Car dealerships are an essential entity in the automotive industry in the US. They sell the necessary vehicles to vehicles and reduce the need for marketing for many manufacturers. However, many consumers dislike or even hate car dealerships, with some thinking that there is no real need for them if only manufacturers decide to sell directly to consumers.
The car dealership market is estimated to be around $900 billion. It holds a fraction of the trillion-dollar automotive industry and is considered a key sub-sector in the sector. However, how Americans view car dealerships tell a different story.
Some salespeople are beloved in the community. For example, salespeople in hardware stores are considered to be humble and helpful when it comes to handling consumers. Likewise, real estate agents are considered to be essential in the industry. However, some salespeople, specifically car dealers, are considered to be some of the worst.
If you ask an American what they think of car dealers, you’d hear them say “sleazy, shady, and greedy.” A Gallup poll has even shown that car dealers are barely honesty, with many Americans thinking that they care very little about being ethical and honest in their profession. But why do Americans think so poorly about car dealers?
Looking into the identity of car dealers, we can extrapolate a couple of things that make them untrustworthy. First of all, car dealers get paid on a commission basis, which means they don’t get paid if they don’t sell. Additionally, unlike real estate agents who only have to deal with a couple of homes to get through the year, car dealers have to sell double that amount if they want to survive.
Adding the fact that the industry is so competitive, and you have a car dealer who will do anything to sell a car to feed their family. So most of the time, you’ll see a dealer do their best to sell you the most expensive model of a vehicle with maximum insurance cost. They will do everything in their power to do precisely that because the best deal can mean that they can have enough funds to sustain themselves for a month.
Many dealers think that they can get away ripping off consumers, and from time to time, they do. The problem with pulling off such a transaction is that consumers will think that the industry is filled with people.
There are many rip-off deals in dealerships, and it works for some people who don’t know the math behind their finances. Some end up purchasing high-quality insurance they don’t need, while others purchase additions to their cars that barely make any difference in performance. One of the worse rip-offs is selling an old car as if it’s new.
It becomes problematic when the consumer finds out because the dealership has to worry about its integrity and the entire industry.
Another problem with car dealerships is repair troubles. It’s almost impossible to get your car fixed without the bureaucracy and hassle involved in dealerships.
For example, certain brands that aren’t all that famous in the US might lack the necessary parts to fix them when you purchase them in your local car dealership. A head gasket fix for your Subaru car might take a couple of months because the dealership might have to get that item delivered. The dealership might even add on top of your bills the cost of delivery. This can be really stressful if you need to use the car in a couple of days.
Another problem with getting your car fixed is the insurance costs. Dealerships usually provide insurance for your car. However, it is a complicated process, and you might end up just checking everything on paper. This can lead to a mountain of expenses for a singular repair. Suffice to say. This will burn a hole in your pocket.
Lastly, we have to talk about paperwork. On average, it takes at least two hours for you to purchase a car because of the paperwork behind it. Most of us want to sign it and get it over with, but because of so much deceit that we relate to the industry, we end up reading each word and letter behind every contract we sign.
Consumers don’t like this, and they want to get rid of it. This is why direct-to-consumers selling such as the ones found in Tesla is considered to be so robust. It’s also one of the main reasons why people are purchasing Tesla cars nowadays.
Knowing about these things is key knowledge if you’re planning to start a local car dealership. Improving upon the things we’ve listed above and developing consumer trust should be your main priorities. This will ensure that your dealership is unlike no other, hence, increasing your potential sales.