Ford CEO Responds to Price Markups

[Ford sales guy]

Like others here, I've bought many vehicles via the traditional dealer sales model. Depending on the dealer, it can really suck. Or it can be painless and maybe even pleasant. It usually is the salesman and the finance office that determine which experience a customer will have.

Large, high-volume dealerships are almost always a pressurized transaction with a strong sense that, as a customer, you have to watch every move and examine every document carefully for hidden fees or change-ups on agreed points.

If the sales rep comes out of the showroom immediately to engage with you and comes across like a character from Good Fellas, it's probably not going to be a pleasant experience. But if he or she is relaxed and dressed somewhat casually, that's a good sign, at least for me.

My wife hates going into a dealership. Most women I know hate it, so there's a reason you're seeing the interest in Amazon-style car shopping and ordering. It has nothing to do with seeing the glass as half empty.

You're probably the exception to the rule, but it's the rule that's going to determine the future of the dealership model. They're either going to turn the exception into the rule or they're going to have a new future forced on them.

The legislators that protect the dealer model are going to be replaced by younger ones who've come of age in the Amazon/Tesla world. They aren't going to be sympathetic to maintaining the status quo, more than likely, unless the status quo is one that people want to keep.

Very well said.

Sponsored

 

[TheWizziard]

Those days are gone for those who are interested in learning everything for themselves. As I’ve said in the past. The vast majority of people I sell to year in and year out want to be helped by a knowledgeable salesperson, of which I happen to be. Certainly if forced to order from home, they could manage, but they by a factor of more than 10-1 simply don’t want to.
You asked about car dealer efficiency compared to other industries I’ve mentioned. Some sell at nearly cost. Others at well over MSRP. Some push every back end product and finance option they can dream of, while other are much less aggressive. Car sales are no different than any other business. These forums are heavy populated with do it yourselfers. The traditional buyers have no reason to argue on here, their not trying to convince anyone of anything because they don’t care. I get amused by those on here that get angry with me for describing the facts of my customers feelings as told to me by them and my actual experiences. The vocal minority on these sites are welcome to order their Taco Bell, groceries and cars from their couches and have them dropped at their doors. For the rest, the traditional way is not so bad.

Sadly true. There is a reason that toaster instructions tell you not to use it in the shower. I am not against dealers in general. I see them serving as a showroom. What I am against is the "mysterious" negotiated pricing. Weak buyers being taken advantage of. The "mandatory" addons. Dealers need to be more transparent. Transparent dealer do exist. But as noted in this forum there are many who are not.

 

[Eber1988]

One of the only comparisons you can make about a car salesman and a non-motorized vehicle store is them asking about an extended warranty. From my experience though is when you get asked buying everything else besides motor vehicles is if you say no they don't try asking 5 more times. You say no and move on. Why do I have to haggle to get a lower price or to ensure there are not hidden items added?

 

[MLowe05]

One of the only comparisons you can make about a car salesman and a non-motorized vehicle store is them asking about an extended warranty. From my experience though is when you get asked buying everything else besides motor vehicles is if you say no they don't try asking 5 more times. You say no and move on. Why do I have to haggle to get a lower price or to ensure there are not hidden items added?

Brace yourself for the forthcoming lecture on how car salesmen/dealerships are doing you a favor and how you need to shut up and enjoy it.

 

[Old Ranchero]

I bet that if you go in your paperwork you will find that you did not buy it from Costco but from a dealer. Costco acted as middle man of the middle man. The good thing was being able to buy it at a clear price without any hassle.

Correct. I used COSTCO's buying service. I gave them the specific vehicle I was interested in and they sent my info to dealers participating in their program with that vehicle and a fixed "no haggle" price on it. A dealer called me, the price was in range of what I expected after my research so i went in and met him and test drove the car and then cut him a check for the car at price quoted. NO haggle, no BS.

 

[Timothyd]

Carmax proves this. No haggling- prices are posted on the window. Most people know they "could" pay less somewhere else- but they want to just buy a car- not "make a deal".

That "it is what it is, no haggling" was the policy at Saturn. I bought two of them, they were great.

 

[Timothyd]

One of the only comparisons you can make about a car salesman and a non-motorized vehicle store is them asking about an extended warranty. From my experience though is when you get asked buying everything else besides motor vehicles is if you say no they don't try asking 5 more times. You say no and move on. Why do I have to haggle to get a lower price or to ensure there are not hidden items added?

It's a lot easier to say No! than to pay more. I'd like more honesty in a lot of places but I often don't get what I like.

Sponsored