Quote:
Originally Posted by BGM-M3COMP
Not everyone is keen on the car buying experience. Maybe you know very well how it works. Maybe i know how it works. But the question really stands, do we REALLY need an actual dealership? If you think so, please explain. What is mandatory about a dealership, that we really need them there for? Taking service dept aside, and just talking about sales. Why do we need them?
TURO has opened an outlet of people who can rent a car they might want to buy, so there's no need to go to the dealership to test drive a car they're interested in.
Think about it. You and your spouse want an M3. But you never drove it. You go to the dealer, and he offers a test drive. What do you think will happen? You and your spouse are SO excited, happy, not only because you're out test driving the car and at the next step of attaining one, but now you're so emotionally involved in a thought process that is blinded by what you are feeling that moment. That's how salesmen get most buyers. They know people get all giddy and happy about a new car they want to buy, that COMMON SENSE gets thrown out the window. Now the salesman can work.
"soooo how much can you put down? Are you trading anything? When was the last time you ran your credit? Are you leasing or financing? You know we ran your credit (IE: credit is 820) but might need another 2500 for the down payment. We can make it work but i'll have to ask the finance guy. Oh you're only approved for 2.9% APR (meanwhile the finance guy got your loan for 0.5%). Meet with the finance guy so he can go over all the protection plan. Wheels and tires, windshield, lifetime oil changes. You definitely need all that sir!"
Everything i said above is all tactics they use to make money on the customer. That is why they're there. Like i said before, maybe it's easy for you, and maybe it's easy for me to buy a car. Maybe it's easier for many on this forum. But that doesn't mean everyone who is ever buying a car will have the tools needed to get the best deal because of dealer money making tactics.
If you eliminate the dealer, you now have a bold price. Whatever is the price on the car website, that is what you pay. If you agree, you place your order. If you don't, you close the browser tab and don't buy the car.
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I understand what you're saying, however I'm not talking about most buyers. I'm talking about myself, a savvy shopper, and others who are knowledgeable about the process.
After a test drive of course a sales person will ask me those questions. My response? "I'll think about it", and I walk out of the dealer. What are they going to do? Tackle me and chain me to their desk until they get through their sales process?
You ask why do we NEED a dealership experience. I said multiple times that me, as a savvy shopper, can leverage the competitive dealership network to get a great deal. Like I said before, I saved over $10k between the 2 cars I was shopping for by simply email blasting 20 dealers and going with the one that offered the best deal.
I know EXACTLY what I want and I detail that in my email. I know the exact configuration I want, what my credit score is, if I want to lease, finance, or pay cash. If I'm leasing I know beforehand what the residual value and money factors are, I know what "good" deals in for the car in question in my local market are. If I'm financing I know what the base apr is. At that point the ball is in their court and they simply have to answer a yes/no question. It's literally that simple for me to save thousands of dollars. And THIS is what I'll lose out on by going with a direct sales method.
Like I said before, most consumers won't have this experience and that's because they're not willing to put in the legwork. For those I agree, the convenience and hassle-free experience of direct sales makes sense.
However for a savvy shopper, the process can be about as convenient as direct sales, while in the process savings thousands.