It’s funny they have a law to protect a car dealership but now when Walmart rolls into a small town and destroys all small businesses... no one says anything
That doesn't sound fair at all but I read somewhere that big businesses who of course bring a lot of money don't pay no taxes or something like that, so maybe that would be their excuse... Still not fair at all
The towns Walmart move into merchants do OK if they specialize because people stop on the way to Walmart. Towns 20 miles away just die because no one stops and go straight to Walmart. Then Dollar General moves in and finishes off main street.
They aren't forcing you to do anything, you are just agreeing to a shit deal. I bought a car earlier this year and just shopped around until I found a dealership that agreed to msrp.
@@ahokay3119 Fortunately, some manufacturers have started telling these loons, "Hey, if you don't stop gouging, you're not getting any news cars...what few we have to go around, anyway."
I'm not sure why people think you can't do this? You can go to Ford, Chevy, Nissan, Hyundai, Kia, GM, really any manufacturers website and customize your car? They have numerous color selections that aren't available right away at the dealership? Although some only have like 3 or 4 choices, whichever you want can be chosen and you can pay for it online and ship it to the nearest dealership? Like how do people not know about this?
@@kingzach74 I tried doing that a couple of times... it can be done but they tack on extra delivery charges and handling fees a couple of thousand extra.
@@kennethbowden4129 The real trick is to go into the dealership and demand they spec order for you so they eat all those costs. Then you just yell at them and tell them you won't buy it for a markup, and bam. I watched my poor boss have to do this tons of times when I was selling cars at age 20.
@@kingzach74 Ford even makes it part of the 'Build' function on their website. You build the vehicle you want and then send it to a dealership to have it sent to the factory.
@@starchyoilDealerships are also just as badly subject to manufacturers raising prices now as we all would be once dealerships are gone. Dealerships have no reason to exist in the internet age. Even the entire reason for existsnce had nothing to do with protecting consumer rights and solidifying competitive prices. It was simply to absorb inventory costs in a pre internet and pre cellular phone age.
@@starchyoil They have no reason to keep the prices low NOW. Dealerships will always buy at whatever price the manufacturers set for them, then add their own markup to that. They cannot ever offer a price lower than the manufacturer and still turn a profit, regardless of whether the manufacturer gets to sell directly or not. All this does is guarantee that the consumer will never get the lowest price, not that the lowest price will actually be low.
Most of them are dumb. I worked a dealerships in service for a while, and the amount of salesmen that had no clue about cars was astonishing. Granted, there are salesmen that are "car guys" but that's pretty rare
This really frustrated me when I bought my first new car recently. I felt like the salesperson really did not know about the car, what features were available, colors, or even how to properly use their ordering system. I knew exactly what i wanted and did not need to deal with someone fumbling over things. I understand some people may want this experience but I'd prefer to just order it direct.
i havent bought a new car but I bet if somebody who doesnt know what is talking about and I already know what I want so he just wastes my time so he can have a useless job which only complicates things id really tell him straight to stfu
Exactly, I've gone to dealerships and I WAS TEACHING THEM about THEIR OWN CARS! Dealerships don't have a purpose, just let me order straight from the maker without all the price-gouging!
Sometimes, the policy of the dealerships can be idiotic: forcing salepeople to do the sales talk (despite customer already knowing the exact vehicle to purchase), even if it result annoying their customers.
Bought a new car in early 2020. Walked in at 3:30pm, left at at 11:30pm. I knew exactly what a wanted and what I should pay. Had to spend a few hours with a new salesman explaining that I already knew everything about the car and what he was offering was ridiculous. Ask for my keys back from the test drive and in comes the more experienced salesman. Again, more hours of "selling" me on features of the car I've already researched. Finally landed on the price I knew was fair and then an hour or more of paperwork. It's a broken system. Taking advantage of the uninformed and wasting the time of those that know the car they want and the fair dealership price.
The typical car deal takes three hours, from your arrival on the lot to the point when you drive off in a new rig. There are some good reasons it has to be that way -- a car deal is pretty complex. There's a lot of paperwork involved. Your credit score has to be run and a lender must be found -- and so forth. In your case, there was a trade, and the value had to be negotiated (something that would occur no matter whether dealers or manufacturers are doing the selling). It also sounds like you walked in with a specific rig in mind, they didn't have it, and they tried to steer you to something they had on the lot -- that's really the only good reason to sell you on features on a car you've already decided to purchase. Seven hours does sound a bit excessive, and yet it sounds like it took that long because you held out for the car and the terms you wanted. But if you got them -- why would you see that as a problem? This is a major transaction, it's not like buying a box of Corn Flakes, the process really wouldn't change if manufacturers controlled sales, and I think you should be looking at the half-full glass, not the half-empty one. You won. And I'm sure you got a much better price than you would have if you were buying direct from the manufacturer.
I'd like to just order my car exactly as I want at dealership cost directly from the manufacturer. It's a win for everyone. I pay a lower price and get exactly what I want, the manufacturer saves manufacturing costs and they don't have to worry about it sitting on a lot not selling.
But your forgetting the dealerships which are losing out. You and the manufacturer would win, but thousands at dealerships would be out of jobs, etc. I wish all brands would change to Tesla's ordering and delivery system, but dealerships will defend themselves to stay alive and make money.
As soon as the vehicle leaves the factory via rail or truck it is a sold unit. Manufactures do care about that unit other than if there is a production issue. In regards to the big 3, GM, Ford, Chrysler, their physical report considers a sold unit when it has left the shipping yard. As of right now, the factories price on that vehicle is the manufacturer cost. So what you see as a $60,000 is really only a $4500 vehicle to them. As an insider we'd crush vehicles all the time. It was only a $2000-4500 loss. They don't count the cost a dealer is selling it to you. So ya you would save a ton of money buying from a manufacturer if you could.
@@ayushmalpeddi2793 it sucks that people will lose your job, but as a consumer you should be looking out for your rights, not for the slimeball that tries to upsell you on a car.
the dealers wouldnt necessarily be out of business since they would maybe charge a ordering fee like maybe 500 bucks. for example, if a corolla costs 10,000$, then the car would be marked 10,500$ so the dealer makes some form of money. that way everbody gets a win
Dealer raised their price $17,000 above the price on their website. We sat down at the table after looking up the truck on the dealership’s website marked at $50k expecting room to negotiate. The first price they came to the table with was $67,000. I stood up and said what is this? They told me well that’s the price of the vehicle. I said sorry but I’m walking away because that’s $17,000 higher than what you have listed on your website. They treated me like I was the jerk.
The web price is stupid aggressive, typically they don't have much room on those, but their trade off is that someone who sees it online puts a cash hold on it at the price will almost always buy it. Oh and before you get in this a cash hold takes away your negotiating power, it doesn't, if anything it gives you more
Bro, what the actual hell? That is a 34% price increase, the deal/dealership should be sued for something, it's not like the car is like 200 or 300k where 17 grand doesn't make a huge difference, this is just outrageous and absurd, to say the very least
I worked at a car dealership earlier this year. I have never worked in a more scummy environment in my life. From selling people cars that are only in good enough condition to last a test drive to extorting customers to take down negative reviews, they never failed to amaze me with how shitty a business can be. My word of advice is if you are looking at used cars then stay away from large dealerships as much as possible. There are small local dealerships that are far better in terms of service and transparency as well as buying a car off of an owner directly has never been a better choice.
If anything I would say the small dealerships are usually the scummiest ones, they literally can’t afford to not sell inventory so they will sell you a broken down pos just so they can stay in business. If anything we’ve learned, most car dealerships are ripoffs and things have to change
When I buy used I just buy direct from owner. I have an intermediate level of understanding when it comes to cars. Mostly if, I hear something I know what's wrong with it. I advice people learn a bit about cars so they can start buying used from owners. Nissans are the best to buy used since their value plummets after a year of service
@@SuperVladamere why would you advice people to buy nissans? if you actually knew about cars you would know nissans are very low quality cars. maybe the last generation frontier that just ended was the only good vehicle they had. all others suck. specially ones with cvt transmissions.
This is why I love the manufacturer's build and price feature online. You customize your car, and have it sent to your local dealership reserved for you to buy. The closest thing you can have to buying straight from the manufacturer.
Except you still have to absorb the extra cost and fees of going through a dealership. It isn’t solely about the convenience of getting the exact make, color, and trim package that you want. It’s the forced involvement of a third party to the purchase, and the economic impact of their inclusion.
Nolan: "if we want consumers to be happy" me: That's the problem right there. they don't *want* you to be happy. they only want you willing to settle for something _just_ good enough to ensure that you will come back to buy again, as soon as you've paid off the last one.
And then give you peanuts for trade in value. You're 100% better off selling private before buying another car and even then you're 100% better off buying lightly used and not taking that immediate depreciation hit
@@vincentpapaleo4803 Ugh, don't remind me. The clincher that had me trade in my last car was because I knew it was beyond my means if the transmission started developing issues (spoilers: it did). Just glad I was able to find something in a manual this time. That said, if I had the means to, I'd easily rather get new and have something set up just right rather than play the roulette that is the used lot game.
The only time I've had a good experience at the dealership was when I bought my first car. It was right around the time car dealerships started advertising "internet pricing" on their websites. It was the car I wanted, well close enough, so I printed everything out and went to the dealership. The salesman was actually pretty nice, but again this was a couple decades ago. I looked at the car and the price I had was $2k less than the sticker price. The salesman couldn't believe it so he went inside to check it out. He came back and was surprised they were going to sell it for that price. He was nice about the whole thing and did everything we needed to do to sell me the car. Every other time, it's been running credit reports without permission, trying to sneak in extra things you don't need, and the last time I had to make them give me the appropriate value for my trade...wrong model, 2WD instead of 4WD, no sunroof, cloth seats, very low miles for the year, etc. It took 4 tries to get it right. The guy was getting pissed...I guess they just hope people don't notice.
I've never bought from a dealership in my life, and don't intend to. I've helped a few people who only wanted to buy from dealership cuz they think it's more legit or whatever, and always a pain to do. My favourite is when they list a car for lets say 15k, 100k KM, you call to confirm, yeah 15k/100k. You arrive, "ah nah, sorry, that one's sold. But we happen to have the exact same car, exact same year, exact same colour, 100k KM, but it's 22k." Happens so fucking much. I buy from FB or other peer-to-peer methods. Yeah there's a lot of scammers, but there's also a lot of people just changing cars, getting something more practical, with too many cars, or whatever else. At least you have a chance of not running into a scammer, while at a dealership you know you will cuz that's literally their job.
Every single time I went to a dealership up in South Dakota they tried to swindle me into buying insanely priced vehicles. "you make 20k a year and you're about to graduate, its your best chance at buying a brand new car before you can't afford it" I have never hated anyone more
I think it's insane I live in Delaware and had to pick up my car in New Jersey, the worst part is I still have to go to the Delaware DMV and pay them "Document Fees" for a car they wouldn't let me purchase in the Delaware.
We used to order new cars all the time. I bought a new Toyota in 1984 that way. Looked at a lot truck, met with a salesman, picked what I wanted for options, and 6 weeks later got my truck. I was floored when I went in for a new one in the early 2000's and they said I couldn't order one and had to buy off the lot.
For some reason you cannot special order a Toyota. This saves Toyota money, they only build what they want and send them out to their dealers. You can still special order a car from other brands.
The problem isn't that they couldn't order one like you wanted. They just didn't want to order one for you. It was possibly a policy in that dealership to help minimize their losses on cars sitting on the lot. The change really came from customers who didn't want to wait the 6 weeks or however long it would take for delivery of a newly ordered vehicle. Every car on that lot was ordered by that dealership or a higher step up in a larger dealership chain that is an estimate what they think their potential customers want. For example: 4wd pickups were and probably still are popular with younger customers with disposable income in my area. It was almost impossible to find a dealer that had a 2wd pickup that wasn't base model or near top trim since they would only keep some 2wd work trucks for contractors or companies and alot of higher end 4wd pickups that boost their profit margins. They don't want to take the risk that a customer might not want to take delivery of vehicle that they ordered with options that make it undesirable to other potential customers and/or cuts their margins thin.
I was looking at cars recently at a couple different dealerships, and I was looking to buy a used car. My experience was good, but dealers seem to lie too much for my taste. Why is it that every car I was interested in was owned by a friend or family of that salesperson. That or someone they knew had the same car model and swore that car is amazing. Kinda funny to me lol.
Is all lies lmao that's how they got my stupid dad to keep buying ford's, don't listen to what the dealers saying, listen to what your mind is telling you about the car
@@tati-anaroseee4316 one of the cars I saw was a 2014 Q60s, it was in great condition, so I may buy it, but that is because I drove it and did a mad man inspection of it, not because his best friends, moms, sisters, fathers, step mother drove it once and liked it
The real question is why doesnt the business that produced and invested into the r$d for a product get to undercut business that are simply reselling their product? Seems like if its YOUR creation you should be able to sell it however you should like to. Thats the same thing as saying apple shouldn’t be allowed to sell their iPhones bc they can undercut the prices of verified amazon sellers…. Like wtf!?
Or my personal favorite, you saw a car online that was a great deal and called about it, whaddayaknow it's already been sold, but they have something completely different and very undesirable but in a similar price range, and hope you are just desperate
Something that I hate, where it says what features and options the car is specced out with and you look at the list and think it's a great deal but when you go there to check the car u see it doesn't have some of those options and when you ask they say "It was a mistake on the website" yet the "mistakes" always seem to benefit the dealer. Like for example once a car on their website said it had a camera for backing up and then when you actually go to check the car what do you know "the car doesn't have it and it was an error"
I worked nearly everyjob at dealerships. I can tell you that the manufacturers are not the greedy ones, the dealership owners are. Pack, dealer options, dealer fee, and licensing fee's on every vehicle sold, including used, can be upwards of $5k. Guaranteed money to the franchise owner. Service is a bit less of a scam aside from parts which are normally 200-300% marked up. I fully support the idea of buying direct from the manufacturer. As well as the online used buying model from the likes of Vroom and Carvana.
@@2seepthere is a huge debate about that, especially in the modern day where used cars are approaching new car peices due to demand and very little supply, there are pros and cons: The pros: its new, you know all the issues with it, lots of times you can negotiate a lower price if you "finance" through them or your bank and then pay extra on the principal and get it even cheaper if they have a high intrest rate(note: make sure to read the agreement to make sure it doesnt have any clauses against paying the principle back early) and if you absolutely need to trade it in for cash you can get more out of it then a used one. The cons: the value goes down the moment it leaves the lot so you will never get more then what you paid for it unless you can do the high intrest principle trick, or if it becomes a valuable collectors item. Other than that i cant think of any cons
@@ztmackin The idea of used cars being the best value is vastly deteriorating. Used current gen cars don't hold that same value dynamic. With all of the plastics and cheaper durability parts, you don't want a newer "used" car that is past a certain age flat out. All of the older cars that you could keep running using backyard scrap? The cash for clunkers program pushes nationwide meant that most of them got picked to pieces and cube'd.
I remember my dad telling me about the old ordering process, ford would sell any car in any color with any motor. you went to a dealer and checked off the boxes of what options you wanted and that was the car you got.
U still can in Europe, altho manufacturers have their own dealerships here, so u order directly from them if u want a new car. They also sell used cars of their own brand, with 1/2 years warranty so u can be sure they are well inspected.
@@shoveI not always. i’m in a Mach E group and people who ordered exactly what they wanted and are supposed to pay a set price are waiting months and then when the dealer finally gets the vehicle in many cases they’re adding on extra fees, or trying to charge more than msrp even tho Ford is paying the dealer extra to sell them at the price the customer was guaranteed. same thing is happening with the broncos, or they’re just being sold out from under whoever ordered them for more than msrp to a customer that’s on site. dealers will find a way to make even the most straightforward processes slimy
@@ghosts288 and those dealers are taking advantage of the market, they know customers will pay. However, if it's a reputable dealership they won't charge you over sticker. If you know anybody in that situation, you can send them my way and I can see if my dealership (who is NOT charging over sticker on orders) can take over. Doesn't matter where they are in the US, we'll take care of them.
@@Peetow18 I'm prob the first owner of a scion frs in my state and I'm so thankful the dealer didn't mark up the price at the time. But I know I got lucky there and it's not a normal business practice to sell brand new models at msrp
As a European it always blew my mind you guys couldn't just order a car just the way you'd want it. Even with 'built to order' you guys are limited to option packages
If you make enough of a fuss and are willing to pay, you can get an entirely custom car from the factory over here, they just discourage it heavily. My dad's friend had an insider at GM back in the day and was able to order a civilian trim 1984 Chevy Impala with the police package. That thing was an absolute tank and it went like a bat out of hell. No car that size and weight had any business cornering like it could. I hit a deer at 60 MPH and it just threw it away, no damage to the car. Years later my idiot brother, wanting to recapture the magic of that car, bought a regular 84 Impala, and he was entirely disappointed with it.
We can order a car if we want, but the dealership will always try to find the exact car you want built in the area for a trade. I purchased a 2019 Jeep Wrangler and had it built the exact way I wanted it. I just had to do it through a dealership.
@@PresidentEvil In the US only Teslas can be ordered from the brand’s website. Everyone else has to go to a dealer for the brand of vehicle you want and have them order one for you, they usually require a deposit to do so though.
The only time I've ever got the exact car I wanted is when I imported from Japan. I told the importer I wanted an unmodified white S14 kouki king's. He got me an unmodified white kouki kings se with the factory aero package momo steering wheel, nismo front strut bar and a bunch of other factory options. It's the top of the line model aside from the 270r or autech version. More than I asked for, so happy! 😊
Dealer markup (especially domestically) has been ridiculous as of late (your own videos touch on this)….in no way should it be legal. The dealership is labeling it as a “market adjustment” and passing the cost to the consumer. Yet the access to PPP loans were available to both the dealership and manufacturer….but here we are today paying $40k for a rav4 😒
There’s a razor thin, in this case, INVISBLE, line between “Market adjustment” and price gouging. Corolla hatch backs 24MSRP are 33k out the door. In 2010, we paid 1k under MSRP (16k) with 0% APR. boy the times has changed even accounting for inflation. Shows how much these dealerships suck these days.
People tend to forget car salesman are people too. At one point they had a larger inventory and could sell 20 cars at a flat $100 commission on each (just speaking of the salesman, not managers and dealer principals)... Now supply chains suck and that two cars they sell now, they're trying to make a $1000 each on.. Everyone is feeling the squeeze
@@nolanmonke4330 I’m not the distributor, I’m the consumer. I’m not paying $20 when widgets are available direct to consumer from other developers for the price of $5. Your position in the industry will inevitably fade away as the market shifts from your obsession of short term gains to the DTC model, leaving you with no future. Take a simple L, sharp shooter.
Might as well have already been repealed. If you go to a Ford, GM, Toyota or other dealership, chances are the techs work for the manufacturer, not the dealership itself. Yes the dealership hires the techs, but they're paid by their respective manufacturers, and the manufacturers do in fact send unsold cars around to various dealerships. Supposedly it's meant to keep inventory varied, but a lot of the time certain locations only really sell particular kinds of vehicles like trucks and SUV's, while sedan/coupe sales suffer, or vice versa. It's kind of amusing how stupid the manufacturers can be about things like that.
perfect example: the new bronco base model starts at $28,500. good luck finding one under like $38,000, even after the hype dies down and production catches up. dealers will not stock a base model, and there's no way you will actually be able to get a Bronco under $30,000.
You can order any vehicle you want from a dealer. They have to allow you to do that. It is in the franchise contract. As long as the dealer has the allocation you can order the vehicle. If the dealer says they won’t you can call the manufacturer and they will take care of the issue. If I have an issue with a new car dealer I don’t deal with them. I call the manufacturer and let them know what is going on. They will then be my advocate. A lot of people don’t realize this.
Even at base model you will over pay exceeding the MSRP. Examples include the PT cruiser, and the Kia telluride. I never seen one go for the asking price when they first came out. We allow it to happen becuase many people are willing to overpay. I assume the same will go for the New ford Mavrick
@@Mid2stars The "S" in MSRP stands for "suggested." It's the rule of supply and demand. If people are willing to pay $35K for a car with a MSRP of $30K that's their business. Nobody complains when the opposite often happens and dealers have to offer a bunch of incentives to move low selling or older models off the lot.
how ironic, I just ordered a Tesla Model Y online, and the process was extremely straight to the point, I guess subconsciously I was thinking "thank god I don't have to go into a dealership to do this"... never really realizing the conscious mental and emotional dredge involved with going into a dealership and knowing their whole business model is set up to rip folks off on every twist and turn. really liked your video, already suscribed.
The Costco auto program is the closest I can get to pushing the dealer and sales staff out of the way. Fixed low prices on new cars. Still, there is only one dealer in an area who takes it and recently I have had some refuse to order a car from the factory. We finance through essentially the manufacturer anyway. Mandatory dealerships seem like a scam out of New Jersey.
well....you can't drive the car unless you pay the state for a license, pay the state again for registration (that you will have to pay every year, on top of car payments and insurance payments, state-by-state), and pay a shop that pays the state for inspection (if your state has one). failure to pay the state, the state DMV, or for an inspection, and the state will take the car you have been paying for, and make you pay an impound fee to get it back, and more than likely have to pay a moving violation ticket as well(or the lawyer to fight the ticket).
Ive worked in 6 dealerships over the years. Automotive and powersports, and all 3 departments. This is one of the best videos ive seen on this subject, nails a couple of points ove been trying to make for years!
I've went to dealers with the intent to purchase and left empty handed every time. Misleading advertisements, and salesmen with no real knowledge of mechanics and options are what drove me away. I'll just keep buying used vehicles from individuals.
I kinda enjoy making them sweat. I come knowing what I want and if they can't play ball I'll find someone who will. It's how I got myself my 19 ranger for 27k or my aunt getting her Lincoln for 37k instead of 39k or knocking off a stupid $2500 assesery charge for an aftermarket bumper 🤣
@@dracodrake45 Yeah, well anyone that knows rangers know they're not worth close to 27k. lol And never buy new. As soon as you leave it's dropped 5k or more. I try to pay cash money and no more than 6k. I can do whatever I want to it after that, or even buy a new motor cheaper than a new car.
I worked at a buy here/pay here lot that financed at 28% APR. If you saw some of the garbage the general manager talked desperate people into buying, you'd realize there's no lower filth than a used car salesman.
I was shocked when I went to go buy my first car. I knew the make and model I wanted. I knew the options I wanted. I knew the dealer’s price, I knew the average markup, and I was willing to pay that average markup. I was just going to walk in there, buy what I wanted, and walk out with a car. I was fast and easy profit for the dealer. And at worst, I’d pre-order and wait for the car to be available. I didn’t buy a car that day. Or the next day. Or the next. After about 20 hours of my and various dealer’s times, I ultimately gave up on buying that car. It was impossible to buy the car that I wanted with the trim level and other stuff I needed. Ultimately I bought a used car from a friend who runs a used car lot. It was a completely different brand, and I spent about 1/3rd what I would have on a new car. 20 years and 3 cars later, and I never did buy a car from the original brand.
You would think they'd want an easy sale but dealers don't make much money selling cars. They make the real money with add ons like extended warranties and service packages and getting points on financing, etc. etc. They don't care what you want. They have their own agenda and they're going to stick to their script. They are professional sales people. That's what they do. I'm sticking with private sellers I've yet to have a problem.
The real question is why doesnt the business that produced and invested into the r$d for a product get to undercut business that are simply reselling their product? Seems like if its YOUR creation you should be able to sell it however you should like to. Thats the same thing as saying apple shouldn’t be allowed to sell their iPhones bc they can undercut the prices of verified amazon sellers…. Like wtf!?
@@user-yy4ux9zf4r dealerships pay the government to do what they want. its called lobbying. any corp can do it in america. some spend millions a year to influence politics.
I bought a Model 3 back in 2019 and the total time I was there before I drove it off the lot was 20 minutes. Did some paperwork, the rep went over my car for any damage/defects, and I was on my way. No haggling at all. I was told the cost of the car weeks in advance. Had a cheque ready to go and it was so easy. That experience will be my expectation going forward if/when I purchase a new car in the future (regardless of brand). I've heard horror stories of dealerships tacking on surprise fees at the end of the purchasing process and Tesla's way of handling things was just another reason I decided to go with them.
You don't have to haggle at any car store. Most don't even haggle that much anymore because they're paid per car, not commission. It sounds like people would rather be told the price and there is nothing you ca do about it vs have a little wiggle room. If you just want a price and no haggling, they can do that.
When my Mom got her 2014 Ford Fusion brand new, years ago… it came with the dial shifter. The salesperson told my mother that the L button in the centre of the dial was the “turbo button”.
@@tati-anaroseee4316 Someone doesn't understand economics. The government has gotten involved in the market in the US, so It's not free market capitalism.
It's not just weird, it's stupid if you're a consumer. It's amazing if you're part of the dealership ecosystem. I don't see really any value add from dealerships for consumers and it isn't much of a value add for the manufacturers either.
This is probably too long, but oh well. Here's my story of buying a Tesla vs. everyone else. There was a local family owned dealer that I purchased my Volvos, Audis, Infiniti, and several other cars from for years. It was still a hassle spending all damn day there, BUT they weren't as bad as most. They were purchased by Autonation, and the next time I went to purchase a new Audi Q7, I just couldn't take the b.s. and walked out mid discussion. I waited around 30min to get my key back, and ended up just leaving without it (used my wife's key). I never got the key back, and had my lawyer send them a nasty letter to reimburse me for the cost of a new key. I rarely if ever buy new model years, and the Tesla X was no exception. I felt it needed more time for the quirks to be worked out, and I was really liking what I was seeing from Ford. As a share holder I thought maybe it's time to buy another Explorer after 17 years since my last Ford purchase. Now I loath domestic car dealers because they are the absolute worst to deal with especially on cars that just do not hold their value. So for years I've only purchased German and a few Japanese cars. When the Ford Focus RS came out, I went to go purchase one and the markup and b.s. from the dealer was so bad, I noped out and went straight to the BMW dealer and purchased an M3. Same with the C7 Corvette Stingray, I left and purchased an Audi S8. Good thing too because that year Stingray had a lot of issues and I believe owners formed a class action. BUT the 2017 Explorer Sport was really impressive, and I wasn't really liking a lot of SUVs out there at the time. I really needed that 3rd row seat for my kids, so I decided to deal with the B.S. and ordered the car. When the car arrived at the dealer, it wasn't what I ordered. It was the wrong color, it had a dent in the door sill, scratches and other blemishes in the paint, and not the options I ordered were there. For example, after being told it had the modem for online access, I discovered after a few days and several calls to Ford HQ that it did NOT have the modem. The dealer refused to remedy the situation; in fact they pretty much didn't fix anything. It would be another month before they could get the right car, and they said they'd offer me less for my trade in a month. It was a 3 year lease so I figured "F it!" and kept the car. When my lease was up in 2020 I decided to buy the car because my brother wanted it. The dealer didn't think I'd buy the car, because I told them I wouldn't when I first signed the lease, so the purchase price was really low, less than half of what the purchase price was in 2017. The dealer was pissed that I wanted to buy the car and made my life miserable, ignored my calls, etc. Ford said I could use a different dealer, but no other Ford dealer would help me with the purchase and said I HAD to used the dealer I leased it from. To make a very long story short, the dealer wouldn't take cash, check, wire, etc. and tried to run out the shot clock. After blasting Ford on social media, I got a call from Ford HQ who said they'd personally help handle my deal. They called the dealer and got the original sales guy, who screwed up my order in 2017, to close the deal. It took him weeks to get the paperwork ready, and when the day came for me to go sign the paperwork, I was there 5 effing hours even though they said it would take 30min. They wanted me to sign a credit application because they weren't happy with the cashiers check I brought from the local bank. So I had to go back to the bank and get a different check and paperwork authenticating the check, and then come back the same day. Again they demanded I sign a credit application and that's when I called my lawyer in the middle of their lobby for all to hear. More shenanigans later, I was out of the lobby with my paperwork and very happy to be done with them. It took 4 months to get the title! The dealer blamed the DOL, but the DOL said they never got the paperwork. Then the dealer blamed COVID after my lawyer filed a complaint with the state as dealers are required by law to submit the paperwork within two weeks of selling me the car. The state let it slide, and I'm still debating on whether to spend money to push the state to fine the dealer. As much as I love Mustangs, I'll likely never buy a new one. I absolutely love my Tesla X Performance, but my wife drives it mostly, and with my child getting her drivers license in a few months and likely taking my car, I was seriously considering buying a Mach E Sport which just looks awesome. However given my years of poor experiences with a domestic car dealer, I'll likely continue to avoid them unless they radically change to match what I experienced with Tesla. One of THE biggest reasons I purchased a Tesla was because I'm just done with dealerships. Buying my Model X was so incredibly amazing! Every step of the way was a white glove service I've never experienced when buying a car. Ever. It was as simple as buying a PC but because I didn't have all the normal hassles of dealing with a dealership, I was just elated and awestruck at the straight forward no hidden b.s. experience. Absolute ZERO pressure! I spent a total of 1 hour at the dealership looking at cars and driving one. My wife and I designed and ordered the car from HOME while sipping bourbon. When the car was ready, they called me and I was at the dealer for maybe 10-15min to walk around the car with the Tesla employee, I asked a few questions, and left. Simple. That is the way it should be done. That's the way it should have always been done.
I had similar experience Ford purchase. Never again. Ford has gone "woke" too. I dare the automobile industry to ever ask for another bail out. They are bending over everyone now. Advice: Don't buy a car now. Sooner or later the worm will turn and they will have to kiss your ass to buy a car..
I once had a car dealership salesman tell me that the transmission fluid on a new 2020 toyota corolla never needed to be changed. I got up and just walked out after he said it a second time after I told him that it does in fact need replacement, there is no such thing as a "lifetime fluid".
In an enclosed transmission, like is very common today, the chance that you will need to change the fluid inside the 3-5 years you have that car is very minimal. But, yes, at some point it will need to be changed. Due to the enclosed way they are built, you cannot do it, though. There is not a Transmission Pan to remove. It's just one big case. The transmission fluid must be drawn out of the feeder tube for the dip stick.
@@citywinesspirits6583 "In an enclosed transmission, like is very common today, the chance that you will need to change the fluid inside the 3-5 years you have that car is very minimal." Transmission fluid does not need replacing because of contamination, but due to breakdown of the fluid itself due to friction of heat in the transmission. It will lose lubricity over time and cause the friction plates to run hotter, and hotter, and hotter, causing the fluid to break down faster, and faster, and faster. It will not happen over night, but YOU DO need to change the fluid every 40-60 thousand miles. The new "enclosed" transmission systems are NOT good design, they are designed to wear out and break down forcing you to buy another new car. There are still companies though that have transmission pans such as Toyota and Honda unless it's one of their high performance applications where there simply is not enough clearance/room under the vehicle in which they STILL RECOMMEND getting the fluid serviced every 50k at a dealer with the siphoning device.. You primarily notice the lack of transmission pans on European and /primarily/ US designed vehicles because US based companies are greedy assholes who do not give a rats ass about you, or your vehicle, just how many vehicles they can coerce you into buying.. Perfect case and point with the 2011-2014 Ford Focus and Fiestas with their Dual Clutch Transmission. ALL OF THEM WERE FAILING, and Ford tried to swipe that shit under the rug and stated in court that "It's not a manufacturing defect, they were manufactured to the specifications of the schematic". The judge threw that shit back in their face saying the schematic was clearly at fault then and not only Fined Ford, but forced them to buy back ALL vehicles that had over 3 transmission issue reoccurrences.
@@akustaka I like how you missed the part about at some point the fluid will need to get changed.... But, yes, you are right. The fluid will at some point need to get changed. The OEM's are, as they have always done, doing planned obsolescence to where a car must either go through significant maintenance or replaced at 3-5 years. And, again, you are right about the reason why it needs to be changed being the material breakdown of chemical composition of the fluid itself. However, thanks to the world of synthetic materials coming into more mainstream in the last 10 -15 years, that breakdown occurs at far beyond the prior 40-50k miles. Like Ferrari and Bugatti with their super synthetic oil that lasts almost 10k miles on a normal I4 or V6 engine - not their micro piston V12's, which is about 4-5k. So, for a while now, transmissions from the OEM have used a full synthetic fluid that has a very low viscosity that resists molecular breakdown sometimes up to 100k miles...but normally around the 75-80k mark. You can, at licensed dealers, get the original OEM fluids put back into the car for that added level of longevity. But it is about three times the cost of going to a local mechanic to get the job done. So it then becomes a cost benefit thing.
The best experience I have ever had was a local guy running the business himself. He was the owner, salesman, finance manager, did everything except for he had 1 mechanic. It was such an easy process, not pushy, good prices, and I even have his number and anytime I have any issues with my car that is now 11 years old, he is more than happy to help me scan it and even fix it for me if it’s something simple. Seriously go to the small lots if possible
Agreed. I had a great experience with a guy who's entire staff consisted of him, his wife, and a part time kid. He was a 1st generation immigrant, and it paid for his kids to go to college at the same university I attended.
Dealerships are pretty much unnecessary at this point. They provide absolutely no value to buyers, but rather they worsen the situation for buyers by rising the prices of the vehicles. I really hope we get rid of that traditional dealership system in the near future.
As someone who is a car salesman, to me in-person dealerships are really only useful nowadays for people who just want a vehicle that day and aren't picky; the instant-gratification-type people. Yeah youd expect there to be more people that only want their cars a specific way, but you'd be surprised how many people make compromise on what they want if they could take it home today
@@mexicanspec you can test drive cars at manufacturer showrooms. So that doesn't require dealers to exist. Also Yes I have bought cars that I have never driven or seen outside of pictures.
I've bought every car I've ever owned for cash from someone I knew. I knew they would tell me what the issues are and that I'd find more along the way, but you can really check it out. I got a job at a car dealership with absolutely no experience and conned them into hiring me. I left that job before I even started for a new flight instruction job.
I have had good dealer experiences - Subaru - and bad dealer experiences - Mazda every time - but I have to admit that the best car shopping experience I've ever had was Tesla. The staff in the galleries are knowledgeable, enthusiastic and since they are not actually selling the car, very helpful without being pushy in any way. Even after multiple test drives, they are more interested in answering questions than trying to get you to order on the spot. Everything is online too including the configurator, loan application, trade-in, and other necessary information. I know exactly what I am going to pay for my car without having to "talk to the manager," or haggle. Why is this not what every buying experience is like???
While looking for a car for my wife after a pretty crazy 3 car accident, we stopped by a dealership. We had done our research and had a car in mind. We went to the closest dealer and asked for a test drive. The salesman gave us directions on where to drive and sent us on a blistering top speed of 40 mph on our test drive down a residential street and construction zone. He than acted like he'd done us a favor and asked how it was and if we were ready to do paperwork. He didn't have the color or trim level we wanted but since we had a car down due to the accident we pressed on. Long story short, after the haggling over a color and trim level (and options we didn't want) we noted we saw a better deal in a city over that had our color and trim choices. We overheard the manager and salesman convo, and them saying we were wasting their time. We walked out and left a formal complaint later. We ended up buying the car from the afore mentioned dealer slightly below MSRP with title and tags included at a color and trim we wanted. It had also just rolled off the transport truck when we arrived so it was BRAND NEW. No miles on the car. Whenever we drive past the local dealer we flip them off in our new car.
Having purchased, traded in, or sold numerous cars throughout my life I can honestly say that dealerships for the most part are complete rip offs. Whether it's the new or used sales, or even the service department. Complete rip offs 90% of the time.
I bought a bolt from a dealer from a perceived good deal... But they had no idea how the credit worked... No idea about the car... Guilted me about the bottom line for them.... And even gave me a car with broken key fob start.... And then briefly depreciated 10k in a year...
Great Video! Speaking as someone with experience at a major OEM, one of the biggest issues with build-to-order is consumer behavior in the U.S. vs. other markets (e.g. Europe). The vast majority of customers in the U.S. expect the transaction to occur same-day / within a few days, rather than the weeks to months it can take for factory orders. That said, very interested to see what happens with current changes to the industry and especially with online ordering.
@@patwheeler4940 sometimes, is about "I need it now". The shift to build-to-order in Europe benefited mostly the automakers, and with higher additional purchase cost (taxes and whatnot) and a way less competitive second hand market somtimes you wish you could buy anything close to what you want without paying a deposit and waiting for four months minimun... And you have to go through the dealership anyways
I bought a Tesla Model 3 a few weeks back (in Nevada). Everything handled through a phone app including the trade, the financing, down payment, docs, etc. It was great. When my car arrived, they notified me to make an appointment to pick up, and I was in and out in 15 Mins. It was an overall great experience. The last car I got was a 2014 Ford Fusion, and they did that whole thing where they want your keys to check out your trade and then don't want to give them back to you trying to keep you at the dealership... I didn't mind the haggling too much though.. That was pretty fun to me, but I was at the dealer for 4 hrs... So... There's that. I can see why it's so hated.
Not as bad as rental agents usually. I asked once what the displacement of my rental cars engine was, knowing that I could better estimate mileage based on that and the curb weight. The guy said "Four". I was like "Four what? Four liters? This is an economy car." "Uhm, four cylinders?" "Ok, how many liters?" "Uhm, how many what?" It was ridiculous.
@@nutbastard You really expect someone at a rental car company to memorize engine displacement for every car they rent? I would bet that 90% of Americans couldn't tell you the engine displacement of the car they own. Why don't you just use the make and model to look up the EPA MPG ratings? That's probably more accurate than your back of the envelope guess based on displacement (in liters) and curb weight. Is he supposed to know the curb weight too?
@@jameswalker590 This was pre-smartphone days, so there was no quick googling in my pocket. Two, yeah, I expect them to know things like that the same way I expect a waiter to be able to answer questions about the menu, OR at least be able to go and find out. I've worked a fair amount of food service and memorizing the menu is a big part of that. Three, the curb weight is listed on the VIN sticker inside the drivers side door, so that's a non issue. It's not even that he didn't have the figures on tap, he had no idea what I meant by the word "displacement". That's like someone in a pizza shop not knowing what a tomato is.
My best new car experience was through Military Car Sales, while I stationed overseas. I was getting ready to return to the states and I was able to order the truck I wanted with the options I wanted and had it delivered for pickup at a dealership close to my next duty station. Only thing I had to do was pay the local taxes and licensing fees at pickup. I was really happy with the process and even happier with the truck when I picked it up.
I had the same nice experience. I had arranged to have the car shipped to Germany but then we had a -10% decrement to our headquarters. I ended up on the list returning to the US instead of staying for another two years. I picked up the new car at the factory in St. Louis, MO. The real challenge was fitting all the luggage into the car along with the dog, the dog cage, three kids and my wife.
Mad respect for the pacing, rhythm and clarity of the supporting graphics for this piece. simple, don't get in the way, supportive. Augment, don't insult my intelligence. Thank you.
90% of the problem with dealerships is they're not upfront with their pricing, and all they're after is monthly payments. I recently bought a car and most of the dealerships, as soon as the test drive was over, the guy hauls me into their sensory deprivation office and starts asking what kind of payments I want. I kept demanding an out the door price and after a while he said "let me get it for you" and left.... only for the finance manager to come in and HE was asking me what payments I wanted to make. The place I ended up buying my car from was the ONE place that gave me an out the door price first.
“You can now chew through electrons” Am I the only one that remembers that scene from the original 1980s Transformers movie where those two Decepticons were chewing on that bridge talking about the electrons? …and why did this line just uncover such an odd part of my memory? 😅
I actually placed an order for my car at the beginning of this year. Because of the chip shortage, I had to wait forever for it to be built and delivered but even considering the delay the process was so much nicer than any other vehicle I purchased. Unfortunately there was no wiggle room on the price... That $3,500 discount from the factory would be nice.
Come February I'm gonna order a 2022 Veloster N from my local dealer. I have an idea of what I'll pay based on my credit and down payment. I'd love any discount I can find but I'll be happy just to pay sticker and no markups like the Civic Type R
when I bought my car, it took a whole day. The paperwork was stupid. I had to settle for what they had since I needed an emergency car (I was a college student). I do not regret my car but I think that the process could have been quicker and actually having people listening to the needs.
Ever seen your cars re listed on dealers websites? They assure you this is the best price they can give when they buy from you and then they sell your car for double. I understand Dealers have to make profits, but considering the amount of dishonesty, not everyone respects them
I can understand a dealer buying a car from someone then marketing it up say 30% over what they paid to make some profit, cover overhead, etc.., but double, or sometimes triple what they paid is just insane to me, and yep that's why most people don't trust car dealers these days.
My friend traded in his 2013 Kia Optima and got $6,000ish value for it. 2 weeks later it was relisted for over double the price and sold within another week. It's insane
@@mexicanspec i'm well aware. The thing is, they made a $7000 profit which is double what they gave him for it. I'm sure they cleaned the seats and detailed it, but does that really double the value? My comment was in relation to what the OP said.
Most of the problems I've faced at dealers are the salesperson's specifically. Usually it's the finance person who's fudging the numbers and/or making "mistakes" in their favor. They're the ones I have to be very careful around and hold my ground with.
I've had the same experience. You have to go over the financing with a fine tooth comb and call them on every little thing. Doc fee??? Take that off. You're also right about holding your ground. Be ready and willing to walk
@ Donut Media. Please do an update on this topic. Ford is changing the way their dealerships set prices, and appears to be ready to sell their vehicles online too. We need more information on this!
1993 Ford Crown Victoria LX I bought from Craigslist 10 years ago for 800 is still going strong. Just got to know what your looking at and how to fix little things if it has them. I could probably fix my car in my sleep at this point.
@@tommycrabtree8286 They're about as transparent about it as they legally need to be, which is the bare minimum. You're better off buying a lottery ticket and donating the remaining money to the charity directly.
Mad Monk is correct. If we eliminate this option then charities will receive less money. Why? As he stated people want a shot at something other than the feeling of goodwill. So why be mad at a company that actually does generate something that otherwise would have been nothing?
We just bought our first Toyota, from an employee of Toyota no less as a private seller. It was a very positive experience for both parties and we each got what we wanted and we got $700 off the price. That same car at a dealer was $4-5k more!
The real question is why doesnt the business that produced and invested into the r$d for a product get to undercut business that are simply reselling their product? Seems like if its YOUR creation you should be able to sell it however you should like to. Thats the same thing as saying apple shouldn’t be allowed to sell their iPhones bc they can undercut the prices of verified amazon sellers…. Like wtf!?
Haggling is the biggest pain in the car buying process. I don't even want to do it. So why should consumers who don't want to haggle pay a tax because they want a less stressful experience?
Because they're lazy, that's why. And why should the rest of us who don't mind negotiating pay higher prices because some weenies want to avoid confrontation?
@@eriksmith6873 It's not about laziness in the slightest, it's about not wanting to deal with lies and bullshit. Because you can't just punch them, you have to play them at their stupid game to get what you want. And that's what it is the great majority of the time. ...As well, the majority of people who don't mind negotiating already do pay higher prices, because being accepting of the act of bullshit haggling is not the same as winning at it.
@@eriksmith6873 you don't negotiate when you buy a carton of milk, you don't do that when you buy a TV. It's not laziness to want to avoid confrontation. With the amount of variety and selection of new product, customers shouldn't need to have fight for the best price. if everyone stopped negotiating and just went to the dealership with the best price the overall price would go down.
@@jamesesplin8712 You're correct. You don't negotiate when you buy a carton of milk. But you can be sure your supermarket engages in negotiations with the dairy distributors who stock their shelves. A gallon of milk that costs $2.79 isn't worth the bother, but a milk purchase in the thousands of dollars certainly is. Everything that is sold is subject to negotiation. I would suggest that when you have a $30,000 car, so expensive that most people must finance for five years, yes, that is definitely worth the trouble. If you think negotiating isn't worth your time, and you'd rather pay a couple thousand bucks than stare down a scary car salesman on the other side of the table for an hour -- that's fine. There's a price on the window sticker. You can pay it. Go ahead. Get out your checkbook. Just let the rest of us negotiate the best deal we can get. The problem with the proposition outlined here is that it would eliminate EVERYONE'S ability to negotiate on a new car, it would eliminate all competition on the retail level (except between brands), and it would allow manufacturers to offer take-it-or-leave-it pricing. You would not see individual dealerships offering their "best price" up front as you suggest. Individual dealers in new cars, even the large chains, would quickly be crushed. Instead, everyone would pay the price set by the manufacturer. The best price would be that price you see on the sticker, not a penny less. You don't like negotiating? So you would prefer to penalize everyone by making them pay the same high price you want to pay? Brother, I think you should think twice.
@@Heimdal001 Anyone who is willing to sit in that booth with a salesman for an hour can walk away with a new-car deal a few hundred bucks over invoice (with the exception of high-demand/limited-supply vehicles). You might even be able to drive the dealer down to invoice, or even below. Car dealers at present don't make much profit on new-car sales; the big money is in used vehicles. Trust me, I know. I've been on both sides of the table. You may not want to deal with it. That's your choice. You can pay more if you would like. Personally, I'd rather keep my money in my own pocket. Under a system controlled by manufacturers, there is no competition between dealers, the price is set at corporate headquarters, and there is no incentive for the seller to "come down a little" to make a deal. Everyone pays the same high price. What a wonderful world this would be for manufacturers -- and what a terrible one for consumers.
I'd love to be able to spec out a new car exactly as I prefer, and especially be able to go over all the paperwork from home, away from the influence of the dealer sales and especially finance offices.
You already have the ability to spec out a car on manufacturer websites, make a printout, hand it to the dealer and say "this is the car I want." He'll be happy to order it for you. You would get it just as fast as you could by ordering from a manufacturer, about two months. But the dealer also will point out he can make a better deal on a car he already has in stock. If you don't want that choice, terrific, may the force be with you. A manufacturer-controlled system would eliminate that advantage, because the prices of all new cars would be set by the manufacturer, at the same high rate. If you don't want to make a choice, great, may the force be with you. But why take it away from everyone else?
Erik is correct. You can order a car straight from the manufacturer and it will sent to your dealer for the paperwork. I’m most cases they will even add a badge inside saying this vehicle was custom built for whomever
I work here in Argentina as a build-to-order salesman and it is a nightmare not having the vehicle to deliver at time. Sometimes people wait years!!. It is a huge sales retarder
I bought 2 cars from a dealership, and one Tesla. Before going to the dealership, I researched the msrp, the features, and everything I wanted from the cars. But when I got there, they didn't have the trim I wanted, and the price was much higher than the msrp. Not to mention the fact that the salesman kept trying to push a maintenance plan and tried upselling me multiple times on bs I didn't need. The Tesla Model is just too easy. I ordered my Tesla in just 1 minute. No upselling being forced on me. It was just simple.
Sell your tesla all your doing is giving your money to china, and hope you know that most of the newer tesla's have 3rd party computer chips that tesla developed to get there car's rolling, that tech has not even been tested in a car longer then 3 month's look it up if you don't believe me.
@@Backdraft851 All Teslas are built in the US besides the ones that are sold in China. And I don't know why you're scared of computer chips. All new Teslas come with a 4-year warranty, 8 years for the battery.
It's good to have someone in between you and a manufacturer when it comes to warranty claims and service. For the buying side, move as much as possible to online. Have a few examples on hand for test drives and to inspect new deliveries.
These reforms would be amazing. I've always loved cars from a distance but never needed one myself, and I'm dreading my first dealership experience if I ever do.
I'm in the exact same boat. I love cars, but I've never had to own one because I've been fortunate to live in college towns with good public transit. But I'm getting to a point in my life where I need the flexibility of owning my own vehicle. And, yeah, I'm terrified of having to go through the dealership experience.
Imagine your dealership being able to open a support ticket directly to the manufacturer's engineers so they can debug and improve their car platforms. Or enabling employees to move around from working in a dealership to the manufacturer's HQ, or to go work at a plant nearby, etc.
I work for a GM dealership. We have field engineers for your first point. Our dealership had the check engine lights come on on almost every single new Bolt we had in stock, so they all got diagnostic info loaded onto a field engineer's PC and that guy went on his way. Potentially a TSB or recall will be issued due to this. As for the second point, the car industry is mostly all guys who know each other, so that happens already.
Very interesting on how the law prevented the maker from running local businesses out. 🤔 almost sounds like Walmart running local business out. And today Amazon is doing it all from the internet.
Virtually everyone benefits from those local stores shutting down. They simply aren't needed anymore. It's not as though people who might otherwise have owned department stores are living on the streets. They just find some other way of adding value to the world that people are willing to pay for. If the government artificially propped up local shopkeepers, people would rightly view them as parasites, which is how they view car dealers.
11 months ago I bought a Genesis online from an out of state dealership. Outside of working on transportation (I ended up flying and driving it back) it was a super smooth process.
I worked for Lithia way back in 1999. It's amazing how much they've grown. I remember bumping into the CEO while grabbing some parts from the Toyota dealership.
They've bought out several dealerships in my area including the one I usually go to. No problem with the sales experience as I know exactly what I want and what I'm willing to pay. On the service side the only issue is they started cramming a charge into every oil change for an unnecessary oil additive. When they did that to me I questioned it and was told it was recommended by Subaru (Subaru says to NOT add any additives except if specifically needed to resolve a problem and they can deny warranty claims if they think it contributed to an issue). I called corporate who apologized and gave me $100 towards future service. Now I know to tell them ahead of time that I don't want it. From what I hear I'm not the only one who has complained.
I worked on the sales floor at a Lithia dealership from 2004-2009. I haven't followed the company's fortunes since then, and I was delighted to see they are doing well. This video, unfortunately, promotes the misconception that Lithia's profits come from new-car sales. I think everyone at Lithia understands that used-car sales drive the profits, not new-car sales. My dealership and other Lithia dealerships in my market really didn't make much on new cars. How could they, when most new cars are sold close to invoice? You would not see this happen in a marketplace controlled by manufacturers, where carmakers set prices for new cars. Prices would be much higher. As a fellow Lithia vet, what do you think of the argument presented here?
@@eriksmith6873 In theory without dealers the invoice price would become the new MSRP since that is what manufacturers are expecting to get but without dealer competition would invoice simple go away and we will all pay more? I don't mind the dealership model and many of them are moving to a streamlined purchase process for those that know what they are doing. There are just so many stealerships around which gives people headaches and the feeling they are being ripped off (and many times that is true).
@@kamX-rz4uy You make an interesting assumption, and I mean no disrespect -- but why on earth would you expect manufacturers to keep giving away their cars at wholesale prices? Our current market has thousands of players. Robust competition between dealers is what finally brought about invoice-based pricing in the '70s. Dealers these days often sell within a few hundred bucks of invoice because the new-car department is really the tail that wags the dog. The real money is in used cars. Under the ill-conceived idea outlined here, all that competition between dealers goes away, and all you have left are eight or 12 manufacturers who want to make more money on new cars. Do you think they are in business for the love of humanity? Besides, they'll still have to operate stores to take in trades, so the video's complaints about dealer "overhead costs" are a wash. The business would still sorta look the same as customers negotiate the value of their trades. But under the skin the consumer would be at a much greater disadvantage than today. You wouldn't be able to play competing local Chevy dealers against one another on your trade-in value, because trade in value would be determined by a guy in Detroit. Manufacturers might offer take-it-or-leave-it pricing on trades, too, and some dummies might even think that's an advantage, because haggling would be eliminated. Oh, brother. What a fine idea, making the car-buying process simpler by reducing competition. And now consider the fact that the manufacturers would be taking in most of the late-model trades. They would be crazy not to sell 'em themselves. So this harebrained idea to let manufacturers take over the new-car market would give them substantial control of the high-end used market as well. This also would reduce competition and drive up prices. We would have a ripple effect throughout the used-car field, driving up the wholesale cost of rigs to independent dealers lower on the food chain, and driving up retail prices at all stages of the market. Yeah, this dumb idea would make the car business "simpler" all right, by eliminating most of the forces that keep prices down. You think you're at a disadvantage dealing with that pesky dealer? How about when you're up against a corporation?
Dealers want personal contact with the customer because they have a far better chance to sell unnecessary stuff to customers, whatever its equipment or insurance when in direct contact than trying to push the higher price on the customer online where he is not pressured by anyone pretending to be sort on time so you don't do proper research about things offered nor may check for best prices with the competition. Used cars salesman being a definition of the con man in the eyes of the public for a reason...
Went in to an autonation to look at the exact car I had been wanting. Price and mileage was right. Pointed out some body damage I could fix myself and they knocked off 2k. Picked up the car for 8k out the door. Pretty painless experience for me that time.
Pain isn't the problem, it's waste. Anyway, the entire argument is about new cars. Used car dealerships would still be around, just like thrift stores.
As a junior in high school in 2020, I was very excited to buy my first car at the end of the summer going into my senior year. Now I am a freshman in college and finding any car in relatively decent shape is impossible, and my money is going to get me way less than it would have before Covid.
Government money printer go brrrr, you may never be able to buy a home now because of this insane asset inflation. The pharma giants that own the politicians made bank though, and the media works for them to manufacture consent
That whole “write your desired monthly payment amount on this paper and sign it” tactic is so sorry and annoying. My monthly price doesn’t matter because you’ll just stretch the years... Last fall I was buying a used van for my family. After going to several dealerships and dealing with the constant BS and ignorance, we bought a van online from Carnax. I will never buy a car another way. I picked my price. Specs. Color. You name it. Never had to haggle with anyone. And it was delivered a few days later with a warranty. And guess what, I never had to get my payment fit into 84 easy monthly payments because the salesman wouldn’t listen to my overall price. Great experience. Car dealerships suck.
I bought a new car back in 2017 and paid in full after talking them down 3k from sticker price. The dealership tried to pull some shit a few months later saying I owed 3k after coming to an agreement. Im pretty sure that same dealership was caught in a lawsuit a few months after that because I definitely wasn't alone in that experience. The dealership is still there but it's changed ownership a handful of times since then.
I was a car a salesman years ago. I enjoyed it because if the interactions with people and the occasional perk of doing a dealer trade where I got to spend time in a fun car. But I think the car buying experience needs a massive overhaul. I think it can be done, but it will have to be young entrepreneurs who change the game. I love the idea of only having one or two examples of each new model for demo purposes only at dealerships. One of the many things to consider is trading your car in. For the smaller dealership experience to work, we need tax laws that make selling your car on your own to buy a new one just as beneficial as trading it in... I have to get back to work and stop typing... I have so many thoughts on this...
I would never buy a new car from a dealer, it's the definition of "economically inefficient" - a rip-off. The value drops 30% the moment you drive off the lot.
I can report that here in Victoria, Australia that the new car I bought from a dealer was good. But the people at the dealership were the lowest form of excrement that I have ever met. I say this now with no anger and a clear conscience.
It’s funny they have a law to protect a car dealership but now when Walmart rolls into a small town and destroys all small businesses... no one says anything
That doesn't sound fair at all but I read somewhere that big businesses who of course bring a lot of money don't pay no taxes or something like that, so maybe that would be their excuse... Still not fair at all
Yup
Bribes always wins!
The towns Walmart move into merchants do OK if they specialize because people stop on the way to Walmart. Towns 20 miles away just die because no one stops and go straight to Walmart. Then Dollar General moves in and finishes off main street.
@@alberto44ify1 im pretty sure that is because investing has less taxes than income tax
Now those “small” dealerships are forcing us to pay $10-20k above MSRP for certain models
They aren't forcing you to do anything, you are just agreeing to a shit deal. I bought a car earlier this year and just shopped around until I found a dealership that agreed to msrp.
@@ahokay3119 Fortunately, some manufacturers have started telling these loons, "Hey, if you don't stop gouging, you're not getting any news cars...what few we have to go around, anyway."
they’re out there man, you just gotta hunt the shit for them unfortunately
Nobody is forcing you to do that
@@ahokay3119 They are, since the law is with them
Almost everyone just wants to be able to go online, spec out a car, and wait for it to be delivered for a published price.
I'm not sure why people think you can't do this?
You can go to Ford, Chevy, Nissan, Hyundai, Kia, GM, really any manufacturers website and customize your car?
They have numerous color selections that aren't available right away at the dealership?
Although some only have like 3 or 4 choices, whichever you want can be chosen and you can pay for it online and ship it to the nearest dealership?
Like how do people not know about this?
@@kingzach74 I tried doing that a couple of times... it can be done but they tack on extra delivery charges and handling fees a couple of thousand extra.
@@kennethbowden4129 The real trick is to go into the dealership and demand they spec order for you so they eat all those costs. Then you just yell at them and tell them you won't buy it for a markup, and bam. I watched my poor boss have to do this tons of times when I was selling cars at age 20.
@@donywahlberg I wound up walking out of a few dealerships because they refused, must be a type of car because I was buying the lower end cars then.
@@kingzach74 Ford even makes it part of the 'Build' function on their website. You build the vehicle you want and then send it to a dealership to have it sent to the factory.
A manufacturer undercutting dealer prices is GREAT for the end user. That's what WE want.
@@starchyoil they have to compete with other manufacturers
@@matthewhudson6036 We already see how that is going between current dealers and other dealers...
@@starchyoilDealerships are also just as badly subject to manufacturers raising prices now as we all would be once dealerships are gone.
Dealerships have no reason to exist in the internet age. Even the entire reason for existsnce had nothing to do with protecting consumer rights and solidifying competitive prices.
It was simply to absorb inventory costs in a pre internet and pre cellular phone age.
@@starchyoilbro. I’ve worked in the auto industry. They ALL have agreements between each other to keep prices around the same.
@@starchyoil
They have no reason to keep the prices low NOW. Dealerships will always buy at whatever price the manufacturers set for them, then add their own markup to that. They cannot ever offer a price lower than the manufacturer and still turn a profit, regardless of whether the manufacturer gets to sell directly or not. All this does is guarantee that the consumer will never get the lowest price, not that the lowest price will actually be low.
The salesman who "sold" me my Fiesta ST told me it was rear wheel drive. At some point it's hard to tell the difference between lies and dumb.
Most of them are dumb. I worked a dealerships in service for a while, and the amount of salesmen that had no clue about cars was astonishing. Granted, there are salesmen that are "car guys" but that's pretty rare
Yes he said. Just YES.
"never attribute to malice that which is adequately explained by stupidity"
To that salesman, it's just a job. They clearly didn't have any passion for their craft
Who says you have to choose between lies and dumb? I've had interactions with dealers where it was both!
This really frustrated me when I bought my first new car recently. I felt like the salesperson really did not know about the car, what features were available, colors, or even how to properly use their ordering system. I knew exactly what i wanted and did not need to deal with someone fumbling over things. I understand some people may want this experience but I'd prefer to just order it direct.
i havent bought a new car but I bet if somebody who doesnt know what is talking about and I already know what I want so he just wastes my time so he can have a useless job which only complicates things id really tell him straight to stfu
Exactly, I've gone to dealerships and I WAS TEACHING THEM about THEIR OWN CARS!
Dealerships don't have a purpose, just let me order straight from the maker without all the price-gouging!
Sometimes, the policy of the dealerships can be idiotic: forcing salepeople to do the sales talk (despite customer already knowing the exact vehicle to purchase), even if it result annoying their customers.
Exactly this happened to me I walked out!
I can even understand why they do so, if they get a commission from every sell they make, why don't just give you what you request and close the deal?
Bought a new car in early 2020. Walked in at 3:30pm, left at at 11:30pm. I knew exactly what a wanted and what I should pay. Had to spend a few hours with a new salesman explaining that I already knew everything about the car and what he was offering was ridiculous. Ask for my keys back from the test drive and in comes the more experienced salesman. Again, more hours of "selling" me on features of the car I've already researched. Finally landed on the price I knew was fair and then an hour or more of paperwork. It's a broken system. Taking advantage of the uninformed and wasting the time of those that know the car they want and the fair dealership price.
If you don't mind what was the price they wanted and the price you knew was fair and arrived at?
sounds like you were a huge pain in the ass
The typical car deal takes three hours, from your arrival on the lot to the point when you drive off in a new rig. There are some good reasons it has to be that way -- a car deal is pretty complex. There's a lot of paperwork involved. Your credit score has to be run and a lender must be found -- and so forth. In your case, there was a trade, and the value had to be negotiated (something that would occur no matter whether dealers or manufacturers are doing the selling). It also sounds like you walked in with a specific rig in mind, they didn't have it, and they tried to steer you to something they had on the lot -- that's really the only good reason to sell you on features on a car you've already decided to purchase. Seven hours does sound a bit excessive, and yet it sounds like it took that long because you held out for the car and the terms you wanted. But if you got them -- why would you see that as a problem? This is a major transaction, it's not like buying a box of Corn Flakes, the process really wouldn't change if manufacturers controlled sales, and I think you should be looking at the half-full glass, not the half-empty one. You won. And I'm sure you got a much better price than you would have if you were buying direct from the manufacturer.
@@eriksmith6873 tell em king
@@eriksmith6873 When I purchased my Tesla it was about 5 min.
Here in Texas you can pass by 7 huge dealerships connecting each other.
There's an auto mall in California that has every make available.
@@JonCollinsMedia are you talking about Cerritos Auto Square?
This is very true. There’s a strip of I-10 in my town that has about a dozen dealerships combined on both sides.
Same here in California
@@shaggyhascancer4489 damn where at off i10 and they hiring lol 😂
I'd like to just order my car exactly as I want at dealership cost directly from the manufacturer. It's a win for everyone. I pay a lower price and get exactly what I want, the manufacturer saves manufacturing costs and they don't have to worry about it sitting on a lot not selling.
Maybe in the future dealers would act as dropshippers for cars 🤔🤔
But your forgetting the dealerships which are losing out. You and the manufacturer would win, but thousands at dealerships would be out of jobs, etc. I wish all brands would change to Tesla's ordering and delivery system, but dealerships will defend themselves to stay alive and make money.
As soon as the vehicle leaves the factory via rail or truck it is a sold unit. Manufactures do care about that unit other than if there is a production issue.
In regards to the big 3, GM, Ford, Chrysler, their physical report considers a sold unit when it has left the shipping yard.
As of right now, the factories price on that vehicle is the manufacturer cost. So what you see as a $60,000 is really only a $4500 vehicle to them. As an insider we'd crush vehicles all the time. It was only a $2000-4500 loss. They don't count the cost a dealer is selling it to you.
So ya you would save a ton of money buying from a manufacturer if you could.
@@ayushmalpeddi2793 it sucks that people will lose your job, but as a consumer you should be looking out for your rights, not for the slimeball that tries to upsell you on a car.
the dealers wouldnt necessarily be out of business since they would maybe charge a ordering fee like maybe 500 bucks. for example, if a corolla costs 10,000$, then the car would be marked 10,500$ so the dealer makes some form of money. that way everbody gets a win
Dealer raised their price $17,000 above the price on their website. We sat down at the table after looking up the truck on the dealership’s website marked at $50k expecting room to negotiate. The first price they came to the table with was $67,000. I stood up and said what is this? They told me well that’s the price of the vehicle. I said sorry but I’m walking away because that’s $17,000 higher than what you have listed on your website. They treated me like I was the jerk.
You better be a jerk if you want a good deal, that’s just how haggling works
@@Sniperboy5551 Bingo. That's why men generally get better deals than women. We're less worried about the salesman's feelings.
The web price is stupid aggressive, typically they don't have much room on those, but their trade off is that someone who sees it online puts a cash hold on it at the price will almost always buy it. Oh and before you get in this a cash hold takes away your negotiating power, it doesn't, if anything it gives you more
Bro, what the actual hell? That is a 34% price increase, the deal/dealership should be sued for something, it's not like the car is like 200 or 300k where 17 grand doesn't make a huge difference, this is just outrageous and absurd, to say the very least
@@drecksaukerl They take advantage as well because they assume men know more about than women, so they literally scam people
I worked at a car dealership earlier this year. I have never worked in a more scummy environment in my life. From selling people cars that are only in good enough condition to last a test drive to extorting customers to take down negative reviews, they never failed to amaze me with how shitty a business can be. My word of advice is if you are looking at used cars then stay away from large dealerships as much as possible. There are small local dealerships that are far better in terms of service and transparency as well as buying a car off of an owner directly has never been a better choice.
If anything I would say the small dealerships are usually the scummiest ones, they literally can’t afford to not sell inventory so they will sell you a broken down pos just so they can stay in business. If anything we’ve learned, most car dealerships are ripoffs and things have to change
When I buy used I just buy direct from owner. I have an intermediate level of understanding when it comes to cars. Mostly if, I hear something I know what's wrong with it. I advice people learn a bit about cars so they can start buying used from owners. Nissans are the best to buy used since their value plummets after a year of service
@@SuperVladamere why would you advice people to buy nissans? if you actually knew about cars you would know nissans are very low quality cars. maybe the last generation frontier that just ended was the only good vehicle they had. all others suck. specially ones with cvt transmissions.
I’m curious, how did they extort customers to take down reviews?
This is why I love the manufacturer's build and price feature online. You customize your car, and have it sent to your local dealership reserved for you to buy. The closest thing you can have to buying straight from the manufacturer.
Except you still have to absorb the extra cost and fees of going through a dealership. It isn’t solely about the convenience of getting the exact make, color, and trim package that you want. It’s the forced involvement of a third party to the purchase, and the economic impact of their inclusion.
@@tmkeeslerwhat extra cost and fees
This ends up being far more expensive than buying an off-the-lot car of the same specs: that's the nature of the model.
@@gridstop-or6cb You almost always pay MSRP, and with the current state of dealerships, it ends up being a great deal.
@@JoeJohnson-mk4qdok joe Johnson 🤡
Every single experience I’ve had with a dealership has been unpleasant and borderline illegal. They lied to me, they crashed my car.. Not a fan.
Nolan: "if we want consumers to be happy"
me: That's the problem right there. they don't *want* you to be happy. they only want you willing to settle for something _just_ good enough to ensure that you will come back to buy again, as soon as you've paid off the last one.
And then give you peanuts for trade in value. You're 100% better off selling private before buying another car and even then you're 100% better off buying lightly used and not taking that immediate depreciation hit
@@vincentpapaleo4803 Ugh, don't remind me. The clincher that had me trade in my last car was because I knew it was beyond my means if the transmission started developing issues (spoilers: it did).
Just glad I was able to find something in a manual this time. That said, if I had the means to, I'd easily rather get new and have something set up just right rather than play the roulette that is the used lot game.
sounds like a toxic relationship & a horrible long term business strategy honestly.
@@thatcopenguy But thanks to "the lawl", it's the only legal way some of us can even have *a car at all*.
Love your avatar.
The only time I've had a good experience at the dealership was when I bought my first car. It was right around the time car dealerships started advertising "internet pricing" on their websites. It was the car I wanted, well close enough, so I printed everything out and went to the dealership. The salesman was actually pretty nice, but again this was a couple decades ago. I looked at the car and the price I had was $2k less than the sticker price. The salesman couldn't believe it so he went inside to check it out. He came back and was surprised they were going to sell it for that price. He was nice about the whole thing and did everything we needed to do to sell me the car.
Every other time, it's been running credit reports without permission, trying to sneak in extra things you don't need, and the last time I had to make them give me the appropriate value for my trade...wrong model, 2WD instead of 4WD, no sunroof, cloth seats, very low miles for the year, etc. It took 4 tries to get it right. The guy was getting pissed...I guess they just hope people don't notice.
Order through a broker...
I've never bought from a dealership in my life, and don't intend to. I've helped a few people who only wanted to buy from dealership cuz they think it's more legit or whatever, and always a pain to do. My favourite is when they list a car for lets say 15k, 100k KM, you call to confirm, yeah 15k/100k. You arrive, "ah nah, sorry, that one's sold. But we happen to have the exact same car, exact same year, exact same colour, 100k KM, but it's 22k."
Happens so fucking much. I buy from FB or other peer-to-peer methods. Yeah there's a lot of scammers, but there's also a lot of people just changing cars, getting something more practical, with too many cars, or whatever else. At least you have a chance of not running into a scammer, while at a dealership you know you will cuz that's literally their job.
Every single time I went to a dealership up in South Dakota they tried to swindle me into buying insanely priced vehicles. "you make 20k a year and you're about to graduate, its your best chance at buying a brand new car before you can't afford it" I have never hated anyone more
I think it's insane I live in Delaware and had to pick up my car in New Jersey, the worst part is I still have to go to the Delaware DMV and pay them "Document Fees" for a car they wouldn't let me purchase in the Delaware.
We used to order new cars all the time. I bought a new Toyota in 1984 that way. Looked at a lot truck, met with a salesman, picked what I wanted for options, and 6 weeks later got my truck.
I was floored when I went in for a new one in the early 2000's and they said I couldn't order one and had to buy off the lot.
For some reason you cannot special order a Toyota. This saves Toyota money, they only build what they want and send them out to their dealers. You can still special order a car from other brands.
The problem isn't that they couldn't order one like you wanted. They just didn't want to order one for you. It was possibly a policy in that dealership to help minimize their losses on cars sitting on the lot. The change really came from customers who didn't want to wait the 6 weeks or however long it would take for delivery of a newly ordered vehicle. Every car on that lot was ordered by that dealership or a higher step up in a larger dealership chain that is an estimate what they think their potential customers want.
For example: 4wd pickups were and probably still are popular with younger customers with disposable income in my area. It was almost impossible to find a dealer that had a 2wd pickup that wasn't base model or near top trim since they would only keep some 2wd work trucks for contractors or companies and alot of higher end 4wd pickups that boost their profit margins. They don't want to take the risk that a customer might not want to take delivery of vehicle that they ordered with options that make it undesirable to other potential customers and/or cuts their margins thin.
I was looking at cars recently at a couple different dealerships, and I was looking to buy a used car. My experience was good, but dealers seem to lie too much for my taste. Why is it that every car I was interested in was owned by a friend or family of that salesperson. That or someone they knew had the same car model and swore that car is amazing. Kinda funny to me lol.
Is all lies lmao that's how they got my stupid dad to keep buying ford's, don't listen to what the dealers saying, listen to what your mind is telling you about the car
@@tati-anaroseee4316 one of the cars I saw was a 2014 Q60s, it was in great condition, so I may buy it, but that is because I drove it and did a mad man inspection of it, not because his best friends, moms, sisters, fathers, step mother drove it once and liked it
The real question is why doesnt the business that produced and invested into the r$d for a product get to undercut business that are simply reselling their product? Seems like if its YOUR creation you should be able to sell it however you should like to. Thats the same thing as saying apple shouldn’t be allowed to sell their iPhones bc they can undercut the prices of verified amazon sellers…. Like wtf!?
Or my personal favorite, you saw a car online that was a great deal and called about it, whaddayaknow it's already been sold, but they have something completely different and very undesirable but in a similar price range, and hope you are just desperate
Something that I hate, where it says what features and options the car is specced out with and you look at the list and think it's a great deal but when you go there to check the car u see it doesn't have some of those options and when you ask they say "It was a mistake on the website" yet the "mistakes" always seem to benefit the dealer. Like for example once a car on their website said it had a camera for backing up and then when you actually go to check the car what do you know "the car doesn't have it and it was an error"
I worked nearly everyjob at dealerships. I can tell you that the manufacturers are not the greedy ones, the dealership owners are. Pack, dealer options, dealer fee, and licensing fee's on every vehicle sold, including used, can be upwards of $5k. Guaranteed money to the franchise owner. Service is a bit less of a scam aside from parts which are normally 200-300% marked up.
I fully support the idea of buying direct from the manufacturer. As well as the online used buying model from the likes of Vroom and Carvana.
If im gonna spend 30k+ on a car it better be EXACTLY what I want. I'd never buy a new car from stock unless it ticks literally every box honestly
What if it’s a unicorn with none in existence and you have to pay extra charges because 15 other people want it and supply and demand exists
Buying a new car is the worst financial mistake you could make
@@2seepthere is a huge debate about that, especially in the modern day where used cars are approaching new car peices due to demand and very little supply, there are pros and cons:
The pros: its new, you know all the issues with it, lots of times you can negotiate a lower price if you "finance" through them or your bank and then pay extra on the principal and get it even cheaper if they have a high intrest rate(note: make sure to read the agreement to make sure it doesnt have any clauses against paying the principle back early) and if you absolutely need to trade it in for cash you can get more out of it then a used one.
The cons: the value goes down the moment it leaves the lot so you will never get more then what you paid for it unless you can do the high intrest principle trick, or if it becomes a valuable collectors item. Other than that i cant think of any cons
@@ztmackin The idea of used cars being the best value is vastly deteriorating. Used current gen cars don't hold that same value dynamic. With all of the plastics and cheaper durability parts, you don't want a newer "used" car that is past a certain age flat out. All of the older cars that you could keep running using backyard scrap? The cash for clunkers program pushes nationwide meant that most of them got picked to pieces and cube'd.
@@ztmackinyeah I’d much rather buy a new car than a used one.
I remember my dad telling me about the old ordering process, ford would sell any car in any color with any motor. you went to a dealer and checked off the boxes of what options you wanted and that was the car you got.
U still can in Europe, altho manufacturers have their own dealerships here, so u order directly from them if u want a new car. They also sell used cars of their own brand, with 1/2 years warranty so u can be sure they are well inspected.
I work at a Ford dealership, you can do exactly that with just about any Ford you want
@@shoveI not always. i’m in a Mach E group and people who ordered exactly what they wanted and are supposed to pay a set price are waiting months and then when the dealer finally gets the vehicle in many cases they’re adding on extra fees, or trying to charge more than msrp even tho Ford is paying the dealer extra to sell them at the price the customer was guaranteed. same thing is happening with the broncos, or they’re just being sold out from under whoever ordered them for more than msrp to a customer that’s on site. dealers will find a way to make even the most straightforward processes slimy
@@ghosts288 and those dealers are taking advantage of the market, they know customers will pay. However, if it's a reputable dealership they won't charge you over sticker. If you know anybody in that situation, you can send them my way and I can see if my dealership (who is NOT charging over sticker on orders) can take over. Doesn't matter where they are in the US, we'll take care of them.
@@Peetow18 I'm prob the first owner of a scion frs in my state and I'm so thankful the dealer didn't mark up the price at the time. But I know I got lucky there and it's not a normal business practice to sell brand new models at msrp
As a European it always blew my mind you guys couldn't just order a car just the way you'd want it. Even with 'built to order' you guys are limited to option packages
Those options are avalible . But you will get it delived through a dealership
If you make enough of a fuss and are willing to pay, you can get an entirely custom car from the factory over here, they just discourage it heavily.
My dad's friend had an insider at GM back in the day and was able to order a civilian trim 1984 Chevy Impala with the police package. That thing was an absolute tank and it went like a bat out of hell. No car that size and weight had any business cornering like it could. I hit a deer at 60 MPH and it just threw it away, no damage to the car.
Years later my idiot brother, wanting to recapture the magic of that car, bought a regular 84 Impala, and he was entirely disappointed with it.
We can order a car if we want, but the dealership will always try to find the exact car you want built in the area for a trade.
I purchased a 2019 Jeep Wrangler and had it built the exact way I wanted it. I just had to do it through a dealership.
you can order it the way you want via the dealership or brand's website
@@PresidentEvil In the US only Teslas can be ordered from the brand’s website. Everyone else has to go to a dealer for the brand of vehicle you want and have them order one for you, they usually require a deposit to do so though.
The only time I've ever got the exact car I wanted is when I imported from Japan. I told the importer I wanted an unmodified white S14 kouki king's. He got me an unmodified white kouki kings se with the factory aero package momo steering wheel, nismo front strut bar and a bunch of other factory options. It's the top of the line model aside from the 270r or autech version. More than I asked for, so happy! 😊
Wow, how much wash it?
@@SlothKong with shipping and road safety a little less than 20,000 canadian pesos.
Shit, that sounds like a sweet S-Chassis deal there.
@@downwithtrudeau if only americans would stop drive up car prices to the moon.
Nice car dude, hope you have some fun with it
Dealer markup (especially domestically) has been ridiculous as of late (your own videos touch on this)….in no way should it be legal. The dealership is labeling it as a “market adjustment” and passing the cost to the consumer. Yet the access to PPP loans were available to both the dealership and manufacturer….but here we are today paying $40k for a rav4 😒
I remembered when TRD PRO for either the Tacoma or the 4Runner should be just over 50k... now i see their $35k SRS models being sold for 55k average
There’s a razor thin, in this case, INVISBLE, line between “Market adjustment” and price gouging. Corolla hatch backs 24MSRP are 33k out the door. In 2010, we paid 1k under MSRP (16k) with 0% APR. boy the times has changed even accounting for inflation. Shows how much these dealerships suck these days.
People tend to forget car salesman are people too. At one point they had a larger inventory and could sell 20 cars at a flat $100 commission on each (just speaking of the salesman, not managers and dealer principals)... Now supply chains suck and that two cars they sell now, they're trying to make a $1000 each on.. Everyone is feeling the squeeze
So you paid 5 dollars for a widget.
same widget is now worth 20 dollars.
You gonna sell it for 5 dollars or 20 dollars?
Simple economics here.
@@nolanmonke4330 I’m not the distributor, I’m the consumer. I’m not paying $20 when widgets are available direct to consumer from other developers for the price of $5. Your position in the industry will inevitably fade away as the market shifts from your obsession of short term gains to the DTC model, leaving you with no future.
Take a simple L, sharp shooter.
We need to repeal dealer franchise laws.
They may have been good in the past but at this point there's no reason for them.
Might as well have already been repealed. If you go to a Ford, GM, Toyota or other dealership, chances are the techs work for the manufacturer, not the dealership itself. Yes the dealership hires the techs, but they're paid by their respective manufacturers, and the manufacturers do in fact send unsold cars around to various dealerships. Supposedly it's meant to keep inventory varied, but a lot of the time certain locations only really sell particular kinds of vehicles like trucks and SUV's, while sedan/coupe sales suffer, or vice versa. It's kind of amusing how stupid the manufacturers can be about things like that.
Won't happen because of lobbyists. Laws are generally made for the wealthy and corporations, not for you.
Lobbyist bribe politician to keep it this way.
perfect example: the new bronco base model starts at $28,500. good luck finding one under like $38,000, even after the hype dies down and production catches up. dealers will not stock a base model, and there's no way you will actually be able to get a Bronco under $30,000.
You can order any vehicle you want from a dealer. They have to allow you to do that. It is in the franchise contract. As long as the dealer has the allocation you can order the vehicle. If the dealer says they won’t you can call the manufacturer and they will take care of the issue. If I have an issue with a new car dealer I don’t deal with them. I call the manufacturer and let them know what is going on. They will then be my advocate. A lot of people don’t realize this.
Even at base model you will over pay exceeding the MSRP. Examples include the PT cruiser, and the Kia telluride. I never seen one go for the asking price when they first came out. We allow it to happen becuase many people are willing to overpay. I assume the same will go for the New ford Mavrick
@@Mid2stars The "S" in MSRP stands for "suggested." It's the rule of supply and demand. If people are willing to pay $35K for a car with a MSRP of $30K that's their business. Nobody complains when the opposite often happens and dealers have to offer a bunch of incentives to move low selling or older models off the lot.
Wait 5 years...
@@bamafencer12 2-3 when the first owners leases are up and the cars come back to the lot. this is when you buy.
Ngl when Nolan first started I wasn’t a big fan but I really love him now. Such an incredible presenter and makes any subject interesting!
Makes a mean impersonation of a V10 F1 car too! (From the last Hi-Low series, underbody lighting comparison.)
Yeah, I think Nolan got more confident with his presentation and grew on us
Totally agree, he's crushing it. He and James also work together fantastically.
I wish every customer service representative was as honest as Nolan
Agree but his shirt looks pretty dirty
how ironic, I just ordered a Tesla Model Y online, and the process was extremely straight to the point, I guess subconsciously I was thinking "thank god I don't have to go into a dealership to do this"...
never really realizing the conscious mental and emotional dredge involved with going into a dealership and knowing their whole business model is set up to rip folks off on every twist and turn. really liked your video, already suscribed.
Just imaging a world where everyone actually chose the color of their car...could be interesting.
They’d all still be black or white with stupid black wheels, maybe silver if the customer is feeling adventurous.
Where do you live?! Sounds horrible.
In most places, you can actually choose from a palette, albeit limited.
If you get tricked into buying a red car by a salesman you deserve to live with it.
True, it's sad seeing all those garage-floor gray or milk-n-coffee colored cats out there taking over 😕
@@JoseRodriguez-dx4pb well, they sell the best. Those are the colors people want
The Costco auto program is the closest I can get to pushing the dealer and sales staff out of the way. Fixed low prices on new cars. Still, there is only one dealer in an area who takes it and recently I have had some refuse to order a car from the factory. We finance through essentially the manufacturer anyway. Mandatory dealerships seem like a scam out of New Jersey.
The land of the free doesn't seem too free when it comes to picking the exact car you want
well....you can't drive the car unless you pay the state for a license, pay the state again for registration (that you will have to pay every year, on top of car payments and insurance payments, state-by-state), and pay a shop that pays the state for inspection (if your state has one). failure to pay the state, the state DMV, or for an inspection, and the state will take the car you have been paying for, and make you pay an impound fee to get it back, and more than likely have to pay a moving violation ticket as well(or the lawyer to fight the ticket).
Land of the *free
*(for old rich white guys)
"Land of the free"
*Proceeds to make car mods illegal*
@@seanroy3241 thats kinda racist LOL!!!
@@arion1928 I agree. It's super racist that only rich white business owners get to do what they want
Ive worked in 6 dealerships over the years. Automotive and powersports, and all 3 departments. This is one of the best videos ive seen on this subject, nails a couple of points ove been trying to make for years!
I've went to dealers with the intent to purchase and left empty handed every time. Misleading advertisements, and salesmen with no real knowledge of mechanics and options are what drove me away. I'll just keep buying used vehicles from individuals.
Literally my best car buying experiences has been with individuals.
I kinda enjoy making them sweat. I come knowing what I want and if they can't play ball I'll find someone who will. It's how I got myself my 19 ranger for 27k or my aunt getting her Lincoln for 37k instead of 39k or knocking off a stupid $2500 assesery charge for an aftermarket bumper 🤣
@@dracodrake45 Yeah, well anyone that knows rangers know they're not worth close to 27k. lol And never buy new. As soon as you leave it's dropped 5k or more. I try to pay cash money and no more than 6k. I can do whatever I want to it after that, or even buy a new motor cheaper than a new car.
@@dnegel9546 They actually want to sell their car for cash. It's great!
@@dracodrake45 I think I'm going to this as my new hobby
Damn how do you get lower in honesty than car salesman
I worked at a buy here/pay here lot that financed at 28% APR. If you saw some of the garbage the general manager talked desperate people into buying, you'd realize there's no lower filth than a used car salesman.
Become a Lawyer! 🤣
What's the difference between a catfish and a lawyer? One is a scum sucking bottom dweller and the other is a fish.
@Not RickRoll 👇 2 I mean, you are right
@@edwardneal4819 beat me by one minute... DAMN YOU SCUBA STEVE!!!
Democrat is the bottom of the barrel of honesty. They hate the truth, they hate honesty, they hate the US Constitution.
Anti-consumer lobbying.
@Not RickRoll 👇 2 bot
I was shocked when I went to go buy my first car. I knew the make and model I wanted. I knew the options I wanted. I knew the dealer’s price, I knew the average markup, and I was willing to pay that average markup. I was just going to walk in there, buy what I wanted, and walk out with a car. I was fast and easy profit for the dealer. And at worst, I’d pre-order and wait for the car to be available.
I didn’t buy a car that day. Or the next day. Or the next. After about 20 hours of my and various dealer’s times, I ultimately gave up on buying that car. It was impossible to buy the car that I wanted with the trim level and other stuff I needed.
Ultimately I bought a used car from a friend who runs a used car lot. It was a completely different brand, and I spent about 1/3rd what I would have on a new car. 20 years and 3 cars later, and I never did buy a car from the original brand.
You would think they'd want an easy sale but dealers don't make much money selling cars. They make the real money with add ons like extended warranties and service packages and getting points on financing, etc. etc. They don't care what you want. They have their own agenda and they're going to stick to their script. They are professional sales people. That's what they do. I'm sticking with private sellers I've yet to have a problem.
Nolan has gained PTSD of someone out bidding him on his Dodge Neon SRT (the scariest possible thing)
Smash ultimate lol
The real question is why doesnt the business that produced and invested into the r$d for a product get to undercut business that are simply reselling their product? Seems like if its YOUR creation you should be able to sell it however you should like to. Thats the same thing as saying apple shouldn’t be allowed to sell their iPhones bc they can undercut the prices of verified amazon sellers…. Like wtf!?
*more
@@user-yy4ux9zf4r dealerships pay the government to do what they want. its called lobbying. any corp can do it in america. some spend millions a year to influence politics.
i got outbid on ebay motors by a bot AFTER THE TIME ENDED. i got lucky and still got the car tho. :)
I always love Nolan's videos. They seem to be based on a good question, are well researched, and have a good flow to their presentation.
I wish I could subscribe specifically to Nolan's videos
I bought a Model 3 back in 2019 and the total time I was there before I drove it off the lot was 20 minutes. Did some paperwork, the rep went over my car for any damage/defects, and I was on my way. No haggling at all. I was told the cost of the car weeks in advance. Had a cheque ready to go and it was so easy. That experience will be my expectation going forward if/when I purchase a new car in the future (regardless of brand). I've heard horror stories of dealerships tacking on surprise fees at the end of the purchasing process and Tesla's way of handling things was just another reason I decided to go with them.
You don't have to haggle at any car store. Most don't even haggle that much anymore because they're paid per car, not commission. It sounds like people would rather be told the price and there is nothing you ca do about it vs have a little wiggle room. If you just want a price and no haggling, they can do that.
Dream come true
@@jameswalker590sounds like you'd be ok with paying a 7-15k market adjustment markup then lol
Important to note that in most countries like the UK you can order a car direct and have it delivered the next day
When my Mom got her 2014 Ford Fusion brand new, years ago… it came with the dial shifter. The salesperson told my mother that the L button in the centre of the dial was the “turbo button”.
XD
What does stand for. Lights peed, definitely now Low
I like that no matter what series Nolan is in when he adjusts his glasses they always play the gun cocking sound.
Never noticed. Time stamp?
@@ebubeawachie
13:09
Wait but why? I never understood that.
This is so weird for me as a German. Here Mercedes, BMW etc. all have their very own dealerships. Weird law you got there
Capitalism vs socialism my friend, one for the business, the other for the people
Most of them are dealers (at least around my area) with small new car inventory. But we have ,, Niederlassungen" here and there.
@@tati-anaroseee4316 Someone doesn't understand economics. The government has gotten involved in the market in the US, so It's not free market capitalism.
@@tati-anaroseee4316 in your senario, the USA will be socialist
It's not just weird, it's stupid if you're a consumer. It's amazing if you're part of the dealership ecosystem. I don't see really any value add from dealerships for consumers and it isn't much of a value add for the manufacturers either.
This is probably too long, but oh well. Here's my story of buying a Tesla vs. everyone else.
There was a local family owned dealer that I purchased my Volvos, Audis, Infiniti, and several other cars from for years. It was still a hassle spending all damn day there, BUT they weren't as bad as most. They were purchased by Autonation, and the next time I went to purchase a new Audi Q7, I just couldn't take the b.s. and walked out mid discussion. I waited around 30min to get my key back, and ended up just leaving without it (used my wife's key). I never got the key back, and had my lawyer send them a nasty letter to reimburse me for the cost of a new key.
I rarely if ever buy new model years, and the Tesla X was no exception. I felt it needed more time for the quirks to be worked out, and I was really liking what I was seeing from Ford. As a share holder I thought maybe it's time to buy another Explorer after 17 years since my last Ford purchase. Now I loath domestic car dealers because they are the absolute worst to deal with especially on cars that just do not hold their value. So for years I've only purchased German and a few Japanese cars. When the Ford Focus RS came out, I went to go purchase one and the markup and b.s. from the dealer was so bad, I noped out and went straight to the BMW dealer and purchased an M3. Same with the C7 Corvette Stingray, I left and purchased an Audi S8. Good thing too because that year Stingray had a lot of issues and I believe owners formed a class action.
BUT the 2017 Explorer Sport was really impressive, and I wasn't really liking a lot of SUVs out there at the time. I really needed that 3rd row seat for my kids, so I decided to deal with the B.S. and ordered the car. When the car arrived at the dealer, it wasn't what I ordered. It was the wrong color, it had a dent in the door sill, scratches and other blemishes in the paint, and not the options I ordered were there. For example, after being told it had the modem for online access, I discovered after a few days and several calls to Ford HQ that it did NOT have the modem. The dealer refused to remedy the situation; in fact they pretty much didn't fix anything. It would be another month before they could get the right car, and they said they'd offer me less for my trade in a month. It was a 3 year lease so I figured "F it!" and kept the car.
When my lease was up in 2020 I decided to buy the car because my brother wanted it. The dealer didn't think I'd buy the car, because I told them I wouldn't when I first signed the lease, so the purchase price was really low, less than half of what the purchase price was in 2017. The dealer was pissed that I wanted to buy the car and made my life miserable, ignored my calls, etc. Ford said I could use a different dealer, but no other Ford dealer would help me with the purchase and said I HAD to used the dealer I leased it from. To make a very long story short, the dealer wouldn't take cash, check, wire, etc. and tried to run out the shot clock. After blasting Ford on social media, I got a call from Ford HQ who said they'd personally help handle my deal. They called the dealer and got the original sales guy, who screwed up my order in 2017, to close the deal. It took him weeks to get the paperwork ready, and when the day came for me to go sign the paperwork, I was there 5 effing hours even though they said it would take 30min. They wanted me to sign a credit application because they weren't happy with the cashiers check I brought from the local bank. So I had to go back to the bank and get a different check and paperwork authenticating the check, and then come back the same day. Again they demanded I sign a credit application and that's when I called my lawyer in the middle of their lobby for all to hear. More shenanigans later, I was out of the lobby with my paperwork and very happy to be done with them. It took 4 months to get the title! The dealer blamed the DOL, but the DOL said they never got the paperwork. Then the dealer blamed COVID after my lawyer filed a complaint with the state as dealers are required by law to submit the paperwork within two weeks of selling me the car. The state let it slide, and I'm still debating on whether to spend money to push the state to fine the dealer.
As much as I love Mustangs, I'll likely never buy a new one. I absolutely love my Tesla X Performance, but my wife drives it mostly, and with my child getting her drivers license in a few months and likely taking my car, I was seriously considering buying a Mach E Sport which just looks awesome. However given my years of poor experiences with a domestic car dealer, I'll likely continue to avoid them unless they radically change to match what I experienced with Tesla.
One of THE biggest reasons I purchased a Tesla was because I'm just done with dealerships. Buying my Model X was so incredibly amazing! Every step of the way was a white glove service I've never experienced when buying a car. Ever. It was as simple as buying a PC but because I didn't have all the normal hassles of dealing with a dealership, I was just elated and awestruck at the straight forward no hidden b.s. experience. Absolute ZERO pressure! I spent a total of 1 hour at the dealership looking at cars and driving one. My wife and I designed and ordered the car from HOME while sipping bourbon. When the car was ready, they called me and I was at the dealer for maybe 10-15min to walk around the car with the Tesla employee, I asked a few questions, and left. Simple. That is the way it should be done. That's the way it should have always been done.
Thanks for the story. That's a lot of cars. Surprised you couldn't sue them for selling you the wrong car.
I had similar experience Ford purchase. Never again. Ford has gone "woke" too.
I dare the automobile industry to ever ask for another bail out.
They are bending over everyone now.
Advice: Don't buy a car now.
Sooner or later the worm will turn and they will have to kiss your ass to buy a car..
I wish I could afford a Tesla 😔
Someones hoggin all the premade [citizens].
I once had a car dealership salesman tell me that the transmission fluid on a new 2020 toyota corolla never needed to be changed. I got up and just walked out after he said it a second time after I told him that it does in fact need replacement, there is no such thing as a "lifetime fluid".
@Elroy Jetson Actually, there is not.
No such thing. Unless car is leased and you don't care about it
In an enclosed transmission, like is very common today, the chance that you will need to change the fluid inside the 3-5 years you have that car is very minimal. But, yes, at some point it will need to be changed. Due to the enclosed way they are built, you cannot do it, though. There is not a Transmission Pan to remove. It's just one big case. The transmission fluid must be drawn out of the feeder tube for the dip stick.
@@citywinesspirits6583 "In an enclosed transmission, like is very common today, the chance that you will need to change the fluid inside the 3-5 years you have that car is very minimal." Transmission fluid does not need replacing because of contamination, but due to breakdown of the fluid itself due to friction of heat in the transmission. It will lose lubricity over time and cause the friction plates to run hotter, and hotter, and hotter, causing the fluid to break down faster, and faster, and faster. It will not happen over night, but YOU DO need to change the fluid every 40-60 thousand miles. The new "enclosed" transmission systems are NOT good design, they are designed to wear out and break down forcing you to buy another new car. There are still companies though that have transmission pans such as Toyota and Honda unless it's one of their high performance applications where there simply is not enough clearance/room under the vehicle in which they STILL RECOMMEND getting the fluid serviced every 50k at a dealer with the siphoning device..
You primarily notice the lack of transmission pans on European and /primarily/ US designed vehicles because US based companies are greedy assholes who do not give a rats ass about you, or your vehicle, just how many vehicles they can coerce you into buying.. Perfect case and point with the 2011-2014 Ford Focus and Fiestas with their Dual Clutch Transmission. ALL OF THEM WERE FAILING, and Ford tried to swipe that shit under the rug and stated in court that "It's not a manufacturing defect, they were manufactured to the specifications of the schematic". The judge threw that shit back in their face saying the schematic was clearly at fault then and not only Fined Ford, but forced them to buy back ALL vehicles that had over 3 transmission issue reoccurrences.
@@akustaka I like how you missed the part about at some point the fluid will need to get changed.... But, yes, you are right. The fluid will at some point need to get changed. The OEM's are, as they have always done, doing planned obsolescence to where a car must either go through significant maintenance or replaced at 3-5 years. And, again, you are right about the reason why it needs to be changed being the material breakdown of chemical composition of the fluid itself. However, thanks to the world of synthetic materials coming into more mainstream in the last 10 -15 years, that breakdown occurs at far beyond the prior 40-50k miles. Like Ferrari and Bugatti with their super synthetic oil that lasts almost 10k miles on a normal I4 or V6 engine - not their micro piston V12's, which is about 4-5k. So, for a while now, transmissions from the OEM have used a full synthetic fluid that has a very low viscosity that resists molecular breakdown sometimes up to 100k miles...but normally around the 75-80k mark. You can, at licensed dealers, get the original OEM fluids put back into the car for that added level of longevity. But it is about three times the cost of going to a local mechanic to get the job done. So it then becomes a cost benefit thing.
The best experience I have ever had was a local guy running the business himself. He was the owner, salesman, finance manager, did everything except for he had 1 mechanic. It was such an easy process, not pushy, good prices, and I even have his number and anytime I have any issues with my car that is now 11 years old, he is more than happy to help me scan it and even fix it for me if it’s something simple. Seriously go to the small lots if possible
Agreed. I had a great experience with a guy who's entire staff consisted of him, his wife, and a part time kid. He was a 1st generation immigrant, and it paid for his kids to go to college at the same university I attended.
I didn’t even know it was illegal,
Good thing I saw this.
As if I have any money to buy a car
If franchise dealerships can't compete in a truly free market then maybe they don't deserve to stay in business.
When a manufacturer says a car will cost "$$$", it can never be trusted because of dealer markup, something has to change!
10:38
The dealer's 8.6% cost savings of not having to inventory as many vehicles I'm sure isn't going to be passed on to the consumer...
Yeah, I laughed during this part.
Yep. Just look how most dealership owners are quite wealthy.
Dealerships are pretty much unnecessary at this point. They provide absolutely no value to buyers, but rather they worsen the situation for buyers by rising the prices of the vehicles. I really hope we get rid of that traditional dealership system in the near future.
Small ones are fine, at least so long as they are used, but they need more controls in place.
As someone who is a car salesman, to me in-person dealerships are really only useful nowadays for people who just want a vehicle that day and aren't picky; the instant-gratification-type people. Yeah youd expect there to be more people that only want their cars a specific way, but you'd be surprised how many people make compromise on what they want if they could take it home today
Really? Would you buy a car that you have never driven?
@@Kayametra That is because they have no choice.
@@mexicanspec you can test drive cars at manufacturer showrooms.
So that doesn't require dealers to exist.
Also Yes I have bought cars that I have never driven or seen outside of pictures.
I've bought every car I've ever owned for cash from someone I knew. I knew they would tell me what the issues are and that I'd find more along the way, but you can really check it out. I got a job at a car dealership with absolutely no experience and conned them into hiring me. I left that job before I even started for a new flight instruction job.
I have had good dealer experiences - Subaru - and bad dealer experiences - Mazda every time - but I have to admit that the best car shopping experience I've ever had was Tesla. The staff in the galleries are knowledgeable, enthusiastic and since they are not actually selling the car, very helpful without being pushy in any way. Even after multiple test drives, they are more interested in answering questions than trying to get you to order on the spot. Everything is online too including the configurator, loan application, trade-in, and other necessary information. I know exactly what I am going to pay for my car without having to "talk to the manager," or haggle. Why is this not what every buying experience is like???
While looking for a car for my wife after a pretty crazy 3 car accident, we stopped by a dealership. We had done our research and had a car in mind. We went to the closest dealer and asked for a test drive. The salesman gave us directions on where to drive and sent us on a blistering top speed of 40 mph on our test drive down a residential street and construction zone. He than acted like he'd done us a favor and asked how it was and if we were ready to do paperwork. He didn't have the color or trim level we wanted but since we had a car down due to the accident we pressed on. Long story short, after the haggling over a color and trim level (and options we didn't want) we noted we saw a better deal in a city over that had our color and trim choices. We overheard the manager and salesman convo, and them saying we were wasting their time. We walked out and left a formal complaint later. We ended up buying the car from the afore mentioned dealer slightly below MSRP with title and tags included at a color and trim we wanted. It had also just rolled off the transport truck when we arrived so it was BRAND NEW. No miles on the car. Whenever we drive past the local dealer we flip them off in our new car.
Wow you sure showed them 🫵😂
Having purchased, traded in, or sold numerous cars throughout my life I can honestly say that dealerships for the most part are complete rip offs. Whether it's the new or used sales, or even the service department. Complete rip offs 90% of the time.
For anyone looking for a Mach E in the San Jose CA area, most dealerships are starting to offer $6k off MSRP. Take advantage if you’re drilling around
Shout out to the editor who fit in the loading/cocking sound at the end. When Nolan fixes his glasses, we're about to be peppered with knowledge.
I enjoy haggling for most things I buy. But I never purchase from dealers, because they are straight up scammers.
I bought a bolt from a dealer from a perceived good deal... But they had no idea how the credit worked... No idea about the car... Guilted me about the bottom line for them.... And even gave me a car with broken key fob start.... And then briefly depreciated 10k in a year...
Great Video! Speaking as someone with experience at a major OEM, one of the biggest issues with build-to-order is consumer behavior in the U.S. vs. other markets (e.g. Europe). The vast majority of customers in the U.S. expect the transaction to occur same-day / within a few days, rather than the weeks to months it can take for factory orders. That said, very interested to see what happens with current changes to the industry and especially with online ordering.
The "I want it now "attitude doesn't help either.
@@patwheeler4940 sometimes, is about "I need it now". The shift to build-to-order in Europe benefited mostly the automakers, and with higher additional purchase cost (taxes and whatnot) and a way less competitive second hand market somtimes you wish you could buy anything close to what you want without paying a deposit and waiting for four months minimun... And you have to go through the dealership anyways
The viceo did just clearify in the beginning, that people are rather wanting to wait instead of getting the wrong specs
I bought a Tesla Model 3 a few weeks back (in Nevada). Everything handled through a phone app including the trade, the financing, down payment, docs, etc. It was great. When my car arrived, they notified me to make an appointment to pick up, and I was in and out in 15 Mins. It was an overall great experience. The last car I got was a 2014 Ford Fusion, and they did that whole thing where they want your keys to check out your trade and then don't want to give them back to you trying to keep you at the dealership... I didn't mind the haggling too much though.. That was pretty fun to me, but I was at the dealer for 4 hrs... So... There's that. I can see why it's so hated.
Salesman: "hey, can I help you"
Me: "I know more than you"
Very true!
I work for a dealership and in so many cases customer knows more than us 🤣
@@CarlosTorres-gtrx stealership
Not as bad as rental agents usually. I asked once what the displacement of my rental cars engine was, knowing that I could better estimate mileage based on that and the curb weight. The guy said "Four". I was like "Four what? Four liters? This is an economy car."
"Uhm, four cylinders?"
"Ok, how many liters?"
"Uhm, how many what?"
It was ridiculous.
@@nutbastard You really expect someone at a rental car company to memorize engine displacement for every car they rent? I would bet that 90% of Americans couldn't tell you the engine displacement of the car they own. Why don't you just use the make and model to look up the EPA MPG ratings? That's probably more accurate than your back of the envelope guess based on displacement (in liters) and curb weight. Is he supposed to know the curb weight too?
@@jameswalker590 This was pre-smartphone days, so there was no quick googling in my pocket.
Two, yeah, I expect them to know things like that the same way I expect a waiter to be able to answer questions about the menu, OR at least be able to go and find out. I've worked a fair amount of food service and memorizing the menu is a big part of that.
Three, the curb weight is listed on the VIN sticker inside the drivers side door, so that's a non issue.
It's not even that he didn't have the figures on tap, he had no idea what I meant by the word "displacement". That's like someone in a pizza shop not knowing what a tomato is.
My best new car experience was through Military Car Sales, while I stationed overseas. I was getting ready to return to the states and I was able to order the truck I wanted with the options I wanted and had it delivered for pickup at a dealership close to my next duty station. Only thing I had to do was pay the local taxes and licensing fees at pickup. I was really happy with the process and even happier with the truck when I picked it up.
I had the same nice experience. I had arranged to have the car shipped to Germany but then we had a -10% decrement to our headquarters. I ended up on the list returning to the US instead of staying for another two years. I picked up the new car at the factory in St. Louis, MO. The real challenge was fitting all the luggage into the car along with the dog, the dog cage, three kids and my wife.
Aim High Airman!!!
Mad respect for the pacing, rhythm and clarity of the supporting graphics for this piece. simple, don't get in the way, supportive. Augment, don't insult my intelligence. Thank you.
90% of the problem with dealerships is they're not upfront with their pricing, and all they're after is monthly payments. I recently bought a car and most of the dealerships, as soon as the test drive was over, the guy hauls me into their sensory deprivation office and starts asking what kind of payments I want. I kept demanding an out the door price and after a while he said "let me get it for you" and left.... only for the finance manager to come in and HE was asking me what payments I wanted to make. The place I ended up buying my car from was the ONE place that gave me an out the door price first.
“You can now chew through electrons”
Am I the only one that remembers that scene from the original 1980s Transformers movie where those two Decepticons were chewing on that bridge talking about the electrons? …and why did this line just uncover such an odd part of my memory? 😅
New memory unlock - Childhood nostalgia
New memory unlocked - the moment started feeling “different “ towards girls 😳🤔
Insecticons
"A little heavy on the electrons, Electron..."
I actually placed an order for my car at the beginning of this year. Because of the chip shortage, I had to wait forever for it to be built and delivered but even considering the delay the process was so much nicer than any other vehicle I purchased. Unfortunately there was no wiggle room on the price... That $3,500 discount from the factory would be nice.
It usually doesn’t take this long, but the chips were missing ):
Come February I'm gonna order a 2022 Veloster N from my local dealer. I have an idea of what I'll pay based on my credit and down payment. I'd love any discount I can find but I'll be happy just to pay sticker and no markups like the Civic Type R
@@oreojsn92 do it, fantastic car!!
Love y’all for putting out videos so often of the best quality
when I bought my car, it took a whole day. The paperwork was stupid. I had to settle for what they had since I needed an emergency car (I was a college student). I do not regret my car but I think that the process could have been quicker and actually having people listening to the needs.
Ever seen your cars re listed on dealers websites? They assure you this is the best price they can give when they buy from you and then they sell your car for double. I understand Dealers have to make profits, but considering the amount of dishonesty, not everyone respects them
I can understand a dealer buying a car from someone then marketing it up say 30% over what they paid to make some profit, cover overhead, etc.., but double, or sometimes triple what they paid is just insane to me, and yep that's why most people don't trust car dealers these days.
the gamestop for cars
My friend traded in his 2013 Kia Optima and got $6,000ish value for it. 2 weeks later it was relisted for over double the price and sold within another week. It's insane
Asking price is not selling price. They also reconditioned your car before putting it up for sale.
@@mexicanspec i'm well aware. The thing is, they made a $7000 profit which is double what they gave him for it. I'm sure they cleaned the seats and detailed it, but does that really double the value? My comment was in relation to what the OP said.
I always assumed build to order was an option everywhere.
It is supposed to be. They give you the runaround because they want to sell you something off the lot
Most of the problems I've faced at dealers are the salesperson's specifically. Usually it's the finance person who's fudging the numbers and/or making "mistakes" in their favor. They're the ones I have to be very careful around and hold my ground with.
I've had the same experience. You have to go over the financing with a fine tooth comb and call them on every little thing. Doc fee??? Take that off. You're also right about holding your ground. Be ready and willing to walk
@ Donut Media. Please do an update on this topic. Ford is changing the way their dealerships set prices, and appears to be ready to sell their vehicles online too. We need more information on this!
Then there's me: buying a used car that's totally fine
I agree unless it's a sports car that's been thrashed an unknown amount of time before you get your hands on it. They're toys, not just for commuting.
Some dealerships even try 2 screw u over that. It’s crazy
Me too!
My 2001 nissain maxima still going strong from when I bought it off FB market place 2 years ago.
1993 Ford Crown Victoria LX I bought from Craigslist 10 years ago for 800 is still going strong. Just got to know what your looking at and how to fix little things if it has them. I could probably fix my car in my sleep at this point.
Imagine if Omaze actually donated money instead of blowing it on sponsorships and fancy prizes
@The Mad Monk because they position themselves as a charity which is a misrepresentation
@@ILoveTinfoilHats For-profit charities are still charities, and they're also pretty transparent about it
@@tommycrabtree8286 They're about as transparent about it as they legally need to be, which is the bare minimum. You're better off buying a lottery ticket and donating the remaining money to the charity directly.
Charity gets 1.5%
Omaze gets 7%
Rest is "prize" cost
Mad Monk is correct. If we eliminate this option then charities will receive less money. Why? As he stated people want a shot at something other than the feeling of goodwill.
So why be mad at a company that actually does generate something that otherwise would have been nothing?
eversince the editor of this video started adding shotgun reload sound to nolan adjusting his glasses it has become the coolest ''Nolan Move'' :D
We just bought our first Toyota, from an employee of Toyota no less as a private seller. It was a very positive experience for both parties and we each got what we wanted and we got $700 off the price. That same car at a dealer was $4-5k more!
Maaaan I wish I could haggle over everything I buy like I’m on Ebay best offer
You think that, then you visit Hong kong...
@Not RickRoll 👇 2 cring
The real question is why doesnt the business that produced and invested into the r$d for a product get to undercut business that are simply reselling their product? Seems like if its YOUR creation you should be able to sell it however you should like to. Thats the same thing as saying apple shouldn’t be allowed to sell their iPhones bc they can undercut the prices of verified amazon sellers…. Like wtf!?
Haggling is the biggest pain in the car buying process. I don't even want to do it. So why should consumers who don't want to haggle pay a tax because they want a less stressful experience?
Because they're lazy, that's why. And why should the rest of us who don't mind negotiating pay higher prices because some weenies want to avoid confrontation?
@@eriksmith6873 It's not about laziness in the slightest, it's about not wanting to deal with lies and bullshit. Because you can't just punch them, you have to play them at their stupid game to get what you want. And that's what it is the great majority of the time. ...As well, the majority of people who don't mind negotiating already do pay higher prices, because being accepting of the act of bullshit haggling is not the same as winning at it.
@@eriksmith6873 you don't negotiate when you buy a carton of milk, you don't do that when you buy a TV. It's not laziness to want to avoid confrontation. With the amount of variety and selection of new product, customers shouldn't need to have fight for the best price. if everyone stopped negotiating and just went to the dealership with the best price the overall price would go down.
@@jamesesplin8712 You're correct. You don't negotiate when you buy a carton of milk. But you can be sure your supermarket engages in negotiations with the dairy distributors who stock their shelves. A gallon of milk that costs $2.79 isn't worth the bother, but a milk purchase in the thousands of dollars certainly is. Everything that is sold is subject to negotiation. I would suggest that when you have a $30,000 car, so expensive that most people must finance for five years, yes, that is definitely worth the trouble. If you think negotiating isn't worth your time, and you'd rather pay a couple thousand bucks than stare down a scary car salesman on the other side of the table for an hour -- that's fine. There's a price on the window sticker. You can pay it. Go ahead. Get out your checkbook. Just let the rest of us negotiate the best deal we can get. The problem with the proposition outlined here is that it would eliminate EVERYONE'S ability to negotiate on a new car, it would eliminate all competition on the retail level (except between brands), and it would allow manufacturers to offer take-it-or-leave-it pricing. You would not see individual dealerships offering their "best price" up front as you suggest. Individual dealers in new cars, even the large chains, would quickly be crushed. Instead, everyone would pay the price set by the manufacturer. The best price would be that price you see on the sticker, not a penny less. You don't like negotiating? So you would prefer to penalize everyone by making them pay the same high price you want to pay? Brother, I think you should think twice.
@@Heimdal001 Anyone who is willing to sit in that booth with a salesman for an hour can walk away with a new-car deal a few hundred bucks over invoice (with the exception of high-demand/limited-supply vehicles). You might even be able to drive the dealer down to invoice, or even below. Car dealers at present don't make much profit on new-car sales; the big money is in used vehicles. Trust me, I know. I've been on both sides of the table. You may not want to deal with it. That's your choice. You can pay more if you would like. Personally, I'd rather keep my money in my own pocket. Under a system controlled by manufacturers, there is no competition between dealers, the price is set at corporate headquarters, and there is no incentive for the seller to "come down a little" to make a deal. Everyone pays the same high price. What a wonderful world this would be for manufacturers -- and what a terrible one for consumers.
I'd love to be able to spec out a new car exactly as I prefer, and especially be able to go over all the paperwork from home, away from the influence of the dealer sales and especially finance offices.
You already have the ability to spec out a car on manufacturer websites, make a printout, hand it to the dealer and say "this is the car I want." He'll be happy to order it for you. You would get it just as fast as you could by ordering from a manufacturer, about two months. But the dealer also will point out he can make a better deal on a car he already has in stock. If you don't want that choice, terrific, may the force be with you. A manufacturer-controlled system would eliminate that advantage, because the prices of all new cars would be set by the manufacturer, at the same high rate. If you don't want to make a choice, great, may the force be with you. But why take it away from everyone else?
@@eriksmith6873 you sound like a dealer
Erik is correct. You can order a car straight from the manufacturer and it will sent to your dealer for the paperwork. I’m most cases they will even add a badge inside saying this vehicle was custom built for whomever
I work here in Argentina as a build-to-order salesman and it is a nightmare not having the vehicle to deliver at time. Sometimes people wait years!!. It is a huge sales retarder
I bought 2 cars from a dealership, and one Tesla. Before going to the dealership, I researched the msrp, the features, and everything I wanted from the cars. But when I got there, they didn't have the trim I wanted, and the price was much higher than the msrp. Not to mention the fact that the salesman kept trying to push a maintenance plan and tried upselling me multiple times on bs I didn't need.
The Tesla Model is just too easy. I ordered my Tesla in just 1 minute. No upselling being forced on me. It was just simple.
Sell your tesla all your doing is giving your money to china, and hope you know that most of the newer tesla's have 3rd party computer chips that tesla developed to get there car's rolling, that tech has not even been tested in a car longer then 3 month's look it up if you don't believe me.
@@Backdraft851 All Teslas are built in the US besides the ones that are sold in China. And I don't know why you're scared of computer chips. All new Teslas come with a 4-year warranty, 8 years for the battery.
@@Backdraft851 all US car companies do billions of dollar worth of business in China
Do you know what MSRP stands for?
@@TheKurtkapan34 Thats not a good thing bud
It's good to have someone in between you and a manufacturer when it comes to warranty claims and service. For the buying side, move as much as possible to online. Have a few examples on hand for test drives and to inspect new deliveries.
If you want to buy it like that it should be a choice though not a government requirement.
These reforms would be amazing. I've always loved cars from a distance but never needed one myself, and I'm dreading my first dealership experience if I ever do.
I'm in the exact same boat. I love cars, but I've never had to own one because I've been fortunate to live in college towns with good public transit. But I'm getting to a point in my life where I need the flexibility of owning my own vehicle. And, yeah, I'm terrified of having to go through the dealership experience.
We, the people, should be able to buy cars directly from manufacturers
Imagine your dealership being able to open a support ticket directly to the manufacturer's engineers so they can debug and improve their car platforms. Or enabling employees to move around from working in a dealership to the manufacturer's HQ, or to go work at a plant nearby, etc.
I work for a GM dealership. We have field engineers for your first point. Our dealership had the check engine lights come on on almost every single new Bolt we had in stock, so they all got diagnostic info loaded onto a field engineer's PC and that guy went on his way. Potentially a TSB or recall will be issued due to this. As for the second point, the car industry is mostly all guys who know each other, so that happens already.
Very interesting on how the law prevented the maker from running local businesses out. 🤔 almost sounds like Walmart running local business out. And today Amazon is doing it all from the internet.
Virtually everyone benefits from those local stores shutting down. They simply aren't needed anymore. It's not as though people who might otherwise have owned department stores are living on the streets. They just find some other way of adding value to the world that people are willing to pay for. If the government artificially propped up local shopkeepers, people would rightly view them as parasites, which is how they view car dealers.
11 months ago I bought a Genesis online from an out of state dealership. Outside of working on transportation (I ended up flying and driving it back) it was a super smooth process.
If dealers provided a tangible value to consumers they would not need state laws to protect them from bankruptcy.
I worked for Lithia way back in 1999. It's amazing how much they've grown. I remember bumping into the CEO while grabbing some parts from the Toyota dealership.
They've bought out several dealerships in my area including the one I usually go to. No problem with the sales experience as I know exactly what I want and what I'm willing to pay. On the service side the only issue is they started cramming a charge into every oil change for an unnecessary oil additive. When they did that to me I questioned it and was told it was recommended by Subaru (Subaru says to NOT add any additives except if specifically needed to resolve a problem and they can deny warranty claims if they think it contributed to an issue). I called corporate who apologized and gave me $100 towards future service. Now I know to tell them ahead of time that I don't want it. From what I hear I'm not the only one who has complained.
I worked on the sales floor at a Lithia dealership from 2004-2009. I haven't followed the company's fortunes since then, and I was delighted to see they are doing well. This video, unfortunately, promotes the misconception that Lithia's profits come from new-car sales. I think everyone at Lithia understands that used-car sales drive the profits, not new-car sales. My dealership and other Lithia dealerships in my market really didn't make much on new cars. How could they, when most new cars are sold close to invoice? You would not see this happen in a marketplace controlled by manufacturers, where carmakers set prices for new cars. Prices would be much higher. As a fellow Lithia vet, what do you think of the argument presented here?
@@eriksmith6873 In theory without dealers the invoice price would become the new MSRP since that is what manufacturers are expecting to get but without dealer competition would invoice simple go away and we will all pay more? I don't mind the dealership model and many of them are moving to a streamlined purchase process for those that know what they are doing. There are just so many stealerships around which gives people headaches and the feeling they are being ripped off (and many times that is true).
@@kamX-rz4uy You make an interesting assumption, and I mean no disrespect -- but why on earth would you expect manufacturers to keep giving away their cars at wholesale prices?
Our current market has thousands of players. Robust competition between dealers is what finally brought about invoice-based pricing in the '70s. Dealers these days often sell within a few hundred bucks of invoice because the new-car department is really the tail that wags the dog. The real money is in used cars. Under the ill-conceived idea outlined here, all that competition between dealers goes away, and all you have left are eight or 12 manufacturers who want to make more money on new cars.
Do you think they are in business for the love of humanity?
Besides, they'll still have to operate stores to take in trades, so the video's complaints about dealer "overhead costs" are a wash. The business would still sorta look the same as customers negotiate the value of their trades. But under the skin the consumer would be at a much greater disadvantage than today. You wouldn't be able to play competing local Chevy dealers against one another on your trade-in value, because trade in value would be determined by a guy in Detroit. Manufacturers might offer take-it-or-leave-it pricing on trades, too, and some dummies might even think that's an advantage, because haggling would be eliminated. Oh, brother. What a fine idea, making the car-buying process simpler by reducing competition.
And now consider the fact that the manufacturers would be taking in most of the late-model trades. They would be crazy not to sell 'em themselves. So this harebrained idea to let manufacturers take over the new-car market would give them substantial control of the high-end used market as well. This also would reduce competition and drive up prices. We would have a ripple effect throughout the used-car field, driving up the wholesale cost of rigs to independent dealers lower on the food chain, and driving up retail prices at all stages of the market.
Yeah, this dumb idea would make the car business "simpler" all right, by eliminating most of the forces that keep prices down. You think you're at a disadvantage dealing with that pesky dealer? How about when you're up against a corporation?
@@eriksmith6873 Dealers give such shit prices, private seller all the way for used
"The best part is no part, it weighs nothing, cost nothing and can't go wrong"
Time to get rid of unnecessary businesses!
Absolutely bulletproof
Nothing is the best thing, I can sell you a bag for just $$$! What say you? 😁
Dealers want personal contact with the customer because they have a far better chance to sell unnecessary stuff to customers, whatever its equipment or insurance when in direct contact than trying to push the higher price on the customer online where he is not pressured by anyone pretending to be sort on time so you don't do proper research about things offered nor may check for best prices with the competition. Used cars salesman being a definition of the con man in the eyes of the public for a reason...
Went in to an autonation to look at the exact car I had been wanting. Price and mileage was right. Pointed out some body damage I could fix myself and they knocked off 2k. Picked up the car for 8k out the door. Pretty painless experience for me that time.
Autonation is great!
Autonation doesn't negotiate pre owned car prices.
@@danieltercero89 I just started to walk away saying damage wasn't listed in the ad. They took off the 2k. No real negotiating.
@@danieltercero89 They also sell their cars for a higher price than other dealerships. Seriously makes me wonder why anyone even buys from them
Pain isn't the problem, it's waste. Anyway, the entire argument is about new cars. Used car dealerships would still be around, just like thrift stores.
Screw the franchise model. This is one of the times where small businesses hurt the economy.
As a junior in high school in 2020, I was very excited to buy my first car at the end of the summer going into my senior year. Now I am a freshman in college and finding any car in relatively decent shape is impossible, and my money is going to get me way less than it would have before Covid.
Government money printer go brrrr, you may never be able to buy a home now because of this insane asset inflation. The pharma giants that own the politicians made bank though, and the media works for them to manufacture consent
That whole “write your desired monthly payment amount on this paper and sign it” tactic is so sorry and annoying. My monthly price doesn’t matter because you’ll just stretch the years...
Last fall I was buying a used van for my family. After going to several dealerships and dealing with the constant BS and ignorance, we bought a van online from Carnax. I will never buy a car another way.
I picked my price. Specs. Color. You name it. Never had to haggle with anyone. And it was delivered a few days later with a warranty. And guess what, I never had to get my payment fit into 84 easy monthly payments because the salesman wouldn’t listen to my overall price. Great experience.
Car dealerships suck.
Never heard of tactic before. I usually show up pre approved (through my bank) and pick the car I want. And leave.
Thing about Carmax is that their prices are generally noticeably higher than other dealerships, and it makes it worse since they don't negotiate
I bought a new car back in 2017 and paid in full after talking them down 3k from sticker price. The dealership tried to pull some shit a few months later saying I owed 3k after coming to an agreement. Im pretty sure that same dealership was caught in a lawsuit a few months after that because I definitely wasn't alone in that experience. The dealership is still there but it's changed ownership a handful of times since then.
Dealership franchise laws were passed so that you have no choice to buy a new car from a dealership.
Act of buying. Did you ever learn about non-delete add-ons to products such as nations within product?
I was a car a salesman years ago. I enjoyed it because if the interactions with people and the occasional perk of doing a dealer trade where I got to spend time in a fun car. But I think the car buying experience needs a massive overhaul. I think it can be done, but it will have to be young entrepreneurs who change the game. I love the idea of only having one or two examples of each new model for demo purposes only at dealerships. One of the many things to consider is trading your car in. For the smaller dealership experience to work, we need tax laws that make selling your car on your own to buy a new one just as beneficial as trading it in... I have to get back to work and stop typing... I have so many thoughts on this...
I would never buy a new car from a dealer, it's the definition of "economically inefficient" - a rip-off. The value drops 30% the moment you drive off the lot.
Craigslist is the way to go!
Really? Show me a car that was just driven off the lot for 30% off.
@@CriminalGameplay nobody sells them at this point because its just too dumb. They become available after a year or so passes.
@@leofernekes343 Ok so it loses 30 percent after a year or so. Not the second you leave the lot lol.
@@CriminalGameplay Haha I think the value loss is instant, but the shame of losing the money takes a while to get over.
Hey Nolan! This is my first time within the first hour. I love listening to you, James, and Joe on Past Gas. You’re doing a great job.
I can report that here in Victoria, Australia that the new car I bought from a dealer was good. But the people at the dealership were the lowest form of excrement that I have ever met. I say this now with no anger and a clear conscience.