Friday, May 1, 2015

An Insider's View: What I Learned About Car Dealerships

Are there aspects of car dealerships or the car buying process which remain a mystery to you, no matter how much time you spend at a dealership?  Let me clear up some of those mysteries for you.

I am Chandra, the internet manager at Schwan Buick GMC Cadillac.  I have been working at the dealership for slightly under two years.  I joined the team with a lot of experience in customer service but no experience in the auto industry or in a sales atmosphere.  During my time as a dealership employee, I have learned answers to many of the questions I used to have about the process of buying a vehicle and how car dealerships operate.  I hope I can clear up some of your questions as well.

Why does the sales consultant want my name and contact information? I just want to look at cars!
A dealership may not have the exact vehicle you are looking for, or pricing on the vehicle you are considering may change.  A good sales consultant will let you know when similar vehicles arrive or when incentives change in your favor.

I want to take a test drive, but I am not ready to buy.  Can I still drive the car?
Taking a test drive is the best way to determine the value a vehicle brings.  Please let the sales consultant know that you are still narrowing down your options but that you are considering this vehicle.

I don't like the numbers the sales consultant gave me, or I do not like the way the sale consultant spoke with me.  Can I work with someone else?
Typically, it is the managers who determine the numbers a customer sees for a trade value or a purchase price, so working with a different sales consultant will likely not change the numbers.  However, if you feel that your first sales consultant did not have your best interests in mind or did not treat you respectfully, please ask a manager to connect you with a different sales consultant.  Do not be hesitant to tell the manager why you are requesting the change.

Will I get a better price if I pay cash instead of financing?
For the purchase of a used vehicle, the price you pay will not be impacted by whether you finance or pay cash.  With new vehicles, sometimes there are incentives which apply to cash sales but not to financed sales, and vice versa.

I have looked at comparable vehicles at two dealerships, and both dealerships have appraised my trade.  Why are the numbers I have received for my trade so different?
The first thing is to make sure the two vehicles you are comparing are equivalent.  In new vehicles, even a premium paint color can make a difference in the starting price.  Then compare not how much you are being quoted for your trade but what is being presented as the trade difference.

For example, Dealership A may start the math with the MSRP (for example, $40,000) and then present you with a large number for your trade (for example, $15,000) leaving you with a trade difference of $25,000.  This is called over-allowing for a trade.

Dealership B may start the math with a discounted price (for example, a $40,000 MSRP and then subtracting a $2000 dealership discount) and then present you with a lower number for your trade (for example, $14,000) leaving you with a trade difference of $24,000.

In this example, Dealership B is theoretically allowing you less for your trade, but you would have a smaller amount to finance or to give out of your pocket in order to drive away in a new vehicle.

Do you have any remaining questions about the mysteries of a car dealership?  Please ask them in the comments.