CAUTION! PROFANITY AHEAD! Automotive News [sub] reports that the National Automobile Dealers Association (NADA) is telling the world what it’s going to tell The Presidential Task Force on Automobiles on Friday: don’t blame US for this shit. It’s essentially the same message NADA gave Congress back when GM and Chrysler first proffered their $19.4B begging bowl: don’t fuck with us. Let the market decide how many goddamned dealers Detroit can afford (even though US tax money is propping-up their dead man walking metal makers). At the same time, NADA plans to ask the Task Force a simple question: where’s OUR goddamned bailout? “NADA leaders also plan to urge government policies that would ease credit for vehicle inventory financing at dealerships. A lack of floorplan financing and unreasonable terms by lenders are forcing dealerships to curtail orders from automakers and in some cases shut down, NADA contends.” You know, this has the makings of a pretty good operatic score, in both senses of the word . . .
The American International Automobile Dealers Association, which represents import-brand dealers, has not sought a meeting with the task force but will send representatives if asked, AIADA President Cody Lusk said today.
Aida? Cody Lusk? See what I mean? Meanwhile, if you want to understand just how tragi-comic Bailout Nation has become, check out this paragraph at the end of the article:
Separately, auto suppliers warn that unless they get as much $18.5 billion in federal aid, shutdowns soon will stop the flow of parts to U.S. plants.
Not even a headline.
The dealers are the biggest problem, and I’m not just talking about the Detroit 3 on this but all dealers. They always want to find a way to screw you.
But they’re not part of the solution either
All dealers must die
Let them compete without special legal protections, like any other business.
These organized crime like extortion tactics by dealers and unions are getting old.
Now the buyer prints the additional sticker. Eat shit and die.
“Let the market decide how many god damn dealers Detroit can afford.”
Please, government subsidized floor plan loans are not market oriented.
If the market was actually allowed to function with regard to dealers the problem of too many dealers would be solved quite quickly.
“Aida? Cody Lusk? See what I mean?”
But the real question is, will there be real live elephants?
Give it to them. Since we’re giving billions to the manufacturers to make the cars we might as well give the dealers the billions they need to be able to afford to buy the cars that are manufactured. And don’t forget the auto suppliers – cars can’t be made without parts, so give them a couple few billion, too. Then the holding banks will need billions more to make the loans to us so we can buy them (after we give the manufacturers even more billions to provide cash incentives to make the car price appealing). Economy saved.
Marcus Topia, don’t forget the customers. They need money to buy the cars. Also, how about the truckers that deliver the cars. Let’s just give everybody some money. Don’t worry, the fed will just print more. What could go wrong?
So, the only ones that are not going to get a bailout is the ones that actually are going to pay for all this? Things must change. I demand a taxpayer bailout! The taxpayers obviously needs to be relieved of this heavy burden that has been layed down on their shoulders. Bail the taxpayer out of this racket! Let somebody else pay!
@MBella – See Mbella, now you’re just being greedy. The people who still have jobs don’t need money from the government to buy cars, they already have money, and unemployed people don’t need money to buy cars, they have unemployment compensation. In fact, I believe it is the unemployed people on whom the Big 3 should hinge their hopes, after all, when receiving unemployment compensation it’s not like one can afford the monthly payments on a Bimmer or Benz. New Big 3 marketing opportunity?
Cars, especially the 2.8, are dead for one simple reason.
Obama can give his welfare leeches credit, and in the form of credit cards or miscellaneous junk it helps with consumption because they can default.
Cars are recourse. They get repossessed. Even giving undeserved credit to leeches, which predominantly buy 2.8 cars, doesn’t help.
To paraphrase a favorite now-departed lefty blogger of mine (not somebody who’d normally be popular *here*):
“Fuck the fucking dealers.”
Somebody please make me king for a day and I promise you, the current dealer/distribution bidness model for cars will be blown up into a bazillion fucking pieces never to be reassembled the way it is now.
I see the rats are fighting for the last lifeboats.
Just go to no-hassle pricing and the dealer becomes a repair shop with a sales desk. Customer satisfaction would go way up.
I don’t need glass showrooms. I’d rather buy my cars at BestBuy or Wal-Mart than prepare for battle with car dealerships, which is one reason I have a Scion.
gslippy :
Just go to no-hassle pricing and the dealer becomes a repair shop with a sales desk…
I like this idea!
I don’t need glass showrooms. I’d rather buy my cars at BestBuy or Wal-Mart than prepare for battle with car dealerships… Well, you can almost buy a car at Wal-Mart. Try Sam’s Club!
Hmmmm…..gslippy… Do you think then they will come with some sort of return policy. Don’t forget to handle the sale of your old lump.
Oh yeah, tell the seventeen year old clerk you need something repaired out of warranty. good luck
@dpeppers – So if I can’t sell my old lump as a trade-in then I’m outta luck? If it takes me 40 hours to sell my old lump and I can get $1000 more than a dealer offers for it, that’s not so bad. And I could always sell it to a used car dealer or just keep driving it longer or donate it or sell it cheap to a friend in need or…getting the point? People would adapt.
And I would not ask for something out of warranty to be be repaired under warranty. Or maybe letting independent garages do work on the cars, including warranty work.
Lots of options.
What’s the deal with car dealers, anyway? Why must all cars be sold through dealers? Why can’t GM open, say, the GM store and sell its cars that way (ok GM isn’t selling either way, bad example)?
I know, there are legacy contracts, but when new brands come into the market, they set up a dealer network…why not open a chain of stores instead?
You could always ship your used cars to Cuba. I understand that they are an island of mechanical genuises (genii?)that can keep cars of the 40’s, 50’s and 60’s running on corrugated iron and shampoo!
When I bought my Scion, the only negotiating was on the trade-in value of my 02 Passat (good riddance). Two Scion dealers gave me different values (and I went with the lower one… long story). I believe Saturn used to lock your trade-in value into the computer so you couldn’t turn the dealers against each other.
I would love to see a sales environment cleansed of rebates, incentives, and gimmicks (“there’s never been a better time to buy”). Just tell me the price with options, negotiate trade-in, and find the best financing as determined by my credit.
With GM losing $1000/second, and selling 127,200 cars in February, they lost about $20,000 per car. At that rate, they could have bypassed the sales theatrics and just priced them all at $20k lower. Just think of how many they’ve move if they did that, or even $10k off.
They could call it “Bailout Pricing: You Get the Lowest Price Possible, Because You Fund Us Anyway”. Heh.
I have a friend who bought a Honda CRV through Sam’s club. She was real happy with the deal. There were no hassles. Honda even gave her a 3.9% loan.
Marcus Topia, I was being sarcastic, as I assume you were too.
@MBella – Absolutely. And very well played on your part.
I get a kick out of the foul-mouthed stooges here that simply want to eliminate the dealer franchise system. Newsflash- not gonna happen.
“Newsflash- not gonna happen”
Not for wont of trying…
Dear Dealer haters.
The manufacturers couldn’t afford the costs of running a retail outlet store. The same as hdtv producers. Apple has limited amount of stores, have you noticed their prices. You (or should I say the average working stiff) couldn’t afford a New car.
Your Honda Civics would list for $38000.
Its the system “every automotive producer” has adopted. Yes Virginia, Scion and Saturn (loser) dealerships are owned by individuals.
Rydell’s/GM in LA tried that “factory store” type thing and got sued by the other dealers.
They did use the “best price with all incentives” clearly marked on the car. No hassle, no commissioned salesmen at the time I bought from them in 99. And were still using the same concept last week.
Unlike the Ford salesman that had the page with 4 sections on it and all the fast talk BS this rebate is only gonna be available today!!!. Bottom line it, check my credit rating or I’ll go to my credit union and done.It wasn’t happening. I never even got a brochure out of the hour I spent there effing around.
That’s okay. I am going to try this driving the wheels off thing on my current car as a form of protest.
Dear dpeppers,
How can adding a middle man (or three) save the “average working stiff” any money?
How can building cars at a loss so dealers can maintain an inventory of cars they can’t/won’t sell save the industry?
Even in our current economy, manufacturers are expected to sell over 9 million cars. How does that compare to hdtv’s or Apple stores? BTW, Apple open their boutiques to get ride of the middle man and make the profit themselves. Go figure.
Only one middleman. The “Factory” passes its expenses to said “middleman”. If your proposed system would work they would have already done it. Ford tried factory stores in Utah, they couldn’t make money. How would you like to have your trade evaluation posted to a site that sets it’s price at all other stores. The buyer wouldn’t have the opportunity to competitively shop “individual” stores. Saturn (soon to be defunct) shines as an example of psuedo factory stores. If this is what the market demands so be it.In the system that exists you are allowed to vote for the dealers that will prosper, but I will say again If the factory could come up with a better system it would already be in place.
Oh, the “Aida” opera graphic is in reference to the American International Automobile Dealers Association acronym.
….when I first saw that I thought it was supposed to be another subtle hint at the whole “Egyptian house-boat” theme… you know, permanaently living in de-Nile.
@dpeppers “If your proposed system would work they would have already done it. Ford tried factory stores in Utah, they couldn’t make money.” – Seemed to work for DweezilSFV.
“How would you like to have your trade evaluation posted to a site that sets it’s price at all other stores. The buyer wouldn’t have the opportunity to competitively shop “individual” stores.” – Sure she would, other brand’s dealers, used car lots, private sale, etc.
“Saturn (soon to be defunct) shines as an example of psuedo factory stores. If this is what the market demands so be it.” Saturn shines as an example of years of undesirable cars, perhaps that’s what happened to Saturn?
“In the system that exists you are allowed to vote for the dealers that will prosper…” You mean those little customer survey forms that I get after a purchase where everyone from the dealer says I should fill out “Excellent?”
“…but I will say again If the factory could come up with a better system it would already be in place.” Would that be because state dealer franchise laws have made it so easy for this to happen?
Good luck with your next purchase. Your opinion has been noted.
My opinion has been noted? That sounds a bit Orwellian.
bridge2far I don’t know what will or won’t happen in the future but if you have been coming to this site for a while you will know that there have been quite a few people that would regularly chastise this site and RF with comments about GM never going under (usuually by employees of GM). I don’t see those kind of posts now.
Dpepers, who says it has to be a factory store I don’t buy samsung LCDs or frito lay potato chips from the Samsung store or the frito lay store. I buy them from a retailer. But I don’t have to buy them from the samsung franchise or frito lay franchise as mandated by law.
As for dealerhaters it comes from how dealers treat people and the basic fact is they treat customers like crap because thet make more money that way. I am treated better by minimum wage know nothings. I have never been cursed out at Best Buy or called names and demeaned at Sears walmart etc. I have had all those experiences and more at car dealers and only at car dealers.
One of the few bright spots in these times is the thought of a complete overhaul of dealerships.
Archaic method of selling, abysmal customer relationships, astronomical creativity in cheating.
I’m keeping one more A-word in reserve as to what I think of them.
dpeppers,
Carmax has started to sell new cars at a few test locations. To me that’s similar to a Best Buy for cars, like your HDTV reference. Apple prices were high before their first store opened. Different argument there.
Scion, Mini and Smart prove you can go the direct purchase route with no negotiating and be successful. The problem with Saturn is no one wants to buy one. Put that model to work at chevy dealers with the red ticket type pricing, price on the ticket is what you pay, guarantee a time limit to process paper work etc. They’d be hugely successful.
I’ve gotten paperwork filled out and out the door in a washed new car in under an hour. I’ve heard stories where it takes people 3.
Carmax = Corporate Owners. Not factory. Autonation, Sonic Automotive Group are other “individual” corporations that own dealerships (and are probably the reason for alot of ire in customers). Your “Best Buys” point is already done. It’s still not the manufacturer of the product, because they are unwilling to have the expense of owning brick and motar. Hence the 38000 dollar civic.
David you run a car buying advice blog? Are you promoting Carmax? Do they advertise on your blog?
If you haven’t check lately Scion is getting stale…..
Buy the way it only takes 1 hour at my store. The only reason for a delay would be if your credit challenged.
Scion dealers are individuals mainly (or corporate like AutoNation), same for Mini. Your not buying directly from the “factory and that is what I was discussing.