What are some of your Biggest Car Buying Gripes?
According to Facebook responses, you got plenty!
While many buyers report having positive experiences, far too many rate buying a vehicle from a Car Dealership as being worse than getting a tooth pulled! Are these gripes legit? Of course they are (well at least most are). Either way, it seems to be a necessary task to undertake when one has a transportation need, and the bus is not an option.
Based on recent Facebook surveys, here are the 5 main complaints (Gripes) that customer have with buying from a Car Dealership. Probably no surprises here because they are basically the same customer gripes that have long plagued the industry.
However, the public is now sharing their experiences much more frequently and openly (namely through social media). This is a huge positive for the "good" dealerships, while the "bad" ones are being called out. Additionally, over 80% of car buyers are now seeking information online about a given vehicle or a dealership before entering show rooms. This is creating a positive trend for dealers to offer a more engaging and professional way for customers to purchase a new or used vehicle.
With that said, apparent bad habits are certainly hard to break - at least for the majority of dealerships. Here is the Biggest Gripe list derived from our own Facebook fans, as well as those from Consumer Reports.
Gripe #1: The Time - Ugh!: Now this is not all the dealership's fault (but mostly). Often times, customers need to look and drive several vehicles before they land on one that best fits their needs. Assisting customers in finding the right vehicle is an important part of the dealership service. This can easily take over an hour by itself. HOWEVER... the remaining 3 hours in the process are definitely on the Dealership.
What's really great about working with a dealership's Internet Sales Dept. (if they have one) and completling online applications, is that one can have all numbers established before even walking into the dealership (purchase price, interest rate, all other fees, and monthly payment). If done right, the vehicle has been fully prepped and all paperwork printed, waiting for the customer's final review and signature. I've personally gotten customers in and out of the dealership within 30 minutes with their new car. A true win-win for both parties.
Yet, if the customer (or dealership) decides to start re-negotiating after an agreed upon Internet deal structure, then the whole process starts back at step 1. The normal four hour process can be the result.
Gripe #2: Negotiations (The "Haggle"): Regardless if a customer arrives well-armed with KBB or Edmunds.com fair market price for the vehicle, the intent of the dealer remains to keep as much profit as possible (not unlike most businesses). On the other hand, the customer almost always wants a cheeper price than the KBB "fair market price". Therein lies the conflict of interest, and creates the foundation for negotiation.
To help alleviate this customer gripe, there have been a few large dealers that offered "No Haggle" pricing. Their posted prices actually mirrored the KBB "fair price". Sounds like a great idea, right? Easier for the dealership and documented fair pricing for the customer. No haggling required.. Yet, customers overwhelmingly rejected that platform, as they tried to get even better pricing than what was offered, and often times walked away from the dealership if they didn't get it.
Business fell off dramatically as the result, which caused those dealerships to revert back to their old way for pricing cars at MSRP, and reinstating the whole negotiation process. With a few exceptions, I would offer that haggling will remain a mainstay of the car-buying experience.
Of course, buyers would run into the haggling issue whether they purchased from a dealership or directly from a private party. The customer wants to buy low, while the seller wants to sell high. One main exception to this rule is the advent of "Internet Pricing", which works great for those customers knowing exactly what vehicle they want, expect a fair no-haggle price, and are okay with the dealership making a fair profit on the deal.
Either way, if you feel that you are not being treated fairly or with respect, don't be afraid to walk away. Sometimes, bonehead attitudes from salespeople miraculously change when they see a potential commission walking out the door.
Gripe #3: The Mountainous Paperwork: Some people would say that the paperwork involved with purchasing a vehicle from a dealership rivals that of buying a house. Unfortunately, just like buying a home, most of the paperwork is required for compliance with the State, City, Lenders, MVD, etc. Add on additional forms for extended warranties or maintenance agreements, and the stack just gets bigger.
Not much to do with this one. We just need grin and bear it, and understand exactly what it is we are signing.
Gripe #4: Bait & Switch: This happens most often when a dealership advertises a phenomenal deal on just a few cars. State guidelines dictate that these cars are indeed available to sell at the advertised price, They are considered "loss-leaders" by the dealership, and are highly effective in bringing in lots of customers.
Of course, these loss-leaders are the first ones to get snatched up by first-come savvy customers. Naturally, the salesperson will try to switch the following customers to other, more expensive vehicles and work the numbers to the customer's "complete satisfaction". Sometimes it works, and sometimes it doesn't. This is the case where the early bird gets the worm.
Another situation simply has to do with Math. If a customer wants a $20,000 vehicle, but needs their payment to be $300, it just can't be done at normal terms. At a good rate, financing $20.000 is more in line with a $400 payment. In this case, the salesperson very well may suggest a lesser priced vehicle that puts the payments more in line with the customer's budget. Nothing bad. Just Math.
Of course, these loss-leaders are the first ones to get snatched up by first-come savvy customers. Naturally, the salesperson will try to switch the following customers to other, more expensive vehicles and work the numbers to the customer's "complete satisfaction". Sometimes it works, and sometimes it doesn't. This is the case where the early bird gets the worm.
Another situation simply has to do with Math. If a customer wants a $20,000 vehicle, but needs their payment to be $300, it just can't be done at normal terms. At a good rate, financing $20.000 is more in line with a $400 payment. In this case, the salesperson very well may suggest a lesser priced vehicle that puts the payments more in line with the customer's budget. Nothing bad. Just Math.
With that said, most dealerships would rather cut their profit than to have the customer switch vehicles. The reason is that helping a customer find a vehicle they really like is more than half the battle for the dealership.
Gripe #5: Mechanical Problems: How aggravating would it be to purchase a new or used vehicle, and have problems with it within the first week? All that money for something that doesn't work. Seems to happen far too frequently, which adds to the poor perception that the public has towards car dealerships in general. Of course, this can and does happen with buying directly from a private party, as well. The good news is that with a dealership customers may have more recourse.
There are a couple things that customers can do to help avoid such a situation:
There are a couple things that customers can do to help avoid such a situation:
- Buy from a reputable dealership
- Take a lengthy test drive, and request to drive it on the highway. If it sounds and rides like crap, it probably is.
- Pull a Carfax report. Reputable dealers offer this for free. It can show reported accidents.
- Pay $50 and have the vehicle checked out by a certified mechanic of Your choosing.
- Seriously consider purchasing an extended warranty. It may not pay for itself in the end, but the peace of mind it offers is priceless.
The fact of the matter is that most people have a positive experience when purchasing a new or used vehicle from a dealership, but still many do not. Those dealerships that truly value their customers and treat them accordinlgy will have staying power in the industry, while those that do not will hopefully fade away.
Please share your comments or your personal car-buying experiences - both good and bad. We strive to be a better dealership, and honest customer viewpoints are an important tool in helping us achieve that goal.
