When dealer competition hurts the customer

[prod]

I am buying a new car. I wanted specific options and colors, and signed a deal for a decent price. They promised that they could find one locally and do a dealer trade. I realized it would take a few days. I called and visited for a couple of days, but they just said they would call me when a car was located. At home, using the internet, I located one myself within a few minutes and gave my salesman the vehicle information. He said the trade manager preferred to find it himself, and will let me know.

I took a drive to the second dealership to see the vehicle and was greeted by a salesman. The car seemed to be what I wanted, so I told him I didnt want to take too much of his time as I already had a deal worked out for a dealer trade. They said the two dealerships had traded before and had a good relationship. I thanked him and left.

A couple days later the first dealer calls me up and says that vehicle is the only one they could locate and isnt being released, probably because I went there and expressed interest in it.

I am now stuck without a car for the christmas holidays. I have no idea when or if it may be available. Even if there is a possibility of breaking the sales contract and signing with the second dealer, I dont want to give them my business if that was their intention. I respect the first deal and the work done to get it.

Has anyone had a similar experience, or can offer some advice?

[coaster.n3rd]

Originally Posted by prod

I am buying a new car. I wanted specific options and colors, and signed a deal for a decent price. They promised that they could find one locally and do a dealer trade. I realized it would take a few days. I called and visited for a couple of days, but they just said they would call me when a car was located. At home, using the internet, I located one myself within a few minutes and gave my salesman the vehicle information. He said the trade manager preferred to find it himself, and will let me know.

I took a drive to the second dealership to see the vehicle and was greeted by a salesman. The car seemed to be what I wanted, so I told him I didnt want to take too much of his time as I already had a deal worked out for a dealer trade. They said the two dealerships had traded before and had a good relationship. I thanked him and left.

A couple days later the first dealer calls me up and says that vehicle is the only one they could locate and isnt being released, probably because I went there and expressed interest in it.

I am now stuck without a car for the christmas holidays. I have no idea when or if it may be available. Even if there is a possibility of breaking the sales contract and signing with the second dealer, I dont want to give them my business if that was their intention. I respect the first deal and the work done to get it.

Has anyone had a similar experience, or can offer some advice?

Its cool, you thought you were being helpful.

Searching the inventory on a website is a good idea, but it never ever means that vehicle is going to be in stock. That is why it is best to let the dealer do the work. At least once a month someone comes in and will say to me " I saw this vehicle on the website. I want it." and I have to tell them it is not available. usually my inventory on our website or a GM website is 15 days old and anything could have happened since then. Vehicle was sold, was a sold order, or was traded away.

Telling the other dealer you had a deal worked out was also not a good idea. He doesn't care about your other deal and can't guarantee that the car will be available for trade. He may have been just blowing smoke about the relationship with your primary dealer or that vehicle actually sold in the the time it took the other dealer to look at it. Once you express interest in a vehicle, the dealer may be an ass and just decide not to trade it because he knows your willing to come to him. Afterall you did take the time to stop by his lot.

Next time, let the dealer do the work. Thats what we get paid for.

[ChebbySalesDept]

Originally Posted by coaster.n3rd

Its cool, you thought you were being helpful.

Searching the inventory on a website is a good idea, but it never ever means that vehicle is going to be in stock. That is why it is best to let the dealer do the work. At least once a month someone comes in and will say to me " I saw this vehicle on the website. I want it." and I have to tell them it is not available. usually my inventory on our website or a GM website is 15 days old and anything could have happened since then. Vehicle was sold, was a sold order, or was traded away.

Telling the other dealer you had a deal worked out was also not a good idea. He doesn't care about your other deal and can't guarantee that the car will be available for trade. He may have been just blowing smoke about the relationship with your primary dealer or that vehicle actually sold in the the time it took the other dealer to look at it. Once you express interest in a vehicle, the dealer may be an ass and just decide not to trade it because he knows your willing to come to him. Afterall you did take the time to stop by his lot.

Next time, let the dealer do the work. Thats what we get paid for.

That is all absolutely correct.

Now, since the second dealer knows that you are a customer of the first dealer, they're not going to give the car up. Now, if you really want that exact vehicle, you need to secure the car at the dealer who has it and then cancel the deal with the first dealer. You may pay more but if that's what you want, you gotta pay for it.

Just a suggestion, once any customer signs a buyers order, stop shopping or don't sign in the first place. If the terms and the trade or whatever is not sitting with you 100%, don't write the deal. Be sure before you sign. WE REALLY DON'T NEED THE PRACTICE.

Thank you.

[BryceStrong]

Prod, you ought to wait then. I don't like prospects lying to me, but if you really, really want to deal with the first dealer, tell the second dealer that you've bought something else. Then wait. If it's still available and if there's still no hard feelings, the first dealer just might be able to get it for you.

Maybe you should explain this to my Yukon XL customer from last week...

[01cavalier]

In a way you shot yourself in the foot without realizing it. I agree with chebbysalesdept, they know that what they have is in demand, they would much rather sell it themselves. Dealers do not have to trade, it does cost them money to do it.

[coaster.n3rd]

For the Record. Prod, I understand you wanted your car quicker than it seemed it was coming. Next time, stop by the sales managers office or poke the sales person a bit more to get the ball rolling. Make your buying intentions clear and if you are very serious, you may even plop down $500-$1000 to show your solidarity and willingness to buy right away.

Its not that you need to convince the dealer. Its that they may be very busy doing the same thing for other customers. You may just want to try and get a better place in line by trying some of those things.

[prod]

Thanks for the responses guys, but theres something im not understanding here.
There is no reason the second dealer shouldnt give up the car if no one else wants it. As far as I know, Im the only one interested right now, they might as well get it off the lot and bring in something else that is in more demand. I made it clear that I was not going to buy from them under any circumstances, as I already had a deal for a trade and was just checking to make sure the vehicle was what I wanted. Im not in that much of a hurry, and I did put $6500 down to the first dealer. Im concerned now that the car will never be traded for me.
But the most important thing to me in all this is that if two dealers are so competitive that they screw a customer out of a car, then they should face some kind of reprimand from GM. That kind of thing is wrong, no question in my mind.

[BryceStrong]

Originally Posted by prod

But the most important thing to me in all this is that if two dealers are so competitive that they screw a customer out of a car, then they should face some kind of reprimand from GM. That kind of thing is wrong, no question in my mind.

If I owned the vehicle, had a prospect interested in the vehicle, and another dealership wanted to take it from me to sell to the same prospect, I wouldn't trade it either. I'd have no incentive to pay floorplan and lose a unit count for someone elses customer. Once again, folks, dealerships aren't charities. And neither is in the wrong.

[prod]

So most of you guys seem to be saying that as soon as I went to the second dealer to look at the car, I became a prospect to them. That certainly wasnt my intention, and I made that clear to them at the time.
Is there no way of encouraging them to release it for trade, other than being helpful to a customer?

[Bravada]

usually my inventory on our website or a GM website is 15 days old and anything could have happened since then.

One thing bothers me - this is a website, not a print catalogue. Why can't it be updated daily or (gasp!) in real-time (shudder!)

When Internet/WWW first became recognized as a business phenomenon, I was at a multi-national conference (with video-links and all) where some American professor, who recently rebranded himself as an e-commerce expert (given his tenure), proclaimed "new tools = new rules". I've responded that business and business and not much will realy change.

Unfortunately, I was even more right than I thought...

This whole thing also signifies how stupid the "build it and they will come" system is - this is America, not Siberia, and you should be able to spec the car to your preferences and have it delivered in 2-3 weeks with the added benefit of not having to take one that has been collecting dust and mildew on the lot... The dealers don't have to have their cash frozen in heaps and heaps of vehicles and worry how to push the ordered vehicles, and the manufacturer doesn't have to cover the cost of it all (which they actually do).

[paul8488]

Is there a time-limit on a purchase like this? You have your money down and you signed... what happens if they don't find a car in a month? Two months? Six months? Surely there's a time limit, no?

[Bravada]

Surely there's a time limit, no?

You've been to France for too long, Paul

[caddycruiser]

Originally Posted by prod

So most of you guys seem to be saying that as soon as I went to the second dealer to look at the car, I became a prospect to them. That certainly wasnt my intention, and I made that clear to them at the time.
Is there no way of encouraging them to release it for trade, other than being helpful to a customer?

Essentially yes, and this happens all the time.

Trades are easy with vehicles that are simply just sitting there and no one's really come to even look at (from what I've seen/heard over the years), but even one stopping by to see one and saying anything about a trade...that happens.

Happened with us before when we were Suburban/Yukon XL shopping. One as we wanted was only available 2+ hours south, so we were working with the local dealer to get one. Found one that was perfect and simply did the GMBuypower email thing to see if it was actually "in stock" at the other dealer.

They tried a trade, and it was refused. Could have been for a variety of reasons, but I still think that was one.

[ChebbySalesDept]

This is where things always get sticky.

To address a couple of issues:

If you gave the dealer $6500 up front to get you a vehicle, it should have been explained that there is NO GUARANTEE they could get you that exact car. There are way too many possible circumstances that would foul up the deal. Let's say the salesman does the search for you while you're sitting there. He says he found one at Dealer B. You say you'll take it. There's no way of knowing that Dealer B already sold it, promised it to another dealer, it has transportation damage, it's a demo, etc. That's the chance you took by not buying "out of stock".

If GM called to reprimand any dealer, they would get laughed at. GM is not allowed to get involved in sales policies. In other words, if your dealer decided to keep your deposit (they shouldn't), that's a legal issue, not a GM/Dealer issue.

As far as real time updates and the WWW, the same things apply as above. The moment you search for a car on the internet, we may have delivered it to a customer 5 minutes ago and by the time we report the delivery, it may be the next day. Updates are not real time in the auto business.

Do yourself a favor, go to a dealer, make the deal and take the car they have in stock. Otherwise, there are no guarantees.

[Bravada]

Updates are not real time in the auto business.

Which is why I said that this business is behind. And I hate the dealer-favoring legislation in America (and increasingly in Europe), tying down manufacturers' hands if they try to improve the status quo...