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Internet vs. Traditional Car Buying

3011 messages,  Last post on Aug 27, 2009 at 10:23 AM

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What is this discussion about? Car Buying


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#2850 of 3011
Re: Recent Internet Shopper [enoli] by boomchek
Jan 06, 2009 (11:31 am)
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Replying to: enoli (Jan 06, 2009 2:30 am)

So lets says you buy a car $25k car for under invoice that a dealer might be making $500 profit on, and expect to get free stuff thrown in with that.
 
Why does everyone think that dealers somehow have free accessories to throw in. Do some think that we have a accessory factory with elves in the back, or maybe a compost that turns garbage into free floormats
 
Any business whether a car dealership, a bank, or a furniture store..their goal is to make a profit so they can keep their doors open. If they're not making much on a big sale, then they will try to make that up in the sale of other items whether add ons, insurance, etc..
 
So how many rounds of stepos 6 and 7 are you willing to go? You want the lowest price up front but yet you will shop it elsehwere and then expect me to lower it again........
#2851 of 3011
Re: Recent Internet Shopper [enoli] by kirstie_h HOST
Jan 06, 2009 (11:47 am)
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Replying to: enoli (Jan 06, 2009 2:30 am)

The goal of most internet shoppers is to get to some form of step 3 on the first shot. I use the internet to save time driving from place to place and haggling. If I can get what I believe to be a good price on the first shot, I'll gladly take it and save 6.5 of that 7 hours.
 
As Jip mentioned, for many of us, the ideal end to the internet transaction would be to show up and find just about everything already in order, sign the paperwork, and drive away. If there's a trade involved, this won't exactly work, but some of the process can be streamlined.
 
There's no way internet sales are going to evolve to a point where the dealer offers invoice + at-cost accessories, just so you can shop that price and then come back asking for a bigger discount.
#2852 of 3011
Re: Recent Internet Shopper [boomchek] by isellhondas
Jan 11, 2009 (9:08 am)
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Replying to: boomchek (Jan 06, 2009 11:31 am)

He just wants your "best" price in writing so he can shop it all over town.
 
He thinks all cars should sell for invoice or even less so matter what the demand may be. He doesn't care one twit about that the costs of keeping the doors open are nor will he be the slightest bit loyal to you in the future.
 
Just part of the business.
#2853 of 3011
Re: Recent Internet Shopper [isellhondas] by boomchek
Jan 12, 2009 (10:55 am)
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Replying to: isellhondas (Jan 11, 2009 9:08 am)

I typically will not get involved in "best price" contest for customers like that. I just tell them to come in when they have done their reaearch, test drives, and have quotes from all over town. I'll beat it or I'll give them a freebie of some sorts just for coming in, if I can't do the deal.
#2854 of 3011
by traindriver
Jan 12, 2009 (12:16 pm)
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He just wants your "best" price in writing so he can shop it all over town.
 
Why on earth should someone about to spend $20-30-40-50+k not shop around for the best price? Why is this considered an evil trait? Riding across town to save 3 cents per gallon on gasoline is one thing but hundreds and thousands are at stake in a new car purchase.
If it is just not possible this month for you to be able to beat your competition in the next suburb, how can you blame the buyer? If you have really done the best you can do, how can it be fair to blame the buyer if someone else can provide the product at a better value?
 
I typically will not get involved in "best price" contest for customers like that. I just tell them to come in when they have done their research, test drives, and have quotes from all over town. I'll beat it or I'll give them a freebie of some sorts just for coming in, if I can't do the deal.
 
Folks expecting a price online do not want to come in to a half dozen dealerships and have to spend hours at a time repeating the same list of desires, doing the same song and dance, to yet another dealer over and over. Maybe I am cut from a different cloth than other buyers but I don't consider it fair to get a good faith number from dealer A and use that information against dealer B. Fair is fair -- put your bid out there and let the best man win. If you don't want to provide a price and are using the so called "internet department" as just another lead generator, as a buyer I see this as a place to avoid --same old routine over at XYZ Motors. Only one place can earn the business; everyone else has to be scratched off the list for one reason or another. I'd hate for a good guy like yourself to lose simply because you were afraid to get into the ballgame. You lose and so do I by missing out on doing business with one of the good guys.
 
I've learned a bunch over the years but I still don't get this part of the equation.
 
As for loyalty, I deeply hate that this is a dying concept but it is really a thing of the past in most instances. Case in point, many decades ago my grandfather was injured at work and remained bedridden for a good while. The old timey mop and pop grocery allowed my grandparents to charge groceries until times were better. Without that generosity, my father, aunt and uncle would have suffered greatly. I recall asking my grandmother once about why she chose to pay higher prices for a limited selection of goods long after the modern supermarket chains came to town. She proceeded to tell me the story and I learned a good life lesson at a rather young age. She remained loyal to her death and bought a large percentage of her groceries there.
 
Still though, the cynical realistic side of me says that if that were to happen to me today, things would be a bit different. I am sure that my local hometown based bank will not let me overdraw my account for the next 6 months. Nor will Duke Power, Chrysler Financial, or the telephone company allow me to slide for six months until the clouds go away. Sadly, loyalty is a two way street that big business forgot about a long time ago. Sales are off = pink slip. Payment late = cancel service, repossess. Nothing personal, come back to see us when times are better.
#2855 of 3011
Re: [traindriver] by jeffyscott
Jan 12, 2009 (12:28 pm)
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Replying to: traindriver (Jan 12, 2009 12:16 pm)

I don't consider it fair to get a good faith number from dealer A and use that information against dealer B.
 
I have done that, but dealer B is the one that I wanted to buy from, as it would be the most convenient for service and the dealer B salesman was the one whose time I had taken more of for test dirives, etc. So I gave dealer B the shot to match or at least come close to dealer A's price.
#2856 of 3011
Re: [traindriver] by boomchek
Jan 12, 2009 (12:33 pm)
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Replying to: traindriver (Jan 12, 2009 12:16 pm)

Traindriver, I don't mind giving a one time "Best price" to a shopper. And yes, saving thousands is important on any big ticket items. But when somebody like the original poster (enoli) wrote that he wants your best price, which he'll then take and shop, after which he'll do another round of price beating, as in telling the dealer what the other guy will sell for, then why should I get involved in this whole process, when the ONLY dealer that wins his business, is not the one that gives best price, best customer service, but the one that the buyer decided to see last. Any "best price" can always be beat by someone.
 
And trust me, but many of these "best price" shoppers are from out of town, who have local dealers that they shop at, but who want a price from someone far away so they have an excuse not to come in, but rather get an easy email quote that they can take to their local dealer and get a deal done on.
 
Why should I be a stepping stone or a"negotiator" for them when I know I won't get the business especially when you're talking about margins of a hundred or so dollars.
 
If all dealers are within $200, would you drive for 4 hours to buy from me, or would you ask the your local dealer to drop another $200 and get the deal done?
 
This is what the original poster wrote by the way:
 
Until "internet sales" provides the service we want:
1. offer the invoice price
2. haggle for the accessories you want
3. get the sales and managment to tell you what their lowest sale price is
4. tell them to give you some time
5. call all the other local dealers and see if they will beat the price
6. Tell the salesman what the other dealer will sell at
7. Accept their new offer or call the other dealers agin
#2857 of 3011
Re: [jeffyscott] by traindriver
Jan 12, 2009 (12:42 pm)
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Replying to: jeffyscott (Jan 12, 2009 12:28 pm)

I have done that, but dealer B is the one that I wanted to buy from, as it would be the most convenient for service and the dealer B salesman was the one whose time I had taken more of for test dirives, etc. So I gave dealer B the shot to match or at least come close to dealer A's price.
 
That's not exactly what I was trying to describe. Some folks want to take all of the offers and go back to each for round 2, round 3, etc. until the last place slams the door in their face.
 
If A, B, C, D, and E are within spitting distance of each other, by all means go with B if they have spent time with you and were the one you were hoping would "win". That is worth way more than saving $200 by going to one of the others. Ideally, they all should be fairly close. I don't look at internet quotes as a more modern way to "e-grind" to the absolute bottom. Maybe this is what upsets our dealer friends.
#2858 of 3011
Re: [boomchek] by traindriver
Jan 12, 2009 (2:53 pm)
Reply

Replying to: boomchek (Jan 12, 2009 12:33 pm)

but the one that the buyer decided to see last. Any "best price" can always be beat by someone.
 
I completely understand this and sympathize with you on this one, if someone is intent on squeezing the last penny on the deal.
 
And trust me, but many of these "best price" shoppers are from out of town, who have local dealers that they shop at, but who want a price from someone far away so they have an excuse not to come in, but rather get an easy email quote that they can take to their local dealer and get a deal done on.
 
Atlanta and Charlotte are both about 3 hours away. Would I bother for $200? No, probably not. If $200 is truly the range, I'd rather have a local dealer's sticker on the trunk (whether that has any perceived or actual value or not) and keep the money in the local economy. Wouldn't you? But for $500+, I could come down and take the family to an amusement park, aquarium, etc. with my "savings" and make a mini-vacation out of getting a new ride. Also, advantage to them if they happen to have exactly what I want on site. Even better, they might offer to bring it to me. But if they all delete my RFQ, thinking he'll never come this far, we both lose. No way to know if you don't give it a shot. (if you know they are from out of town, shouldn't you hit them a little lower than you would someone local -- knowing of course that it would take a little extra to motivate them? ...if the deal still works for you, of course!)
 
We're very picky on color and options. (Craig just shook his head in bewilderment, lol) What if I'm emailing you because I know you have the perfect car? I've asked this question on another website but no one has given me a response yet: How do you communicate seriousness and bargain effectively if the perfect car really is a long way from home -- too far to go check out in person? for example, a CPO 5 series in the perfect (rare) color, options, low miles, etc. How does each side protect themselves from falsehoods, scams, misrepresentation, etc.?
#2859 of 3011
Re: [traindriver] by golic
Jan 12, 2009 (3:17 pm)
Reply

Replying to: traindriver (Jan 12, 2009 2:53 pm)

Atlanta and Charlotte are both about 3 hours away
 
I agree with most of what you say traindriver. But I can also understand boomchek.
 
I am in the Chicago market. And there are an easy 10 dealers within a 30-40 minute drive from me.
 
When I leased my last car....I sent out an email to the local dealers with my info, the car (and color) I was looking for and the price I wanted. I had all types of responses. Some detailed and some with the "c'mon down pitch".
 
I narrowed it down, spoke to the sales man a couple of time to confirm everything and then made the appointment. I was hoping to get there, kick the tires and go right into F&I. But there was some surprises and it took me about 2.5 hours to get it down. Most of that time either waiting for the salesman and then discovering things were not what I was told. Almost got to the point of getting up and saying goodbye.
 
My lease is up next month. I am trying to gear down on price and then will send out my 2-3 emails to my local dealers. And for boomcheck - I do send a RFQ, with the exact make, model, color and options and i do include my full name, email, and phone number.
 
I am hoping this lease goes smother than the last one.

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