Any Questions for a Car Dealer?

kdhspyder · February 2006

This is a very valid point that isell... brings up. It may take 2-3 hours to conclude a sale from intro, to choosing a vehicle to negotiation... then wham.. 'We gotta go'. Because of the necessary paperwork for loans, DMV, etc it is at least 1-1.5 hours more depending on day and level of activity.

The clients become antsy and often complains of the overly long time the process takes because now it's running to 5 hours sometimes. And it often does take that long. It can be a lot shorter for sure if the buyer knows exactly what he/she wants and that vehicle is there to drive and it's a slow day. The problem arises when the survey comes weeks later all the buyer remembers is how long and painful the process was - 5 hours - and this is attributed to the salesperson so it he/she who gets blamed.

Fair no. But in the current structure the salesperson is 100% responsible for the complete satisfaction of the buyer. Even if the salesperson did everything perfectly it still was a very very long process.

stickguy · February 2006

I imagine there is a big difference in the process between a small volume/high price "boutique" dealership (Range Rover, Porsche) and a high volume mass-market place (Chevy, Honda). Both sides probably have different expectations about the process, and the time involved, at each type.

Yeah, if I am buying a new Carerra I understand that the prep process will take longer, it might be more of a consultative process, etc. Coming back the next day seems reasonable.

But, many (most?) people buying a Civic, Impala, etc. probably expect to make a deal (after, of course, a different type of negotiations!) and have a quick was done and to be on their way.

Actually, when I got my Accord, I finalized the deal over the phone (they let me walk since we were fairly far apart on price). By the time I got home, I had a VM that they wanted to talk more. A few calls later, we had a price agreed to (good for today only!). At this point, it was ~5pm.

I went back at about 8ish, intending to just leave a deposit and do the sales contract, and the sales manager was intent on getting me in the car that night. Not really sure why, unless he was worried that I would change my mind (hmm, maybe he talked to my wife?

). So, they prepped it up and I took it that night, which added some time (having to clean out the old car, etc.). I actually finally left the dealer after they were closed (about 9:30).

xkiddx13 · February 2006

well the estimated time at my dealership on extreamly busy days, is around 1 1/2 hour wait, but we try and make up for the time buy, going over the car accessories, making them feel comforatable, coffee and donuts do work well, maybe even going on another test drive of the same model of car they are buying. to let them get more used to it... try and make them feel good about the experience.

Kirstie_H · February 2006

I think that most decent people appreciate being treated honestly - whether that means the salesperson stays after hours to complete a transaction, or whether the salesperson asks the customer to return the next day.

Most people with a human heart understand that salespeople may also have that kid's soccer game to attend, or that family dinner, or that AA meeting

Most customers react how they're treated - if the salesperson handles the fact that he has to leave with a genuine customer-service attitude, a respectable customer will understand.

I'm technically available for my job(s) 24 hours a day, but do I always take that 1am phone call? Nope. I usually answer, but many times I'll tell 'em it has to wait til the morning (the real morning).

danf1 · February 2006

We run about 5:1 at my store. On a busy day it is not unusual to have to wait for an hour or so to get into my office. If the salesperson is good, they will spend that time going over warranties, manuals, maintenance requirements etc... A quality salesperson can make the wait bearable.

We also have a small cafe so you can grab a light snack while you are waiting.

Half of my salespeople are very good at this, the other half disappear, smoke cigarettes, drink coffee, watch Judge Judy or whatever else is on. You can usually tell who does what when you see their CSI scores.

xkiddx13 · February 2006

I would ask them how much time do they have today to spend working somethings out, and if i can pull a few strings to possible get the ball rolling a little faster for them i will try. but if not, i would find out the next best time they can come in and work something out, and place it in my calander, and make sure i am there on time..

qbrozen · February 2006

sounds like exactly the same thing Isell said.

You simply stated it a little different, but I had no trouble understanding what EITHER of you meant.

biancar · February 2006

Do you let the customers know about how long it will take? I think that's the biggest problem, not so much that it takes time but not knowing.

When I went with a friend of mine to buy a small car a couple years ago, we went around test-driving the Nissan Sentra, Mazda 326, a VW, and a couple other things. He liked the Mazda the best. So we returned to that store that day, negotiated (I was well-armed with all the info on the cars he was considering), bought the car and were out of there in I think an hour or so, not counting the time spent test-driving earlier in the day.

It was a cash deal, no trade, so that made it simple, but I can guarantee you this friend, who has NO patience for waiting in lines, would have walked out if the time it took was getting unreasonable, with no explanation.

I've also mostly had good experiences with Toyota and Nissan. Buying my Maxima from a small-town dealer was a delight. I called first, they had exactly the car I wanted, I knew exactly how much I wanted to pay, deal was done very quickly. They didn't screw around with "going back to the manager" every five minutes, which would have ticked me off enough to walk out had it happened.

kdhspyder · February 2006

We have a time line everyday of the week. 45 min from end of the paperwork completion on the sales floor to exit from the F&I office. We explain to each buyer what step is next and how long is 'should' take... the buyer can extend it as long as they wish by asking questions. It's another 15 min to 90 min for delivery of the vehilce ( 90 min for a Prius w/Navi ), final walkaround and signoff.

On busy days the 'normal' time in the F&I office might go to 60 min MAX. Typical ratio is 5:1 as you suggest.

backy · February 2006

My gosh you people are sensitive! I NEVER SAID IT WAS ISELL'S GAME! I WAS TRYING TO COMPLIMENT HIM! I AM SORRY! FIFTY LASHES FOR ME!!! Is that enough?

But it is YOUR game, right? How do you know, when someone looks at his/her watch several times, that they aren't pressed for time? Yes, you might catch one or two playing a game with you. But you might not. So why not keep your cool and handle it in a professional manner, e.g. "I couldn't help noticing you are checking your watch a lot. Are you pressed for time today?" Then depending on what the customer says, you know if they have been playing games with you or have a legitimate time crunch. Either way, you have maintained your professionalism, and you can now help them work out their time issue if they have one.

snakeweasel · February 2006

As far as this "every customer is a potential sale" attitude, this is what can aggravate me, as a customer. I respond to a salesperson who is considerate of my time, my questions, my concerns, etc. The ones who will do anything to make the sale are the ones I want to strangle.

When I say treat every customer as a potential sale I don't mean shove a sale down their throat, just be courteous, answer their questions, show them the product (if they want), address their concerns, ect. Treating a customer as a potential sale could mean getting a sale today, or tomorrow, or next week, or next month or next year, or by a referral.

xkiddx13 · February 2006

then we are seeing two different perspectives, he said more to the fact of he only wants customers that are ready to buy today, as myself iwill take a customer that is not ready to buy untill 3 years from now, it does not concern me about the length of time it will take me to make the customer happy and get them what they really want, not what they think they want, casue they have ppl out there selling them cars they dont really want and cant really afford, but they get pushed into it buy these salesmen just seeing dollar signs,, then the buyer leaves and a day or so latter is upset with the whole process and feels like they got ripped off and cheated and pushed, then you think they will go bac kto the same dealership let alone the same car salesmen... I think not..

danf1 · February 2006

What are the lashes to be administered with?

Seriously though, my job takes the same amount of time regardless of how much time one has to spend. I do it as quickly as I can while still ensuring that it is done properly. In sales it was easier for me to adjust my pace according to the customers demands. In F&I, I have the same amount of paperwork with just about every deal, the same amount of products that I need to explain and the same amount of disclosures that must be explained. If I were to rush it, chances are good that I might miss a signature or a form and have to get the customer to come back in to resign something. You can imagine how happy people are to come rushing back in to see me again because I saved them 5 minutes of their lives once.

If someone is truly pressed for time and I can't do my job effectively, then I will try to set an appointment for when they do have the time to do all of the paperwork. I inform all of my customers up front how long it will take and verify that they ar alright with that. After you've told me that you have 45 minutes or so to complete your purchase, it becomes difficult for me to believe that you needed to leave 20 minutes ago.

mirth · February 2006

then the buyer leaves and a day or so latter is upset with the whole process and feels like they got ripped off and cheated and pushed, then you think they will go bac kto the same dealership let alone the same car salesmen... I think not..

And yet isell's business is mostly repeats and referrals - hmmm.

So x, you're perfectly happy if someone who doesn't plan on buying anything for a year takes up 3 hours of your time on a Saturday test driving 4 different models? Just curious. I would think that the thin paycheck at the end of the month would strain that "all hugs and smiles" attitude.

xkiddx13 · February 2006

i DO GIVE THEM A ROUGH ESTIMATE ON HOW LONG THE PROCESS MIGHT TAKE sorry for yelling... lol.. but that is hard to figure out sometimes, specially with some of the issues that can come up.

audia8q · February 2006

since i do work at the number 1 honda dealership in america...

number 1 at what? just curious.

xkiddx13 · February 2006

acctually i dont mind becasue i know i treated them the way i should have and, well just to throw it out there I'm a buddist and finacial wealth means nothing to me, yes i have a nice place to live nice transportation and food on my table, but i also know how to budget and live within my budget tha i have set for my self, so if one month my pay is a little less casue i decided to take care of a customer that did not buy from me that day, i know i will have a customer in the next couple of days that will buy from me casue 2 years ago i gave that customer good service before.. so what goes around comes around...

xkiddx13 · February 2006

number 1 at the amount of honda's sold.

obee29 · February 2006

Hello everyone! I just wanted to know what is the real trade in value for a 97 Jeep Cherokee, 70k miles, good condition. I know the blue book value number but I'm trying to figure out what I'll get from a dealership.

Thanks for the help.

Kirstie_H · February 2006

Please post here:
Real-World Trade-In Values
and include details found in the form above the "post a message" box.

qbrozen · February 2006

he said more to the fact of he only wants customers that are ready to buy today

No, he didn't say that. You just read too much into it.

xkiddx13 · February 2006

SOMETIMES it is hard to say, you can get almost exactly what blue book is or around a $1000.00 less, depends on what the dealership feels they can really do with your car..

for example we took in this 99 chevy malibu with 130,000 miles a broken out passanger window, dents all over it stickers everywhere the inside was dirty as all ****, and the blue book value of the care in ok condition was 1100. we gave the guy $1000.00 he got an amazing deal on his trade in considering the shape of his car. but we also knew here that we could at least make 200 more through wholesale so we did not lose money on it, and the guy got a new car and is happy..

xkiddx13 · February 2006

hypothetically speaking, customer has 14600.00 what kind of APR % could you get him.

qbrozen · February 2006

When I say treat every customer as a potential sale I don't mean shove a sale down their throat, just be courteous, answer their questions, show them the product (if they want), address their concerns, ect. Treating a customer as a potential sale could mean getting a sale today, or tomorrow, or next week, or next month or next year, or by a referral.

well, that's good. thank you for clearing that up in this instance. You're right, that phrase could be used either way. But its that "shove the sale down their throats" behavior that gets me riled up.

Kirstie_H · February 2006

I'm sorry, but this question doesn't make a lot of sense. And also, it belongs in this discussion:
Questions About Financing New Vehicles

xkiddx13 · February 2006

i generally know but i just recived a call from a gentlemen that asked that question, and i thought it was just funny that he thought i could give him a apr% based on money he had..

qbrozen · February 2006

oh ... hmmmm... ok, i need to clear this up. Xkiddx13, I think we've gotten our signals crossed. I traced the posts back to find Isell's original quote that I was talking about ... turns out you and I are talking about different posts. Isell made a post about folks who don't have the time right then and there to sign the paperwork etc, then you posted 2 messages later a response to Isell .... HOWEVER, you were responding to an Isell post from 6 days earlier (which is here), not 2 posts earlier (which is here), as I thought.

The post YOU were responding to was about how he hates people who are shopping months before buying.

It seems to me you both have the same approach when it comes to folks who don't have time for the paperwork that day (as your posts indicated and why i commented that you guys are on the same page).

I apologize for the confusion. Of course, you can probably understand how it happened. However, I still have to defend Isell to some degree. From all the years we've both been around here, I've come to know him as a straight shooter. So I do appreciate that.

Isell: i can understand you don't want people like that wasting your time on a seller's day. but what about a tuesday afternoon when, at worst, i might be interrupting a game of solitaire? I mean, maybe you don't have that time, and that's fine, but if the customer is upfront with you and tells you right away they aren't looking to buy right away, what's the problem? if you don't have time, pass them on to someone that does. I've actually had salespeople tell me "that's ok. its dead here today and i like going for test drives."

damish003 · February 2006

"well the estimated time at my dealership on extreamly busy days, is around 1 1/2 hour wait, but we try and make up for the time buy, going over the car accessories, making them feel comforatable, coffee and donuts do work well, maybe even going on another test drive of the same model of car they are buying. to let them get more used to it... try and make them feel good about the experience"

I don't mean to question what you're saying or be rude in any way, but are you serious about the last part? You have a customer agreeing to a car, is waiting for F&I to do their thing, and you sometimes let him/her drive another car of the same model to help wile away his/her time? What happens if the customer suddenly decides he likes this one more, with a different set of options/colors, whatever? Price is now different. Do you just start over? Must be my neck of the woods, cause I can't imagine a dealership having this as a standard policy. Like I say, I'm not questioning the veracity of the statement...I'm wondering if I'm misunderstanding what you said.

-Dan-

golic · February 2006

The problem is there is NOTHING to do at the dealer. I think if you can find some way to occupy the customer then it might make the time less daunting, examples:

1. Show them how to program the car radio, how the seats work, how the car operates.
2. If they are new to the dealership, introduce them to the service manager, take a tour of service - explain to them when they should be coming in.
3. What if you could put together a book of the type of documents they will be seeing in F&I, So they can get a heads up...ie- this is the sales tax form, we have to prepare this and send it to the state. this is the odometer form, this can not only keep them occupied but also save time in F&I.
4. Here is a $10 gift card to the starbucks/bar/restaurant across the street, what is your cell number I'll call ya when we are ready for you.

Just some thoughts.

Hey congrats guys on make this the number one Edmunds discussion today...again!

Smile-

mazda6iguy · February 2006

>>There are plenty of Reputable dealerships that close right at "closing time" and I mean turn out the lights and lock the doors and ask you nicely to come back Tomorrow.<<

I would not do this myself, but on the many occasions my Dad bought cars, he used to almost always complete the transactions about an hour after the dealership closed.

travler · February 2006

Great question, jefferyg. How rediculous do we have to be to satisfy everyone.

If some lawyer reads your comment, it might become law some day. We'll call it the "Jefferyg law." What do ya think? :confuse: You'll be famous.

isellhondas · February 2006

Apparantly my written words are doing a poor job of portraying the way I treat customers.

You totally missed what I was trying to say.

snakeweasel · February 2006

1. Show them how to program the car radio, how the seats work, how the car operates.

Unless there is something uber complicated that shouldn't take long. Heck I usually have the seats figured out 5 seconds after I sit in the car.

2. If they are new to the dealership, introduce them to the service manager, take a tour of service

The insurance underwriter would have a fit if they saw that.

4. Here is a $10 gift card to the starbucks/bar/restaurant across the street, what is your cell number I'll call ya when we are ready for you.

Now that is an ideal. But what happens if they are hit by a car coming back, or better yet (worse yet?) they get hit crossing the street by someone taking a test drive? Oh wouldn't it be ironic if when they were crossing the street they got hit by the mechanic testing out their car after preping it?

Yeah I am a bit bored. :P

isellhondas · February 2006

It really doesn't matter since yopu are now off the hook. I'm sure you have paperwork showing that you dropped the car off?

It varies but usually within a week or so, at least for us.

travler · February 2006

If I see someone looking at their watch I'll stop what I'm doing and address it by asking, "Are you in a hurry?" "If you are we can make an appointment for another time that's comvenient for you."

If it's a ploy they'll suddenly slow down, and have time to finish it all. If they're truly under a time crunch they usually will gladly set an appointment for later.

I won't ignore it, or put myself under that pressure.

isellhondas · February 2006

In our store,counting my internet guys we have 25 salespeople. We have five F&I people plus the F&I Director who usually works Saturdays. We have a pretty efficient system that works well. Of course, we CAN get jammed up but this doesn't happen often.

I always set up my customers ahead of time. I spend much of the time going over the books and sometimes, the car itself.

And sometimes we get "readers" in the F&I office. They want to literally read every line on every document they sign. That's O.K.we don't mind because we want them to totally understand everything and feel comfortable that everything was crystal clear. These readers can really slow us down on a busy day. We don't get many of these.

golic · February 2006

Actually getting hit *bored as well* is not so bad. You got a deposit of at least $500 bucks and all it cost you was a $10 gift card which means you profited $490. *nodnod*

Even better, send the porter out there before the ambulance get there to dig the $10 gift card out of pocket *snort*

Now you have not lost anything.

And to be honest *blush* I have had my 2001 Aurora going on 5 years and there are buttons on the radio I have no idea what they are for. *shrugs*

snakeweasel · February 2006

And sometimes we get "readers" in the F&I office. They want to literally read every line on every document they sign.

Yep thats me, I want to know what I am signing. Actually I am a pretty fast reader, my wife on the other hand reads real slow and you really don't want her to read everything.

Last time I signed something without reading it I ended up in boot camp.

isellhondas · February 2006

" he said more to the fact of he only wants customers that are ready to buy today..."

????

Did anyone else hear me say that?

I'm curious, x, how long have you been in the car business?

travler · February 2006

These are good suggestions, golic.

If they've never had my product before, going over the owners manual, and the vehicle may take a bit more time. Some want you to be detailed and some don't. I try to follow the customers lead on this one.

If they have children it's especially a touchy issue. They won't want to wait long. I've loaned my company car and suggested they go to lunch/dinner, or just come back a bit later. Usually if you've made this offer they'll decide to wait. I've never lost a customer with this approach.

snakeweasel · February 2006

Even better, send the porter out there before the ambulance get there to dig the $10 gift card out of pocket *snort*

Still better, have the porter run them down, that way you can make $500 profits all day long and not have to sell any cars.

Yeah we are getting a little silly here.

BTW I put myself thru high school working as a porter.

british_rover · February 2006

1. People don't show you how the car works? For most of our cars there is a minimum of one hour to go over everything and if they have navigation then it is even more. I will normaly do an off road driving demostration as well either in their own car, if they are ok with that and it does not have 20 inch wheels, or in just any other car we have on the lot.

2. Also always done if service is here we have to as part of our CSI survey introduce all customers to the service manager and advisor. If they are not here we just give them their cards and show them the desk. We have taken people in back to the actual service area too plenty of times we just keep them on a short leash and don't let them get near the lifts. If one of my customers is around and a particularly rare Land Rover is out back I will take them back to have a look see if they want.

Normaly we just look through the glass but if our shop foreman is around and he is not busy he will invite us in and say hi. We still get Defenders both 90's and 110's along with the ocasional Series vehicle from the 60's along with all the other various special editions Land Rover has produced in the past few years.

isellhondas · February 2006

If I said I HATED people who are shopping for cars six months before they plan to buy, I need to soften those words a bit. I don't hate anybody, I just don't understand, that's all. We are all different. A lot of those "months out" people only tell us this as a defense tactic. I have sold a lot of cars to these people that same day. Even though I can get annoyed with this, they never know it by my words and actions.

I have never refused anyone a test drive unless it's a young punk who wants to joyride in an S-2000.

No salesperson "likes" going on test drives but it's a part of the business and I do so cheerfully.

Never play solitaire. I am always busy. As the E-Commerce Director of the highest volume store in the state, I have LOTS to do all of the time. I'm off today and feeling guilty because I'm going to be buried tomorrow.

We have been around together for a few years, haven't we?

Thank you for the kind words!

isellhondas · February 2006

" Off road driving demonstrations"

***cringing***

I think I'll stick with Hondas!

travler · February 2006

This is a tuff and frustrating encounter. Especially on a busy Saturday.

If it's slow, I'll take as much time as they need, answer all their questions, let them drive as many cars as they want. They'll leave with a good feeling about the experience, and MAYBE be back, and I will have done the best job I can for them.

If it's a busy Saturday, however, I'll say, "Folks we're extremely busy right now. Bear with me and I'll do the best I can to address your needs." I'll take their drivers licence, and walk them to a car, and let them go on their own.

We are not located near an Auto Mall, so our suburban location lets us be a little more relaxed about going on test drives.

british_rover · February 2006

We actually have to offer everyone a drive on our off road test track as part of The Land Rover Way. Land Rover sends an auditor every quarter like a secret shopper and normally you can figure out who they are but not always. There is a whole procedure that must be followed and certain things that must be gone over/offered and if they are not then they will take away a percentage of our Business Builder money.

I like the off road test drives they are great. I have been out four wheeling since before I could drive legally on road. With our new product it is really idiot proof four wheel drive I could teach anyone to do our test track in less then 5 min in an LR3. One quick walk down the track to show them where not to go and then just take it slow. You don't even need to touch the gas in some of our cars they have so much torque in low range.

travler · February 2006

If the customer has run out of time take a deposit and let him go. Spot deliveries aren't mandatory.

Sometimes there may be too many spot deliveries that day, and you can't get the vehicles all through cleanup, or there may have been a small problem with the vehicle that needs fixed, or all of the accessories might not be in stock.

If its a solid sale, and you know your customer, they'll appreciate your honesty about how long it'll take. I know, however, that if you're in an Auto Mall environment, fear of loosing that sale is more of a concern.

jeffyscott · February 2006

So now you don't hate me

.

Okay, so here one of my many reasons for test driving a few cars even though I will not buy a new car for 6 months or more. I am considering buying a new car, but I may instead decide to buy another used car. If I buy a used one I may do so sooner, but if I buy new it will be at least 6 months. So I drive some new cars to see if I like them enough more than the model(s) of used car that I would buy if I buy used.

jipster · February 2006

Thus far today we have 110 posts in this topic discussion. A new Edmunds record...you guys really need to get a life.

mackabee · February 2006

I still do. I would stay away from the Highlander and the Pilot if you are going to be putting any of the four kids in the third row seat. Most people I know that have either one rarely if ever use the third row seat as it takes up lots of cargo space and honestly I would not put one of my kids back there.

Mackabee

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