Do car dealerships still use high pressure tactics?
Just about everyone has a story about pressure tactics and broken promises after shopping at a car dealership.
Just what did you expect?
Dealerships spend thousands of dollars on training systems to teach their salespeople how to influence buyers from the very first moment that you make contact with them on the lot.
Some years ago, Edmunds, a web site that gives car-buying advice to consumers, had one of their employees, Chandler Phillips, go “undercover” and get a job at a couple of California car dealerships.
His description of the pressure techniques taught to car salespeople illustrated how, with a little sleight of hand and even outright deception, dealerships sweeten the deal in their favour — often costing you hundreds of dollars or more.
Have things changed much, particularly in the Internet age? Not really, says Phillips, in a recent update: “Selling cars seems to be a timeless sort of business transaction. Confessions rings just as true today for me as when it was written.”
That’s certainly what first-time car buyer and financial blogger Tom Drake believes, according to a recent post.
“Having never negotiated for a vehicle, and having only read about it, I expected some of these tactics but figured that when we simply refused, they would sheepishly grin and say, “oh well, we tried, here’s your car”.
The funny thing is, he admits, is that he would have bought the car if it was simply sold for the listed price, plus tax. It was the salesman’s attitude and seeming duplicity that drove him away, not the actual cost of the car.
What’s your experience with car dealerships been like? Have things changed at all since you bought your first car?
By Gordon Powers, MSN Money
Posted by: Dan Dault | May 18, 2021 9:58:56 AM
Things have changed so much at the Dealears. They use to work with you in the past . Now when I walk in the Dealership it feels like I'm going to be taken avantage ov. Thats why I'm keeping my old 2001 and I'm learning how to fix it my self . For the price they charge I can afford to make a mistake and try again. My van is not the pertiest but its mine. And if I get rip off it my fault for not following instructions .
Good bie big payments and Maitnance Supervisor that wont listend to you and take avantage of you!!!!
Posted by: CHAD | May 18, 2021 10:55:30 AM
Im a sales manager in a car dealer and frankly im fed up with being treated like a criminal. I deal with integrity and honesty and its helped me be very successfull. If your good at what you do you never have to sacrifice your integrity or use over the top high pressure tactics. A good sales person will never ever make you feel pressured , a poor sales person will. Yes everyone has a car story of woe, including me. There are good people and bad people in EVERY industry not just the car business, the whole idea that people in the car business are a bunch of crooks is unfair and untrue.
Posted by: car guy | May 18, 2021 11:01:07 AM
this is the dumbest post ive ever read. c'mon msn, get some good articles on here already
Posted by: Car Salesman | May 18, 2021 11:20:31 AM
I agree with Chad, I am a car sales man and all of the articles that are posted these days are ridiculous. There is more pressure walking into a Futureshop or Rogers cell phone store than there is in the car business, unless like mentioned above you are dealing with a poor salesperson. Successful salespeople are highly trained professionals, that are concerned with their customers needs and budget. The days are gone of the sleazy salesman who tries to pull the wool over the customers eyes, there are so many laws and regulations that must be followed now to protect consumers, that it is impossible/illegal to do anything unethically. The biggest reason people have a poor experience in a dealership these days is because they read these stupid articles, go into a dealership looking for things to complain about, try to find ways to run the salesman/sales manager/service manager/VP into the ground, which will cleary result in a horrid experience no matter what type or retail store you go into. People need to lighten up and realize car sales people are good people who actually ENJOY talking with customers, lets see MSN post some articles on how consumers can actually enjoy their time in dealership, and have a great experience, as opposed to focusing on negative ways to create the worst experience possible.
Posted by: Tina | May 18, 2021 11:32:13 AM
I'm in agreemant with Chad. While it is true that some car dealerships do employ pressure tactics to try to coerce you into buying the vehicle they want to sell, this is definately not the case for all. If you go searching for a car armed with the information on what you want, and know what to expect then no amount of pressure tactics are going to work on you. If you're going to a used car lot, where sales people make smaller margins and are payed less, it's more likely you'll run into the kind of pressure tactics that have been written about. However, a little research, and some perserverence you'll get what you want, not what they want to sell you. I've just recently bought a brand new VW and had such an enjoyable experience that I took my Aunt to a local VW dealership and she bought one too. 2 seperate dealerships, the same level of service and no pressure tactics. Perhaps people need to learn to stay away from the shady, fly by night used car dealership lots and start looking somewhere more reputable. I don't always recommend buying new of course, but, given the fact that all manufacturer dealer lots have used vehicles, and rarely allow the use of pressure tactics perhaps this is the place to shop. Alternately in response to your spy being "trained" I would offer that I was "trained" to do my job too.
Posted by: Serge | May 18, 2021 11:59:27 AM
A few years ago I had a great experience buying a Mazda in Ottawa from a new car dealership. After deciding which car I wanted to buy, the salesman asked me "So what can I do to 'earn' your business?" ... and I told him, and he delivered. There was no pressure tactics, and he essentially made me feel like I was in the drive's seat and that's all I wanted.
Whenever I feel like I'm not in control in a car purchase, I always end up leaving the dealership and going somewhere else. It's as simple as that.
Posted by: Al | May 18, 2021 12:22:35 PM
I don't walk into a dealership unless I'm pretty much ready to buy. I tire kick online and on Sundays when the dealership is closed.
Posted by: Eric | May 18, 2021 12:22:53 PM
Why is it that all the pro-car posters (above) are unable to write in English correctly?
I gave up my truck seven years ago, and I will never buy another car in my life. I cannot think of a single positive thing to say about cars, car dealers, or people who drive. They all blow, big time.
Posted by: Charles | May 18, 2021 12:52:56 PM
Why are we Talking about an American Dealership. What does that have to do with a Canadian??
Our laws are quite difference. We don't do spot delivers without an approved finance Contract. Sales are not based on what you bought in the business office. Nothing like the Horror stories you here in the states.
Posted by: Brian | May 18, 2021 1:01:53 PM
As a car salesman who prides himself on helping the customer find what he is looking for I know there are a lot of good salesmen out there and a lot of scumbags. However nobaody ever wants to admit that a huge amount of buyers are liars! It is amazing how many people will not disclose the bad things about their trade-in and leave in their vehicle laughing how they screwed over the dealership.
Posted by: Scott | May 18, 2021 1:03:37 PM
I purchased a brand new truck two years ago. While dealing withe the salesman he showed me a paper outlineing the promotions and interest rates and terms. After deciding on which term and interest rate I would like I was then sent off to the buisness manager who then placed a stack of papers in front of me and while keeping one hand at the top of the papers he proceeded to flip the pages and telling me where to sign. Some time later I was going through that paperwork and discovered that the interest rate I was being charged was double what I was shown by the salesman. I have since contacted the manufacturer, their finance division and the dealership about this and the response from all of them has basically been the same, TOO BAD.
Lesson learned, from now on I will only purchase a vehicle if I have my own financing in place or cashh. The rot it appears is not just at the dealership level.
Posted by: Steve | May 18, 2021 1:17:57 PM
I recently purchased a new vehicle - the salesman was fantastic - we walked in, told him what we wanted and how, and he made it happen.
The finance department, however, was a whole other story. They got the loan approved but used a different bank than the one that was advertised as offering incentives. After waiting a month for the vehicle to be delivered, the finance dept. let us know that the rate would be 5.5% as opposed to the 0% advertised. After telling them how disappointed we were, they said we would still be able to get the 90 day no payment incentive.
2 days later, we recieved a call stating that that was not the case and would now have to sign a new contract. Further disappointed, we returned, and they offered to pay the interest for 90 days which we agreed to. All seemed resolved until our first payment was taken out of our account 16 days prior to what was stated in the new sales contract. As it turns out, someone in the finance department arbitrarily signed off on another revision to the sales contract without our permission, consent or knowledge.
Posted by: C Boake | May 18, 2021 1:27:59 PM
It's funny how it's the car industry sales people that are saying there is no sleazy pressure tactics. I agree that a great salesman is less likely to appear sleazy or pressuring because they have learned their craft so well that they can manipulate a customer without apperaing sleazy. The fact is that it hasn't changed and consumers need to be very careful. Thank god for the many watch dogs that have brought this to light.
Posted by: Wayne P | May 18, 2021 1:34:52 PM
Sorry Chad, you're fed up. How about the customers and employees that aren't so lucky as having you close by? I'd like to shop you - further more work with you. Haven't heard a salemanager admit to anything less than being the best, yet somehow everything remains the same. Great - honesty and integrity is your competitive edge, that's great. You're not the only one - yet things remain the same. Consumers need protection from those in the industry that are still a problem. Just look at the Mazda dealer in Orangeville that got all the attention selling a car to the handicapped woman; right or wrong that situation only got results due to publicity. Even with the dealer being "dealt" with, there is no improvement to the image of the industry just a greater reason to not trust it. Behind every pushy salesperson is a pushy salesmanager using fear to lead and/or has a blind eye to the "top grossers. Far to many in the industry operate under the principle of "it's not wrong until I get caught, regarding consumer and human resource practices. All of these bad image salesreps and managers were hired under a process that selected them as a good fit fo the job offered. I've witnessed this for 25 years; and I'm fed up with the real problem - the wrong personality types that keep this problem going as they continue to have employment in the industry. Have thing changed since I bought my first car? Yes. Now this mess happening under the watch of OMVIC .
Posted by: Grace Chisholm | May 18, 2021 3:06:38 PM
I did not read all the comments but I would like to add a few things. When I talk about it I become very angry. There are good and bad where every you go. I bought three cars so far in my life. The first car was very good. Everything from sales to delivery was exceptional. I bought the second and I was talk into a lease to own. I would purchase the car for less and maybe less for monthly payments. I paid more than 36,000 for a 1995 Toyota Corolla. There is a story to tell on On to my now car. I walked in a dealership and I told the sales person that I want anew Van. I walked out with a slightly used car and a $40,000 bill with amonthly payment of $512.00. I have the matter in court. I dont have alawyer to fight and there lawyers are given me a hard time. I told the dealer og the problems with the car. they denied it and now Gmc called the carback for defects. There is more story.Omvic did not really help because the dealers have documents which I did not sign to back there story. So some car sales person are very bad and they are experts in covering their trail. I would really love to show and tell the whole story because I may help someone because it maight be too late for me.
Posted by: Roy | May 18, 2021 3:13:10 PM
Being part of a dealership in the past I can say that there are good and bad stories ( as we can see in the previous posts). Fifteen years ago when I was in a G.M. dealership, the Business Office was there to truly help the consumer finance, protect and get a vehicle delivered. Interest rates were based on a consumers ability to pay and in turn sometimes a customer did pay a little higher interest due to his or her past credit experience. If a product such as warranty or rust proofing was sold there often was a mark-up, usually a small percentage of the cost. All was good.
Unfortunately I believe that has all changed. The Business Office or Finance Dept. is a profit center now. You pay at least double the cost on warranties, the rust packages are marked up at least 4X ( check for deals at long time established rust centers ) and whether you purchase it or not, things like window etching, Nitrogen in your tires or gap Insurance are included in the purchase of your vehicle.
Believe me....you have paid for it, nothings for free! The hog wash a salesperson tries to convince you to purchase, only makes the dealership sweeter for the dealership and salesperson. Before you go car shopping, get your money arranged at the bank ( unless it's 0% at the dealership- watch for Insurances, big money maker), shop around for any rust pkgs. and so NO to the other CRAP!
For one who knows, a little advice, free of charge!
Posted by: uplatejoe | May 18, 2021 3:48:35 PM
I see a lot of sales people defending themselves. The reason no one trusts a car company is that the actual prices are never disclosed. Yes they waive the MRSP and their dealer invoices etc in your face and tell you your getting a good deal until you drive it off the lot and watch the depreciation take a toll on your investment. If a dealer was able to show true costs, ie most cars cost a 3rd of the msrp, dealer gets a 3rd or more and the sales guy gets the rest. Show me the costs, show me your profit margin and I will buy. I do not mind people making money but don't take advantage of me...
Posted by: Rick | May 18, 2021 3:57:37 PM
Shouldn't paint them all with the same brush.
I know of a dealership that is much to big for the town it's in. How does it survive? Easy, They give the best deals they can all the time. If there is a problem they fix it without any BS. They are friendly and willing to help even if you didn't buy from them. They don't screw you over in the shop.
I needed a rare part once and they moved heaven and earth to get it for me. And they did at a good price. The parts man didn't even know who I was because I wasn't a regular customer.
That dealership has repeat customers from all over the province. Why would a company buy all their pickups from a dealer600 miles away? Good honest service and the dealer is considered a friend.
The owners are good guys and they hire good people.
I use Ford trucks so in the last 40 years I have never bought a pick up from them. I feel like switching to GM products just because they have such a good dearship.
They are not all the same.
Posted by: Car Salesman | May 18, 2021 4:07:29 PM
In response to :
I see a lot of sales people defending themselves. The reason no one trusts a car company is that the actual prices are never disclosed. Yes they waive the MRSP and their dealer invoices etc in your face and tell you your getting a good deal until you drive it off the lot and watch the depreciation take a toll on your investment. If a dealer was able to show true costs, ie most cars cost a 3rd of the msrp, dealer gets a 3rd or more and the sales guy gets the rest. Show me the costs, show me your profit margin and I will buy. I do not mind people making money but don't take advantage of me...
Do a little research on how much sales people and dealership make, then go take a look at every other retail product you buy, clothes/electronics/furniture etc. Once you figure out profit margins on EVERY thing else you buy compared to cars, then post on here and decide which is unethical or wrong in your opinion.
Posted by: Tiger | May 18, 2021 4:30:21 PM
The sales people, including sales managers on here complaining of unfairness to the profession are pissing in the wind as far as I'm concerned. My experience was nothing short of criminal at a new car dealer, and I don't intend to let it go at that. Not disclosing a used vehicle's history, including accident history, and daily rental history until after one inks the deal and produces their credit card is a tactic you'd expect from a sleazy used car dealer somewhere, not a new car dealer. Needless to say, I walked away, still stinging, and very angry. With all the "dealers associations" and government legislation to protect consumers against this outright fraud, why does it still exist?