Why is car shopping such an unpleasant experience for most consumers? There are certainly many different answers to that question but I’d like to focus on one specific area here regarding dealer practices and reputation. I’ll point out some things to watch for that may help you avoid both a bad deal and buying experience.
After you’ve done some research about the makes and models you’re interested in take the time to check on each dealer’s background before visiting their showroom. What is their Better Business Bureau rating and how have they dealt with customer complaints? Run a Google search to see if they have lots of negative press or feedback on Yelp, eBay or similar sites. What do people you know have to say about their previous buying experiences at the dealership? Have they been in business for long? You’ll weed out many potential dealers by just investigating these few things.
Some of the worst dealers to deal with are the ones running low ball print, TV and radio advertisements. When it sounds too good to be true don’t allow yourself to be fooled. Their full page ads have the lowest prices of any of their competitors and are often misleading because they’ve applied every possible incentive available to arrive at the ad price. Realistically, no one qualifies for all of these, so unless you are in the military, a recent college grad, qualify for owner loyalty, currently lease, and so on – your price will be much more than advertised – especially when they add on for freight, prep, accessories, etc.
The thing about those low ball ads is they do bring people into the dealership and that is what these dealers want. Now they will play all the games with numbers that people hate. They will manipulate customers in every way possible. So when you see ads for new cars at 50% off don’t be fooled and let your curiosity lure you in. Avoid these dealers because they will waste your time, abuse your dignity and try your patience. In my view the loudest and most obnoxious TV and radio spots generally mirror the types of dealerships that run them.
Another way to spot a disreputable dealer is simply by how you are treated when you visit their dealership. Overly aggressive salespeople who push you for a commitment to buy or ask you questions about your credit right at the start are demonstrating undesirable dealer practices. You are going to be pressured until you buy unless you walk away. My advice is if you are uncomfortable at all, just leave, you don’t need to explain.
So how do you know when a dealership is the right one to buy from? Keep these questions in mind:
Do you know any previous customers of the dealership who are satisfied with their purchase or service experiences? Knowing people who have done business first hand with a dealer can give you the most insightful and honest feedback.
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Has the dealer been doing business for a long period of time? Being in business a long time does not make a dealer reputable, however, it is easier to determine the reputation of a long standing business. Make sure their Better Business rating is no less than an A.
Have the dealership employees you’ve encountered worked for this dealer for a long time? Employees who have worked a long time for a dealership are generally happy with the dealer and are being treated fairly which is a good indicator of how that dealership treats it’s customers.
Did the dealership sales staff treat you with courtesy and respect on your visit to the showroom? This is basic stuff but you need to be listened to and responded to appropriately. Salespeople who do this well are what you’re looking for, avoid the ones with their own agenda, who want to push you around while not listening to what you say.
Did the sales staff seem to care whether they earned your business or did they give you the impression they were ready to take their next customer if you weren’t ready to buy right then? A very telling sign about salespeople is if they loose interest when they can’t close a sale on the spot. Consider yourself lucky if you see this happen to you. Leave and don’t come back.
To sum up, reputable dealers should instill a good comfort level about doing business with them. They will usually inform you of the various awards bestowed upon them from their manufacturer, things like high customer satisfaction scores or elite dealer status. Achievements like this are good indicators of legitimate dealerships and do require higher effort by dealer staff in maintaining certain customer standards.
The bottom line is that you’ll need to do some homework before doing business with any dealer. Research their reputation, read their reviews and look up their ratings, learn from other people’s mistakes, and find out what you can from people you know. Ultimately you must be the judge and trust your instincts about the people you are dealing with, otherwise look for another dealership to buy from.