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Car Dealers vs the Web: GM Shifts Toward Online Purchasing
cartechboy writes "Car dealers may be in for a new battle, and it turns out existing car manufacturers are joining the fun. Tesla Motors began the rebellion by trying to sell electric cars directly to buyers. Car dealers have fought that effort state-by-state and even complained to the DMV about Tesla's website. But things just got a little more interesting. General Motors announced plans to expand its new web-based shopping tool (aka a shopping web site) that allows customers to bypass showrooms when buying new cars. The idea is to use the Web as a giant test platform to see if the automaker can better target people who use the web to buy things. The catch is that the web app, called 'Shop-Click-Drive' will allow users to do almost everything they'd do at a dealer: customize the car, get pricing and financing and even arrange for delivery. But then when you push the button, your "purchase" will be routed to GM's network of 4,300 dealers, so you still have to visit a local dealer to sign on the dotted line. Even with this limitation, the move is still making dealers nervous. GM dealers aren't required to participate in the web-based test, and company officials say they have had some dealers turn it down."
the last car i bought, 5 or 6 years ago, i considered a GM car. I had just gone through a great experience buying a honda for my wife, then GM came along to show me how miserable a shopping experience could be. There were a couple of options that made me want this car, but then I couldnt figure out how to get them. The salesman just wanted me to pick one off the lot, but they were over priced with options i didnt want, or didnt have what i came for. We looked at how to order the car, but the items all came in bundles... piles of bundles. One might have a sunroof, a certain radio, upgraded rims, and memory seat adjustments. of these I wanted the sunroof. Then you pick a different engine, and it changes the rims and radio and carpet, and you arent sure which set of overlapping choices would end up on the car. No one could figure that out. This happened for every option i wanted.
I then tried to configure on a website. again the options were a joke of complexity. At the end, I got to choose which dealership would contact me with a quote. I could choose 1, and only 1. I wanted to see what competing quotes might get me, but I had to start the entire order process over. This was going to take too much time, so I bought a Nissan.
Bought a car a few years ago, and found this non-profit that had a great strategy:
http://www.checkbook.org/auto/CarBargains_Secrets.pdf
You can never know what the dealership is getting from the factory in terms of kickback, so it's next to impossible to negotiate a deal all by yourself. The sales rep is never going to lose money on the car (despite what they may tell you); they'll just walk away. So even when they cry and tell you you're keeping them from feeding their family just know that they're making enough to cover their expenses. Your best bet is to put your purchase out to bid to multiple dealerships and let them fight it out. We did this and saved $2500 off the "invoice" price that Consumer Reports said we should be "aiming for" to get a good deal.
Let me say it again: make them bid; it's the only way to keep them honest.
As a side bonus, you don't have to deal with crazy add-ons, haggling, or waiting for managers to "approve" your deal. You e-mail the dealerships, tell them what you want, and ask for their final, out-the-door, all-fees-included price. Pick the winning one, print out the e-mail so you have it in writing, and go to the dealership to pick up your car. If they try to add anything on, just point to your e-mail and invite them to throw it in for the included price you've already committed to (we got "free" floor mats and locking wheel nuts, probably because they didn't want to bother to take them off).
Note that you have to be willing to contact multiple dealers, wait for responses, and follow through. If you want to buy the brand-new 2014 model whatever, in hot pink, and you need it TODAY, then this isn't the strategy for you. If you're willing to be patient to save a couple grand, try it out.
Except that "under the age of 25" basically means the world hasn't kicked them in the balls yet, and biking around their urban area seems a pleasant way to pass the INFINITE amount of time they have left.