Transparency and Pricing

[ddavis]

There have been a lot of threads, lately, dealing with Pricing on the Internet. I have my views and some of my friends are not in agreement. I've learned that if you want friends, you have to accept their imperfections.

Dealers still advertise vehicles, in the paper, at thousands back of invoice. I've heard Managers threaten to fire a salesperson if they sold the "price leader", if that car actually existed. I have made gross, switching customers but when you are thousands away, it is difficult. I've seen salesmen hide when they saw a customer come on the lot, holding a newspaper. It is really hard to move a customer that far and make a profit.

I was looking at a Nissan dealership website. I noticed discounts on Altimas at over $6,000. Next to the pictures, on the page of Altimas, there was a disclaimer: "price includes incentives: rebate, military, student and loyalty". I am assuming that they were fading enough heat that they wanted the disclaimer prominently displayed. I guess that if you could combine the incentives, and the planets align, the customer would get the Internet price.

I worked for a store that would price their used vehicles at what they paid for them. When customers came in, they would be hit for "pre-prep", "inspection", "reconditioning", "dealer installed adds" just to name a few. The first pencil would be $4,500 above the Internet price. I left the week that this was initiated. Their Used Car department did see a huge boost in sales, but for a short period. Recently, I was reading their reviews. I didn't think they allowed that kind of language on review sites.

I am convinced that these practices will yield only short term results but will make our jobs difficult in the interim.

 

[ed.brooks]

There is nothing transparent about these practices. This is how an "Old School" mentality fights "New School" practices. As you note, the results are short-lived.

 

[ddavis]

There is nothing transparent about these practices. This is how an "Old School" mentality fights "New School" practices. As you note, the results are short-lived.

I've only worked in dealerships in Louisiana and Texas. Inforcement is a joke in Texas. Louisiana would give you a warning, then a big fine. The third time, they would shut you down for a period of time. The Motor Vehicle Commission was made up of dealers voted in by the Louisiana New Car Dealer Association. You don't blow smoke up their skirts. It has been a long time and it may have changed.

Honestly, I liked having a level playing field.

On Saturday afternoons, we could count on pissed off customers coming in, from another store. They come in and lay down.

 

[JesseJ]

T
I worked for a store that would price their used vehicles at what they paid for them. When customers came in, they would be hit for "pre-prep", "inspection", "reconditioning", "dealer installed adds" just to name a few. The first pencil would be $4,500 above the Internet price. I left the week that this was initiated. Their Used Car department did see a huge boost in sales, but for a short period. Recently, I was reading their reviews. I didn't think they allowed that kind of language on review sites.

Was this dealership in NY by any chance? Prob not but there is one in Manhattan that practices this exact tactic. Oh the stories I've heard. Hah.

 

[ddavis]

There is nothing transparent about these practices. This is how an "Old School" mentality fights "New School" practices. As you note, the results are short-lived.

Ed, I totally agree but it is still going on and it broadcasts to the public that dishonest and unethical practices are alive and well in the car business.

They have more vehicles listed than you could park on their lot.

All is well, they have a new reputation management company and all of their new reviews are 5s.

Was this dealership in NY by any chance? Prob not but there is one in Manhattan that practices this exact tactic. Oh the stories I've heard. Hah.

No, but maybe they have franchised their process.