Showing posts with label dealership. Show all posts
Showing posts with label dealership. Show all posts

Friday, August 10, 2012

Car dealers bait-and-switch technique

The most annoying sale tactic is the infamous bait-and-switch technique.  Most of us, customers, came across this sneaky way of selling goods and services in one form or another. 

Wiki defines the bait-and-switch as:
The goal of the bait-and-switch is to persuade buyers to purchase the substitute goods as a means of avoiding disappointment over not getting the bait, or as a way to recover sunk costs expended to try to obtain the bait. It suggests that the seller will not show the original product or service advertised but instead will demonstrate a more expensive product or a similar product with a higher margin
Although bait-and-switch seems harmless when it comes to buying a cell phone service or grocery item, one group, the car dealers, takes it to another level.  Exuberant prices of new cars are a fact of life but why the dishonesty when selling them?   

Photo by dragon_art at sxc
The multiple quotes for new cars available through sites like edmunds.com, car.com, or kbb.com, allow savvy customers to receive the lowest bids without the need to hassle the price on the lot.  Checking the actual price at truecar.com gives us another tool to make an informed decision about the fair price of the car.

So here's the world's first and shortest car buying play:

The exposition.
Yes, I'm on the market for a new, awesome car.  I do my research, request the quotes, wait for the prices to roll in.  Of course, I use google voice, those dealers are very persuasive.

The bait.
I think the dealers learned that providing the actual price too quickly is not in their best interest.  They want you at the dealership with other happy customers.  Lately, getting a straight answer from different dealers, and brands, has been a bit challenging.  Knowing your exact model is the key to success.  Why?  Because as we all know, it doesn't matter what the customer wants, it's what customer buys.  

The reveal.
Finally, I get clear answers regarding models, prices, taxes, plate/registration fees, destination, and document fees.  Who came up with the destination and document fees anyway?  This is such scam.  Aren't those fees part of the operational and administrative costs?  In order to sell a car, it has to arrive on the lot.  Wouldn't be cheaper if the customer just drive up to the factory to pick up the car?  And the document fees.  Common.  Dealership pays the salesmen and office clerks for their time already.  It's double dipping; end of argument. 

The switch.
Since one of the price quotes was so low, about $1,000 less than the other dealers, against my better judgment, I allowed the web manager to lure me in for a test drive.  The fact that he didn't remember my name and the time of the appointment upon my arrival is small potatoes comparing to the fact that the car he advertised was simply, the stripped down version of the requested model.  And guess what?  Yes, the car was a stick with no AC.  The only person I blame for wasting my time is me.  Because, in the back of my mind, I knew that the price was just too unrealistic.  

The exit. 
So, I left without test driving the car.  Among many dealerships I dealt with, the Chevy one just made me realize that GM won't cut it for my next car choice.  Even though, my very first new car, that I loved for years, was 1997 Pontiac Sunfire.  And that's how, ladies and gentlemen, people make their decisions about the brands they buy.  To be fair, Kia is off the list as well.

The conclusion.
The search continues.  And the good, old phrase, caveat emptor, has even stronger meaning today.  Buying a new car is the second, most expensive purchase, an average American will make at least once in his or her lifetime.  Which brand and dealer will prove to be the most honest deal maker?  I will let you know.