What do consumers really want in a car buying experience?

[Shaun Raines]

Most of you (the one's that sell cars for a living) may have to make a concentrated effort to look past the way you like to sell cars in order to answer honestly. With any luck, everyone that comments will do so from the perspective of a consumer.

Is there anything in the traditional or expected car shopping/buying experience that consumers really like? I've had dealers, General Mangers and salesmen tell me over and over for years that "buying a car is an emotional experience." Those words are always spoken with an "I'm so smart and I really understand people" kind of tone. Do I disagree? Yes and no. Buying a car obviously involves some emotion, but the truth is that it's primarily negative emotion. Car dealers and the typical way they run their businesses create tension, worry, frustration, anger, fear and depression often before the customer has even considered them.

Not that any of you read the newspaper, watch the boob-tube, listen to the radio or use the internet, but if you did then you'd know that car dealerships advertise in these places. Have you ever seen a TV commercial advertising a vehicle at what seems to be an impossible price? Have you ever seen a newspaper ad doing the same? Can you say loss-leaders? Can you say trickery, manipulation, coercion? So, what's my point? When dealers market and advertise themselves in these ways they're already stirring emotion in consumers. Guess what kind of emotion? Maybe this video will help paint the picture.



So...what do consumers want in a car buying experience? I have my opinions, but I want yours. You took the time to read this, so think like a consumer (if you can) and let the community know your thoughts.

With encouragement and hope.
Shaun is the CEO and Consultant for Dealer Advisor

 

[Kevin Frye]

Most car buyers are afraid that they will not get a "good deal" on their new car. Why? Most everything else they purchase in life has a set price, there is no negotiation, and they can usually identify that lowest set price with little difficulty if they do some research. When it comes to cars, they feel like they are out of their element (unlike overseas, Americans are not very experienced in "haggling/negotiating"), and are wary of car dealers. They don't know the "cost" of the car, and they know that the MSRP is certainly not the "set" price, so they wonder - "what is a fair price for this car?". They are also afraid to speak to or meet with a dealer as they feel they will subjected to high-pressure sales tactics. Ultimately - I believe the consumer wants to know that they are getting a fair deal with superior service that respects their needs and desires. Our challenge is in how to successfully (and consistently) meet those needs while being realistic about what actually works in the demanding auto sales environment. Kevin Frye/eCommerce Director/Jeff Wyler Automotive Family

 

[Joe Pistell]

I am a marketing director and newbie in the auto industry (4years). Prior to this I have been self-employed for decades so I understand Darwin's rules of financial survival. I am the PERFECT outsider to address this question.

Shaun Raines writes:
>>>Can you say loss-leaders? Can you say trickery, manipulation, coercion?

 

[Gerald]

Let's not kid ourselves here. Joe's comments are dead on. We are forced by the virtue of our the basics of our business to create hype (ala King of Cars) to create a circus-like level of excitement with customers. Newspaper ads for 1/2 off new cars, ultra-low purchase prices, payments so low no one could qualify for are all the same. They are created because the customer asks us to. That is the only way to get people into the door is the hope for gain. And it isn't only in our business. As I am looking for a big screen t.v., I find myself scouring Amazon, Cnet and other websites for info and prices on t.v.'s, and realize at some point, the price will drop to a point where the customer service (or product quality) will not be palatable at any price.

As honest as we are with our dealership, we still have customers who ask us to lie to them when they have offers from other dealers who are using rebates with incentivized rates, obscenely high trade values, etc. We refuse to.

If customers want the "game" to stop, they will stop rewarding the unscrupulous handful of dealers who lie to them and buy elsewhere. If, on the other hand, your advertising WORKS, and it is accurate (the disclosure is thorough, the vehicle is/was actually available, etc.) then we have done our job. Like Nike always said, "Just Do it!"

 

[Glen Garvin]

I agree with Joe, the consumer is armed and full of information (no duh) but I recently shopped as a consumer. I was more educated than any of the sales people I talked to. They didn't know about the product well enough and especially how to combine options and equipment packages. Why?

Little money is left over for the car dealer = less quality sales people = poor buying experience. They were nice guys in my recent experience but not knowledgeable enough.

In my opinion a customer wants to make sure he gets a good deal and that a neighbor doesn't tell him what a fool he is because he could have gotten a better deal. Help them make a good decision, help them with questions and give them a fair deal. It wasn't about a couple hundred dollars for me. It was about the confidence of shopping with an advisor/ consultant to my automobile purchase.

 

[Tim Morris]

Joe,

Sorry, but I need to get Shaun's back on this one. With the (possible) exception of the travel industry, I can't think of another business that advertises using loss leaders the same way we do in this business. Come on, Supermarkets? Sporting goods stores? When my supermarket chain advertises Ribeyes at $7.99/lb, I don't get the butcher coming out to tell me "those particular steaks have been sold, but follow me, we have some steaks just like them with some additional equipment!" Last week when I bought a new Driver (spring is coming, almost time to get back on the course!!!) at Golfsmith, I went looking specifically for a particular model I saw advertised in their Sunday paper insert. Guess what? Every single club was priced exactly as the ad said they would be ($299, a hundred bucks off, great deal!!!). Thinking like a consumer for a moment, I would be really pissed if I had gone in there and been told that the ad only applied to one particular stock number, I just missed the fine print.

These types of businesses don't use the "loss leader" in the same way. When they do use loss leaders, they do so in order to drive sales of other profitable products, i.e. eggs and milk may be advertised and sold at a loss in order to sell more ribeyes to those same shoppers. A certain golf club may be advertised at a loss in order to sell a dozen golf balls to every buyer as well. I think what Shaun is referring to is the shady business practice of "only one at this price" advertising.

Using the argument that "Consumers have all of the information tools needed to chart their own course, they can take control of their own fate" only makes it more shameful that some (read: almost all) dealers still try to use this type of trickery to seduce customers. And we wonder why they don't trust us. They have all the information available and we still insult them with our dishonest ads. Why don't we just be honest with our customers? I know, I know...because the dealer down the road is advertising pickups at $12,988...so we have to!!!

You can come up with better than that for your marketing efforts, Joe. We have all been familiar for quite a while now with your level of intelligence, you are an impressive guy with a lot of great ideas. Loss leader advertising is beneath you.

Now, back to Shaun's original question: what do consumers want in a car buying experience? I think they want an honest, open, transparent, non-confrontational process. If I were buying a car today, I would want the freedom to compare makes, models, and options in order to further educate myself. I would want a sales consultant who is familiar with the product and his/her own dealership, who can display legitimate reasons to do business there. Next, I would want a transparent pricing/trade discussion. By transparent I mean a process that is easy to understand, shows me the dealer has nothing to hide, and doesn't insult me by assuming I have not done my research. Next, I want an honest financing discussion, and as an educated consumer, I understand that the financial aspect all boils down to arithmetic, so please don't try to juggle numbers...otherwise I will feel like their is something hidden. After that, just give me a clean car with a full tank of gas.

Tim

 

[Brandon Keepers]

I am not a marketing person. But I have bought a car before and I disagree with Joe. I am a twenty-something web consultant (which means I know everything, right?), so here's my take on it.

Auto sellers—like real estate agents—depend heavily on information-asymmetry; their value and advantage is that they (used to) have more information than the buyer. They know about all the cars and they know the bottom line of what the car is worth. The car that they are selling is no different from the car down the road, so the only value they provide is the information.

Shopping for cars is one of the most anxiety-producing experiences I've had. In Joe's words, I feel like they're using their "underhanded schemes" to try to lure me into buying anything. I will avoid sales people at all costs, I know I'm not alone in this.

As a result, I do most of my shopping and research online. I'll read reviews to figure out what I want to buy, and then search around to find a good deal. Since the sales person no longer provides any value in this transaction, I will buy it online if I can.

If I can't, then I'll walk into a dealership armed with all the information I need. If I can't get a fair price, I'll find someone that can give it to me. Note that I say "fair" price; I'm not looking for bottom dollar but more importantly best value, which includes the experience.

So, how do dealers appeal to a person like me?

1) convince me that I can trust you. This means throwing out all your schemes and trickery and being honest with me. This may even involve acknowledging that you're not willing to sell it cheaper than what I could get it elsewhere. So how do you compete?

2) Give me some other tangible value for free, like service. If I trust you, and you can give me something that no one else is offering, I am willing to pay more for it. You need to differentiate yourself from the other guy that's trying to con me on the same product.

 

[Shaun Raines]

Joe,

To answer your question (which I assume was rhetorical), I have spent time outside of the car business. While I appreciate your honest comments, I respectfully disagree with your industry comparisons. I know that any marketing effort with a chance must be creative, compelling and convincing to attract buyers, but the car business has in many ways become proud of justifying the art of lying.

You may be sick and tired of the rap this industry gets and you may believe the old days are gone, but being a self-admitted marketing bastard responsible for cooking up the luring schemes contributes to the rap the industry gets and keeps the old days very much alive.

Last, but not least... no need to say sorry. We're all big kids and I really appreciate your points of view. I don't believe you meant any offense and even if you did, none taken.

To all,

So... what do consumers really want in a car buying experience?

 

[Joe Pistell]

Note to all,
Under no circumstances do I support LYING. Because I don't take the pollyanna view point, does it mean I support lying.

Let's look at "what a customer wants..." by comparing Tim Morris's visit to Golf Galaxy to buying a car.

do we go to Golf Galaxy and negotiate? What? no one going there even tries to negotiate? That'll be the day at a dealership.

Did you get a low trade-in price on your old clubs? Were you pissed when you found that you owed more on your old clubs than the trade-in offer? What? A straight deal? No upside down trade?

Did you get the color of your golf clubs that your wife wanted? What? They only come in one color?

Did they stock the golf club with that exciting options upgrade package that your pal has? What? There are only a few shaft flex options?

We make comparisions to other industries and think it'll translate to car sales.

If cars were CHEAP like golf clubs then dealers would stock every damn option/color group... just like Golf Galaxy does.

Joe

 

[Joey Stivick]

Sorry, but does anybody really care about what the consumer wants as long as we sell the car and make the money? This CSI stuff is so over rated. The Factory makes a big deal about it, but they really don't care. It is all lip service to them. They just use the CSI as leverage to hold over a dealer, but it is not because they really care.

The consumer cares about price, getting in and getting out, they don't want to be your friend, sorry. Believe me, they will gladly go to lowest dealer and give two cents about their buying experience. How many of them even remember their sales reps name a week after they buy the car? Not many to be sure.

Some State's and the Fed's for sure have dealer's so regulated that it is very hard for a dealer to pull the kinky stuff they did back in the day. If they do kink it they eventually will get caught and they either get fined, suspended, or lose their license. Granted, there are several state's that have absolutely no regulation and it is still the wild west and the factory is the only one regulating the dealer. In any case, the factory calls at the end of the month for your sales numbers, not your CSI.

All this hog wash about the "Buying Experience", la dee da, stuff is for the birds. Get 'em, get 'em out, make as much gross as you can, and move to the next deal. Face it, they don't give to shakes about me, what a nice guy I am, or how community oriented my dealer is. How many times have you been the nice guy, broke your tale bone to give "Completely Satisfied" service and they blow you off for $50.00 to your competition across town. Oh, but I had better service and they still didn't buy from me........waa waa.

This doesn't mean you have to lie to them, cheat, steal, kink, badger, be mean, be insulting, etc...It just means get 'em, and get 'em out. I guarantee your CSI will go up 100% if you cut their time in the store in half. No back and forth four square Olympics, no hold them in the box forever squeezing them for every cent.

Sorry, but it's car business, not car friends.