Thursday, 6 September 2012

The Best Price, Isn't Always the Best Deal

What is generally, the first question your friends and family ask you when you buy a new car? What kind of deal did you get? Now it's your time to shine, and tell them that you bought the second cheapest one you could find doing your research and price comparing with other dealers. The dealer wanted One Hundred Billion Fazzilion...Yen. But you negotiated your way down to it being the cheapest car out there! Your friends and family are stunned at the price you worked out!
But WAIT! Was it the best deal??
And how and when did the Car salesmen become Dr. Evil in this situation?

How...WAR. When...World War 2.
You see when Canada and the United States joined in the war, all of the factories and man power stopped making civilian automobiles, so they could help the the war effort. Civilian vehicles were not produced from 1941-1946. So when vehicles were finally being produced, there was a huge demand for them.

This was a time when dealers were getting very few cars and the salesmen that sold them realized they could sell them for more and more money. They had an unlimited supply of customers with a limited supply of vehicles. It really is simple economics.
 Also this was at a time there was no such thing as a window sticker, and no one cared about customer satisfaction, or the long term quality. Most customers didn't even get to pick and choose the color or style they wanted. They just felt fortunate enough to get one! You also have to keep in mind that most roads were worse than dirt and the over all quality of your vehicle was fall less then the Nissan's you see today. If you were lucky enough to buy a car before the war, chances were it was on it's last leg and out the door.
With this formula at hand some very dubious and sneaky business practices were born. And have created a stigma in car sales that has lasted over 65 years. 

Fast forward to today. We have window stickers that let the consumer know what the suggested retail price is of a car. Consumers have the power of the internet. To help them research and decide what colors and trim levels they would like. With sites like it is easy for you to find vehicle values and information. With the amount of accessible information out there a lot of times, the consumer knows more about the car then some of the salesmen out there.

Generally sales people are just like you, they are just trying to make an honest living and have no intention of being dishonest or deceitful. A good sales person can save you a lot of time and money. They can answer any questions you have. You may think you want a big bad Titan pickup-truck. But with talking to the sales person you realize you don't need a truck for your lifestyle and choose an Altima instead. Saving you thousands in the long run. Buying a car from someone you can trust brings an intangible aspect to your buying decision. A good sales person will be there after the sale to answer all your questions, or give you advice about servicing. So the next time you hear about someone bragging they got the best price on a car from Joe's Auto and Repair Shop, remember, the best price isn't always the best deal.

1 comment:

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