The shrinking car dealership.

[Carsinmyblood]

I think this will take time, but dealers can't run those big multi-maker highway stores on tire rotations and brake jobs. As ICE cars age the need for a robust repair staff will slowly collapse and with it the need for huge service departments.

At that point dealerships will become showroom/delivery stations... and we all know how bright the future looks for shopping malls.

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[one5460]

It is definitely coming. The Service Department (along with the parts department) are also going to take a "hit".

Not certain in the end if this is a great deal for the consumer. I think back to when I first started driving. One would pull into a gas station and the attendant would ask if you wanted to fill it up and they usually asked if you needed the oil checked. Once they started pumping the gas they would wash your windows. Many times they would take the cash from you while you were still in the car and away you went when it was done.

Now I realize that there is a cost built into that kind of service but it was nice to see a friendly face and (as a kid) always thought it was neat to see the windows being washed sitting from the inside of the car.

My how things have changed. Once again, I think it is inevitable but I am guessing that our kids will say how fun it was to go into a car dealership and look at all of the cars on the lot and see their Dad negotiating with the Sales Person.

You can't stop this train a comin' but I think one will miss some of the things we enjoy now....................

What about the circling sharks and the 1 Great White sitting in the back office waiting to scam every last cent out of you?

 

[nvabill]

What about the circling sharks and the 1 Great White sitting in the back office waiting to scam every last cent out of you?

It's called offering you choices and you can just say no, I do it all the time when I make vehicle purchases.

 

[one5460]

It's called offering you choices and you can just say no, I do it all the time when I make vehicle purchases.

It's more like taking advantage of the less informed and inexperienced shoppers so they can make a commission.

 

[DennisD]

What about the circling sharks and the 1 Great White sitting in the back office waiting to scam every last cent out of you?

That is an easy question.

You kick them to the curb and deal with the "honest" ones. Just like the ones that are charging high ADM's now. I would never give over MSRP and I will never deal with them as well.

I own a Driving School and I would guess that I have purchased 50+ cars throughout the years. More times than not, I could usually purchase a new car for as little as $300 over dealer's cost. I know that some had what was called Dealer Kickback if they sold a ton of cars so that figure could be more, but at the end of the day (if you were patient), you could get really smokin' deals if you shopped around and were smart enough to walk away. You basically were able to buy these cars for a low cost because of the people before and after me didn't negotiate very well, therefore meeting the dealership's quota through others that got "scammed".

Those days are over. If we go to an order only and pay MSRP (no more, no less), we all will pay the same cost. Quota's will be covered and the negotiating game will be no more.

Choose your poison..................

 

[nvabill]

It's more like taking advantage of the less informed and inexperienced shoppers so they can make a commission.

You are right about that and that's why it is vital to educate yourself and we help each other by sharing information.

 

[one5460]

That is an easy question.

You kick them to the curb and deal with the "honest" ones. Just like the ones that are charging high ADM's now. I would never give over MSRP and I will never deal with them as well.

I own a Driving School and I would guess that I have purchased 50+ cars throughout the years. More times than not, I could usually purchase a new car for as little as $300 over dealer's cost. I know that some had what was called Dealer Kickback if they sold a ton of cars so that figure could be more, but at the end of the day (if you were patient), you could get really smokin' deals if you shopped around and were smart enough to walk away. You basically were able to buy these cars for a low cost because of the people before and after me didn't negotiate very well, therefore meeting the dealership's quota through others that got "scammed".

Those days are over. If we go to an order only and pay MSRP (no more, no less), we all will pay the same cost. Quota's will be covered and the negotiating game will be no more.

Choose your poison..................

Lost time and frustration have a cost. Hunting for an 'honest' dealer, haggling over the price and then after purchase, having to deal with poor support and clueless techs all cost you in some way.

I'd rather pay MSRP and deal directly with the manufacturer for service, than having to put up with dealership incompetence throughout ownership.

 

[Matt Bagne]

I go to my local dealer to get a donut and a cup of coffee every morning . . . as long as I am there before 10:00 AM there is a decent selection.

 

[DennisD]

Lost time and frustration has a cost. Hunting for an 'honest' dealer, haggling over the price and then after purchase, having to deal with poor support and clueless techs all cost you in some way.

I'd rather pay MSRP and deal directly with the manufacturer for service, than having to put up with dealership incompetence throughout ownership.

You actually had that back in the day. One could have called any dealership, on any day and they would have gladly taken MSRP with no questions asked. Heck, they may even have kissed your feet when you walked in to purchase it.

You are correct, time is money. While I was many times saving upwards to $3,000 off of MSRP, others were willing to pay MSRP not to negotiate and save time.

I usually got on the phone and spent maybe an hour calling all of the surrounding dealers to see what their out the door price was on a new car with no trade. Once again, I usually found at least one that would shave a few thousand off of MSRP just to meet a quota that another dealer may have not needed at that particular time.

I believe that the supply chain shortage is temporary and things will start to churn here soon.

This is worth repeating, 1 hour usually meant saving around 3K. That was then, this is now. I am not against making it to order and pay the exact same (similar to iphones) no matter where you go. I was merely pointing out that I am going to miss those days of negotiating knowing that you got a smokin' deal if you were willing to do the leg work.

I see it as both bad and good.

Once again, pick your poison.

 

[yngwenli]

You actually had that back in the day. One could have called any dealership, on any day and they would have gladly taken MSRP with no questions asked. Heck, they may even have kissed your feet when you walked in to purchase it.

You are correct, time is money. While I was many times saving upwards to $3,000 off of MSRP, others were willing to pay MSRP not to negotiate and save time.

I usually got on the phone and spent maybe an hour calling all of the surrounding dealers to see what their out the door price was on a new car with no trade. Once again, I usually found at least one that would shave a few thousand off of MSRP just to meet a quota that another dealer may have not needed at that particular time.

I believe that the supply chain shortage is temporary and things will start to churn here soon.

This is worth repeating, 1 hour usually meant saving around 3K. That was then, this is now. I am not against making it to order and pay the exact same (similar to iphones) no matter where you go. I was merely pointing out that I am going to miss those days of negotiating knowing that you got a smokin' deal if you were willing to do the leg work.

I see it as both bad and good.

Once again, pick your poison.

Not that many people buy 50+ cars over the years so your case is sorta rare I think. For most folks, even in the old days of car buying, car buying was a fight with pretty much every car I bought (5+). You had to go in armed with info/inventory data/invoice pricing/holdback/promos/what people paid/etc and most folks find car salespeople the least trustworthy folks so it wasn't a pleasant thing for most folks to do.

For all of us who ordered, waiting, getting the MME, it's still a stress point on sale price compared to say, Tesla where you order online, that's your price...peace of mind on that. Price protection is still a discussion for many of us where you have to ask for it.

I think the old model just punished people who were ignorant of car prices and just paid whatever dealers asked. The old model, car prices were generally inflated since inventory/product "sat" on a lot and you asked for close/under invoice. In the new model, cars get ordered/delivered where the price is really determined by supply/demand/market/competition.

Like you say, it's a double edged sword, but I'd much rather fall on the up front higher pricing vs. argue at the dealership unknown pricing since I don't tend to buy cars every year and it's a 1 time deal (and everyone got the same "price" mostly so it feels good). Some folks here and many paid ADM which you would never do since you buy it for your business and you buy often, but for a lot of folks, there is less to save since they aren't buying 10 cars.

This dealership model will change also when the owners just decide to "sell" to the manufacturer and turn it into a showroom instead (will need laws to change first). The writing is on the wall for dealerships to change and a lot has already sold/got out/retired/etc. who don't want to deal with it.

 

[DennisD]

Not that many people buy 50+ cars over the years so your case is sorta rare I think. For most folks, even in the old days of car buying, car buying was a fight with pretty much every car I bought (5+). You had to go in armed with info/inventory data/invoice pricing/holdback/promos/what people paid/etc and most folks find car salespeople the least trustworthy folks so it wasn't a pleasant thing for most folks to do.

For all of us who ordered, waiting, getting the MME, it's still a stress point on sale price compared to say, Tesla where you order online, that's your price...peace of mind on that. Price protection is still a discussion for many of us where you have to ask for it.

I think the old model just punished people who were ignorant of car prices and just paid whatever dealers asked. The old model, car prices were generally inflated since inventory/product "sat" on a lot and you asked for close/under invoice. In the new model, cars get ordered/delivered where the price is really determined by supply/demand/market/competition.

Like you say, it's a double edged sword, but I'd much rather fall on the up front higher pricing vs. argue at the dealership unknown pricing since I don't tend to buy cars every year and it's a 1 time deal (and everyone got the same "price" mostly so it feels good). Some folks here and many paid ADM which you would never do since you buy it for your business and you buy often, but for a lot of folks, there is less to save since they aren't buying 10 cars.

This dealership model will change also when the owners just decide to "sell" to the manufacturer and turn it into a showroom instead (will need laws to change first). The writing is on the wall for dealerships to change and a lot has already sold/got out/retired/etc. who don't want to deal with it.

I would agree with most of those things you mentioned.

The one thing that baffles me is the ADM that people pay. Call me old fashioned, but I think (other than a house and/or business) your car is the second largest purchase that you will make and one should do much research before signing the papers. Because I purchase many cars (sometimes in the same year), really should not make a difference in the way one looks into the purchasing the car. Money is money no matter how you invest or spend it. In fact, the fewer dollars that you have on demand so to speak, should dictate how you spend the little one has more carefully.

IMO, unless one has a pile of cash on hand and they really have no care in the world in saving money, I would say go for it and spend like there is no tomorrow and pay ADM.

For those that are purchasing these EV's to "save money" and they pay ADM's, I would suggest they never use a calculator to see their "savings". Just go on the "I think this is saving me money" logic and continue to smile.

The only exception to this IMO, is that if you can't find an MME here soon it may be worth paying a little ADM to capture the $7,500 tax credit before it expires. Other than that, I am a firm believer in doing the most research you can before making any large purchase. The "old way" (the one we have now), will surely change to a one size fits all model and that will save the foolish people from throwing much of their hard earned money into the wind. Once again, one person's loss is usually the other person's gain. In other words, the "old" model could save you thousands whereas this "new" model will leave everyone balanced and paying the same.

I am some what torn but I see valid points on both sides. I kind of find it a sport to "beat the Dealership up" for a better price but that is just me and my personality. I realize not everyone likes to banter back and forth.

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