How These Companies Are Taking Over Car Dealerships
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- เผยแพร่เมื่อ 1 ส.ค. 2022
- Car dealerships have been mom and pop businesses for much of their existence. But the industry has been slowly consolidating. Six publicly traded dealership groups - AutoNation, Lithia Motors, Group1, Sonic Automotive, Penske, and Asbury - have been on a shopping spree, buying up a small but growing share of dealerships. These larger groups have been wildly profitable. But they face challenges. Tesla, Rivian and others are trying to sell cars directly. Consumers and automakers have been rebuking dealers for record high prices. But these groups have a lot of opportunity to expand further - they only control a small share of the total dealership market. They are also going online.
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How These Companies Are Taking Over Car Dealerships - ยานยนต์และพาหนะ
Dealing with car dealers are always ranked near the bottom in consumer surveys for many reasons.
Horrible line of work. I did customer service warehouse work pay is Garbage from nyc.
used one is ,new is better
Depends. Many customers love their dealerships. It’s millennials that have seemed to struggle. Same with their insurance agents.
Really? My experience has been really great.
@@onlythewise1 Bet you ill be out of a used dealer such as carmax before any new dealer. lol
"The only reason dealers exist is a franchise law lobbied by dealers..." Yeah time for change. Let the manufacturers sell directly to consumers and cut some middle-man cost.
they dont want to cut middle man share to reduce cost but to increase their profits
Who’d sell the parts or the service, warranty, recalls?
@@harshwardhanhande16 Better than TWO entities vying to increase their profits at our expense....
Those 'middle-men' have to compete for sales even of the same brand. If manufacturers can sell direct to public, there is a higher chance of price fixing. There are only a handful of car manufacturers- which would essentially form an oligarchy.
Dealerships save the consumers you will have no service and higher car prices if dealerships go away. Not one car manufacturer today can afford to buy and staff the service centers dealerships are required to have. It cost dealerships 10-30 million 50 million in some circumstances just to build to spec and equip a dealership.
I took my Corolla to the dealer for a simple air bag recall.An hour later, I was told my car needed $2300 worth of repairs, including a new water pump, which was strange since I bought a new water pump a few months before.I knew it was a ripoff, but took it to my mechanic to be sure.He laughed and said I did not need any of that stuff.
Toyota dealer name and location, so we can avoid?
@@georgehugh3455 , we need to know. Thanks
Manufacturer defects (cheap parts made from plastic made by slaves in third-world dictatorships) are not the fault of dealerships.
@@mountainsriversandtrees1474 , True. Then these dealerships need to not buy these parts. I would contact Toyota, as an example, to stop doing work with these countries. Now will they? I guess if you get enough complaints and your sales are down, you might.
@@erichvonmolder9310 Never mind that the dealership was "manufacturing" problems to solve, as was obvious from the story.
It's also terrible that the government has made a mandatory middleman! The franchise dealership law needs to be scrap.
Dealers should die out! I'm still yet to replace my car since I sold the last I used because of their parasite business. Well it opened another door of opportunity as I ventured into investment made a good return so far.
Dealers are horrible people 😑
@@susanholmes8526 I'm actually thinking of investing but don't know what to invest on actually. Can you give a tip?
@@Isabel-ic9rf well my daughter in-law recommended a stock broker which I gave a try and so far it's been a good ride for me. Having more than enough to buy the car I want and to settle those parasitic dealers 😅
@@susanholmes8526 how do one get in touch?
Dealerships are useless now over pricing every single car way above sticker price. Car manufacturers need to start selling straight to the buyers
Guess your getting a Tesla 😂
What about Massive Recalls for defective parts...? Like the 75 million defective airbags...?
The dealership chain can handle it...
...DTC ; like Tesla ; will be a nightmare..
...Imagine waiting years to get your airbag fixed... and not being able to drive your car in the meantime...!
Also having a dealership store that “hires more people” is a good thing...!
@@aerolightz2z419
Alot of people cannot afford a ~$50K Tesla ...!
The car manufacturers should start delivering cars to peoples homes just like amazon
wrong, people need to stop being stupid and PAYING more than sticker price. You lay blame in the wrong place.
The era of small business is coming to an end by design
Yup, the NWO is happening and we all are losing. Eventually everything.
WHO loves car dealers? Only dealers! But you're a REALTOR so nothing to worry about since you'll be on a loooooong vacation, LOL! 🖕
YES!!! And people are taking the bait, hook, line and sinker!
I believe that
Mandating a middle man is equivalent to profiteering. They are basically guaranteeing the profiteers merchandise will make it into their possession.
Your green grocer is a middle man. He is the one getting up on wee hours so his shelves and gondolas carry the stuff yiu want at the corner.
The world owes you a giving , right ?
dealerships still only exist because they lobby for favorable laws. i see no value for the customer from dealerships, just adds a greedy middleman between me and the product i want to buy.
I have yet to see a whole industry destroyed with the flick of a pen. I really want to see this with some exploitive middlemen like dealerships or health insurance companies. If it happens even once I’ll revel in it for a long time.
Horrible industry horrible line of work I’ve worked at Honda to Mercedez from being a mechanic to customer service warehouse work. Pay is garbage dealerships on the east coast are all ran by mafia. You will never move up they treat their employees like garbage I would have no problem watching them fall being from nyc I only made 34k a year back breaking and overtime fulfilled there’s a reason people don’t want to work
Same with housing. The landlord being the middleman
@@caydenthompson126 between what ?
same thing with healthcare. Insurance companies are the greedy middleman.
What dealerships have done during this chip shortage is ridiculous. It is also terrible that the government has made a mandatory middle man. The franchise dealership model needs competition. Direct to consumer sales is that competition. We need to end the franchise dealership law. The government shouldn’t mandate a middle man.
@Yummy Spaghetti Noodles used car about the same price as new car dummy 🤣😂
Duummios all around! The .gov does not mandate a middleman.
Jajajajajaja America's economy thrives off exploiting an ignorant consumer...why would they want you educated?
Yea really why can't I just directly order one? Who the tf goes in there not knowing what they want anyways?
Direct-to-consumer sales via internet is how Amazon became a global monopoly and wiped out millions of small business owners (not to mention the fact that it made it so much easier for communists to steal ideas from small makers/manufacturers).
Have dealerships tried not being utter trash? Might be a good thing to try.
You don't make as much profits if your are an honest business.
The only way that happens is if it were more profitable. It's not.
Car industry is a perfect symbol for capitilism. Bad busines survives because ignorant consumer keeps paying.
There are many dealerships that are solid. You just are ignorant.
@@Aj_470 actually, it’s not. The dealer networks exist because the government won’t allow manufacturers to direct sell to consumers. Therefore, the government has created a false economy. If they deleted that regulation, then we would see true capitalism. This is a hybrid form that is being handicapped by government.
No one wants to go look at a car. Instead we want to buy online, with some kind of warranty like a dishwasher would have, and have it delivered. I have dreaded buying cars my entire life, and we changed to looking for a good salesman instead of a car going from dealer to dealer. When my husband was on chemo they said oops we messed up you have to come back again for the paperwork. They wasted tons of our time and he was sick there for hours waiting for them to do what? I refuse to buy the old way and my current car was bought from a friend.
I personally agree the only issue is you can think a car is the perfect car until you sit in it. Example my wife loved the wrangler, but I'm 6 4' and I couldn't fit in the car comfortably at all. It eliminated a lot of options. I think the model needs to change, but maybe by making things more transparent. You go to a dealer sit in a car drive a few cars then sit at a computer and apply without having to deal with any sales people.
I'm not buying any car until I sit in it and actually drive it to get a feel for it. That's too big of a purchase to just buy without hands on or some history of how the car rides.
@@leonlawrencez28 100% I think actually driving and sitting in a few makes a huge difference because every car is so different. Frontier I cant fit, Altima I fit great, but same leg room the way the roof is sloped can't fit in the new sonata. There's many times where I thought one car was the perfect car for my family until we drove it and my wife or I didn't like the ride quality or blind spots.
I want to see a car in person before I buy it, and test drive it.
I saw a video the other day about a dealership marking up cars 70% over MSRP. There should be a cap on market adjustments that dealers can add on to the price of new cars.
There is a cap. If people are paying 70% over MSRP, sounds like people are accepting that cap.
I have walked into dealerships and discovered that they propose to pull this stunt ... I laugh in their face a walk out. It's a car ... you buy it anywhere you get a decent, acceptable deal and you drive it away ... probably never to return to that dealer. DUH!?!
It’s called dont buy
*00:08* Calling a car dealerships a _"Mom-and-Pop"_ small business is a bit farfetched. In most communities the owners would be top earners in their region and more often than not they own the franchise for more than one brand and subsequent dealerships.
So what you are saying is that you only watched the first 8 seconds & not the whole video, gotch ya.
@@kenyattaclay7666So you don't accept critiquing a premise. Interesting style of debating…
@@kenyattaclay7666 if a town has 1000 locally owned businesses, if you’re in the top few percent then I think it’s fair to say you’re not really “mom and pop” anymore because you’re simply too rich.
The taco truck or lawn mowing guy I consider mom and pop.
Being the biggest dealership for 5 brands, I no longer include you in this. You’re pulling in many millions per month.
@@Dear_Mr._Isaiah_Deringer huh??what are you even talking about? I’m pointing out that you obviously didn’t really watch & was in such a hurry to make a comment that you didn’t actually listen to what they were saying which was that these larger companies were taking over from the small local dealers.
@@yungrichnbroke5199 I swear so many of you people have a serious problem with paying attention to what is said. Seriously before commenting on videos & replies try actually watching & paying attention to the damn video where they explained how the larger companies are taking over & buying out the small dealerships which was LITERALLY their last words.
You aren't tested until a company you own and believe in is down 30-40-50% from its highs. You will question your conviction, your strategy, your process. The market has a way of finding your breaking point. Nothing tests your conviction like falling stock prices.
The key is knowing what you own and getting the best price possible. Falling prices give you the opportunity to lower your average cost. It’s a gift.
The deeper the correction the greater the chances of new positions and hence clarifications.
@@marianparker7502 It'S not the first time someone had advised on this. I need guide in order to salvage what remains of my DOW stock wrecked by the massive dips. I'll appreciate if I get details with which I can reach Ms Nicole .
@@Natalieneptune469 Her details are well on her web page. she's with Wells Fargo Inc. Look up her name.
The YEARS it took the BMW and Honda dealerships to resolve the Takata airbag issue on my two cars was not an impressive example of dealership success.
I caught a dealer not even changing my damn oil
Meh, TBH I dunno how much of that was their fault though. That was a massive undertaking and damn near 3 out of 4 cars had those airbag inflators so I am sure supply was limited! It's been a nightmare getting the airbag inflator in my 2002 Acura replaced.
@@A22DNAL Fair point, but aside from the 2-3 year-long wait and the inconsistent/conflicting information offered by the dealerships every time I called, the ludicrous (CYA) notion that we were instructed NOT to drive vehicles during this time just takes the cake.
@@georgehugh3455 haha, yeah we all know we couldn’t NOT drive our primary vehicles. I never got conflicting info, I just waited until they contacted me I guess. I knew it would be futile trying to argue with “when’s the part coming in” for a recall that large. I looked at it as welp, you drive and could be killed anyway, at least with the airbag shrapnel I might still survive!😂
@@A22DNAL LOL
Here in Germany many dealers are actually owned by the manufacturers, evenso, we still have dealers, both independent and manufacturer owned.
Dealer association groups and their lobbies are literally cancerous for American consumers. And they’re only becoming more consolidated and although the chip shortage is partly to blame fore the massive increase in used car values these massive groups are also partly to blame because they were the first to run to auction with lots of cash to outbid each other just to keep inventory on their lots. Drove up costs even more as a result
Where there is demand, and supply becomes limited, prices rise. This is basic economics. The reason the price of cars went up was because there were less cars end of story. If the dealers collude and uniformly raise the prices just like the Arabs after Wall street stopped pouring money into fracking they would! Unfortunately for dealers there are too many external factors that prevent them from doing this, too many options on the market, too much competition.
I think ignorant consumers are more responsible for driving up cost.
P
Pp
Pp
Everyone saying GOOD, close the dealerships- this will cause your repair costs and even basic automotive maintenance costs to skyrocket. 16,000 less new car dealers is 16,000 less repair shops. All the non dealership repair shops will be slammed and be able to charge whatever they want. Bigger picture here people, automotive repair costs are already ridiculous. I'm a mechanic so this isn't a problem for me- but for most of you it will be a masisve problem, including having to wait a month to get basic work performed while you wait in line, and for twice the price...
They do not realize that service techs do visit dealerships auto parts counters to keep the lines open on TSBs and diagrams. By purchasing parts at the dealership. Aftermarket part stores can’t match this. They are good to save money on commonly replaced parts.
I have been not much good for car dealers in my life. I am 62 and my first and only new car was in 1984. No dealers or new cars before or after that year and my current car purchased from my aunt in 2009 is now 22 years old like new and a 2004 pickup I bought in 2012. To be fair all of my motorcycles, sailboats, and airplanes were bought used as well and not from dealers. I like depreciated values.
yup! buy a car that is 4-5 years old. and more so a reliable brand. im 24 and I dont plan to ever buy a new car.
I enjoy used vehicles. If I get 3yrs out of it then I made my money back
I think dealerships sell used cars too 🤔
@@Hintonbro. you think? 🤔 maybe you should find out Forsure man 🤔🤔
Me too.
I have a rule BUY FOR CASH ONLY.
Cars or motorcycles, makes you think about what you want versus what you need.
If I owned a dealership, I would jump at the chance to sell to these guys. Direct sales is the future.
It is but the consolidation of dealers by big corporations means they will be able to buy politicians to endure the dealership model persist.
@@brucemoose926
Vote blue for justice.
Note red for corruption and lobbyists.
Yes we are in the last days of dealerships as we know it. Many electric car manufacturers have a retail store you can go ask questions but you will have to place and order and at times wait months or more than a year to have your car delivered. In the future it will be more like Amazon. Your car will be delivered next day or with in the week.
Well that's usually only takes months because of limited supply, a couple years ago Tesla wait times were only 2-3 weeks.
Hopefully those companies will be quicker in the future.
Unless Tesla and Rivian can ramp up production and control their own supply chains dealers aren’t going anywhere and frankly I still think we need dealers for those who prefer that car buying option. However I also feel that consumers should have the option to buy the vehicle directly from the manufacturer if they don’t need the dealer.
Cardana is like tat
I'll be celebrating the day when all car dealerships are out of business
Yeah,you and I both! They screw people who are women!
Yep, they are straight terrible. Get rid of em
they are a joke they want to sell you a bunch of crap and fees and dealership fees.
@@davidrodriguez5804 you're EXACTLY RIGHT!
You are still going to pay through your nose. Even more so. There will be no haggling. Controlled inventory the manufacturer ca no longer dump at the dealer and it means fixed pricing.
Dealerships should be made obsolete going forward, completely unnecessary extra step between the factory and consumer that adds more price
but it also added new jobs.
@@michaelayeni177 No, it transferred the sales jobs from the manufacturer to a private dealer. It didn't create jobs, just redistributed wealth over a wider area rather than keeping it consolidated with the manufacturer.
@@Chad_Max yes I actually wish to pay MSRP instead of $10k over for a freaking crossover.
Supply and demand. That is what markup over MSRP means.
Manufacturers will do whatever they can to cut overhead. They are not in the retail game. You will be lucky to get a showroom , no inventory , and minimal service dept, if any at all.
Typical American whinoes.
I don't look forward to dealing with dealerships... takes forever to get the vehicle. Just not worth the wait. I pretty much only buy a car only when I need to replace my aging one. I'm taking care of my car 100% in order to maximize it's life.
I have known several family owned dealers that have sold to big companies. The biggest reason for this is the "old man" dies and the kids don't want to do that kind of work or have the passion to keep it. Also, in one case, the father of the kids didn't have a succession plan and they started fighting over who was going to control and they couldn't decide so it was voted by the majority to sell. These were all single dealership owners in smaller communities.
...happening like CRAZY where I live! Two big family-owned companies are buying everyone else up like mad! $$$
I"m glad the automakers are smacking down the dealerships, I have NEVER had a good run in with a dealership ESPECIALLY with the service department where we REPEATEDLY found that they were either purposely sabotaging our car to make more money. We got lucky we were running a dashcam with audio via a battery unit and caught it all on tape and this happened REPEATEDLY. I bought my last car used due to MASSIVE markups by dealers and have all my work done by an independent auto mechanic who has been vastly more trustworthy that the dealers.
What makes you think that manufacturers owning service centers is going to make much of a difference. The manufacturers are just as much at fault as the dealers with cheap and flawed components and lackluster engineering. I don't condone tagging vehicles with extra pricing because of shortages or anything else but I believe you will find corporations like Tesla aren't exactly performing great service to customers. Check into the horror stories. I think it's self defeating to throw the baby our with the bath water.
Dealerships are still needed for warranty repair and new car maintenance. You want to stick with OEM parts and service if possible. People are delusional if they think buying online is the way to go.
No, they aren't
It’s called a service center and can have nothing to do with selling a Vehicle.
My 1989 civic is on its last leg. Looking at new and used car prices, I will buy a new d15 engine before I overpay these insane prices.
🤣🤣🤣💯
The engine will also be way overpriced. My engine blew and 2 years ago it would have been around $4,000 to get replaced. Now they want to charge almost $9,000. What a joke. Back to taking the bus. Gotta love capitalism.
If you have a junkyard nearby & a good mechanic you can replace that engine much cheaper. You can also try "used Japanese engines" online. The older models are a bit tougher so a junkyard is your best bet.
Somw engines are retrofitable. A visit to a specialized machine shop will do.
Bought a Honda Civic Del Sol new in 1993. I do a lot of general maintenance myself and still drive it daily. I would rather have all my teeth pulled than come in to contact with an auto dealer.
I don’t know where they get the idea that a car dealer only makes 2.2% on a car.
The holdback on its own is 3%. The you have invoice to MSRP gap, dealer fees, finance. To say they only make 2.2% just doesn’t make sense.
I think it’s probably closer 10% (pre Covid).
Post Covid probably closer to 25% if they are marking up.
They were probably looking at gross revenue and net profits.
@@MrVTeta I thought that too. But for business that only has a building to pay for. That appears to be high. The sales people are commission based (mostly)
I am sure doc fees alone can pay for that.
I am sure the owners private jet is an expense lol
Used cars is where the profits are.
2% number referred to is the net profit on total sales from all sources of revenue.
@@scotthanford9619 yea 2% sounds like a profit you want to show to the irs for tax purposes. Real profit is measured a little differently. That’s why corporations report excellent earnings to investors and cry to the the government about negative profits for the same calendar year lol
Dealing with car dealerships is always a box full of surprises, and more often than not, these are unpleasant experiences. Online purchase is the future. No hassle, no bs.
What is the best way to take advantage of the TSLA stock considering the current state. A friend advised I look into these Chinese stocks NIO and BIDU. I need to diversify my $250k portfolio made up of volatile TSLA. What is my best bet!
These are good Chinese stocks. NIO is becoming a serious rival to TSLA in the world's biggest auto market. However, it wouldn't be very safe for you to make crucial financial decisions on your own. For a successful long-term strategy you have to seek guidance from a financial-advisor.
Manufacturers can sell directly to consumers and have service shops. Partner with lenders or self lending.
Unfortunately these dealer groups tarnish the image of all dealers. My nephew works for a "Mom and Pop" dealership which has put in a policy to reprimand or fire anyone trying to sell above MSRP. Another thing people miss is what was stated in the video about warrantee and recalls. Without dealerships, whose technicians are trained to fix that brand of car by the people who built it, you might be required to have your car towed a long distance to an authorized repair center. OEMs are not going to let tire stores or shade-tree mechanics make warranty repairs. Many dealership run promotional discounts on top of any being offered by the manufacturers. Dealerships across North America employ millions of people. Lastly, especially with "Mom and Pop" stores, dealerships give a lot back to the community above and beyond employment, through charities and fundraisers. The big problem of unscrupulous dealers is exacerbated by these corporate stores. They come down on workers with low pay and demanding unrealistic profits that force people to do business in ways they wouldn't do otherwise. Very, very last thing, if you ever have to deal directly with a manufacturer, you quickly appreciate what dealers do.
You took the time to pontificate , and that is commendable.
But try, for heavens sake, to space out paragraphs , will you ?
@@serafinacosta7118 Noted.
Dealerships need to go away ASAP. Minimal benefit for the consumer and a needless and unpleasant middleman
Some are better than others
Hopefully the good dealerships that are trustworthy and provide vue, stay afloat. The rest can go away.
Why.. less social interaction? Less knowing your purchase is helping someone else feed their family vs making the wealthiest man in the world wealthier? I doubt you can buy a 458 online without a middleman.
The power of dealerships is maintenance and warrantee coverage. If auto dealers can work a show room/ service model, they will thrive. If national companies can open their own service/ maintenance model, they will dominate.
Why would there be a law forcing companies to work through dealerships? I thought this was a free market?
Then you thought wrong. We're slowly becoming more of a dictatorship and had Trump had his way, we'd already be there! Wake up Alice, you ain't in wonderland anymore!
Imagine thinking the US is a free country
The same way anything happens. Some set of people probably thought "the government should...", other people agreed then voted for it, unintended consequences happened, then people complain like it the electorate didn't vote for it in the first place. It's the circle of life for almost everything government does.
That wasn’t the purpose of the law, but how it wound up playing out. The law was intended to protect, say a family that owns a McDonalds franchise, from having to compete directly with McDonalds corporate opening a restaurant right across the street and undercutting the family owned restaurant on price.
Its an Oreo market. Double system like everything else. One market for "good" credit and another for bad credit.
I take great pleasure in knowing stealerships have dug their own grave with their greedy dodgy practices. Let them all go under and lose everything.
I’m glad the car dealer I went through was a family friend. These mark ups are crazy
My experience with Autonation Jeep dealership so far... Put on my steering Damper backwards and used cheap oil filter which resulted in low oil pressure during start up...but as for sales part no experience all problems were from getting my Jeep service for repairs
"The auto retail the last bastion of the mom and pop industry"? Lady are you out of your mind? Dealers are almost like scammers with a license!! Ever taken your car for a repair, sometimes even just for maintenance? They'll gouge out your eyes if you don't pay attention at what you agree with.
Last time I tried to repair the AC controller (the thingy with buttons), they wanted to charge me 480 freaking dollars!!! I went to the junkyard, got one. I spend $42... *Is that the ideal of a mom and pop experience?? Thanks but no thanks.*
My experience has been that "Mom and pop" shops are no more ethical (on average) than large companies. They're all in business to make a profit and just as many individuals will lie right to your face to make money.
And regarding the price of parts, you're comparing new vs used. Yes, new parts are overpriced (service centers make their profit on parts, not labor). But there that new part is guaranteed to work properly and will last longer than the used part, and that is reflected in the price.
0:10 If I think about it, there are a *lot* of businesses that are more "Mom and Pop" than auto dealerships. Upholstery, dry cleaning, lawn care, automobile repair...
And this is why I only buy low mileage used cars from my trusted local used car dealer and have the vehicle serviced by my local mechanic. Coffee, resturants, cars, etc, I’m done with cookie cutter, nationwide, corporate owned retail!
People to try to avoid car dealers entirely while in the buying process in order to avoid getting ripped off. If politicians care about the people they represent, they would do away with laws that forces people to buy cars from automobile dealerships.
There’s no law that forces people to buy from a dealership. Which is why so many people these days have been buying them online & straight from some manufacturers.
@@terriej123 Okay, got it. But what is that "franchise law" others talk about which forces o makes automakers sell their cars using dealerships?
websites can out all the pretty pictures on line, but it is always a good idea to go to the dealers to check out the cars because pictures do not show all of the details.
A store front with a few cars would do just that. You don’t need 100,000 sq feet and 200 car lots.
People hate dealers but need to get their car serviced and have questions about a car , nothing like a test drive before you buy
Ok and when you go to Best Buy you pay the price advertised. Not oh By the way we added all this unnecessary add-ons and fees and “market adjustments”. That’s what people hate.
@@edsta714 it’s not the same type of sale
I don't like buying chairs or clothes online, let alone a car. But that's just me.
yeah I'd much rather deal with a snake dealership for several hours trying to squeeze every cent out of me by adding a bunch of crap no one asked for and being told that I'm actually getting a good deal of only 8k above MSRP because the guy before me paid 12k above.
So you love paying more for stuff?
@@icecreemz69 I don't like the dealerships. They purposely detroy vehicles so the customer can sell it back to them. Manufacturer / Distributor sets the pricing, so don't act like they are 'saints'. Cars they don't sell / deliver end up in graveyards. These plastic vehicles have no business being $20K+. Also, It's no different than BEST BUY. BB doesn't make money off gaming consoles. They make money off the accessories and games.
@@a-don13 I've bought stuff online and was sent a bag of air, so it's whatever!
@@KMantle did you refund?
Went to buy a car this week and saw what was happening I changed my mind I can’t believe government is allowing this to happen
Yup. They’ve been bought off & infiltrated with this monopolistic mentality.
I pray every day no one totals my 2014! LOL I DO NOT want to be car shopping right now!
Last hurray before the inevitable fall to direct on-line sales. The consolidation from Mom & Pops should make it easier for the hard realities that will force change to more consumer friendly service.
With the big companies its almost as if the manufacturers own them. The whole point was for consumers to have choices but that isnt the case anymore.
My cousine work at a multi dealer (mostly honda) with some insane mark up.. She says it's mostly some aged people and those who are not technology oriented who fall for those prices, I wonder what the consumer protection does!
Once the dealerships go away it will be the manufacturer who starts gouging.
These companies will try to take over but being a car dealer is hard . No app , no franchise , no Amazon will ever take over .
The dealership model will eventually go extinct as manufacturers sell directly to consumers online. They need to transform from being dealerships to being solely service centers to survive.
Same thing are going on in my country the Republic of Trinidad and Tobago car dealers are selling they vehicles very expensive and they are paying next to nothing form manufacturers in Japan,south Korea and Germany, untied kingdom and United States they are also bring in Chinese made vehicles and still charging a lot and this is getting people upset
The dealership model has to go. I ordered a 2022 Kia Sorento PHEV SX Prestige ($50,000+) from Kia of Beavercreek Ohio on December 4th, 2021. They said they only charge MSRP for cars ordered and they require a $500 deposit. So I paid the $500 deposit and signed for it and built out my sorento phev exactly how I wanted it. They printed out my order with the order number, my name, address, phone and email, along with the exact specifications for my sorento. I thought it was odd they only charge MSRP without a mark up so I had the salesman initial next to the MSRP and the total out the door cost of the car including tax and everything. He said it should take 12 weeks (3 months)... at the 3 month mark i called to check on my order.. no information.. I call Kia America and they have my order number but no information. I repeat this process multiple times as the weeks go by. I stop by Kia of beavercreek ohio where I find out that the original salesman who I ordered the car with no longer works there. The dealership/manager never bothered to contact me to tell me this. He said he already assigned a new salesman to my order. ...months go by and my son gets fed up waiting so we go to a tesla store and order a model 3 long range. We put a $250 deposit down and order the car on May 14th, 2022. Less than a month later we get a text saying that they assigned the vin number to the tesla and they're building it. We were shocked how quick this was and the fact we get notified when the car is being built AND when the car is on its way to the store for delivery. We ordered the tesla model 3 on May 14th and it was built, transported from Fremont California, and delivered to Cincinnati on June 20th! Unfortunately we were on vacation so they had to give the car to the next person in line. They put us next on the list and expect the car in August to September.
Back to the Kia situation: after 4 months of waiting we were told that there was only one person ahead of me to get the car. Then a month later I was the next one on the list... 7 months go by since ordering from Kia of beavercreek ohio.. not a single phone call from the dealer or manager.. not even an email. We randomly out of pure luck show up at the dealer on July 18th (Saturday) and I stand outside the managers office and ask any update on my order? He says "yeah it's in the back, didn't your salesman call you? It just got here 3 hours ago" I honestly thought he was joking.. I walk to the service area and there it was fully covered in plastic and plugged into the outlet to charge. I was so happy I took a picture with it. The salesman said he was "too busy to call us ".. since the store was about to close we agreed to pick up the car on Monday. Monday morning I go to Kia of beavercreek ohio to get the final numbers. I see my car parked next to the other cars for sale and it was locked with no "sold" sign which was strange. I wanted to see see what my wife's car was worth so I let them test drive it to get it appraised.. car max said they'd give me $22,000 for it.. Kia of Beavercreek ohio said they'd give $17,000.00.. I said no ill just buy the sorento I ordered. The manager said "I'm not going to sell you the car you ordered unless you trade in your current car" .. I said no, that's my wife's car. The manager, Zac, said "I can make more money selling this car to someone else.. give me your credit card so I can give you your $500 deposit back".. I was shocked. After 7 months of waiting , Kia of beavercreek ohio screwed me over.. I said I'm going to get a lawyer. The manager said "go ahead " as if it means nothing to him. I then said I'm going to the police.. the salesman said "they're not going to do anything".. I go to the police station and told my situation to them and everyone there were disgusted by how Kia of beavercreek ohio treated us. They all told us we should sue the dealer and their parent company Martin's auto group based in bowling Green Kentucky. A female police officer asked if she could call the dealership to explain the situation. As she was on the phone with the salesman he hung up on her.. the police officer said she would come with me and my wife to the dealer to get my $500 back. Ever since then I've called the local news to tell my story and gave Kia of Beavercreek ohio a scathing review on dealer rater dot com. Please read the review and give my review a thumbs up 👍. The manager responded to my complaint with a ridiculous comment. I'll link the review below.
www.dealerrater.com/dealer/Kia-of-Beavercreek-review-117729/
That's crazy and a dam shame you had to go through all of that. I live around the Dayton area. Looks like I'll never be going there for a car.
You got me f’d up if you think you gon have me do all that just to not give me the car. Who do they think they are, Ferrari? 🤣🤣
@@Ohiostategenerationx Martin's auto group owns Kia of beavercreek and Kia of Dayton. Beware of them. After I was forced to walk away they sold my car to someone else for $5,000 above MSRP the very next day. What I think that was their plan all along. They had someone else lined up to sell my car to without telling me . No one from this dealership ever called me in 7 months. It was always me calling them to check on my order. I Have proof of everything I've stated.
Criminal stealership☹️!
Hold sign and protest outside the dealership.
I think shottenkirk is a big one too. They just came into northern Alabama and bought out a family of Honda and CRDJ dealerships that had been operating for decades
Wow! I didn't realize they were in six states. I just thought they were a small family owned dealership in southern Iowa.
Look at Ford. That CEO is clearly not happy with the dealerships and how they kept up selling the F150 and the Lightning ⚡
I say it'll take awhile but absolutely get rid of these greedy bean counters. All they want to do is emulate the oil industry and control supply. So they can squeeze every little bit more money from your wallet.
Just in bad taste for them to be doing it now. Not that it was good at any time but it put a light on them and I'm more than happy to see dealerships change going forward.
ngl I do regret those family owned or locally owned. They were probably the best dealers out there in my state
I refuse to pay high mark ups! I detest the dealer network.
Supply goes down, greed goes up.
We bought a Tesla. Avoiding dealerships made the buying process quick, simple, and painlee. No idiotic haggling, no games, no feeling like we were being ripped off. I'll never buy from a dealership again!
Stock prices are surging in the same way for oil companies due to short term profits being dumped into dividends and buy-backs. I don't think many people are expecting these companies to be doing as well in another 10 years, but the profits in the mean time are worth holding on for now.
I've seen many reports on this topic and they all mention the high sale prices and limited supply. What they don't consider or even seem to mention is that the sale numbers between 2020-2021 are an inflated phenomenon that is not likely to happen again. That phenomenon was the stimulus payments. There were people that had never had any savings in their life but suddenly received their backpay stimulus checks of $20,000-35,000 and all of a sudden you have thousands to tens of thousands (possibly even hundreds of thousands) of people that for the 1st time in their lives could afford to buy a car outright in cash. Considering that there are many parts of the country where it is nearly impossible to live without a car that's what many did. Just like the sale quantities were inflated so were the prices for the same reasons. The number of used vehicles being sold are falling off and the prices should soon follow. Anyways, my point being is that investors may want to be wary when looking to invest in companies that are investing heavily into used car dealerships.
" There were people that had never had any savings in their life but suddenly received their backpay stimulus checks of $20,000-35,000 and all of a sudden you have thousands to tens of thousands (possibly even hundreds of thousands) of people that for the 1st time in their lives could afford to buy a car outright in cash"
That is just insane, there's no such thing darlin, get out of the silly chat rooms before you melt your BRAIN.
Online is killing everything
I refuse to pay over MSRP for a car/truck. If dealers want to screw consumers, with "markups," and the manufactures are telling them to stop doing that, but they aren't then the manufactures need to pull their franchise from them or stop allocating all cars to them for that next quarter or longer.
I like buying from new car dealerships, even when I buy used because you always have the manufacture's complaint line if there is a problem. I have found if you just mention the complaint line dealers will start to listen to a reasonable complaint.
One of my neighbors visited a dealer to buy a new Honda Civic, which had a dealer sticker that added over $9200 in additional charges, above the manufacturer's sticker, including $1995 for "reconditioning". From what I read, times have gotten really tough for those selling cars. I guess "what goes around, comes around".
sales declines while lack of dealer support. In Cherry Hill, NJ, Tesla established a dealer, sales picked up like wildfire,
What I loved about buying my Tesla was
1- Minimal range of options (much easier to make decisions)
2- No salesman pressure and BS
3- Test Drive experience was the best ever
4- Delivery without the hassle of magic paint protection, voodoo Nitrogen, service contract pressure, etc.
I have to say that for those people that like to haggle the price Tesla is not for you. But frankly, do you really know what the best price for the car you buying is the one you paid for or is it $1000 less the next customer was able to negotiate at the end of the month? Yes Teslas have gotten cheaper, so has gas and sugar and meat sometimes and I do not get mad at it. It is the free market working.
Hopefully everything will be made to order eventually. Won’t have to deal with sales people
As a part service advisor for Lithia a decade ago,I can tell you they are HORRIBLE to work for.They care about their shareholders bottom line profits and not their employees. So glad I left them years ago
Thank you. I hope people realize what they’re rooting for.
I bought my car off a lithia dealership (Toyota). I pre purchased oil changes.
That Toyota dealership stopped being affiliated with lithia. We were told our oil change would be charged as the deal was with lithia.
I was referred to a Hyundai dealership but when it came to scheduling an oil change months later we were told that dealership was not affiliated with lithia.
So, we were referred to a dealership nearly an hour away.
I think that’s their business model. Charge fees for services but then leave the dealership so those already paid services cannot be redeemed
Dealerships especially for Band new cars is how the government enables certain rich individuals to get richer.
Deaker provided an important feature called service. That feature can not be replaced by remote, over the phone.
I don’t see a lack of qualified mechanics and service centers around town last time I checked.
Afaik, Penske started at 48th and Chestnut Sts, in Philadelphia.
I purchased a car from a car dealership and I needed to bring in paystubs and bank statements last week and that got my stressed out asf till I came across some great comments about deelscafe💯💯
Dealerships taking advantage of the situation. Marking up vehicles, it’s outrageous
The USG regulates mergers and buyouts and monopolies of every industry EXCEPT the car market. They should follow up with this. Dealerships control too much. Just like Apartments. People buy out a handfull of Apartments in a City, then they raise rent. And dealers also dont want to do warranty work. So they tell you stuff like, Its your fault, or it is a characteristic of the car or sometimes just plainly tell you "you dont have your oil changes done here, why should I do your warranty work"? Yes David McDavid Acura of PLano, TX told me that once! (I actually change my own oil at home)
Thanks for the insight
this is all about monopoly pricing. internet allows consumer price shopping and dealers will undercut one another. now if you call a sonic dealer in one city and compare with a sonic dealer in another city you won’t be able to negotiate.
This recently happened in Minnesota, the pohlad companies just sold carousel motor group to lithia auto group. The are getting twincities performance, the only Ferrari dealership in mpls, BMW Minnetonka, and the Audi and Porsche stores . Should be interesting to see what happens. Also the dealership needs to stop market adjustment pricing. No wonder people can't buy a new car. Yet, the manufacturer is always allowing it.
"Over 80% of vehicles sold in 2022 were over MSRP ". Think about that. Even if you are paying $1,000-20,000" people are still paying over MSRP.
Not sure if many people have heard of the massive repo's that are going on, but there were TONS of repo's on people who were paying $1,000 per month on their car note. How on Earth is anyone paying $1,000 a month just to drive a car and THEN you get it repossessed because you can't afford it.
Penske would by far be the largest among them all... if only it weren't for the losses from the can opener bridge.
🤣
I guess you have to Budget a certain amount of extra $$$$ for the peeled roofs that U (have to) Haul away. I wonder if you can get an insurance Ryder for those costs?
My girl needed a bank statement and stub last week and I was worried about her not getting a new car frm the dealer 😴 but everything good now only because of deelscafe good work 👍.
We have missed the point: Shareholder value for dealerships = more cost for consumers. Consumers lose. This is not good.
Exactly.
I don't care about car dealerships I buy my vehicles private and they last me for years I never ever buy brand new vehicle which is why I'm debt free.. plus car payments are very high now only the middle class can buy a new cars and they find it hard to even pay the car payments themselves with the middle class dying..
In other words, big company/borderline monopoly is once again trying to dwindle down more opportunities for people to build wealth by building a business. Dealerships were a good way for one family to build generational wealth and pass it along.
It was never a fair opportunity tho. Dealerships are forced on the people
Good. It’s time to get rid of car dealers or at least their current tactics.
The part I dislike the most is when the salesperson tries to push me to buy the car he wants to sell and not assist me to buy the car I want to get.
Then it comes the added warranty and all those overpriced BS markups.
Those are some of the reasons why I keep my cars for about 10 to 12 years before I get a new one.
I do all the finance thru my Credit Union
When I show to the dealer with the check in hand they go thru all the BS fast. I tell the finance guy hey Im here just to sign the paperwork and get the hell out. Thank you
Haven't been in a dealership since '09 & have no interest in ever stepping foot in one again.
Dealership model will never be overtaken by the online model
Yeah, I think people commenting are unaware of the dealership model pros and cons compared to online model. If they think pricing is going to improve, look at carvana’s prices and then realize it likely is worse for consumers. Manufacturers don’t want to sell directly to consumers, laws or no laws, with the exception of new manufacturers who don’t want to pay to build out a dealer network. (Tesla).
@@bate01071 Yeah Tesla is a good example! Also Im willing to pay extra to touch and test a car, not just buy online
Daniel is the Michael Cera of analysts
Software sales > commission sales
No company should ever be allowed to buy back stock. Car company or otherwise.
Tesla WAS also involved in the Takata airbag recall, and they did just fine. 👍
Frankly, the YEARS it took the BMW and Honda dealerships to resolve that issue on my two cars was not an impressive example of dealership success.
I am hoping interest rates climb massivly so all those leasing and on PCPC/Bubble schemes etc get hit hard and this brings the daft prices down.
I wouldn’t work for ANY publicly traded dealership group. I got some good confidential advice from a manufacturer zone manager many years ago that I never forgot. Don’t work for the soul less publicly traded groups. Their employees are typically unhappy. It’s easy to recruit talent out of those stores. I’ve been blessed to work for some awesome private owners. It’s the only way I would ever work for a dealership.
We need to do away with dealerships altogether. We need to franchise auto mechanics associated with manufacturers, instead of dealerships/mechanics. They can cut the cost of a car simply by eliminating the middleman. One thing is the life of a car is now much longer, reducing anyone from having to buy another car unless it was destroyed in an accident or natural disaster.
We are near the point where few people can afford a new car, even though financing has been stretched.
Do you have the faintest idea of what cost to fit a mechanic with information & diagnostic tools to make it happen ?
Who is going to bankroll the mechanic , by the way ?
Pie in the sky idea from a fool.
@@serafinacosta7118 The same way they are "bankrolled" now, you just might be the fool. Or; I might not explain it well enough. Everything is subscription when it comes to diagnostics and understanding the different care makes and models, but they do have a subscription for it, Not all mechanics work on all cars, you can put up as many walls as you wish. There is really no difference between what we have now, and what I am suggesting. It's just the business model.
@@rwhunt99 subscriptions cost money , lots of it. And there are staggering initial costs to buy equipment.
And then there are parts inventory. Because no shipper is going to be liable for theft at the doorstep on FOB.
Techs make money servicing several makes and models. That is what generates turnover for the shop he is working under.
And then you need a plant, which has to comply with EPA.
As I said before , your concept is pie in the sky
@@serafinacosta7118 You should understand if they are a mechanic they will have tools, you are trying to build a wall, but it keeps falling down.
The laws that protect mom and pop shops from manufacturers have allowed large dealership conglomerates to flourish and jeopardize those small shops. Who could’ve seen that coming? 🙄
You thought the 1% thing was bad wait until iyou see the power of .1%. Were headed that way. Its happening in transportation and shipping, building materials, real estate...pretty much any market or industry you can think of the middle to lower class is being squeezed out at pace that is increasing exponentially.
For all the people bemoaning dealers and praising Direct To Consumer sales, how has that worked out so far? Tesla, Rivian, Lucis, almost all their products are the most expensive in their classes ( not counting federal rebate ), and have awful after sales support. DTC greatly reduces competition, and time after time, that is worse for the consumer from pricing, support, service and etc. If you have challenged credit, DTCs have far fewer solutions and are harder to secure financing with.
The grass isn't as green as you think.