Enemy No. 1: Car Dealers

In "Exposed: Secrets of the car dealer", Peter Cheney at the Globe and Mail "explains the tricks, tactics, strategies and scams" used by car dealers to  exploit customers, according to the national newspaper. The article offered a lengthy list of common complaints about dealerships and how a root canal is probably more fun than buying a car. Following the article were dozens of reader comments with loads of complaints and stories of brutal experiences. There was also plenty of advice on and how to fight back against unscrupulous dealerships.

As a new dealer, reading the story wasn't easy. It's tough not to take this kind of thing personally. Working six days a week at my new store,  the car business is everything to me. And really, doesn't everyone want to be liked? To hear that many people dread dealing with car dealers -- and are inclined to dislike you even before they meet you -- is a downer.

But I'm also realistic. I know there is bad behavior in the car business. There are misleading advertisements. There are old-school dealers who believe in pressure tactics over product knowledge. There are businesses who give only lip service to customer service. 

I also believe the industry is changing. I see more dealers doing business ethically and responsibly. And I believe those dealers should be rewarded with more business. In B.C., dealers are regulated by the Motor Vehicle Sales Authority. All salespeople and managers must be trained on consumer laws and licensed. Today, the industry is more knowledgeable of the law and more professional.

But the biggest catalyst for change might be pricing. Profit margins are shrinking as more manufacturers dispense with inflated pricing offset  by massive rebates. What customers want is vehicle that is well-made, suited to their needs and fairly priced. Don't we all want to know we aren't paying more  than someone else for the same product? 

This is the philosophy at Hyundai. It might have taken this to the extreme as Hyundai dealers often complain that profit margins are too slim! With vehicles priced much closer to the actual transaction values -- the price at which they ultimately sell -- it takes off the pressure. There is less motivation for salespeople to pressure, confuse or mislead customers. There is no need for protracted negotiations as there is little room to discount. The price is the price. The focus then turns to one thing: finding the car the meets the client's needs and budget. Customers can start to feel more comfortable with the process if they feel the pricing is fair for the value received.

Temptation is everywhere, that's true. Whether it is ego or economics, manufacturers feel the pressure to drive up monthly sales figures with larger and larger rebates or sales. When sales are slow, some dealers resort  to advertising with impossibly low payments, they offer giveaways, or make all kinds of guarantees to get people in the door. Then the pressure tactics and grinding begins. 

In our area, you can't get away with the kind of tactics mentioned in the article and survive over the long term. We need repeat business. We can't afford to alienate clients. We aren't perfect, but we try our best to be straightforward with our customers, to find out what they really want and need. Instead of conflict and hassle, we would rather develop a relationship with our clients so they become advocates for our brand and our store. These days, with so much information available to buyers, it is our job to help people make sense of it all. So as much as I don't like reading stories about shady car dealers, it motivates me to be different and to help change the image of our industry, however long it takes.