Motoring Tips Presents The Top Ten Complaint Industries
Motoring Tips Found The Automotive Industry Overrepresented in The Top Ten
If we were to do a David Letterman Top Ten on the Industries that receive the most consumer complaints then the motor industry would fill three of the top ten positions. Position number 4 was the new car dealers then in position 7 came the used car dealers and following up in position 10 came the auto repair shops. According to the Better Business Bureau with 54,000 registered complaints this made the motor industry the “most complaint ridden industry last year”. With these statistics it is a wonder there is anybody willing to even consider putting themselves inthe position of looking to buy a new, or used, car.
Now in the interest of full disclosure I should clearly state here that my wife works in the industry and she is a well respected salesperson of after-market products. These products include the rust proofing, paint protection and fabric protection put on the car after the deal has been done.
The American Automobile Association’s Director of Financial Services Bill Gerhard said recently “Difficult times lead to creativity”. He then added “Advertising people will come up with sensational hooks in an attempt to get you into a motor dealership and once they have lured you there the salespersons goal is to sell you something – anything that will generate as much profit for the dealership as possible”
Some Dealerships present well and conduct business in a professional way
If you are in the market to buy a vehicle then it is a help to be aware of what the car salesperson is going to throw at you. At least, by being prepared, you will avoid the stress when a team of professional salespeople attempt to ambush you into purchasing. And once you have survived the sales process moving into the finance office to be greeted by a loan shark who wants to stitch you up completely.
So here are the SCAMS to avoid:
The Ambush:
There is no necessity for anybody to be involved in the sales process except you and the salesperson. If they involve the sales manager and the floor manager and the finance manager in the sales process you are being ambushed and pressured into buying. Just tell them quitely to “butt out” or you will go to their opposition.
The Confiscation:
Under no circumstances should you surrender the keys of your current vehicle until your deal is completed. Some dealers will make it their goal to capture the keys so that it is difficult for you to leave the premises when they start to apply the sales pressure. They might ask for your keys as collateral when you go for a test drive. Another ploy is they need the keys for the the sales manager to assess the vehicle for its trade-in value. Make sure, that if the dealing goes sour, that you can just get up and drive away.
Impending Doom:
Salesmen are taught how to introduce a crisis into the sales process so that unless you act right now the deal will not exist tomorrow. This process is called in the sales profession “Impending Doom” and make take the form of “I can only offer you this fantastic price for today – tomorrow the price goes back up to $54,000.” Or this is the last one left at this price and I have Mr Smith coming here at 4pm to look at this very car. These are all bullying tactics, albeit delivered in a very smooth and practiced speill, to get you to impulse buy. Do your research on the internet before you go to a showroom and know what you want and how much you are prepared to pay and if they can’t provide what you want then tell them so and leave.
Hidden Charges:
Examine the invoice carefully before agreeing to your finance arrangement. A common complaint is that items that were not requested on the vehicle are included in the final cost of the vehicle. These items may include things like my wife sells – alarms, paint protection, fabric protection and rust proofing. If you didn’t ask for these items then don’t pay for them. If you were forced into buying these items then walk away from the deal.
Bait and Switch:
A very common tactic is to advertise a popular car with a host of extras added at an unbelieveable price to attract a lot of people to the dealership. When they arrive they are told that that particular car was sold as soon as the dealership opened it doors but they have similar cars, without all the extras, at a much higher price. You have been conned to get you onto the premises and now the will bully you into buying from them.
Now here is a car yard to stay well away from
One person in five (20%) of people leaving a dealership without buying a vehicle do so because of poor treatment, sales pressure tactics or silly pricing games. The motor industry is aware that over the next few years it is forecast that revenues will drop by around 25% and they are already stepping up their pressure tactics to ensure that they are ahead of the competition.
Women play an increasing part in the decision to purchase a vehicle with recent analysis suggesting that in 85% of all vehicle sales a woman has made the final decision. A smart dealership would ensure that the women feel comfortable throughout the whole sales process. They would abandon the bullying tactics and the high pressure sales and do everything in their power to ensure that the customers return to their dealership until the time of purchase. Even after the sale has been done they would continue the relationship with follow up calls because the networking of the local women can bring in more business to the dealership than any advertising campaign ever will.
In closing there was a movie made about 15 years ago now about the car industry and for many years I used it for training people how to sell. While the movie is very funny and entertaining the sales tactics employed are first rate and obviously a lot of first class research went into preparing the script. I recommend that anybody about to purchase a motor vehicle watch this movie called SUCKERS before venturing into the showroom. What was produced as a funny representation of the industry in the 90′s has now become the mainstream car sales tactics.
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