I haven’t been to a car dealership in three years nor have I paid any attention whatsoever to any dealership advertising. I’m also not that excited at the prospect of having to return one day to buy a car. But, I don’t think I’m alone in feeling that way which begs the question - is the car dealership dying? I’m not trying to spread gloom and doom, but it seems like most industries improve and innovate as time goes on. I haven’t seen that with your average corner dealership. That’s why our topic for this month’s BrandWire study left me wondering if there is even an answer - How would you re-brand and re-image a car dealership?
Here is my process when buying a car:
- Spend a few months narrowing down which car brands, types, and models I’d like to test drive. I do this through paying more attention to ads and other cars and trucks on the road.
- Take one excruciating weekend and go to dealerships to test drive the cars and listen to bad sales pitches.
- Hit the web searching for the best deal, comparing offers, and negotiating with people I don’t believe are giving me a fair shake.
- Sign papers and pick up car at selected dealership (while sitting through countless attempts at up-selling)
Maybe it’s the stigma or reputation of the dealership that makes me cringe when having to go. I’m not trying to type cast all dealers - some dealerships are better than others. My point is that car dealerships are what they are. I don’t think any catchy dealership tagline, logo, or branding campaign is going to make me think the way a dealership goes about their business has changed. It’s the process of buying a car that has to be redefined and re-branded.
If the average car buyer could rebrand the process, what would it look like? Well, I’m that average buyer so here is what I would like to see.
- I know pretty much the car I want. I’ve narrowed it down to two or three brands and models and now I’m ready to try them out.
- Next, I contact a new service which specializes in getting me cars to test drive. I sign-up online and then set up when and where I’d like to do my test drives. The service also offers no sales pitches - just informed people that tell you about the car, answer your questions and have no hidden agendas.
- I’ve decided which car I want and am now ready to contact an online service that will find me the best offer. I work with a non-commissioned rep who gets me offers and helps me work out the best deal. Through the process, I’ve also worked out a trade-in, license fees, any additional insurance, etc.
- I step into a dealership, pick up my car, and drive away.
Essentially what I’m suggesting is that the stale experience of the car dealership be minimized, the Internet play a bigger role, and new services be developed that help me decide what I want without the pressure.
Is all this possible? To be honest, I’m not sure. I don’t know enough about the auto industry to make exact suggestions. But, I do know enough about being on the buying end that I’d like the process to change.
Perhaps there are dealers out there offering what I’ve suggested above? What are you thoughts on the process of buying cars?
Get more high-voltage ideas at BrandingWire! Also, stop by and see what others in the group had to say on this topic: Olivier Blanchard, Becky Carroll, Derrick Daye, Lewis Green, Ann Handley, Gavin Heaton, Martin Jelsema, Valeria Maltoni, Drew McLellan, Patrick Schaber, and Steve Woodruff.
I’m right with you on this process, Patrick. And undoubtedly thousands of others are as well. It’s time to undo the old franchise/dealer model, and come up with something far more efficient and user-friendly!
Patrick,
I haven’t been to a dealership since 1988, but have bought several cars from people I trust. That should tell you something about my thoughts regarding dealers’ marketing efforts. Nice post.
[…] Patrick Schaber […]
Steve,
I tried to dig up some different angles for this post, but it kept coming back to the experience for me. That’s what needs to change.
It would be great for someone with inside knowledge to let us know what issues would arise with a change to the model.
Lewis,
I wish I had those connections! I’m hoping one of these years some innovation will creep into the process.
Clearly, the interests of the industry are still placed ahead of the experience for consumers. The few dealers that get it, handle it a-la-carte.
Cars change models every couple of years. Why don’t dealers!?! Great ideas Patrick.
Patrick:
Well said. I ran across a new (?) book by Sergio Zyman entitled Renovate Before You Innovate. The title intriques and perhaps relates to the quandry of dealership innovation. If innovation is thought to be “sprucing up” or changing branding elements and nothing is done to renovate the business model, well, success will be elusive.
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Hey Kevin,
I hadn’t thought of it like that before - Good point!
Hey Martin,
Sounds like an interesting book! The auto industry could use a few copies.
Hi Valeria,
It’s amazing to me that the car industry operates that way when there has been so much change in other industries. The model must not allow for much outside of what is already created.
Perhaps bringing in people from outside the industry will make a difference. I do agree with you that the customer experience, both in sales and in service, needs to be re-worked!
[…] Drew Mclellan, Martin Jelsema, Olivier Blanchard , Steve Woodruff, Valeria Maltoni, Becky Carroll, Patrick Schaber, Lewis Green … and now here’s my […]
I would love to see a service like the one you’ve described, Patrick. I truly hate the way that most auto dealers operate, and am really not looking forward to stepping foot onto the lot when it’s time to replace my car (which, sadly, is probably going to be sooner than I’d like).
I have 30 years experience in auto dealership positions. Started washing cars while in high school and attended technical school during the summers. While in college I was a mechanic and then a 3 bay shop manager. Later became a service advisor at a dealership and then service and parts director which ended in a promotion to General Mananger and then a later job change to running three dealerships at 500 cars per month and 120 million in revenue per year.
I was later in charge of an additional 4 stores and was promoted to dealer of record for the original three dealerships.
OK, now the point.
I am dying for change in the car industry and dealership process. We have the same challenge as the car manufacturer. When working directly with Oldsmobile management I found that the “old dogs” were at the age by the time they came to power that they didn’t ant to risk rocking the boat. When you get the power job and you are 55 and making 7 figures why restructure and take a 3-5 years hit in income and possible termination for the possibility of gain in the future. It’s the same in the dealership world. By the time you can afford to own a dealership you are older and have aquired a lifestyle that you don’t want to risk. This creates a uneven opportunity as compared the the risk.
Unlike DOT COMs the corporate dealerships are the same. They answer to the stock market and not to the consumer.
I enjoyed reading what the writer wants in a transaction, but the answer is too simplistic and would not fill the cusomter need.
I would be happy to assist in setting up a business model based on my experience. I believe that it is possible to give the cusotmer waht they want and make a profit, but it would be more personal contact oriented than just computer based.
Bill,
Thanks so much for offering the great insight! You obviously have knowledge of the industry than many of us do not.
You’re absolutely correct - my views on car buying were simplistic and I was hoping someone like yourself would come along and explain that. There is alot more that goes into buying a car!
Thanks,
Pat
Perfect analysis of the current state of the automobile buying process…even better is your desired scenario.
Customers are fed up with the stale routine they endure every single time they purchase a vehicle.
We’ve identified this need and trying to change it as well at
Auction Direct USA
Well simple enough, if dealers took the ability for the consumer to offer anything less than MSRP for the product they offer away from the consumer that would help the process greatly. However, the very fabric of our country and its business model is capitalistic in nature there for we allowed this “haggle” process to inter the car dealership model based off a fear of loss to the person down the street who will drop his price to capture a deal.
The whole concept of negotiation allows for a process that breeds unfavorable results for some of the people involved, and most of the time it ends up being the retail customer. The model you desire has to come from the top, starting with the manufacturer. Let us use Ford for example, if the manufacturer would stop the incentive game it would allow the consumer to make purchase decisions off the product they provide not the incentive that they get. The second value to this scenario would be a higher quality product for consumer consideration and let’s face it we all could use a little competition in the quality of the product we consume. That practice would usher in the ability for the dealer body to demand lower initial price points with an average mark up that is reasonable for all concerned, thus eliminating the need for sales tactics that are designed to pin the customer to the wall when working their car deal. As for the rest it truly starts with the people you are doing business with, we all understand the game or at least we know that there is a game being played. I would defiantly never step up to bat against a major league pitcher I would never hit the ball, nor should a consumer step foot in a dealership with out having Mark McGuire
It is daunting when going to buy a car because of all the hassle you get from the sales people, they should leave you alone to look around and not approach you at all until YOU are ready to talk to them!!
To: Sell used cars,
I think it’s the appraoch that you don’t like not that you are approached. When you enter a business you are interested in information. If you are not approached that would show a lack of interest on the part of the business. You wouldn’t like that either.
I think that Josh is on the right track. If you took away the fear of negotiation or getting a bad deal compared to the next guy that would take some of the the pressure off.
I like Patrick’s idea in the article, but if you had the choice of paying $1,000-$1,500 for the service he wants offered most people would rather negotiate to take their chances for a better deal.
The average guy or gal is a better negotiator than he/she thinks. The hardest negotiators are never satisfied no matter how bad the deal is for the business. And they are the worst customers after the sale.
I have come up with an internet site to help people who don’t like the car dealership process. To go to my website you have to go to your adrress bar and put in my website name there and see what you think!
www.ontariomotorvehiclelocators.ca
Thank you, Hopefully this will help people change the process and feel more comfortable when buying a vehicle. I have 20 years experience in the industry
I know this post is a bit old but I just stumbled on it and it looks like it’s still fairly active so if I may:
Just like anything else there are good dealers and bad dealers. I tend to believe the amount of good dealers greatly out weighs the amount of bad dealers. It’s just that the Bad Dealers are the one’s you hear about. You don’t find to many people screaming at the top of their lungs about a great car dealer.
There are a few dealerships trying to change the way things are done such as one price shopping (search CarMax or Mullinax Ford in Florida http://mullinaxfordfl.dealerconnection.com/AboutUs/)
or full pricing disclosure such as any AutoNation store using their new SmartChoice Menu.
You can take a moment and see for yourself if the dealer you plan on visiting is one of the good dealers or one the bad apples before shopping them by searching for their name on Car Dealer Check
Is change coming? Yes!
Is change going to be slow? Yes!
Why? Money.
It comes down to a quote I once heard a New Car Manager tell a customer.
Customer: That’s full MSRP what do you think I’m an idiot?
Manager: No, but I’d hate to miss you if you were.
Until we can change both the mentality of the average consumer, that won’t buy a car without haggling, and the average dealer, who wants to make the most off every consumer, it is going to be a very very slow process.