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.

Getting Ready to Shop the Lot?

Looking for your next vehicle can be a lot of fun, but it can also cause quite a bit of anxiety. Decrease the anxiety and hassles by doing some preparation when you begin your shopping process.


Think about what you need in your next vehicle.

1. Which best fits your needs: a car, a truck, or an SUV?
• Will you be using the vehicle for daily commutes?  Will you be using it to tow a boat or a camper? Is your family still growing?
2. Are there must-have features, such as bucket seats or a DVD player?

Research a few models in that vehicle class.

1. Talk with your friends who own something along the lines of what you have in mind. 
• Would they get the same vehicle again?
• If they could change one thing about the vehicle, what would it be?
• What do they love the most about the vehicle?
2. Check out vehicle reviews online and in Consumer Reports. 
3. Visit homepages for automakers, such as Buick, GMC, or Cadillac to see what models they carry and what trim levels or features are available.
4. Visit a dealership's website to get an idea of the new and used vehicles currently available. Of course we suggest you visit the website for Schwan Buick GMC Cadillac.

Consider your budget before you fall in love with a vehicle.

1. Will you be financing the vehicle or paying cash?
2. If you are considering a new vehicle, would leasing or buying be the better option for you?
3. Will you be able to put down a down payment?  A down payment can sometimes make it easier for you to secure financing or can lower the monthly payment.
4. What will you be doing with your current vehicle? Will you trade it in, or will you sell it yourself? There can be financial benefits or drawbacks to either option.
5. Remember the expenses in addition to the price of the vehicle. 
• Will your insurance costs change?
• Will your fuel costs change?
• Remember that sales tax and various fees will be added to the purchase price.

Be flexible.

1. Be open to new vehicles, used vehicles, or certified pre-owned vehicles. Sometimes a vehicle may be used but with very low miles and available at a price much lower than a new model.
2. The vehicles you like may be difficult to find in the colors you like or with the options you want.  Decide which factors are negotiable.  
3. Select three models you would like to test drive. If you have your heart set on one specific vehicle or model, you may end up back at the starting point if you realize during a test drive that you do not like the ride or seats.
4. If you run short of options, let the sales consultant suggest other vehicles which are similar. The dealership may be something similar but different than the three on your list.

Test drive vehicles.

1. While finding a vehicle which fits your finances and needs is important, it is just as important that the vehicle fits you and how you intend to use the vehicle.
• Sit in the various seats, including the far back. 
• Install your child's car set. Put a clean kennel in the back cargo area.
• Pull the vehicle into your garage, and back the vehicle out of your driveway. 
2. Write down the year, make, and model of each vehicle you drove, and record what you liked and did not like about the vehicle.  Also record which dealership had that specific vehicle, and write down the name of the sales consultant who helped you.

When in doubt, contact the internet manager or a sales consultant at a dealership, and ask them to suggest a few vehicles which fit what you need.  Let them know you are just starting your research and could use some general information to get you started.