get inventoried by Dealer Specialties which is the main used car company that photographs and enters the vehicle information onto their systemn whi then feed Autotrader and Cars.com and the dealerships website.

    The overall process takes well over a week, someimes longer if the car needs work to bring it up to State inspection standards or a trip to the body shop.

    Car salesmen have customers that are waiting for good used vehicles, and these people will get a call before it would show up on the web.
  • captdavecaptdave Member Posts: 4
    So according to your description of the procedure most if not all of the good deals are already gone before they hit the web. I can sort of understand that - but I still believe that continuing to advertise something that is not available for sale constitutes bait and switch. Read the FTC definition. I'll accept some reasonable time - maybe a couple of days to a week - to pull the ad when the vehicle is sold but I still maintain that some dealers allow attractive vehicles to remain in the system for inordinate periods of time (much longer than the one or two week cycles that you discuss) simply to generate traffic and inquiries. Inventory control isn't rocket science. Computers are really good at counting things and if a dealership is serious about using the web for advertising they should be able to keep up all of their advertising media reasonably current. If not, the whole system is a fake.
  • isellhondasisellhondas Member Posts: 20,342
    Just sloppiness on the part of the dealer or the vendors.

    Different thing altogether.
  • bobstbobst Member Posts: 1,776
    OK, so the dealers practice bait and switch and the whole system is a fake. So what? The world does not operate by your rules.

    Now that you understand the system, you can find a way to make car buying a very enjoyable experience like the rest of us have.

    Or you can keep on complaining. Your choice.
  • oldfarmer50oldfarmer50 Member Posts: 24,200
    How would you dealers respond to an internet inquiry using the Bobst method? This presupposes that the person has done his homework, knows what he wants (and is very specific what that is) and offers a price that if accepted will result in a sale. Would such an inquiry be taken more seriously and be more likely to get a response?

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • british_roverbritish_rover Member Posts: 8,502
    No.

    The pure bobst method only works in person.

    A pure bobst is walk in point at a car then write down your offer on a bit of paper. Show them the check for that amount and then sit down to wait for the salesperson to come back from the DESK.
  • bobstbobst Member Posts: 1,776
    Besides, it is more fun to do it in person.

    We don't buy cars all that often, so we should enjoy doing it when we get the chance.
  • isellhondasisellhondas Member Posts: 20,342
    If someone emails me and makes an offer...

    " I want a 2007 EXL Accord and I'm willing to pay XXXX for it. Will you sell it for that?

    If it's acceptable, I'll say so and sometimes a customer seeking a hassel free experience will come right in and do the deal.

    Some customers, knowing they have a deal, will send emails to other stores offering less. If these people come back to me telling me they "beat my deal" , I'm done with them!
  • abraindrainerabraindrainer Member Posts: 312
    No Problem! That is why I perfer not give out my name and to make offers online. It is easy to create another email account.

    Do not take it personally, consumers have a right to do that in order to do "price discovery". They do that because the dealerships make it so difficult to find out what a reasonable prices is: many try to stick buyers with full MSRP on a vehicle with thousands in incentives. It is basically a defense mechanism against the information warfare.
  • shasta67shasta67 Member Posts: 109
    You know I go with a different tactic when I buy online. I give the dealer my name and phone number. I am honest that I will be trying to shop the price around. I may ask how close they can get to say invoice. I already know what is a fair price and what I am willing to pay. Sure most dealers will just call you and try and get you to come in but I always politely refuse and ask they email me their OTD price. I think the personal contact with the phone puts them at ease and lets them know I am serious. I also always explain just what I intend to buy and what I don't. I seem to have pretty good luck that way. It had been a while since I purchased a car traditionally and I went to the dealer the other day. It reinforced the fact that I will buy everything over the phone or the net from now on.
  • isellhondasisellhondas Member Posts: 20,342
    Most people that give phony names and phone numbers aren't serious buyers. I don't have the time to mess with people who do this. I don't take anything personally but I can't stand people who go to extreme measures by pitting dealer against dealer trying to squeeze out the last 50.00.

    I just don't need customers like that. I'm too busy and those are the people who are never happy in the end. This is how they go through life I think.
  • smittynycsmittynyc Member Posts: 289
    Isell, have you changed your policy on this recently? I thought you never provided/confirmed a written price because people would shop it around.

    In any case, I hope that you are rewarded for your flexibility and that it saves you some time, too. Personally, I'll never again step foot on a dealer's lot until I've reached a preliminary* understanding on price.

    * I know there are variables that need to be considered -- you've got to assess my trade, my credit, and so forth. But we should have a pretty firm framework in place before proceeding with all that.
  • isellhondasisellhondas Member Posts: 20,342
    Nope, never a price quote in writing. People have to call me or come in. I'll give quotes but not in writing.

    We are smarter than that!
  • phinneas519phinneas519 Member Posts: 113
    Shoot. Am I the only customer that appraises his car by running it through NADA, KBB and Edmunds, adding those up and using the average of the three as his trade request? The way I see it, that helps compensate for any discriminations, high or low, each of the places will have in terms of appraisal. Plus, I waste less of my own time, and the salesperson's, when I have the highest realistic number on the table. Seems like the best way to go.
  • bobstbobst Member Posts: 1,776
    "Am I the only customer that appraises his car by running it through NADA, KBB and Edmunds"

    Yep, you are the only one who does that. There was fellow in Texas who used to do it, but he passed away last year, so you are the last one.

    Better start training a protege.
  • phinneas519phinneas519 Member Posts: 113
    That's a darn shame. I'll start keeping my eyes peeled for promising pupils. The key is averaging the appraisals. Hey bobst, you might fit the bill...
  • mikefm58mikefm58 Member Posts: 2,882
    Actually most of us use the one that gives us the highest price for our trade in and then uses the one with the lowest purchase price for the car.....just kidding. Most that use those sources should average.
This discussion has been closed.