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Car dealerships need to pull their heads out of the 80's

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  • Brains

    One of the idiots
    Rating - 100%
    3   0   0
    Apr 9, 2013
    6,933
    96
    Spring
    I don't play the monthly payment game and will walk if the sales droid insists on playing 4 square. I deal on the price of the car, they can use whatever tools in their arsenal to make as much profit as possible while selling at the price I feel is fair. Things like if they get a kickback for writing a loan on the car, that's money they can use to hit my target - I can refinance it later without affecting their profit. MSRP? Just a number. Dealer invoice? Just a number. Both are earning them a good amount of money, neither have anything to do with the actual cost of the vehicle. The cost the dealership pays for the vehicle is not a fixed number. They finance them just like we do, and they get incentives to sell them just like we get incentives to buy them. The longer a car sits on the lot, the higher their holding cost and the sale price they get may have to drop as it gets closer to the new year models release. It's most often in their best interest to move inventory and move it quickly.
     

    karlac

    Lately too damn busy to have Gone fishin' ...
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    Lifetime Member
    Rating - 0%
    0   0   0
    Aug 21, 2013
    11,881
    96
    Houston & Hot Springs
    CarMax last three trucks, and a Cherokee before that.
    Found them on the website, called in for a test drive, showed up at the appointed time, drove out two hours later.
    Drive 3 years, rinse repeat.
    Have never had a problem with any vehicle I've bought from CarMax.

    Last year took wife, who's a tough negotiator, three days to make a deal on her current used Lexus at Sterling McCall in Houston.
    Screw that ...
     

    rsayloriii

    TGT Addict
    Rating - 0%
    0   0   0
    May 11, 2009
    3,314
    31
    H-Town, TX
    CarMax last three trucks, and a Cherokee before that.
    Found them on the website, called in for a test drive, showed up at the appointed time, drove out two hours later.
    Drive 3 years, rinse repeat.
    Have never had a problem with any vehicle I've bought from CarMax.

    Last year took wife, who's a tough negotiator, three days to make a deal on her current used Lexus at Sterling McCall in Houston.
    Screw that ...
    Last time I went to CarMax was about 2007. Found the vehicle I wanted and it was listed about $3k over blue book. They wouldn't haggle as per their "no haggle price" or whatever they call it. I told them there was no way I was paying the price they wanted. They didn't care, even with cash in hand. My advice has always been to stay away from them; YMMV.
     

    Younggun

    Certified Jackass
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    Local Business Supporter
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    6   0   0
    Jul 31, 2011
    53,834
    96
    hill co.
    I always thought they were priced higher than I was willing to pay on most of their vehicles. Have come across a few that weren't terrible though.


    Sent from my HAL 9000
     

    Younggun

    Certified Jackass
    TGT Supporter
    Local Business Supporter
    Rating - 100%
    6   0   0
    Jul 31, 2011
    53,834
    96
    hill co.
    Does it actually cover anything? Most have a list of what's not covered longer than the list of what is.


    Sent from my HAL 9000
     

    ZX9RCAM

    Over the Rainbow bridge...
    TGT Supporter
    Lifetime Member
    Rating - 100%
    2   0   0
    May 14, 2008
    60,165
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    The Woodlands, Tx.

    Shady

    The One And Only
    Rating - 0%
    0   0   0
    Aug 24, 2013
    4,699
    96
    I got my 2014 challenger from carmax with 500 miles on it at what I considered a fair price after shopping new for 4 months playing dealer games. I would give carmax 1500 over what a dealer would charge just to not have to play the stupid games.
     

    Army 1911

    TGT Addict
    Rating - 100%
    1   0   0
    Mar 17, 2008
    6,562
    96
    Dallas Texas or so
    I pay cash for cars, make the equivalent payment into a savings account so I get interest on it (not much lately). Next, I talk to the deal maker, they guy who will decide if the price I want to pay is acceptable or not. I have walked out when an order-taker (salesman) said he had to get it approved. I warn them first be fore sitting down.

    I tell them up front that I am paying cash so I won't fill out any credit information at all. I tell them specifically what features I want and don't want. There are some things like a sunroof that I will not have and if some options I want come only in packages that include said leakroof, I tell them to price them separately. I am set in my ways but it is my money and I will get the car I want from any of a couple dozen dealerships. I have travelled 500 miles to do it.
     

    TX69

    TGT Addict
    Emeritus - "Texas Proud"
    Rating - 0%
    0   0   0
    Dec 23, 2012
    6,801
    21
    DFW
    Last time I went to CarMax was about 2007. Found the vehicle I wanted and it was listed about $3k over blue book. They wouldn't haggle as per their "no haggle price" or whatever they call it. I told them there was no way I was paying the price they wanted. They didn't care, even with cash in hand. My advice has always been to stay away from them; YMMV.

    I went to CarMax too when I was buying a Lincoln Navigator. They were all way over what the dealerships in the area were charging on the exact same vehicles. I used them to get the price down at the dealerships which made negotiating very easy. I had the CarMax sheets printed out for the cars they had to offer and I told the dealership ":Make it so I won't go see/buy this car" and the price went to down to favorable levels.
     

    CrazedJava

    Well-Known
    Rating - 0%
    0   0   0
    Sep 5, 2013
    1,561
    21
    DFW
    I've checked CarMax but they are not hitting the right price points for me.

    From a customer service perspective, they were good to me on a past purchase even if their inventory and pricing is not impressing me right now. I found a car in Irving but it was going to be for my wife and the closest dealership was Plano. They were happy to move the car to the Plano dealership for her to test drive.

    I've noticed dealerships today are a little more willing to do things like that. Known a couple of people now who kept a car for a day or two as a "test drive" before they bought it, dealerships driving cars out to you, etc. Seems like CarMax was a little ahead of the curve.
     
    Rating - 0%
    0   0   0
    Jan 5, 2012
    18,591
    96
    HK
    I've checked CarMax but they are not hitting the right price points for me.

    From a customer service perspective, they were good to me on a past purchase even if their inventory and pricing is not impressing me right now. I found a car in Irving but it was going to be for my wife and the closest dealership was Plano. They were happy to move the car to the Plano dealership for her to test drive.

    I've noticed dealerships today are a little more willing to do things like that. Known a couple of people now who kept a car for a day or two as a "test drive" before they bought it, dealerships driving cars out to you, etc. Seems like CarMax was a little ahead of the curve.


    That's known as, "Feel the wheel, seal the deal". If a customer gets behind the wheel. They're taking a level of mental ownership. The odds they'll buy it go up.

    Test drives home are the next level. It's really cranks the mental ownership loud. Usually done to customers on the line. A way to tip them over it.


    It also helps from keeping the customer from going to other dealerships. Even though if you take the test drive to another dealership. They'll do all they can to steal the deal. They'll even go as far as call the other salesman to come get his car he was trying to sell.....After they sell you another car.
     
    Last edited:

    CrazedJava

    Well-Known
    Rating - 0%
    0   0   0
    Sep 5, 2013
    1,561
    21
    DFW
    Usually by the time I am at the test drive phase I've decided I want the car.

    Unfortunately, if I hate the test drive, well.....

    I hate to walk away after they went through the effort, but that's the business and that's part of the process. Not about to spend thousands of dollars over hurt feelings. I may or may not have some experience with sales :cool:
     

    matefrio

    ΔΕΞΑΙ
    Rating - 0%
    0   0   0
    Jan 19, 2010
    11,249
    31
    Missouri, Texas Consulate HQ
    Purchased a Chevy Astro from Carmax after our paid off toyota got stollen Thanksgiving Day. (Ya, I'm still chapped about having to figure out how to get kids to my in laws that day)

    Bad rear axle and under warranty they got a rebuilt replacement. Total labor\replacement part was ~$3,000.00 they paid. Even had a loaner van from them wile they had it in.

    There was another issue with the van as well I honestly can't recall but they took care of it.

    Years ago though. Don't know if things have changed.

    Other than not having rear AC I really liked that van. Wish they had a mid sized rear wheel drive or 4x4 van again on a mid sized truck frame.

    As for negotiations I've had them pull me back from leaving through the font doors before and meet my expectations.
     

    Mreed911

    TGT Addict
    BANNED!!!
    Rating - 100%
    28   0   0
    Apr 18, 2013
    7,315
    21
    Austin, TX
    With the price of cars going up, mine's worth more and more in terms of what I'll invest in repairs. Resale value is somewhere over $6,000 on my 2008 Mazda Tribute V6 w/185K miles, which is effing incredible. Replacement cost for a used vehicle, newer, would be around $12K. New more than twice that (I'd have to move to the Escape since the Tribute isn't made anymore).
     
    Rating - 0%
    0   0   0
    Jan 5, 2012
    18,591
    96
    HK
    Not to mention a new $3000 transmission you had to get.


    I look at a brand new car and think it's worth about about $5000. $7000 if it's fancy. No more then 20 miles on it either.
     

    TheDan

    deplorable malcontent scofflaw
    Rating - 100%
    8   0   0
    Nov 11, 2008
    28,010
    96
    Austin - Rockdale
    dealers are a protected class.
    Yes they are. The car buying process could have had a dozen make overs by now if it wasn't for the regulations mandating them. It's a cartel, and their customer support suffers from it.



    I found out about it through a website some car guy is on, having a senior moment & can't remember the name.
    He bought an older Land Rover (IIRC) & it paid out big bucks in repairs & he bragged about it.

    ETA: found it

    http://jalopnik.com/you-cant-get-a-cheap-carmax-range-rover-warranty-anymor-1655587419
    lol... I love that story. Carmax's warranty is pretty much the only used car warranty worth a damn.

    This is a latest edition of story, evidently things have changed, lol.
    Only for certain vehicles. They upped the price to match the turd that is Land Rover. That's fair, really.


    Unfortunately, if I hate the test drive, well.....
    The last car I bought I wasn't allowed to test drive until I put money down :laughing:
     
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