I'm shopping for a car for Mrs. Berkowitz (my mother; my wife, Scarlett Johansson-Berkowitz drives my GTI). I dared to "request a quote" on manufacturers' websites from specific dealers. I was fully expecting them to, as you might say in French, "give me a f'ing quote." To that end, in the online form, I listed the precise cars from their inventory that I wanted, plus the lease terms. Alas, this kind of optimism will get me nothing but an inbox full of nonsense. The approach they take, of course, is to give as little information as possible and tell me to come to the dealership. Regarding a Cadillac CTS: "This vehicle can be leased from $349.00 to $700.00 approximately; depending on packaging and structure of lease. Purchase prices range roughly from $33,330 to $50,000." Uh yeah, I know that, in part because I requested lease estimates for specific cars (which I identified with VIN numbers). Another dealership suggested "We ask that you visit our showroom where you always receive the "BEST PRICE." I encourage you to call me directly so I can set up an appointment with one of our Sales Managers." Your sales managers don't shower and give me the creeps; that's why I'm requesting a quote online. We talk about how product drives the automotive sales industry, and to a large extent it does. But so does the ability to purchase that product. If I was a dealer and someone wanted to buy a car via telegraph, I'd be brushing up on my Morse code.
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Perhaps you just picked the wrong dealers. Last year, when I requested quotes on a Lexus ES350 from several dealers via their online web applications, I received within several hours specific price quotes (OTD pricing) plus a listing of exactly what options the cars would come with.
When I was shopping for a car a while back, this type of crap was infuriating the hell out of me. Regardless if you call or email them they won’t tell you anything useful outside of the get ’em in the showroom bullshit. This went for dealerships across the board, domestics & imports, used & new.
The one that pissed me off the most was, “Yes, we have that in stock! Come in for a test drive!”. You show up and the car you want to drive, surprisingly, isn’t there, but they have something similar you may be interested in.
What a bunch of assholes dealers are.
I shopped this way. The best way I found is to see who responds (and whether it’s a generic response or a personal message from a salesman) and then start dealing over the phone. I made a deal like this with a dealer 100 miles away and didn’t visit until I was ready to make a deposit and finalize my exact car that they had to find and dealer-trade.
I had good success once I got in touch with the “internet sales manager” at two different Honda dealers. They both said they’d sell me a (brand new at the time) 04 Accord, nicely optioned, for invoice plus $150. I said yes to one of them, and they drove my new car to me, I wrote them a check, DONE.
If you DON’T get the internet sales guy (who may also be the fleet sales guy), you will get exactly the runaround you describe.
I have bought three vehicles pretty much online, but have had pretty much the same experience with many dealers being a complete waste of time. I used the online queries to get a sense of who is really willing to deal on the up-and-up, so in that way, it is useful and a time saver.
Wow! In the UK, shopping for a car online is a piece of cake.
http://www.autoebid.com is a good one and you can pick up some good bargains on there.
I bought my Yaris from (formerly) Virgin Cars for £10K. It would have cost me £12500 from Toyota.
i went this route when i got my GTI. it started with email 4 local dealers. got the generic response. told them exactly what i want.
3 of the 4 told me i needed to come into the showroom. i responded with “im not coming in until i know you have what i want and at the price i want.” 2 of those 3 came back with the “i cant give you anything over the internet” the 3rd didnt respond at all. needless to say, the 4th dealer did everything down to signing the paperwork. i showed up, my car was washed and sitting outside waiting for me. i signed the papers and was out the door in less then 30min.
yournamehere
When I worked at a “one price” used dealership, you would have been the dream customer. I probably couldn’t sell you any add-ons (warranties, etc), but on the other hand, you were in and out in about 30 minutes. Everybody wins.
The ones who sandbagged you are just going on the statistics that when you show up, they can sell you more. Their loss!
I was able to assist my mother-in-law with the on-line purchase of a new 07 Accord last year. The internet manager treated me with respect and was very straightforward and willing to negotiate and conclude the transaction on line. All she had to do was go to the dealer, confirm the color/trim in person and then go back with a check to pick up the car. No hassles whatever but I am sure the experience can vary between dealers. It was a very positive thing in our case.
like a couple of others, i essentially bought my car via email communication and a telephone…
cross shopping honda civics and base jettas, i was able to get really good prices on both, from several different dealers…
though, it really was a hit and miss.
if you get a dealer that has a guy who’s ‘really into email’ it’s really easy, if not, good luck…
Hey Justin,
I feel your pain! I work with several dealer clients who have yet to embrace this cockamamie idea that some people like to get their information electronically.
While I sympathize with the old dealer idea that if you hand out a quote before people are in the showroom then the customer will use it to shop around, I also feel that the first dealers who start using e-mail and the web to talk to customers will reap the biggest benefits by being “e-friendly”.
If someone is going to take the time and effort to ask for quotes on specific models in your inventory then they are as “hot” as someone coming in asking for product information. They have to stop treating online contact as if it was a random phone call.
Old habits are hard to break
I was able to use the internet to purchase a car last year. The process is not very sophisticated, but I was able to manage it. The keys were getting in direct e-mail communication with the designated hitter at each dealership, and creating and circulating spreadsheets showing what I wanted and where the process was.
my mother; my wife, Scarlett Johansson-Berkowitz drives my GTI).
So you’re saying that Scarlett Johansson is your 2nd crush (since you already referred to Monica Bellucci). That’s too many similarities with me for comfort, here.
I bought a 2001 Accent from carsdirect.com. It looks like that site still exists, but I don’t know if it still works the same way. We found the car we wanted and picked the options we were looking for, and carsdirect told us the closest location that had the car we wanted. The price was agreed upon before I ever went to the dealer and we already had financing in place.
We dealt with the Internet sales manager, and it was relatively painless. We signed the paperwork and had the car in under an hour. However, it was the exact opposite when I bought my 2003 Jetta from the same dealer, since I did the conventional sales method. There’s no way I’d ever just walk into a dealer and buy a car the “old school” way again. Car dealers will screw you if given the opportunity, so the key is to not give them the opportunity.
Similar story to others here. Requested quote from several dealers, most gave the run around, only one was willing to work via email. I physically went to the nearest dealer (one of the non-responders) and the salesman was “insulted” with my offer.
I sent my offer to the one dealer who was willing to work via email, and again spelled out as clear as I could that if he could accept my price I would buy the car then and there.
He accepted and sent over a credit card authorization form for a deposit. I faxed it back and picked up the car that weekend. They were also willing to deliver it to me if I wanted. Completely painless.
This was for a previous model year car and all area dealers had plenty of stock of the new and old at that time(2006 and 2007 TSXs). My price was a few hundred over invoice, and I was interested in a less popular color.
I understand why some dealers don’t want to negotiate via email, as I’m sure there are plenty of non-serious inquiries, as well as people who send an RFQ to 300 dealers and commisioned sales people don’t want to deal with getting nickeled and dimed to death either.
BUT if someone makes it clear that they are actually ready to buy today, just close the fucking sale.
well of course you picked the wrong dealers – you picked Cadillac dealers.
Next time, try Honda and/or Acura dealers. Since there are no factory options, all you need to do is select the correct model (see Edmunds for assistance) and ask the dealer for their “out the door” price. Assuming you have no trade and you are arranging your own payment or financing, all you should have to do is select a color.
If you will insist on dealing with the domestics – who, after all, invented the “game”, don’t complain if you “lose”.
It’s really too bad that one still has to walk into a dealership to test drive cars. I really miss GM’s Auto Show in Motion, which enabled me to test drive dozens of cars (both GM and non-GM) back to back. The last couple months, I’ve been test driving a bunch of cars, and while the driving is fun, the experience after the drive (“What do I need to do to get you to buy today?”) just makes me feel dirty. And not the good Scarlett-Johansson-dirty. It’s the god-I-need-to-shower-to-get-this-salesman-stench-off-of-me dirty.
i purchased my last 2 cars using the internet: a honda accord and infinit g35.
both times i emailed 5-8 of local dealers with the exact car/options i wanted. i was explicit that i already test drove the car, settled on one model and i would buy within one week.
both times 2-3 dealers came back with reasonable quotes within a few hundred bucks of each other. also the first dealer that i test drove the car with was in the low priced group – i purchased the car from the first dealer in both cases. i thought the test drive and advantage of a local dealer was worth a couple of hundred.
if the dealer is reasonable everyone can win.
My experience was very close to jeffpaulsen. I got online with several Honda dealerships, within a day had several quotes back.
After a couple more haggle emails back and forth, I made a final selection and picked up the car the following morning.
No surprises, no sleazy extras that were “overlooked”. Papers and car were ready on-time, car was clean. I have had numerous follow-up calls as well to survey my satisfaction and to find out if I had any questions or issues with the car.
I don’t have prior experience with Honda, but if this is what they do as standard practice, then count me in as a probable repeat customer (pending we see how good the warranty support turns out to be).
I used autobytel back in 1999, it was great. I met with one of their reps (a fleet manager for a dealer about 20 mi away) and I got said vehicle for Invoice price plus all factory rebates.
Can’t complain, it was pretty brainless. Course, I didn’t request a quote from a Cadillac dealer.
I now buy or lease all of my cars using the internet and have had great results. However, much like a traditional car buying experience, it’s nowhere near “pain less”.
Step #1: I’ll start researching which cars are in my price range over the ‘net. I’ll compare reviews, road tests, options and other features.
Optional: If I’m lucky enough I can hit up a local car show (the kind manufacturers and dealers run) in my area. There I’ll get to sit and see all the cars in one place.
Step #2: Start test driving! By now I’ve got 3 to 4 cars in mind. I’ll take a Saturday and test drive each. Depending on the salesman it can be a pain to only stay for that test drive and not get pulled into the numbers game. Though I’ve found if you are up front and tell them you’re only here for a drive, some information, and are hitting 3 other dealers that day things are sometimes easier.
Step #3: Once you’ve figured out the exact car you want, hit the manufacturer’s website and send an email to all the dealers within a reasonable distance for you. I usually email 5+ dealers within 150 miles. Let them know you are serious. I send the same email to each dealer detailing the exact model, color, and options. I let them know I am buying immediately, that I know the MSRP and the invoice for my exact configuration (Edmunds.com). I tell them I am flexible and will wait for my car to be ordered. After all if they don’t want to deal on a car already on the lot that they know will sell – why not make a sale on a to-be-built car? I do not recommend being overly flexible on options. I’ve had salesmen try to sell me the car I want, only “better” for thousands more.
I also let each dealer know that I am emailing their competition and whoever comes back with the best price wins. Set a deadline for that best price as well, like the weekend. I do not initially provide a phone number. I prefer to correspond over email. It gives you time to think about your responses and in some cases pit each dealer against each other.
For instance, dealer #1 comes back with a “special” internet price of $500 below MSRP. Usually the first dealer volley is crap. I think they want to weed out the serious buyers. I’ll email dealer #1 back and tell them #2 is doing $1000 below – when in fact #2 probably hasn’t even responded. This will go on for a little while till I’ve determined which dealer is willing to play ball and has the best price. Then I’ll move to the phone and eventually put down a deposit.
I realize this sounds like a lot, but honestly from start to finish it’s never taken longer than a week and that’s 1 day of test-drives with a few hours here and there emailing or researching.
I’ve used this technique personally to purchase a new G35, a new Honda Civic, and a left over Audi A4. I’ve also helped friends do this is well. All vehicles were purchased under invoice. Both the Honda and G35 were brand new supposedly “in demand, no ones doing a deal” redesigns as well.
From dealing with these internet ppl over 20 times in the past 5 years at Toyota, Nissan, Ford and Saturn dealers in the LA area…I’ve found that..
Most internet managers will not quote prices, won’t give any inkling of what the trade might be worth, say the experience will be rewarding, and please stop by.
These internet managers are nothing more than the same snakes with a different title.
i’ve tried to deal with dozens of honda dealers in the northwest area to no avail. they don’t answer all of my very specific questions about the specific cars they had in inventory (i.e. request for VIN#’s, Carfax reports, etc), and would quote me higher than brand new msrp! when i called them on it and pressed them on the issues, they basically said they couldn’t take me seriously because i refused to deal over the phone or visit the showroom. i told them if i wanted to phone or go to the showroom, i would have. plus i didn’t want to field phone calls from dozens of dealers during work hours.
why have an “internet” sales team when they refuse to deal via the internet???? stupid…
Car dealers are terrified of internet sales and hate the education customers get on line. I have a dream that one day new cars are bought on line completely with the dealers being transformed into warranty repair shops. If we can remove the sales end of the equation and focus on customer service support everyone wins. Most dealers make the bulk of the profit on the service and many customers are so turned off by the buying process they never darken the dealer door again. This extends to other dealers of the same product.
Mrs. Berkowitz looks good in red.
Why not use a purchasing service?
using “LUNDQIK”‘s method I was able to work out a deal a little over a year ago for my TSX. I got a great price and several options thrown in that I wouldn’t have paid for, but I was willing to take for free.
The only problem I had was with the sales guy at the local Acura Dealer. He was unwilling to deal over the internet and refused to give me a straight price. EG “I’ll let you have it for X + destination and wheel locks + installation and only in puke green.” When I let him have the final crack at my business, he sent me a nasty email telling me that he hoped my $1000 savings warmed my heart, because his dealership wouldn’t fix my car when it broke, (We track the VIN Numbers and if you don’t buy it here we won’t fix it).
So hard to find a Honda/Acura mechanic…
The biggest problem is that a year later, I’m still getting email from dealers “still in the market for a new car? We have some great deals down here at Bobs Auto Emporium, come on down this weekend. Free hot dogs and balloons for the kids! Come on down!! Please for the love of god come down and take one of these things off our hands!!”
When I let him have the final crack at my business, he sent me a nasty email telling me that he hoped my $1000 savings warmed my heart, because his dealership wouldn’t fix my car when it broke, (We track the VIN Numbers and if you don’t buy it here we won’t fix it).
Forward that snippy email to the local sales manager for Acura, they will handle him. A person who gets good service tells 3 others, bad service and they tell 10.
As soon as Amazon.com starts selling cars I’ll buy one again. Until then I avoid car dealers like the damn plague. They are complete sleazeballs … every damn one of them.
Name ANY other product you buy that makes you go through all this shit… there are none. Car dealers are a dying breed and they have no one but themselves to blame. People don’t want to haggle on a price anymore… for anything. Doing so is a complete anachronism left over from a primitive marketplace that has vanished from this society.
Just build the damn product and slap a price on it. The whole damn industry is circling the bowl and they wonder why? BECAUSE YOU MAKE IT SO EFFING PAINFUL TO ACTUALLY PURCHASE YOUR PRODUCT!! HELLO??
–chuck
Full disclosure I am a sales person in Canada.
I can understand your frustration. It would seem to be a fairly straight forward process to get am email quote. From the dealerships perspective once that information is on the net they have little control over what you do with it. That includes providing it tro other people. A business makes a profit between the floor (true invoice price) and the ceiling (Manufacturers Suggested Retail Price). Giving written quotes lowers the ceiling without any commitment to buy. If you do get a response from the customer stating that Dealer X will sell it for Y it is difficult to know if they are telling the truth or not. The point is to sell cars not be a quote providing service.
That being said at some point you will arrive at a price with your method. You can play dealers against each other until one left or the cost of travelling to that dealership is out weighed by the value of the deal.
I might suggest next time you make it clear you will be purchasing whichever vehicle you are interested in and make an offer that they can accept or refuse. That way what you get is the OTD you want.
That should reduce the dealerships trying to figure out how educated and serious you are.
P.S I would not commit to a trade in value without seeing and driving the customer’s car. it is always best to see and touch before spending money.
Cheers!
Swervin
We’ve bought a couple of cars at a one-price dealership in Maryland which let us order cars a couple of months in advance. They’re offering the CTS at $500 above invoice, if that helps.
I agree with you Justin, the internet option for purchasing a car is far too cumbersome to be classified as easy or trouble free. Yes as some have responded you can successfully negotiate a reasonable price for the car you are looking to purchase, but you can do the same in person without having to wait for an email response.
I maintain control over my decision to purchase by never giving a dealer/salesperson my home phone number, otherwise you are hounded incessantly. I thought the internet might make the process easier, but it doesn’t.
this is all due to the arrogance of the dealer sales process, get onto out turf and we can get you to buy and pay more than you want….
I bought my Mazda online a few years back. Spammed a bunch of dealers with “This is the exact specs” (slightly exotic: blue, hatch, V6, manual, tan interior, all options).
One got back to me “There is one down in long beach. We can get it for you, here’s the OTD price”.
Deal.
@Richard Chen:
Thanks for the link to the dealer in MD. Kerbeck Atlantic City offered a similar price to me on a 2008 CTS. All I had to do was leave a voicemail and they called back within an hour with a price that was ~$3,000 under MSRP on an 08 CTS, which turned out to be about $500 or so over invoice.
I called another dealer further away from me (I am in PA) and they gave me payment amounts but not a price out the door. When I asked how much off MSRP it was, I was told “about $1,000.” Ick.
I have to admit that I didn’t even go through the internet route when I purchased my car. But one of the things that helped make the sale was the fact that they let me take several models out by myself, without a salesperson, and for 30 minutes each at that. The sales person even showed me on a map where the local twisting roads were located so I could try the cars handling.
Um…there was an article there? Man, I missed that entirely. Kinda like Playboy Magazine. Those that say they only read the articles aren’t exactly telling the truth. Man, is she gorgeous.
As for the topic on hand, I bought my last two cars with heavy reliance on the internet. Two years ago, we bought my wife’s Jeep Liberty almost site unseen. I sent exact details of what I did (and didn’t want). One local dealer worked to find a few samples and kept the communication brief and professional. When the right vehicle came up, he offered to take it to my wife’s office for her to look at it. Never hassled or pressured us. We showed up at the dealership, signed papers and drove off. Pretty much the same for the Fusion we just bought. But I had a few experiences at various other dealerships in the process of finding the Fusion that made me want to go home and scrub my body down with a strong disinfectant. Why some dealers still subscribe to the sleeze and deceit model is beyond me (and for what it’s worth, the car we looked at on one dealer’s lot that was specially scummy is STILL sitting there, almost a month after we tested it).
The internet is the best way to buy a car period in my opinion. I have brought and sold online and I have no complaints. I am currently buying again after I just sold my 2006 Legacy via craigslist. I am continuing to learn new things about this process everyday.
The first thing that I noticed this time around are the listings on craigslist and sites like zzstar are put there by dealers seem to be listed by the internet savvy that are more likely to deal online. I know that this site is popular but there are still so many people who have never even heard of it. At one time Ebay was the same. The first vehicle I purchased online was done through ebay. At that time there were not many dealer listings, unlike now. I believe that is how craiglist list is now but it is changing as the popularity grows. This means average (old school) salesmen might not waste their time listing vehicles here only the internet sales guy that is in the know and prefers doing business this way. Of course eventually they catch on which is evident by the amount of dealers listing on Ebay now.
seoultrain : The other thing I just figured out by happenstance was how to find cars and test drives them without the dealer trying to sell you the car. Impossible you say! Read on. (It takes me months to purchase because I drive everything first sometimes 2 to 3 times to make sure I like them. I knew this meant I would have to get the dealer stench on me.)
This is what you do find your car lowly car on a high-end lot. For instance the Porsche dealership in the springs has a M35 and IS350 and the Jaguar/Land Rover lot has a GS300 all on my list. I hit the Jag dealer first. I pull in front go right into the showroom. The salesmen approaches me shakes my hand and ask how he can help. I tell him that I saw the GS on the web and I want to look it over and drive. He is like oh ok. So when we head down to the car I make small talk about the new XF (purdy) and the Tata. When we get to the Lexus the guy does not even try to sell the car at all. I was shocked there he said nothing he just stood there. The only thing that he said that wasn’t bad about the car was it was traded in by a lady. He described the car as being passionless and sterile. He actually said that he did not think Japanese cars were luxury cars. I am thinking my goodness is he trying to sell me the car. He acted the way I normally act towards the salesmen when I am buying. That is when the light bulb went off I had this same experience when I brought my used Acura off a BMW lot. Needless to say my next experience was the complete opposite. I decided to look at a M35X at a Nissan lot. The experience was what I expected. From the “what can I do to get you into this today” (give it to me for free) to “the let me show you the new Maxima (not as ugly as the pictures but $38K)”. The Nissan salesman even calls me this morning to schedule a test drive of the new Max. Between the Springs and Denver I have had no trouble finding every car on my list at the high-end lots that is were I will spend my time.
Hopefully this helps
Later
Frank Williams : “Why not use a purchasing service?”
Next time I buy a car I am going to do exactly that and use the one run by our very own Mr. Lang. Its funny I‘ve never met any of you yet I feel as if I’ve know many of you for years.
Richard Chen:
We’ve bought a couple of cars at a one-price dealership in Maryland which let us order cars a couple of months in advance. They’re offering the CTS at $500 above invoice, if that helps.
Bought my new 4Runner from the same dealership. They handle Toyota, GM, Chrysler, Nissan. No Ford or Honda as I recall. Price was almost 2K less than the best price I could get locally (Phily area). Everything confirmed by phone/e-mail, absolutely no hassle.
“he sent me a nasty email telling me that he hoped my $1000 savings warmed my heart, because his dealership wouldn’t fix my car when it broke, (We track the VIN Numbers and if you don’t buy it here we won’t fix it).”
I once had a Honda dealership pull that line. I simply asked them if they were saying that they as an authorized Honda dealership were refusing to fix a Honda car purchased at another dealership. If true I would report them to Honda. They changed their tune real quick.
The behavior of dealers seems to vary with the size of the market.
Dealers in smaller markets with a geographic monopoly or duopoly are the worst. When I purchased my Jeep had to spend 2 weeks haggling with the dealer in Reno as they were the only ones with a Diesel in stock.
Where I used to live in Sacramento there are 10-15+ dealers for most every make.They know if you are shopping a deal and leave the odds are that one of their competitors will get your business. They still try and play the “game” but it is not as rigged in their favor.
It seems like some of the dealers in outlying areas and/or with older facilities have embraced the online selling the most. Here in the intermountain West there is a dealer out of Kellog ID that runs ads showing deep discounts in the paper.
I think Mrs Berkowitz is a perfect 10… NCAP crash test, that is.
Hmmm, in 2003 I bought a Honda by using web inquiries and in 2006 I got an Acura the same way. I also helped a friend find and buy a 2006 Silverado from a distant dealer using the request a quote method. When I run into the “come on down and talk” dealers I just skip ’em, but that only happened once or twice out of over a dozen inquiries.
Prices are either posted or negotiated.
Car prices are negotiated. You have to negotiate with car dealers to ever get a price. The greener you are the more they know they can get from you.
The smartest buyers/leasers know their numbers. Ask the dealer when he comes back with a number where he got it from if they ask you to do that for your low ball offer of invoice.
” …. he sent me a nasty email telling me that he hoped my $1000 savings warmed my heart, because his dealership wouldn’t fix my car when it broke, (We track the VIN Numbers and if you don’t buy it here we won’t fix it).”
I would have sent that email to the Acura zone representative because it is against company policy and law. You can get warranty work done on your Acura at ANY authorized Acura dealership.
Unfortunately, the “instant quote” function on so many automaker and auto review sites simply add you to a dealer’s list of leads. The average shopper who naively uses this feature rarely benefits in any significant way…and they will get emails from dealers for the rest of their lives!
A few online shopping sites, such as CarsDirect, can be a great way to shop online though. They give you an up-front price quote and refer you to a dealer that works with them in your area and the dealer must honor the online price quote. Of course, they can still try to sell add-ons, warranties and other B.S. over and above the quoted price.
There are ways to use online shopping VERY effectively to save both money and time, but it requires what some might consider mild guerrilla tactics (you have to be blunt and not take any bullshit).
State from the very beginning that you expect a specific quote, not a monthly payment or vague price range! If they respond out of compliance with those instructions, briefly respond to tell them that you have no interest in buying from them because they didn’t honor your request.
You will actually get at least a few specific quotes, most of them laughable and very close to MSRP. Respond with a lowball offer and if they can’t get very close to it, don’t waste their time or yours any further.
Be specific, be firm…but don’t be needlessly rude. Set the tone that you won’t tolerate the typical haggling back-and-forth experience. You may be surprised at what you get.
I got a great deal on my last two cars this way…even undercutting Edmunds TMV and similar price guides. I also had a paper trail in the form of the emails to back me up if they tried to pull any tricks. My most recent purchase, ’06 Mazda3 in 12/05, I spent less than 30 minutes at the dealership sealing the deal!
Final note- once you get the car at the price you want, a confirmation email to the dealer is a very wise idea reiterating the figures and terms of the deal! It’s also a great time to clearly and explicitly state that you have NO interest in ANY add-ons of any kind or services such as extended warranties! They hate it, but that makes it even more fun to cut them off before they can begin! =)
I do this for a living. Here’s a few things to keep in mind.
1. Only 1 in 10 of the inquiries (leads) received at the best internet dealerships result in sales. The internet manager and his/her coordinators have to filter through a lot of bunk before they get to the buyers.
2. Most manufacturers do not give their dealerships information on how they received the lead. Sounds stupid, but it’s the unfortunate reality. So in most cases the dealer will not know what information you’re looking for (most people are not looking for price quotes). That’s why the dealer follows up by phone.
3. Very few inquiries are on specific vehicles. Surprise! Most people do not know what they want until they get out to the lot. So in most cases, for everyone involved, a lot visit is the best thing that can happen.
4. As a result, most dealerships pay their internet departments on appointments as well as sales (not much let me tell you). Since most people are not cash buyers and credit cards are not accepted, the transaction ultimately must be consummated in person anyway. The lot visit makes sense. The dealership pays their departments on it. Most buyers need it.
5. Half of the “customers” with whom appointments are set up never show up, and most do not call to tell us. If we were a doctor or attorney’s office, we would be rolling in missed appointment fees.
This is the environment into which your online inquiry goes. If you’re on a specific vehicle, you shouldn’t have many problems. Depending on the vehicle, you’ll get 1-2% over invoice quotes.
I’ve bought five cars via the net. The first one, a 1998 Z-28 was ridiculously easy. The salesman was very net savvy and all I did was tell him what I wanted, he got it, I test drove it, signed the papers, wrote the check and got on down the road. I’ve bought two Hondas, an Acura and a Dodge (sorry). The Honda and Acura guys pretty much had their poop in a group. The Dodge guys were ok, took a little too long with the paperwork, but I found that having a three year old running around the showroom putting handprints on the Vipers helped speed things along greatly. The one thing that seems to clog things up is a trade-in. Funny how it seems that when one is buying a used car the Kelly Blue Book it is the Bible as far as the sell price goes. When you are trading in it is merely a “guideline”. I have walked from a couple of deals because I felt I was getting ripped off on the trade and they were trying to recoup $$$ on the sale with my trade. I have found that in my area the Audi and Nissan dealers are the worst at anything to do with internet sales.
I prefer to buy in person. Dealers’ games don’t faze me. I’ve always got decent deals (once excellent). All you need is patience.
The only way I would consider buying online, as chuckgoolsbee said, is if amazon.com sold cars.
I purchased 3 Honda from the same dealer with online price quotes; it seems Honda are easier to work with online since the options are limited. The key for me, I think, may be the direct e-mail address to the 2 salesman I have dealt with..no stupid form letter responses. I even helped them locate (via online search) the Civic for my son in a neighboring state.
Different story when shopping with a co-worker recently; received the standard form letter and needed to correct some “math errors” for the internet salesman (Nissan). However, he seemed to be extremely busy while all the other sales people were pretty much snoozong at their desks.
I’ve never been into motorboats, but there’s first time for everything.
Hmm… maybe it is certain dealers that will or will not deal online. A buddy of mine suggested I buy my Honda online because he had a lot of success online when he bought his Acura. I came home, emailed 10 dealers, a couple of them wanted me to come into the showroom, but three of them were willing to deal online. Between the three, I was able to get them to send me quotes and i chose the lowest. I ended up getting my 06 Accord Coupe EX-L 6MT Nav for 24k and it stickered for 30k. I thought it was a pretty good deal.
pdub says: “Since most people are not cash buyers and credit cards are not accepted, the transaction ultimately must be consummated in person anyway…”
Note that no matter what the stores tell you, they must accept credit cards for any purchase, or not accept credit cards at all. This is part of the standard by-laws Visa and MasterCard mandate, and part of the agreement between the car store and their merchant bank. Violation will mean they lose the ability to take the cards.
Regardless, as pdub says I’m sure there is a lot of fluff to sift through in internet queries. As I’m sure there is a lot of fluff to sift through on walk-ins to get sales.
But the internet fluff takes minutes to deal with. It is low-cost fluff, compared to the shopper who takes up an hour or two of your time and walks out.
Because of the lower overhead, the stores should be embracing the internet. If they don’t their competitors will. The cost, of course, is that there is a low tolerance for games on the part of internet shoppers.
In the end, you’re still dealing with people and you’re still dealing with relationships.
The folks I usually deal with in Atlanta, I’ve more than likely known for at least ten years. The remarketing managers and used car sales managers that are on the block with me during the day are for the most part the final decision makers as to whether a particular vehicle is sold or not.
95+% of car buyers will never get to deal with them directly, and very few buyers will have a prior relationship of any sort. They more or less fly blind into the process and although some dealers are genuinely friendly, most have made more money playing the mind game.
I’ll give you a quick example of the difference in relationships…
My MIL bought a two year old Camry from a large regional used car retailer before I got into the auction business. The company ended up crashing the vehicle and then tried to cover it up by keeping it out of sight from her for the first three weeks of ownership.
Well, at the time she was a widow with six kids and although she’s sharp as a whip, these folks figured that they could play the ‘deny and delay’ game until she went away. No dice. We spent nearly three hours dealing with these yahoos and it wasn’t until the manager found out that my ‘then girlfriend’ worked at a notable TV station that they finally took the vehicle back.
Fast forward 10 years later and I’m taking my family on vacation to Orlando. I attend an auction hosted by the same dealer network, and talk to at least three folks who already know me to make sure everything goes smoothly. I buy a 2000 Olds Silhouette with Leather, TV/VCR and 103k for $1395. Less than 10% of the price of the Camry way back when.
They put a temporary tag in back for me, fill up the fluids, let me use a computer to access my email and bill of sale documents, and I end up selling it for $2395 less than 2 days later. That hour of work and preparation actually paid for our vacation to Disney and Boca this year… and it was all possible because I already have a track record of helping these folks whenever I can.
Folks look at the auto auction business as a ‘car business, or an ‘auction business’, and in some cases even a ‘paper driven business’ (a.k.a. financing business). I disagree with all of them. It’s a relationship business. If you’re willing to build a bridge, even with someone you can’t stand, you will do far better than if you view the experience as a temporary and adversarial one.
The later viewpoint has become the predominant one given how most folks use the internet… and the overall transient nature of our society. At least from my experiences, that’s where the problem truly lies.
I have so far purchased four new vehicles…
First a Honda that the sales manager took advantage of me and I let him. I was dumb, and he knew it. But I learned a lot by it.
Next, I bought another Honda through Autobytel. It was very simple and an agreed to price. The sales and finance guys did try and add stuff on during pickup, but I just waved it all off.
Then I bought a Jeep Liberty for my wife… Traded in a Honda for it. The salesman played that game of going to his sales manager to “get me a good deal…” LOL! After 30 minutes of arguing and then walking out the door he gave me what I wanted for my trade and a fair price for the Liberty. It also had zero percent financing which was the icing on top that I did not react to at all like it didn’t matter… LOL! After all that, the finance guy didn’t even attempt any add-on’s.
I then bought a 2006 Jeep Wrangler with preferred pricing through an employer. That was so far the best experience. They sent me a price list of all the options that showed preferred, employee, MSRP, and invoice pricing, and I did a build to order. I just had to go by and leave them a $200 deposit. It was very easy. But again, during pickup a finance chick tried to sell me add-on’s and when I immediately waved them off, she gave me a rude attitude (I brought a credit union check for an exact amount anyway).