A few years ago I went with my parents to purchase a pickup truck that would be capable of hauling a camper and got to witness the sales process. I have heard horror stories from my grandparents about their experiences of purchasing new vehicles over the years. With the invention of the internet and therefore, the easy access to all kinds of information, the automotive sales process has changed drastically in one generation.
Back before the availability of this information, the salesmen were the experts and knew about all of the features of the cars on the lot. My grandparents tell stories of car salesmen taking their car keys and driver’s license and not giving them back, basically holding them hostage after a test drive and being at the dealership for hours. Salesmen would often plead them to purchase the vehicle, using lines such as, “what would it take to get you to drive away with this car tonight?” They were also encouraged to just take the new vehicle home for a day or two to try it out and leave their current vehicle This would be especially true near the end of the month when salesmen were trying to reach their sales quota. They also said that the negotiation process between the salesman and the customer went on for hours and sometimes days. The salesman would also use a third party, the manager or the financial guy. The third party would be used as a gatekeeper of sorts or the “bad guy” during the negotiation process. In addition, the service department really was not pushed, nor discussed much. If it was it was only in the context of asking the customer if he would be servicing the vehicle there. If the customer said yes, the salesman may offer a little more off of the price.
Due to the availability of information via the internet regarding prices, features, vehicles, and options across nationwide dealerships, the whole automobile sales process has changed. The customer comes armed with pricing information, options, and he knows where other vehicles are located that may be purchased. Back before the availability of information on the internet, the salesmen were the experts and knew about all of the features of the cars on the lot. Part of their job was to educate the customer about the features and benefits of the product. When I went with my parents to purchase the truck recently, my dad knew more than the salesman about the truck and its features. He also knew the bluebook value of the vehicle, the features, other comparable vehicles available in the area, and their prices. So, there really wasn’t much negotiation, the salesman already knew the lowest price he could offer, and my dad knew what other comparable trucks were going for. There were no high pressure sales tactics at all. We took a test drive, and just chatted about things in the truck. Then we were given a tour of the service department and were told how good their service department is with convenient hours and we were shown the very large service waiting room with amenities such as a large screen tv, snacks, drinks, computer and phone charging stations and comfy sofas and chairs.
After the tour, we went back to the salesman’s office to talk more. My dad said what he would like to pay and the salesman agreed, then the papers were signed, the truck was paid for, and we were on our way. It was a fairly short visit, with very limited negotiations, if any. I believe that this all occurred because both the customer and the salesman know that they both basically have the same information. They both know what’s available and the competitors, and their prices. The availability of information via the internet has transformed the automotive sales model in one generation.
BoweryJE22
Good illustration of how the digital age has changed sales. I think the equality of information between buyer and seller makes the sales process better on both ends. In addition to helping the buyers, it helps weed out bad/dishonest sellers, which promotes honest sellers.