The Real Reason Car Dealerships Are In Decline

"Joe6pack" (joe6pack)
12/11/2016 at 18:20 • Filed to: None

Nobody wants to admit when they fell for something when they should have known better, but the more I have thought about it, the more I think this is worth sharing. It all started when I got a fancy glossy flyer from a local new car dealer in the mail. It was a contest where you scratch off to reveal a number. If the number matches one of the numbers on the flyer, you win. The problem was in the way the flyer was laid out. Arrayed along the left side of the flyer was a list of prizes with the grand prize, a $5,000 gift card, at the top. Adjacent to each prize was a number. Unfortunately, I no longer have the flyer (more on that in a minute).

I scratched off the little circle and lo and behold the number in the circle matched the number next to the grand prize. I studied the flyer closely looking for the catch, but could not find one. I won’t lie, I really thought I had won the grand prize. Again, there was nothing to indicate that matching the number next to the prize did not get you the prize. It was already late in the evening, so I figured I would pay the dealership a visit the next day to claim my prize.

The next day, while at work, I decided it might be worth giving the dealership a call before I wasted my time driving over there as it was kind of out of the way. After all, surely they would like to talk to their grand prize winner. I called the dealership and when I mentioned the contest, the lady on the other end became very terse and said, “You have to come in”. Fine, I thought - maybe she’s just having a bad day.

I decided to leave work a little early as I had an obligation that evening. I drove over to the dealership and got out of my car with my flyer. I walked in and was greeted by a salesman. I showed him the flyer and he walked me over to a big poster on the wall. Low and behold, the numbers were now rearranged from what they had been on the flyer. Instead of my number being next to the grand prize, it was now next a scratch off type lottery ticket. I had won a frickin’ lottery ticket. And, it wasn’t even a real lottery. It was their own lottery for $1500. The salesman then said I had the option of not taking the lottery ticket and instead giving them my name and information where they would enter me into a drawing for any of the prizes that remained unclaimed on Saturday at 4:00 (must be present to win). Except for the grand prize, which could only be won by matching the number. So, it was a gimmick. I told the salesman that I had better things to do on Saturday and took my lottery ticket and left. In retrospect, I wish I would have kept the flyer so that I could share it with you here. Needless to say, I didn’t win the $1500 either.

This is already kind of long, so in Part Two, I will share with you another recent dealership experience which further illustrates what is wrong with the franchise dealership model and why I think their days are numbered.

Oh, and in case you are wondering what kind of dealer it was, here is a Honda Civic for your trouble.

DISCUSSION (14)

Birddog > Joe6pack
12/11/2016 at 19:01

Not all dealers play those games. It seems to depend on the area. Back in the Chicago area my newspaper and mail was loaded with those scams. I’m out in the sticks now and almost all of the stores are on the level.

We have a few Chicago based dealers here and they do play games. “Guaranteed Financing”, “Push, Pull, Drag and we give you $2500" and other get you in the door garbage like your lottery ticket. I’m sure they move metal but not as much or maybe not as profitably as the stores that get word of mouth advertising. Farmers are cheap SOBs. I’ve been told a few times “don’t go to that Ford store, go up the road to the other one”. The “other one” rarely advertises anything.

Funktheduck > Joe6pack
12/11/2016 at 19:01

I’ve gotten those before. They’re never even remotely close enough for me to give it a shot

comes over to help work on your car and only drinks beer > Joe6pack
12/11/2016 at 19:19

Kinda like birddog says, it depends on the area. I’m in an area where there are a lot of college kids and professor/doctor/lawyer types that rotate thru fairly often. All of the local places are shysters. But, get out of this environment, they’re decent.

comes over to help work on your car and only drinks beer > Birddog
12/11/2016 at 19:20

I know a Ferd guy in your area, birddog, if you’re looking.

Birddog > comes over to help work on your car and only drinks beer
12/11/2016 at 19:51

I’ve changed direction (again) but thanks!

I’m going to try to find another 92-96 F150 from a less salty area. The thought of a payment is killing me.

Chasaboo > Joe6pack
12/11/2016 at 20:26

You seem to be born every minute.

beardsbynelly - Rikerbeard > Joe6pack
12/11/2016 at 20:53

That’d never fly in Australia, our nanny state would fine the shit out of a dealer for pulling that trick.

TheBimmerGuyWhoNowOwnsAChevy > Joe6pack
12/11/2016 at 20:53

That is absolute bull, I don’t know what I would have done if I were in your shoes

Joe6pack > TheBimmerGuyWhoNowOwnsAChevy
12/11/2016 at 20:59

I consider myself a pretty smart guy - MBA and all that - and it really was blatantly dishonest. Wish I had kept the flyer to show just how misleading it was. I was embarrassed that I had been duped and just wanted to get out of there.

My bird IS the word > Joe6pack
12/11/2016 at 21:45

False advertisement? They owe you $5,000 if it isn’t on the flyer. probably not worth suing for.

Tazio, Count Fouroff > Joe6pack
12/12/2016 at 02:33

Weird that you posted a pic from that dealer (MM). They are sort of local here; well in the general region

Sorry the numbers match was more like a numbers game tho...

Dave the car guy , still here > Joe6pack
12/12/2016 at 08:57

Dealerships I’ve worked in all do that type stuff. I’m just glad I’m a parts guy and not sales. I no longer try to get friends or family to buy from any shop I’ve worked at because of embarrassing sales tactics like these. I even shop elsewhere now for my vehicles. When you work in a dealership and you know sales even tries to scam employees its just not worth it. I’m just happy to endure the grief I get from having an Audi and working in a domestic shop when I get to work faster and safer in the snow than my coworkers.

jimz > Joe6pack
12/12/2016 at 11:48

before you beat yourself up too much, keep in mind that you were smart enough to walk away the instant you realized it was bunk. ‘cos the reason they do these things is that they work on enough people.

Galileo Humpkins (aka MC Clap Yo Handz) > Joe6pack
12/12/2016 at 12:00

My firm belief is that any dealership that sends that crap out is a dealership I will never visit, even if my car dies right in front of it. I’ve held this belief since I was a kid and we used to get those fake key contests from the tacky dealerships in town.