Are brick and mortar dealerships just giving up?

I get that but damn, they sit there and make full bore 30 markup on almost every other customer and old lady that comes in. I don’t think they understand that it’s better to make little profit on me than let the money go into their competitors till.

 

My first and only dealership purchase was for a used Tacoma for my step-daughter. I've been in the auto industry in either the shop or sales for 27 years and so when we walked in I went straight to the Used Car Manager, handed him one of my old business cards and told him we were there to buy a truck with no BS. She didn't like anything on the lot so we went out to the trade lane and found a fully loaded 09 with 30K miles on it that she loved. We ended up buying it as-is for what they traded for it plus dealer fee and had no BS in finance. Car deals a car deal and this one went better than I imagined.

 

Does anyone know if they (parts or sales) also get a "volume" bonus if they reach certain sales numbers?

 

Of course they do.

"Coffee is FOR CLOSERS."

Although, I believe every dealership can set their own parameters for this crap.

 

Customer Service seems to be a lost art in many businesses these days not just dealerships.

 

I worked on a commission floor in high end electronics for 10 years. When the internet started taking our sales we went for broke on customer service. We pampered our customers with the works. After-all that’s the reason to buy from a person rather than a cell phone app. I’m just blown away that I received just awful customer service, not at one but, at 3 different dealerships. The first one tried to finance me at a 12 percent interest rate!!! They refused to tell me the rate. I had to figure it out on my own. I mean are you kidding me? My credit score is almost flawless. (I missed a house payment 9 years ago and I have a 50 balance on a medical bill that’s 13 years old that I refuse to pay on moral grounds).

The next place told me they don’t have time for internet inquiries and if I wanted to know something I’d have to come down. “We’re too busy selling cars”. Strange that the truck I was asking about has been there for going on 90 days... (so I assumed that if they’re selling them like hot cakes then something must be wrong with this one).

I drove 3 hours in the snow to one place and they sold the truck while I was enroute. I get that. A bird in the hand and all... but I think they could have called me so I wasn’t driving 3 hours in the snow with a two year old. Nope I got there and they said, “oh that sucks. We sold that just three hours ago. Bummer man.” I count that as a three star rating. Nice truck. Nice dealership. No customer service.

Then the place I finally bought my truck. Just a bad feeling left in my gut.

I remember my first car purchase. Friendly guy. Called me a week after I bought my truck to see how I was liking it. Letting me know that my chance to trade it in if I wasn’t happy was about to expire. Got a nice ford key chain and two nice pullover sweatshirts with the Ford logo on it.

What happened?

 

What’s funny is I stopped at a Burger King after leaving one of the dealerships to get my kid some chicken nuggets. The guy at the counter was awesome. “I’m really sorry sir but our condiment dispenser isn’t working so here’s some packets of everything depending on that little girls mood. Here’s a free Hershey’s pie because I forgot to ring it in, and we’ll give you guys both toys for the whole mix-up. I told him he should sell cars.

 

I assumed they did get a "volume" bonus but thought I'd ask.

So - wouldnt it make more since, for a parts guy, to sale the part at a partial discount, and that sale would be one more sale closer to the "magic number"
than let a customer walk over "full price"? Maybe i have it backwards, but I would have given the discount, especially if I was asked.

Hell - I ask for a discount at Kroger and Wal-Mart...

 

To the OP, I feel you! I live in a rural-ish area where my only local dealer sucks badly. The service manager and his lackeys communicate about the same as a deaf mute, they get work approved then complete the work half-assed. When they’re called on it, it’s “bring it back in” as if that’s zero inconvenience. After multiple issues, they finally resorted to quoting me insane prices, if the warranty won’t cover it, just to avoid me coming in.
I now go to a non-stealership mechanic who does things right and doesn’t try to rip me off.

 

Online sale.
Computer: Do you want to pay 43,995?
Your typed reply: NO! 38,500!!!
Computer: GOD!!! YOUR CRAZY! With a deal like that I’ll get fired!!
Computer: I just talked to the sales manager computer, his hard drive must be in a good mood, cause I NEVER seen a deal like this. Are you ready??
Your typed reply: YES!
Computer: 43,599!! And that’s a great deal!! I’d take it if I were you!!

 

I think my final thought on this is; I guess when you sell the best all around truck on the market you can be miserable to your customers and they’ll still buy it. I’d bet a trained monkey could sell these trucks. If I was selling these things I’d make a fortune. If Nursing ever becomes boring I’m gonna go sell Toyota’s.

 

I was at Alamo Toyota looking at a 2016 with 60K. Nothing real special plain Jane little pecks in the paint here and there, steel wheels etc. Originally saw on the web site and called so and so. Got there no real service, so and so was the sales manager. He never even came out and greeted me. One of his lackeys told him my offer and he sent him out with a piece of paper that was $3K too high and wasn't negotiable

Stopped by the dealership closest to the Toyota plant who handles a lot of employee leases. Young guy in his early 30s came out and we were going through the used ones. Sticker said $29. Certified, leather, bed liner SR5 Texas edition. I told him this is in the league of what I'm looking for and wanted to pay $25K out the door, which basically was my starting point. This was on the 29th. Guy called me the next day and said they wanted to deal because they were behind for the month.

Went down there and start nit picking everything. Sales guy was back and forth with the sales manager. Basically just sitting there ready to walk and they knew it. Finally they said what will it take? I said $26 out the door, and I'll fix the dent myself. Sales manager said let's do it. Wrote the check. What was strange was that on the bill of sale they showed the value of the the truck for $36K and claimed to discount it to $24K. There's some accounting stuff going on. I suspect they wrote something off.

The thing about negotiating, you get to understand the culture of the company. Never walk in anywhere and just plunk down money without a negotiation for big ticket items. It gives you a window into the culture of the place.

 

In general, not a fan of dealerships at all. I got lucky with mine. Salesman has been good from the get-go. Texts/Calls every so often to make sure everything is good with the truck. Built a relationship with the service manager and parts manager over time. Them and a couple other guys in parts and service are good, but everyone else is basically a bullfrog perched on a lilypad. I watch other customers with them and honestly feel sorry for those customers. Still nowhere near as bad as when we take my wife's car to the local Honda shop. Because of the good customer service I've received from Toyota, we will likely switch her over to a 4-Runner when it's time to upgrade her vehicle.

 

Berlin City in Portland is where I’ve bought my previous two Yotas, they gave me a great deal on my current Tundra. They recognized right away I’m the one out of four customers who they don’t like, but they were open to my negotiations and like I said they gave me a great deal on a 2013. Service department has been excellent. Only issue I’ve ever had with them is when I purchased my Tundra, I walked in with a loan from my credit union already in hand. They still checked my credit, which I understand, however so did their financial institutions, 7 times. It brought my credit rating down (several credit checks at one time will drop your rating sharply) so I went back in pretty upset. They were amazed I even knew what my credit score was, let alone knew they had checked several times. I was equally amazed at their amazement nobody really knows what their scores are. Anyway, it ended up not being a big deal, and they made up for it. I recommend them due to their knowledge and willingness to make a deal while doing it in a friendly and loose environment.

 

I got pissed at a dealership a while back; stated numerous times that it would be a cash deal. I still had to go thru the finance department where they ran my credit. I was like WTF! Why are you running my credit! They just looked at me with a stupid look. Standard procedure. Then my cash deal still took about 2 hrs to complete. Everytime someone asked if they could get me something I would say yes, my bill of sale, My title work , and my truck!

 

I have two Toyota dealers locally and both are horrifically awful to deal with. The last 2 Toyota’s I’ve bought I bought from dealers a few hundred miles away (4Runner and Tundra) - did all the negotiating online. One was awesome - gave me a great trade in and price and was in and out of the finance office extremely quick - no BS. I told the FM that was the best experience I had. The other dealer was OK, got a great price but the Finance Mgr was more pushy. There was a snafu with the final price breakdown that they did fix after the sale which was nice.

Somewhat off-topic but I had a car I was trying to sell on Craigslist and couldn’t give it away. On a whim I got an estimate to sell it to Vroom. I was shocked when they gave me a quote that was the same as my bottom line price on CL. Accepted the offer online and a few days later they picked up the car from my driveway and cut me a check! I didn’t have to leave my house - it was super easy, no hassle and got what I was wanting and didn’t even have to buy a car com them. Unreal how easy it was.

 

Yes, I agree.

A buddy of mine is in Admin at our local Ford dealer, I go there for parts for the F250. He told me; find the cheapest online prices for MotorCraft parts, print it up and bring it in, they'll match it. It is NOT a public policy of theirs, BUT it IS a Policy of theirs to do so. They do not advertise it as the parts counter is a gold mine.

Vroom, CarMax, and Carvana are the future; a car hauler pulls up to the gate at the repo lot, pulls inside the gate, gophers load the car hauler with recent repos which have been sold online and away he goes making home deliveries.

Our local Toyota dealer just put out a used cars radio advert., on how their pricing is "market price" non-negotiable. Assholes. Find your used Toyota at a Chevy dealer, it'll probably be 10-30% LESS than the Toyota dealer's.

 

Will have remember Vroom. Sold a 1/2 ton GMC at Carmax a while back. It was only a few years old with money owed. Researched the value on NADA and went in expecting low end offer. Surprisingly the offer was way above NADA midpoint value. It had lower than avg. Miles 3-4 years old truck. Thinking it would have been great for their lot.

 

I do this at my Toyota dealership, they will match and sometimes beat the online price I have printed out.

 

Trooper, it seems they aren't crazy about cash sales. They want to make money off the financing.

 

The "No-Haggle" is the new corporate model on used cars for sure. Autonation is big in our area, buying dealerships all over. Even advertising new vehicles at competitive prices.

 

We sold a car to Pedal. We were offered $3,300 at the dealer in trade. Pedal offered us $4,160 and they came and picked it up. I wasn’t even home. They left the check on my front door like I asked. Basically I sold that car from my couch and got more money for it than if I’d done all the work to bring it to a dealer and haggle.

 

No doubt. That is why the finance guys make the big $$. Its no secret that the finance guys also make ton in Ext. Warranties, Upholstery insurance, Life insurance, meteor insurance, etc. And if you buy enough they may offer you some free oil changes if not lifetime, LOL

 

It’s so true. That’s why even if you walk in with cash they still check your credit. They’re hoping to get you financed and make a few points. That’s exactly what I’m talking about. You can buy a car online. Get your own financing online cheaper than at a dealer Then they bring you the car.... if you don’t like it you can have them come and pick it back up and get your money back. I think they’re about 10% more expensive than if you do the legwork and go driving all over the closest three states to you. Is it worth it? It would be if I got good service at the dealer after all that driving but...

 

Yep, those interior and exterior protection packages and crap too. I had to sign something that I didn't want them. Hell I bet they had $5k worth of adders on the table for a $24K truck. That would have been pure gravy. I shudder to think how many people that come through the door that get conned into buying those things

I think signing the waiver is a way to get people to think that they're declining something that is super important

 

If only Lexus would doll up a Tundra....... Could call it the TX100, an ode to the T100.

Not sure how they would do. They would probably $10k more than a Platinum. Everyone remember the Lincoln "fancy" truck? Not a huge hit.

 

I’ll have to try that at the dealers.
Recently a guy at oriellys wouldn’t budge on an AC $21 belt when Rock Auto had it for $5.

The Mark LT was also a victim of it’s time not just it’s niche market. From what I remember the truck market was in the dives in 08.

 

The online prices I have seen always seem to be on the high end, even overpriced. I guess its a price to pay for convenience. We purchased a vehicle from Carmax years ago knowing it wasn't the best price but it was exactly what we wanted. The process was smooth and quicker than most which was nice.

When I purchased our 07 Tundra, we shopped long (6-8 months) and hard with a fixed number cash budget. Ended up a private sale, saving an easy $3-4k retail. Not everyone is in the same situation and often need a vehicle sooner than later.

Financing can always be set up with your preferred lender and still purchase thru a dealership. Often this can result in a better rate offer from the dealership.

 

The 1st car I ever financed was like $4800, used car at dealership. The finance Lady (or Biotch) got so frustrated when I kept declining her Ext. Warranty that was damn near $1k. I almost caved but realized that it was 20% of the car's value and told her that. She was high pressure but I stood my ground knowing it was way too high. She was mean! She was telling me not to expect any favors if the car needed anything or broke down as I declined everything. I told her that the $1k I was saving would probably take care of anything that might go wrong......

 

That’s exactly what that waiver is. It’s psychology put to bad use. People automatically get anxious when they sign anything... So it’s using that psychological anxiety against you... it’s designed to make you uncomfortable at the thought of refusing the warranty. It’s a low blow. Very low blow.