The Real Reason Car Dealerships Are In Decline, Part II

Kinja'd!!! "Joe6pack" (joe6pack)
12/12/2016 at 11:45 • Filed to: None

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In Part I, I related my story of being fooled into thinking I had won $5,000 in a contest being run by a local Honda dealer. Here I will relate to you what I experienced when I went to my local Nissan dealer to purchase my 2012 Nissan Leaf at the end of its lease.

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I received a letter in the mail from Nissan offering to take $10,500 off of my lease residual and to waive the $395 lease return fee if I would buy my Leaf. This put my sales price right at $4500 before tax, tag, title and dealer fees. I like my Leaf and it has been very reliable and has more than paid for itself in gas and maintenance savings. I also think that it will eventually qualify for a new battery under warranty.

I went in on a Sunday afternoon with my 12 year old son. Before going in, I decided to take a look at the used cars they had on the lot just to see what they had. This particular Nissan dealer doesn’t usually have much to look. They also, frustratingly, do not publish their prices on their website. It just says “Call For Price”.

However, on this day, they had a beautiful 2015 Ford Mustang EcoBoost with the performance package and the premium package with navigation. And, it was a manual.

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When I went into the showroom, I was greeted by a very young salesman. I told him that I was there to purchase my Leaf and showed him the letter. He said he could help me with that and led me to a cubicle. He asked me if there was any chance I might be interested in anything else. I told him that I was curious what they were asking for the EcoBoost. The salesman asked me to wait a moment while he went and asked. I immediately knew this was not going to be fun. That little voice inside my head said, “Buy the Leaf and get out”.

While he was gone, I decided to quickly look the mustang up on Kelley Blue Book (KBB). I didn’t know exactly what options it had, so I decided to just deck it out. KBB came back with an average price of $24,678. The salesman returned and stated $29,000. I showed him the KBB price and told him that $29,000 is way out of line - not even close. We were doing the dance now. He excused himself and came back a couple of minutes later. The price was now $27,000. I told him that if I bought the car, there was no way I would pay more than the $24,678 KBB price. Let’s get on with the Leaf.

I then noticed an older gentleman lurking nearby. He immediately came over and said that he could probably get closer to the KBB number. Why don’t we take the car for a test drive. Fine. I figured I had nothing better to do and now was my chance to drive an EcoBoost Mustang with the performance pack and a manual. The young salesman came along.

I liked the car a lot except that someone had stolen the shift knob, so it wasn’t as much fun as it could have been. When we got back, we went inside and began the dance again. As I mentioned, my son was with me. I didn’t have a father growing up, so I don’t have the story of where my father could have bought the Corvette, but chose the Family Truckster instead. Still, I know these stories exist, so I was thinking, hey, maybe I can be the cool dad.

The price was now $26,000, and the little voice was getting pretty agitated - “buy the Leaf”. At this point, the older sales manager type says - why don’t you take it overnight. Hmmm - the use of a Mustang with no obligation for 24hrs. That might be fun. Ok, what the hell. The little voice is fuming the whole way home.

On the way home, I do begin to notice little things - like how the steering wheel wasn’t true, and there was some wear and tear and of course, the lack of a shift knob was highly annoying. I also notice how big this thing is. At home, my wife was nonplussed. She gets along well with the little voice. But, she is good about these things and even took the mustang for a spin around the block. As is often the case in these situations it was do what you want.

I decided that I had better get a little more serous about researching this car and its price. I hopped on CarGurus to see what dealers were asking. I searched for 2015 Ford Mustang EcoBoosts within 50 miles. And lo and behold, what comes up but the very mustang sitting in my driveway. It is at the same Nissan dealership, and now there is a price - $23,900. WTF?!?!?

I immediately called the dealer and asked for the salesman. The receptionist said he was busy, but I could leave him a voicemail. On the voicemail, I told him I was bringing the car back and I wanted to buy my Leaf. I was done. The little voice was doing cartwheels.

When I returned, they asked me why I decided not to keep the car for the test drive. I simply said that it wasn’t for me. They couldn’t see it, but the little voice was giving them the finger. I didn’t mention CarGurus as I just wanted to get out of there as quickly as I could.

Now I know some of you work for dealerships and may even be salesmen. I know there are those who think this behavior is fine - survival of the fittest and all that. But, it doesn’t work for me and I venture to say that it doesn’t work for the majority of people.

I have bought cars at CarMax and do not recall being treated this way. I applaud Tesla for challenging the franchised dealer business model for new cars. I am intrigued by Carvana (love their commercial) and in Italy, Amazon is now selling new Fiat Chrysler cars online. I don’t know if these new distribution models will force the traditional dealers to be more honest. They may even become less honest as they descend further into the abyss of low credit/no credit with higher margins and risk. Either way, I think things will change.

The only thing that I do know for sure is that there are two franchised dealers in my area that will never get (another) dime of my money or second of my time.


DISCUSSION (13)


Kinja'd!!! Future next gen S2000 owner > Joe6pack
12/12/2016 at 11:53

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The sad part is, I’ve been on both sides. I’ve sat through hours long negotiations to get down off unrealistic prices. I’ve sold new cars at full pops and heavy discounts.

I’ve been to shady dealerships that are money grabs, who assume the customer is just there to get fleeced. I’ve been to some that are very reasonable and make an honest attempt at good customer service.

The bad ones ruin it for the rest.


Kinja'd!!! yitznewton > Joe6pack
12/12/2016 at 12:04

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My local Nissan dealer was also the shadiest name-brand dealer I’ve experienced.


Kinja'd!!! Steve in Manhattan > Joe6pack
12/12/2016 at 12:04

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Always interested in the Leaf ... what a great little  car.

I wonder if the lower price was a typo ... on the other hand there is no question that shenanigans are common at many dealerships.


Kinja'd!!! JQJ213- Now With An Extra Cylinder! > yitznewton
12/12/2016 at 12:09

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Mine here is God awful and even if they had my perfect car on the lot I’d refuse just avoid dealing with their shit


Kinja'd!!! jimz > Joe6pack
12/12/2016 at 12:11

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TBH I see this kind of sleazy behavior mostly from dealers which are part of an “automotive group” or conglomerate. Looking up that dealer, looks like that’s the case. There’s a very large dealer group in Michigan which owns a franchise for practically every brand offered in this country, and I avoid that place like the plague. I went to look at a truck at the used car dept. of one of their dealers, and found out it was actually at their “overflow” used car lot. the sales”men” all seemed to be 20-21 year old fratboys, and the sales manager was a neat package of every “used car salesman” stereotype. high tailed it out of there tout de suite.  

the last couple of vehicles I’ve bought (and the last several family members have bought) have been through a locally-owned dealer which is still run by the same family which opened it in the 1940s. they’re much more pleasant to work with.


Kinja'd!!! JawzX2, Boost Addict. 1.6t, 2.7tt, 4.2t > yitznewton
12/12/2016 at 12:19

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What is it with Nissan dealers? Our local Nissan Dealer has a rep with the local mechanics and some of them will actually refuse to work on used cars that come into their shops with the Local Nissan Dealer sticker on it because they know the can of worms they are likely to get into and they just don’t want any part of it.

Skeeviest sales bros this side of a bad joke too. I honestly don’t know how they say in business... maybe it’s all the “cheap” BMWs and Cadillacs they have on their used lot that they to sell to people with poor/no credit and a desire to be brand snobs...

All of the other local dealers are at worst, low-average-dealer-bullshit type places, as Vermont has a low tolerance for assholes, like I said, don’t know how they stay in business...


Kinja'd!!! gmporschenut also a fan of hondas > Joe6pack
12/12/2016 at 21:28

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Said by both a male and then (without hearing the first co-worker) a female co-worker “what do you think of Johny Mac?

“oh that guy definitively date rapes girls.”


Kinja'd!!! Joe6pack > JawzX2, Boost Addict. 1.6t, 2.7tt, 4.2t
12/12/2016 at 22:34

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The used inventory at this particular dealership matches your description perfectly. They are usually out of warranty and high mileage. I think they stock this type of vehicle on purpose so that they have something to fall back on when Mr. “That last repo was my ex-girlfriend’s fault” comes through the door and they can’t finance the new Maxima.


Kinja'd!!! Joe6pack > jimz
12/12/2016 at 22:42

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Most of the dealers around this mall belong to one or the other large groups. I honestly don’t know about this Nissan dealer, but the Mazda dealer, the Mini dealer and the Chevrolet dealer are all owned by one company. They all use the same spiel too. So if you leave your name at any one of the dealers they will each call you multiple times a day with “good news”. 


Kinja'd!!! Tazio, Count Fouroff > Joe6pack
12/13/2016 at 00:18

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Condolences on both those car-dealer buzzkills....BTDT too, hated it. Thanks for the posts. I felt bad for ya but somehow also felt better after reading about someone else’s similar tribulations.

Hey is that the actual ‘Stang you looked at?? cos that stealership name is r-e-a-l familiar.

Wonder how many Opponauts in the Atlanta metro? Anyone know? Maybe some day somebody will try to get together a “Keep Oppo ATL” cars and coffee...


Kinja'd!!! Joe6pack > Tazio, Count Fouroff
12/18/2016 at 09:38

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I think that is the actual car even though it is photo-shopped in front of the dealership. I am in the Braselton area.


Kinja'd!!! MontegoMan562 is a Capri RS Owner > jimz
12/18/2016 at 09:44

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I have a suspicion you’re talking about Suburban, god that dealer group is huge.

We bought our Commander from ONE of their Jeep dealers...and they transferred it there from another Jeep dealer they own.

Only reason we went there is because they had the ability to line up all the used cars we wanted and let us test drive 5 in a row back to back. Wife said she wanted it to say Jeep and be Liberty or bigger. They lined up Liberty, 4 Door Wrangler, Grand Cherokee, Commander, and I had them add a Hummer H3 to the line for kicks (I loved it, you can’t see a damn thing out of them - but I loved it).

Like I said, inventory is the only benefit they had. Oh, and I knew drastically more about the vehicles than the salesmen of course.


Kinja'd!!! Tazio, Count Fouroff > Joe6pack
12/18/2016 at 22:04

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Ah so.

Sandy Springs here.