Busting Some Myths About The Automobile Business

As a 27 year veteran of the automobile business I've seen it all and heard it all. I still learn something new every day and I usually see something every day that makes me laugh and cry.This blog entry is meant to put a smile on your face while also busting some common myths and misconceptions about the Automobile business. By the way if there are any really good and funny screenwriters out there a car dealership would make a great setting for a sitcom. I see the next Cheers or Taxi. I'm only missing one thing, talent!



Myth # 1 - Salespeople can't be trusted and are liars - I've met and worked with hundreds of salespeople over the years and, for the most part, they are hardworking family men and women who would never purposely mislead a customer and most do try to help a customer with their automotive needs. There are a few, however, that have given our business a bad name but I can count on my hand the number I've personally met. If you go to a dealership and you don't like or trust the salesperson just ask the manager to have someone else help you. Usually they will accommodate you and the chances are good that the next person will be helpful and courteous.

Myth # 2 - Go into a dealership on the last day of the month and you'll steal a car. I've heard this one forever and it's just not true - It is true that dealers work on a monthly basis and will sometimes offer something to entice you to do the deal towards the end of the month (although the deals at the beginning of the month are equally important so you can also get a great deal then). The last day of the month, however, is the worst day, in my opinion, to try to buy a car. First off, all the salespeople are running around delivering the customers that have already bought cars earlier and this is probably when most customers have a problem with salespeople. Their minds are on making sure they handled everything needed for their deliveries and will ask things like,"are you ready to buy now?" and not take any time with you if you aren't. The other issue is selection and approval with the bank. It sometimes is just too late to make the deal work before the dealership closes so if you want to get a great deal on a vehicle just be a good negotiator at any time of the month and get your best price then. Also there really is less room in many vehicles than there are in others so generally dealerships will offer you a price that is fair when you're in the showroom at any time of the month. (Except for those select salespeople we mentioned earlier)

Myth # 3- Customers who come into the showroom and say they don't like the back and forth just want a bottom line price the first time out - Actually the opposite is true. If a customer comes in and says they don't like the back and forth, generally, they initiate the back and forth and continue it all the way through the transaction. It's actually quite funny to see the salesperson's face as soon as someone says they don't like the back and forth because the salesperson knows they're in for a long ride!

Myth # 4 - Coming into a dealership is scary and intimidating - Well I guess that myth is true. Sorry. We're just scary!

Myth # 5 - If you shop on the Internet you should go with the dealer that offers the cheapest price - This is my pet myth. Actually, generally speaking, a customer should disregard the lowest and the highest quotes. You also have to be careful that you are comparing apples to apples. If the cheapest quote didn't include the destination charge and the next best quote did, then the cheapest quote is more expensive. Also, many dealers have extra charges that could add up to make the lowest quote the highest so go with the dealer that you like on the phone as long as the pricing is close. Chances are if they're nice and courteous on the phone they will also be in person. Remember initial price is just a small part of what makes a good deal.

I'll have some more myth busters in the future. Contact us at www.precisionacura.com or email me at mitchell@precisionacura.com for any suggestions you may have.

Mitchell Brenner
eCommerce Manager
Precision Acura of Princeton

Cash For Clunkers - A Dealership Perspective

I'm not a political person so this blog entry is going to be simply about how the Cash For Clunkers worked from my perspective as a car dealership employee.

First off, we were not very big players in the Clunker deals as Acura only had one sedan that even qualified. (The 2009 RDX SUV also qualified but nobody inquired for that one) The 2010 Acura TSX was the vehicle we had the only action on. We ended up doing about ten Clunker deals and, from my perspective, that was more than enough.

I seriously don't know what the dealers that were doing hundreds of these deals did. Each deal, when the computer system was working correctly, took about two hours to submit. Our last deal took almost ten hours with the system down and continuing to try to get it in. I finally took the paperwork home and got it submitted at 1am EST. For the dealers that did the hundreds, did they have to send all their employees home to each do five deals or did they have to work through the night?

The main problem, I feel, is that they rushed to get this program out and had no time to set up the infrastructure to get it done correctly. I know from my years of experience working in dealerships and on the web that websites take time to develop and implement. There's also glitches and problems with any new website. How did they expect a website this detailed, with hundreds of thousands of submissions, to be able to handle the flow in just thirty days. It was never realistic from day one.

Our first deal was submitted in July and we still haven't been paid on any of it or any others. Again, we only did about ten. What are the dealers that did hundreds doing with what could be hundreds of thousands of dollars outstanding. It seems like a lot to ask a business owner to accept especially with all the responsibility falling on the dealer and not the consumer. What if a dealer who did 100 Clunker deals gets rejected on 30%. That's an awful lot of money to risk losing. Was it worth it to him? I can't imagine how!

What are your thoughts? How did Cash For Clunkers effect you as consumers or dealers?

Thank You,

Mitchell Brenner
e-Commerce Manager
Precision Acura of Princeton
www.precisionacura.com