Car Dealers vs the Web: GM Shifts Toward Online Purchasing 160
cartechboy writes "Car dealers may be in for a new battle, and it turns out existing car manufacturers are joining the fun. Tesla Motors began the rebellion by trying to sell electric cars directly to buyers. Car dealers have fought that effort state-by-state and even complained to the DMV about Tesla's website. But things just got a little more interesting. General Motors announced plans to expand its new web-based shopping tool (aka a shopping web site) that allows customers to bypass showrooms when buying new cars. The idea is to use the Web as a giant test platform to see if the automaker can better target people who use the web to buy things. The catch is that the web app, called 'Shop-Click-Drive' will allow users to do almost everything they'd do at a dealer: customize the car, get pricing and financing and even arrange for delivery. But then when you push the button, your "purchase" will be routed to GM's network of 4,300 dealers, so you still have to visit a local dealer to sign on the dotted line. Even with this limitation, the move is still making dealers nervous. GM dealers aren't required to participate in the web-based test, and company officials say they have had some dealers turn it down."
Re:Good riddance ... (Score:4, Informative)
How would online options really help with determining what has good feel/performance for a customer.
Depends on how much the customer cares about feel/performance. There are people out there who want basic transportation and aren't all that concerned with the other stuff. When I had a short commute, I didn't really care. When I had a long commute, I bought a new car because if I was going to spend an hour-and-a-half somewhere, I was going to enjoy it.
That said, I agree. However, look at Tesla--they have showrooms [teslamotors.com] where you can check out the cars. They do test drives, though you might have to arrange it in advance--I'm not sure you can just walk in and say, "Hey'd I'd like to test drive a roadster!" So they keep a model or two around for the test drive. You don't need acres and acres of land to park a bunch of cars that you hope to sell.
Re:This just in... (Score:5, Informative)
the last car i bought, 5 or 6 years ago, i considered a GM car. I had just gone through a great experience buying a honda for my wife, then GM came along to show me how miserable a shopping experience could be. There were a couple of options that made me want this car, but then I couldnt figure out how to get them. The salesman just wanted me to pick one off the lot, but they were over priced with options i didnt want, or didnt have what i came for. We looked at how to order the car, but the items all came in bundles... piles of bundles. One might have a sunroof, a certain radio, upgraded rims, and memory seat adjustments. of these I wanted the sunroof. Then you pick a different engine, and it changes the rims and radio and carpet, and you arent sure which set of overlapping choices would end up on the car. No one could figure that out. This happened for every option i wanted.
I then tried to configure on a website. again the options were a joke of complexity. At the end, I got to choose which dealership would contact me with a quote. I could choose 1, and only 1. I wanted to see what competing quotes might get me, but I had to start the entire order process over. This was going to take too much time, so I bought a Nissan.
Re:I was just thinking about this since... (Score:5, Informative)
Bought a car a few years ago, and found this non-profit that had a great strategy:
http://www.checkbook.org/auto/CarBargains_Secrets.pdf
You can never know what the dealership is getting from the factory in terms of kickback, so it's next to impossible to negotiate a deal all by yourself. The sales rep is never going to lose money on the car (despite what they may tell you); they'll just walk away. So even when they cry and tell you you're keeping them from feeding their family just know that they're making enough to cover their expenses. Your best bet is to put your purchase out to bid to multiple dealerships and let them fight it out. We did this and saved $2500 off the "invoice" price that Consumer Reports said we should be "aiming for" to get a good deal.
Let me say it again: make them bid; it's the only way to keep them honest.
As a side bonus, you don't have to deal with crazy add-ons, haggling, or waiting for managers to "approve" your deal. You e-mail the dealerships, tell them what you want, and ask for their final, out-the-door, all-fees-included price. Pick the winning one, print out the e-mail so you have it in writing, and go to the dealership to pick up your car. If they try to add anything on, just point to your e-mail and invite them to throw it in for the included price you've already committed to (we got "free" floor mats and locking wheel nuts, probably because they didn't want to bother to take them off).
Note that you have to be willing to contact multiple dealers, wait for responses, and follow through. If you want to buy the brand-new 2014 model whatever, in hot pink, and you need it TODAY, then this isn't the strategy for you. If you're willing to be patient to save a couple grand, try it out.
Re:Good riddance ... (Score:4, Informative)
Being able to buy it online doesn't mean you can't buy it in person or see it in person.
Re:This just in... (Score:3, Informative)
I had the same experience trying to buy an FJ Cruiser. Not every dealer though was a tool bag about it. I just called a bunch telling them exactly what I wanted until I got one that said "sure no problem" most lied or were ignorant that such a thing could be done.
The others all wanted to sell me a automatic, two-wheel drive big-rimmed urban bling cruiser with all the inane extra crap that makes it look "edgy and offroady".
I wanted the 4x4 manual transmission base package (steel rims, no roof rack, no fog lights, no little $500 dashboard thingy that has a thermometer and a compass, no $1500 navigation package, no special badging and stickers,etc). The funny part was most of the sales personnel took it for a spin around the block because they had never seen one like that before and certainly never a 4x4 or a manual transmission(Tampa Florida). I didn't mind these guys even let me order the complete set of dealer repair manuals for the FJ without any grief. Other deals told me no way.
Frankly I think Mini and Tesla are the only car companies that get it close to perfect on their websites. Let me go through every option available, show me what the car will look like, (and someday hopefully) have a "buy it now" or "have a rep contact me to finallize the deal" button. I don't mind having a good dealer available, much like a good mechanic, but frankly I don't need that much handholding to make up my mind about what I want to buy.
Re: This just in... (Score:5, Informative)