Dealing With Dealers

Before I discuss the test drive, the next step in your decision process, I'll show you how to deal with new and used car dealers.  Most dealers are honest, hard-working people that you have no reason to be afraid of, but preparation is key.  I strongly recommend that you separate reasearch, test driving, and negotiations.  Don't give in to the salesperson's pressure to sell you a vehicle today.  Leave your cash, checkbook, credit cards, and signature at home if you are prone to impulse buying.  Remember, the purpose of this trip is for vehicle evaluation.  

You Need To Use Dealers In Order To Test Drive Vehicles - There's no substitute for going to dealerships for a hands-on evaluation of the cars on your list.  Unfortunately many shoppers hesitate: a recent Yahoo poll found that 17% of new car buyers never took a test drive.  If you bypass this important step, you'll be making your decision without vital information about each vehicle's comfort, handling, and safety. 

Different Dealers Offer Varied Experiences - Why do most of us feel uncomfortable when we first visit a car dealer?  Usually we are unprepared and fearful of paying too much or being coerced into buying something we don't want.  To counter this common apprehension, automakers are trying harder to make car-buying a pleasant experience.  Manufacturers now issue consumer relations guidelines that dealers are supposed to follow.  Even so, you will be treated differently at every place you visit.  The selling style and buying experience at different dealerships depends on the personality of the owner.  Owners interested in quick profits are most likely to employ a high-pressure sales staff.  Laid-back sales staff indicate an owner interested in good customer relations, and the profitable referrals good relations bring.  Talking with your salesperson, you'll get a feeling for the dealership's personality and will quickly find out if you need to go elsewhere.  When you enter the dealership, look like you're ready to do business.  Be polite and feel confident in your preparation and knowledge.  Go to another dealer if you feel you're being mistreated.  Remember you are in charge of the process. 

Choose a Good Dealer - Choose a dealership with as much attention as you choose your vehicle.  Establishing a firm relationship with the dealer can be important later on. Vehicles bought and serviced at the same dealer are always given a service priority when problems arise.  Free loaners may be offered to good customers, while rental cars may be the only option for not-so-good customers.  You may regret a decision to purchase a vehicle from a discount dealership 400 miles from home.  Your hometown dealer  will figure it out the first time you try to service it with them.  And don't expect VIP warranty service from your foster dealership; that's reserved for their own good customers.

Look for the showroom and surrounding grounds to be neat and well-organized, with a varied supply of vehicles.  The atmosphere and sales staff should be friendly, helpful, and polite.  Ask to see a copy of the dealership's latest Customer Satisfaction Index (CSI), a report showing how customers rate the dealer's sales and service departments.  How the dealership treats you in the showroom can indicate the kind of service help you'll meet once you've purchased the vehicle; but you can also call the service department directly and ask the service manager about the shop's CSI score, staffing, turn-over and training.  An adequately-staffed parts department suggests a good parts inventory.  Clean well-equipped shops with ASE certified technicians are also a plus.  Ask the service manager how many technicians have completed factory training programs (should be 90% or higher), and what percentage of his mechanics would be considered "A" techs (more than 50% is excellent).  

JD Power - JD Power is a California-based customer research firm specializing in customer satisfaction surveys.  Each year they send out questionnaires to thousands of new vehicle buyers, asking about all aspects of their buying experience.  The resulting reports rank vehicles and dealerships (by manufacturer, not by individual dealership) in satisfaction with the vehicle, dealership, sales experience, financing, leasing, dealer's service department, and personnel.  Even though they may represent the same automaker, no two dealerships will treat you the same, as each is independently owned and operated.  Still, some generalizations emerge: Lexus dealers consistently score at the top of JD Power customer satisfaction surveys, while their parent company Toyota's dealerships are regularly at the bottom.  Toyota, Honda, Mazda and Nissan all failed to meet the mark in last year's results, and 1999 wasn't the first year that Japanese franchises performed poorly.  Many Asian dealers have a take-it-or-leave-it attitude, and insist on charging MSRP (sticker price) for vehicles financed through in-house loans and leases (that is, if they finance the purchase, they will not negotiate on the price).

Dealing with Salespeople - To find a nice salesperson, try entering the dealership through the service department.  Nice salespeople tend to be friendly with fellow employees, so walk up to the counter and ask an employee who their favorite sales representative is.  They'll be happy to steer you in the right direction.  Many salespeople are likeable people who enjoy helping auto buyers.  Remember their job is to make a sale, so don't fault them for persistence.  But don't let yourself get roped into a purchase during the beginning of your search.  

Qualifying - The Goal Of a Good Salesperson -  As a smart car shopper, you take your time.  You look at many different makes and models to arrive at a buying decision based on careful analysis and research.  This approach puts you at odds with the salespeople's goal of qualifying.  A salesperson aims to discern ("qualify"), and then spend time with, the potential buyers who will make the fastest, most profitable sale.  Salespeople are taught to qualify customers within the time it takes to eat a donut.  They are looking for eager uneducated buyers, desperate to buy the first thing they set eyes on.  An eager buyer is a poor negotiator and usually ends up paying substantially more than a smart analytical buyer.  Since most salespeople are on commission, they make more money if you pay more money.  Their goal is to sell you any vehicle in stock, at the highest possible price.  Your goal is to get the best vehicle you can find at the lowest possible price.

Buying Today - A successful salesperson concentrates on "buying today."  Dealers are convinced that if you don't buy today, they'll never see you again.  They stay up nights worrying that customers will go to another dealer and buy from someone more aggressive.  You can count on a good salesperson to ask you, "What can I do to put you in this car today?" or the infamous "If I can put you in this car for $199 a month would you buy it today?"  Short-sightedly, many salespeople are not terribly concerned about building a relationship with you.  If they can sell you a vehicle today, you won't have the chance to buy it tomorrow from another dealer.  This misplaced priority will show up in their CSI's.  In the meantime, keep your own focus clearly on your own goals.

Dealer Slang is on the next page>

© 2006 SafeCarGuide.com, Inc.|Staff |Disclaimer|Privacy| an autobytel.com affiliate