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Advice: Understanding Dealerships
Wouldn’t it be a relief if vehicle prices were no more negotiable than a loaf of bread at the supermarket? Unfortunately, that’s not the nature of the game. And in many ways it is a game. Here you will find information that helps you understand how dealerships work and to know what to expect as you go through the purchase process.
It isn't easy to find sales people in the auto industry eager to talk candidly with the media about what tactics they use to separate buyers from their hard-earned money. We found one veteran, however, who was willing - on the condition of anonymity - to tell us some of the things he's seen during his more than 30 years in the business.... Read More
In visiting numerous dealerships seeking candid advice on how buyers can best prepare themselves for the showroom experience, we encountered several salespeople who were reluctant to speak to us, apparently fearing they would be caught in underhanded activities. More often than not, however, we found sales personnel who were willing - under the condition of anonymity - to impart their wisdom to the consumer.... Read More
  • Visit an auto show. Most of the new-model-year vehicles will be on display in a non-sales environment, offering a fun, time-efficient opportunity to comparison shop.
  • When a vehicle is about to have a significant redesign, dealerships will be eager to get rid of the old bodystyle, which can mean significantly lower prices....
Many people equate the new-car buying process with the misery that often accompanies a trip to the dentist, and not without good reason. Stereotypical slick salesmen and that aching feeling that no one's got your back once you step onto a dealer lot have become expected aspects of buying a new vehicle. ... Read More
The Body Shop
A body shop is the only piece of the dealership puzzle that's optional. Body repairs aren't needed to sell new cars and they aren't included in service warranties. Collision damage is common, however; according to the NADA many dealers maintain a body shop. This is an expensive investment, so most such dealers usually have one common body shop, located at... Read More
Because few customers who buy a new car have a wad of cash to pay for it in full, the sales department maintains a finance and insurance (F&I) staff to provide buyers financing on the spot. Of course, customers can arrange financing through their own bank or credit union, but the majority of buyers use the dealer's financing. This specially trained staff has to track interest rates and shop for... Read More
The used-car sales department is also critical to a dealership. It not only provides products for customers who may not be able to afford a new car, but it also serves the essential role of handling trade-ins from new-car customers. ... Read More
Overseeing the new-car sales department is the sales manager, who's more than just the mythical guy behind the curtain who can approve or disapprove a sale for the price you've offered. A big part of the manager's job is ordering new cars for the dealer's inventory, with the goal of having enough cars on the lot with the right colors and options to appeal to the largest number of customers. ... Read More
As you enter a dealership, you probably already know what brand of vehicle it sells - that's why you're there. Regardless, the manufacturer works hard to encourage its dealers to follow similar formulas in designing and decorating their buildings, hoping to create an identity that customers can associate with its products.... Read More
Approaching an auto dealership can be as intimidating and confusing as arriving to pick up a date at her parents' house. Who are these people and what do they do? Whom should I speak with? Will I make it out of there alive?... Read More
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