Comparing Car Dealerships
When in the market for a new car, many consumers focus too strongly on the price point without giving much thought to the dealership they are purchasing from. The dealership should be as important a factor as the model and price. Let’s take a closer look at what should be considered before you buy.
One of the first things that will come up is the type of car you are looking for. The model and price tag can help you narrow down your dealership choices down the road so it is important to know what you want before you go.
The best way to narrow down dealership options is to see which car the type of automobile that you want to buy. Make a list of dealerships that sell or lease to save time. You should also decide whether you want to purchase or lease beforehand because some dealerships do not offer leasing options.
Price - Crunch numbers and know your price limit before you step foot in any dealership. While the price tag should not be your only concern, it should definitely be a top priority. Before you go, research which dealerships offer the best rebates and incentives so that you can work on bringing down the overall price once you have picked a vehicle.
Staff - You will also need to know what type of staff you want to work with. Consider how knowledgeable they are and the type of gut feeling you get upon meeting them. The purchase process can be long so it is important to like the sales person that is assisting you.
Next, make a list of dealerships that offer all of your ideals. After you have an idea of what you’re looking for and a set list, it is time to further narrow down dealership options.
Location - How close are they to your home? Would it be a burden to drive back and forth if you experience car troubles?
Reputation - Is the dealership’s “personality” good or bad? Get feedback from those you know and from your local Better Business Bureau. Ask questions like – Was the dealership responsive? Were they knowledgeable? Was the deal fair? Would you buy from them again?
Also note the more obvious signs of an honest, prideful dealership. What does the outside look like? Is it well maintained? Maintaining a nice appearance shows signs of integrity and caring.
Customer Satisfaction Index (CSI) - Nearly every manufacturer comes out with a comparative list of dealerships either monthly or quarterly. Get the latest reports and see how your local dealerships compare to competition. If you aren’t sure where to look for a CSI, you can ask the dealership to browse their copy.
Service - The service department of a dealership is very different from the sales. Their reputations can also differ greatly. Are they equally as convenient as the dealership? What are the hourly service rates? Ask for a tour and note the cleanliness and staff responsiveness here too.
Price - Is it worth it to you to save $100 to work with a less reputable dealer than one that meets all of your criteria but costs $100 more? Probably not! Know your price but have a willingness to be flexible when it comes to some of your other factors.
It is also worthy to note that if you are looking to buy used, many dealerships that sell both new and used will often have higher price tags and will be less willing to negotiate to your budget.
Now that you know what dealerships your aiming for, it’s time to compare apples to apples. Let’s take a peek at the comparison process.
Research - There is plenty that you can do before you go to the dealership. The more you know, the better off you’ll be.
After you have your preferred vehicle in mind, go to several dealerships on your list and ask about the same vehicle. You can see what bells and whistles come with the price while getting a feel of the dealership and its staff. Having the comparison between dealerships will also allow you to pinpoint the best options. Keep in mind that dealerships that have been open for several decades are more likely to have a quality reputation than a newbie.
On a more personal level, know both your credit score and your budget beforehand. That way you won’t get snagged by any salesmen tactics or tricks.
Negotiation - Salesmen are good at what they do for a reason. Not only are they experts in the art of persuasion, they are also great people readers. Therefore it is very important not to show emotion towards a vehicle you like. Any salesmen will pick up on the fact that you have fallen for a specific vehicle and will save the best incentives for those that drive a harder bargain.
Before you go make sure you are the customer that drives a harder bargain.
- Deal with one salesman at a time. Some dealerships will give a one two punch by having two salesmen assist customers. Not only is this confusing but it can overwhelm customers to a point they just buy for the sake of buying. Specifically request to only see one person and if your request is denied, go elsewhere.
- Know the lingo. Most salesmen rely on the bevy of acronyms (GPS, for example) to sell. It is in your best interest to not just count the number of bells and whistles but to actually know what they are too.
- Be honest. The number one complaint among salesmen is customers that come in with unrealistic expectations or lie about the “better price” down the road. If they find out you are lying or that you are just outright difficult, you will lose a lot of your negotiating power.
- Stick hard to your expectations. Whatever you’ve set in your mind, (budget, financing options), stick to them. Don’t under negotiate for yourself.
- Keep your budget to yourself. If a salesman knows your top price, you can almost 100% count on him trying to coax you into buying at the top end of your budget.
Now you have found the dealership you like and the vehicle you want. The stars have aligned but there is still a little bit more work to be done to ensure that this dealership is the one for you.
Test Drive - Take your vehicle out for a test drive. Try to go without a salesman to get a proper evaluation alone. If they refuse, go somewhere else that will oblige.
Plan B - Just in case your chosen dealership doesn’t work out, have one or two more that has the vehicle you want handy. The same rule can also be applied to the actual vehicle. Consider renting or testing several to see which you like better. And don’t just buy any old car on the lot just to buy. If what you wanted isn’t there, order it!
Buyers Remorse - Buyer’s remorse after buying a vehicle can be far worse than feeling bad about spending an extra $10 on those boots you have been dreaming about. Don’t let the dealership push you into anything. Take your time. The longer you research, negotiate, and test, the better bargain you’ll get.
Know that signing off on that fateful down payment is what seals the deal. Before that, the ball is completely in your court. Make sure throughout the process of selecting a dealership it stays that way and you can’t go wrong.
Happy shopping!
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