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Because if you want a new car there simply isn't any other option. All of the dealers are the same. That's why I raised the point about dealers and car salesmen really being nothing more than an artificially propped up (by laws and regulations they lobbied for) segment of the market. I think GM, Ford, Toyota, etc...have every right to make a profit. What I fail to understand is why they should have to share that profit with "BIG BOBS CAR-O-RAMA!!!" and why I should be forced to pay extra for it. Auto manufacturers actually produce a product, spend billions on R&D, and then commit to support in the form of OEM parts after the fact. Car dealers/salesmen point out where the cupholders are and tell the customer "Feel how it hugs the road..." The manufacturers ought to maximize their profits by getting rid of the dealership model and selling direct. Even if I end up paying the same price, I'll feel a lot better that the profit is going to a company that, at the end of the day, actually produces something useful.
And you'll do the warranty or post warranty work yourself? Look at the mess GM got themselves into....just think how big that mess would be if they had to own whatever it is, thousands of dealerships all around the country.
Odds are that the cost to you would be even higher. Being forced to pay the guy that cleaned up your car once it got to the dealership $30 an hour plus benefits can be expensive.
Where did the profit you made come out of? Did you not expect to be paid for your services and provide for your household?
It's okay for the service department to charge somebody 120 bucks an hour to pay a mechanic 20 bucks an hour to fix their car (that's about a 600% markup) but making 5% on a 50,000 car is robbing them blind
Man, I'd love to have to pack my car up and send it back to Japan for warranty work, that'd be awesome. I wonder what UPS would charge for that.
You guys must live near some crappy dealers. There are some around here I would not step foot in to, but most certainly if one were to try to cheat me I wouldn't just sit there and sign up anyway, "because they are all the same." That's insane.
And you'll do the warranty or post warranty work yourself? Look at the mess GM got themselves into....just think how big that mess would be if they had to own whatever it is, thousands of dealerships all around the country.
If Tesla can do it, any manufacturer can do it. Of course there need to be factory trained technicians for warranty work, etc... There's no reason why a major manufacturer couldn't have stores just like Tesla where you buy cars and have them serviced. To suggest otherwise is absolutely ridiculous.
Quote:
Originally Posted by Tourian
You guys must live near some crappy dealers. There are some around here I would not step foot in to, but most certainly if one were to try to cheat me I wouldn't just sit there and sign up anyway, "because they are all the same." That's insane.
Whether or not you're being cheated is irrelevant. If I spend time looking at cars (as in, in the real world, not a lot or a showroom), pouring over stats online, reading reviews, comparing, etc...and I finally select the one I want, why should I have to pay someone to sell it to me? I just want to give the manufacturer my money and walk away.
It's okay for the service department to charge somebody 120 bucks an hour to pay a mechanic 20 bucks an hour to fix their car (that's about a 600% markup) but making 5% on a 50,000 car is robbing them blind
this is how the general public thinks
Because mechanics (at least the certified ones) are skilled labor.
Car salesman not so much. They're expendable (most of them). You may be the exception.
I was talking about car salesmen not adding any value.
The cashier at the general retailer adds value.
Never said dealers don't serve a purpose.
How does a cashier add value? I can scan my own groceries, and often do because I'm better and faster than the people they're paying to do that job. Pathetic if you ask me. How is that value?
You said car dealers didn't add value. The value they add is they can do the transaction NOW. Not 6 months from now when your car is unloaded from the boat, or whenever you get around to selling the car you already have. It's one stop shopping, the same as any other middleman. You can walk in with your car and walk out with something else. That's the value. Can people do their own DMV paperwork? As I am currently a loan officer, the answer is "no". I'd say 90% of the public has no clue about how to transfer titles or what paperwork they need to register a car. Do people find their own financing before they walk in? Most do not. Have fun learning Japanese when you call Toyota/Honda/Mazda when you need parts or need warranty work.
there's a lot of ignorance in this thread by people who are asking for direct from manufacturer to people sales. It's not that simple - most people still come in needing to talk to somebody to figure out what car to get. We're online here so you're dealing with primarily educated customers who generally know exactly what they want but what about the customers who want to test drive 5 brands and ask 5,000 questions to each salesperson about the car? People want to go somewhere where they can do the financing and trade their car in on the spot - not have to deal with selling car privately and then talking to their bank to get a check. The dealership model is a necessary evil.
No matter how advanced of a civilization we have, people still want to deal with people, especially on big purchases like this. Some people could buy a car online but many people would be absolutely lost.
Because mechanics (at least the certified ones) are skilled labor. Car salesman not so much. They're expendable (most of them). You may be the exception.
EXACTLY. I don't resent car dealers/salesmen because they're sleazy, I resent them because they add ZERO VALUE to what I'm buying. I know what I want, I know what color, what options, what trim level, etc...so why should I have to pay commission to someone whose only real purpose in the process is to help me find what I want?
How does a cashier add value? I can scan my own groceries, and often do because I'm better and faster than the people they're paying to do that job. Pathetic if you ask me. How is that value?
You said car dealers didn't add value. The value they add is they can do the transaction NOW. Not 6 months from now when your car is unloaded from the boat, or whenever you get around to selling the car you already have. It's one stop shopping, the same as any other middleman. You can walk in with your car and walk out with something else. That's the value. Can people do their own DMV paperwork? As I am currently a loan officer, the answer is "no". I'd say 90% of the public has no clue about how to transfer titles or what paperwork they need to register a car. Do people find their own financing before they walk in? Most do not.
this is correct
People here think that customers come in knowing exactly what car, what trim level, what options they want. Even in 2015, many customers need a salesperson to walk them through the process
Even my intelligent buyers often ask me 50 questions before they buy. The people who don't know what they want? Oh forget about it, you gotta babysit them through the sales process for 3 hours before they say yes.
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The manufacturers ought to maximize their profits by getting rid of the dealership model and selling direct. Even if I end up paying the same price, I'll feel a lot better that the profit is going to a company that, at the end of the day, actually produces something useful.
