There are some issues that just aren't going to go away (at least in the short term) such as arranging financing, the process of trading in our previous vehicle, the amount of time that it takes to complete the purchase or lease transaction and the decision on whether to buy "value-added" services such as extended warranties from the dealer.
I'd like to work through this whole process step-by-step, from the first thought, "Maybe I need a new car", all the way through to the next car we start thinking about down the road. I am an insider in the business, so I will tell you what really goes on, answer any questions to the best of my ability, and I welcome comments from the public as well as others in the auto industry.
What makes us start thinking about a new or replacement vehicle in the first place? Some of us just moved here from a larger city where we never needed a car of our own, so we are looking for our first car. Some are just starting to drive, maybe teenagers in high school, and their parents are buying them a first vehicle. Maybe our previous car is too small, too big, poor fuel economy, not enough seats, destroyed in an accident or just plain worn out and can't be repaired anymore. A new baby (or two or three) can trigger this change, as well as children leaving home. Longer commute, don't need to haul or tow anymore; need to start towing or hauling. Just want to help save the environment with a hybrid vehicle. Inherited a car that doesn't fit our needs, just got "car fever" and want to scratch the itch. There are lots of reasons to buy a newer vehicle! What's the next step?
Step One: How can I buy a new or pre-owned vehicle from a dealership without all of the aggravation?
Car dealerships have long suffered from a bad reputation. Many of us believe, deep down, that all car dealers are crooks, and we would rather have a root canal or be sued than have to go through the process of buying a new or used car from a dealership again. Why does this process have to be so irritating?
Let's examine some ways to make this whole process a lot easier and less intimidating.
Step One: Get a referral. You don't want to work with someone you don't know, like or trust, so ask around and get the name of someone reliable in the car business whom your sister, neighbor, co-worker or friend worked with, and whom they recommend. It is easy to find stories about bad experiences at car dealerships. If you ask, though, you will find that lots of people you know HAVE had at least one great experience – it's just human nature to tell more people about problems than about the good times.
Don't start this process without at least one solid contact name and phone number.
Even if you are not interested in the same brand as your friend who had the great experience, go ahead and get that contact information anyway (do try for a contact in the same town or metropolitan area where you plan to shop!) The car industry is a small world, and chances are excellent that the outstanding salesperson who helped your friend with her new Honda knows someone of like personality at the local Subaru or Toyota store. A true professional in auto sales will be happy to answer your general car questions and steer you in the right direction. After all, the Subaru professional will reciprocate by sending his clients who are more interested in a new Honda back to the Honda representative. The Honda representative also knows that if she treats you professionally, you will send her your friends who ARE interested in a Honda in the future.
A side note here: You will not benefit by going "straight to the top" and speaking directly to one of the managers at the dealership. You will probably get a price on the car that interests you (there is no telling if that is the "best" price) but the manager will not actually be working with you himself. He is too busy to give you his undivided attention, and will "turn you" over to a salesperson to finish up the process and required paperwork; that salesperson could be the most professional salesperson in the store - but is much more likely to be whoever happens to be standing closest to the phone when you call. Is that a better way to have a great experience than just driving onto the lot and taking your chances with the "huddle"? I don't think so.
Step Two: What's next, after you get a good referral?
Call or email the professional salesperson who was recommended to you, and set up an appointment to consult with him or her. Do not just drop in unannounced, especially on a Saturday afternoon. That is the busiest time for all car dealerships, and you are almost guaranteed to be unhappy with the wait to complete your necessary paperwork.
Why set an appointment – aren't these places open 12 or more hours a day? That's really inconvenient for me, why can't I just drop in whenever I feel like it? You can – but we are talking about ways to make the process easier and quicker. All experienced salespeople with a solid base of previous customers (the type of salesperson you got a referral to and want to work with) work by appointment, so they can assure the customer they are working with right now their undivided attention. If it is your turn for her attention, you certainly don't want her to stop and take a phone call or help someone else who doesn't have an appointment.
If you show up without an appointment, there is an excellent chance that the salesperson you went to all that trouble to find and speak to will be busy with other clients and will not be able to give you her personal attention. At that point, you can either go home and come back another time with an appointment, or wait who knows how long, or work with another salesperson who was NOT personally recommended by a friend of yours, someone you know nothing about and have no reason to trust. This person could be brand-new, just started last week – he is unlikely to be as experienced as the person recommended to you, because those people all have appointments of their own and are not available for walk-ins. None of these options are very appealing, are they?
Well, why don't the dealerships just hire more people to work on Saturdays so you don't have to wait or work with a newbie or be inconvenienced? Think about it – someone who is hired just to work on Saturdays is unlikely to have as much experience or be as familiar with the current products and programs, right? If he is actually good at what he does, why would he only want to work on Saturdays? What does he do the rest of the week? So set an appointment and don't show up a day early or two hours late without calling to let your salesperson know. He can also have the car you want to look at pulled and ready to go when you arrive.
What if you just want to drive the car and see if you like it, but you're not ready to buy yet? All the more reason to set up an appointment that is not on Saturday, so that you will have plenty of time to drive the car and ask questions without feeling pressured. This will be a better experience for you… and don't forget, your representative has other appointments and probably cannot set aside as much time on Saturday as you might like, to look at different cars. She has an obligation to her other clients as well as to you and the person who referred her to you.
No reputable salesperson will try to pressure you to buy a car when you are not ready. If you like the car but you just aren't sure, it is her job to answer all of your questions and make sure that you are comfortable with the car, the trade-in and any other numbers that are presented to you. She will be happy to follow up with you at a later date, if that is truly what you need.
A good salesperson will also explain the entire process to you as you go along. You should never be left to wander around by yourself while he disappears for twenty or thirty minutes – and that is another reason to get that good referral.
Step three: Always drive the car that you want to take home
"I already drove the car at another dealer, I don't need to drive it again. I just want to get your best price and get out of here with my new car. Why should I spend more time? All of these cars are the same, anyway."
If the salesperson at the other dealership had done a good job, you wouldn't have left there without the new car, would you? How do you know that person showed you all of the features on the car that are important to you? You don't know what shortcuts he took, or what misinformation she gave you. You are spending a lot of money for your new car - don't you think you deserve to have someone you know, like and trust spend enough time with you to answer all of your questions and make sure this is truly the right car for you? This is why you got that great referral, remember?
After you drive the car you want to take home, then what?
Fact: In the State of Colorado, state law says that only a licensed and bonded salesperson, at a bonded and licensed Dealership, can sell a new car of any brand. The Dealerships have to meet specific criteria, and the salespeople have to pass a written test and a background check, in order to work in the field of automobile sales. Other than that, there are no Colorado or Federal guidelines on the training required for a new- or used-car salesperson at any dealership. Each dealership is responsible for training its own staff, and some do a better job than others.
Laura Ryan sold cars at three different dealerships in the North Metro Denver area for more than eleven years. She is The Colorado woman's guide to the auto industry… from the inside out. You can reach her at laura@coloradoautoinfo.com or by phone 303-464-8352.