An Uncommon Response To A Too Common Article About Buying A Car
by Tom Gorham
Internet Sales & Marketing Manager
Apple Chevrolet
My wife recently came across an article on Yahoo (by Forbes) with the eye-catching name, “Car Dealer Scams To Avoid.” My being in the car business for the past 16 years, she asked me about it. I was intrigued… and then a bit incredulous. And then I realized they were playing on people’s fear of the car-buying process by repeating myths about dealers. I guess it makes a good story by playing on stereotypes. I would like to respond to a few of their statements and possibly offer better advice.
They began by stating, “Difficult times lead to creativity… People come up with sensational hooks to try and get you to the dealerships, and once they lure you in, the goal is to sell you something and generate as much profit for the dealership as they can.”
Hmmm, “sensational hooks to lure you in”… sounds like every TV commercial and advertisement I have ever seen, not exactly limited to car dealerships. What are these sensational hooks? In my experience, they are good prices (usually attached to a particular stock number by law) and manufacturer incentives such as rebates and special financing, designed, of course, to “lure you in.” And in fact, very good incentives to buy. I really believe the “sensational hook to lure you in” was the title of this Forbes article. I know it lured me in.
“The goal is to sell you something and generate as much profit for the dealership as they can.” It’s sounds very similar to selling a house, a computer, clothing, groceries, and a hamburger (Would you like cheese with that burger? Would you like to large-size that order?). I don’t know about you, but I never accept the offer to add cheese to my burger unless I really have the urge for a “cheeseburger.” And if I do, I don’t demonize the clerk for asking; it’s called suggestive selling and is common to every industry. I don’t know, do you expect to sell your home for as much profit as you can get? I do. I think it’s normal for all businesses to make a profit.
Some of their points may need some clarification or touch of realism.
A professional sales person will assist you throughout the process.
1. The Ambush
Beware of being shuffled among a never-ending team of auto pros–you shouldn’t have to talk to the sales guy out on the lot, the sales manager, the finance manager, the floor manager and the used-car manager just to buy a car. Pick one to deal with and stick with him.
(First, I would like to say that you will be happiest if the people you work with are actually “auto pros.” The very term “auto pro” connotes (to me) auto professional. I prefer to work with people who are professionals in their field. Also, I have never met a “sales” professional, who can appraise your car or assist you with financing in a professional manner. There are naturally specialized departments within ALL dealerships. Of course it’s not fun to be shuffled back and forth and I have never worked at a dealership that did that. Most reputable dealers have a salesman deal with the appraiser and sales manager on your behalf. And when it’s time for finalizing the paperwork, a professional finance manager will either take your check or assist you with financing. PLEASE don’t let an amateur salesperson handle this very important part of your transaction.)
2. The Confiscation
Whatever you do, don’t give up the keys to your current vehicle–even if the “used-car manager” asks for them to asses the car for its trade-in value, even if the “sales manager” asks for them as collateral while you take a test drive. If negotiations should go amiss, it’s impossible to walk out on the deal if you have no way to start your car.
(This one stunned and stumped me at first. My first thought was, “How can the appraiser offer you a trade-in value for your car if he can’t even start it or drive it?” Of course the answer is, “He can’t.” My second thought was, “Does that even happen, or is that an actual “urban legend?” I decided it must have really happened before (maybe in the 1970’s or 1980’s?) or it wouldn’t be a concern. My only thought is, that if that ever happened to me, I would call the cops! And once I had my keys back, I would tell the world what happened. Seriously, confiscating someone’s keys is not only unethical, but I’m guessing illegal. My advice is that if you don’t feel comfortable enough to let the appraiser have your keys, then you should leave and find a dealer that you trust to do an appraisal and give you back your keys.
3. The Bum Rush
Salesmen love to hurry you into a deal today. They’ll try all kinds of things: On-the-spot delivery, haggling over details, one-time offers. Don’t let them pressure and bully you into an impulse buy. Show up knowing what kind of car you need and what you can afford to pay–and if they can’t provide that, leave.
(Finally, some advice I like. Yes, it’s natural that salespeople (not just salesmen) would like to make a sale today. Then they can go home to their husband or wife and say, “Honey, I made a sale today!” But as a consumer, I like to be aware of what I want before I shop, and if I find what I like, sometimes I want to sleep on it or discuss the purchase with my spouse. Actually, I am rather impervious to anyone telling me I “must buy today.” However, I do pay attention to sales events. If they end today or tomorrow, I make my mind up fast. But under normal circumstances, if salespeople have done their job and offered you a good value (not necessarily the “best price”), they can be confident that you will return on your own.)
4. The Buried Bill
Read over final invoices carefully before signing anything, in order to make sure you’re not charged for something you didn’t request. Alarms, extra cleaning, “prepping,” rust-proofing, fabric protection and paint sealant are all common add-ons that sometimes appear on the invoice unknown to the buyer. Hint: Consider doing the VIN (Vehicle Information Number) etching yourself. Dealers charge hundreds of dollars to do it, but a home-etching kit costs as little as $20.
(Another good idea, I think. I say good idea, because I believe good dealers offer transparency in their transactions. Everything should be visible up-front. Has anything been added to the New car? It should be posted on the vehicle along with the cost. Every used car being offered for sale should come with a “CarFax” or its equivalent which is a third party guarantee of information such as previous ownership, rental car status, and accident history. If not offered, I suggest asking for it. If not provided, leave and find a dealer who is not afraid to offer that information. I say, “I think”, because I really am not sure what a VIN “etching” is. I will withhold my comments on this but I will try to find out. Sorry.)
5. The Bait and Switch
Dealers may advertise one model in the paper, loaded with extras for a reasonable price, but then have only a lesser model (with less overall value) on the lot when interested parties show up to buy the one they saw in the paper. Best way to avoid this trap: The minute you realize the con, walk away.
Financing is a specialty and should be handled by a professional.
(Walk away is good advice, unless the advertisement was up-front and stated (by stock number) that this price was on one particular vehicle. Most States have laws that make “bait and switch” illegal. There are very detailed requirements dealers must follow and obey. They require “truth in advertising”. It is perfectly legitimate for a quote or advertisement to give a price on a “particular” vehicle if that vehicle is available at the initial time of the advertisement and it is stated that it is a price on a particular vehicle. It is equally admissible for a retail store to advertise a product price and say “only 5 in stock”.)
Ok, I think I agreed with about 40% to 50% of that Forbes article and found the other 50% to be poor advice, not realistic, playing on stereotypes, and even urban legend. I find it hard to believe it was written by someone who truly understands the car buying process. But it was written so that Forbes could “ sell you something (a story) and generate as much profit (advertising revenue) as they can.” Hey this is America… can’t blame em!
As the Internet Sales & Marketing Manager for Apple Chevrolet, I would be happy to respond to any questions YOU may have about the car buying process. Apple is number one in customer satisfaction among Chevy dealers in the Chicagoland area. We value your business.
You may email Tom at tgorham@applechevy.com.
