So why not advertise that value on an LED screen, with the value going up every day. There’s no deceit or sleight of hand, and a potential buyer knows that if they wait a day, the price is going to go up. It’s a win-win for the buyer and the dealer to sell that car today.

If gas prices are high, and people are only interested in small, efficient vehicles like hybrids and sedans, the dealership is still getting the same group of models – even if 50% of those are SUVs and trucks.

Also – perhaps also unlike the milk example – generally dealers don’t have a spare couple million in the bank to purchase the cars on their lot, so all of them are financed through a bank. The bank charges interest on the loan, so these slow-moving, less desirable vehicles that the dealer probably didn’t want in the first place are costing quite a bit of money just sitting there.

Finally, depending on what region the dealership is in, the dealer may be forced into a “regional advertising” group that decides what percentage of every sale must be donated to a common fund for things like TV ads. The individual dealer doesn’t have a lot of control over that number, but it does influence the price they have to charge to break even.

I definitely agree that people need to vote with their feet and share the really good stories in addition to the really bad.

I love The Great Food Truck Race! I’ve watched every episode of the show, and the new format this season is fascinating for anyone who’s ever wanted to open a restaurant.

I really like the idea behind The Redbox model but I’m not sure if car manufacturers would feel incentivized to do this (they must get something out of the dealership-manufacturer relationship). The finance guy should’t exist, but he does, to create the smoke and mirrors atmosphere–anything he marks up in terms of interest equals win-win for him and the bank, but in the end the consumer gets screwed by agreeing to a higher rate when in reality they qualify for a lower one. It’s good to hear that there are some good dealerships out there, consumers need to vote with their feet and be more informed but there are still so many bad ones that the image of a sleazy salesperson or finance guy is still warranted. Next time, I would definitely go the internet route. This post is also so full of win for mentioning The Next Food Truck Race (Seoul Sausage killed it!).

They have dealerships for a lot of other brands in their auto-mall, and while I have only dealt with the people at the Mazda part, I assume the employees at the other parts are just as nice and ethical, based on my experiences there over the years.

I finally found the car at two different dealerships, and had two completely different experiences at each when going for the test drive.

Going into the dealership, I knew exactly what the sticker price was, the trade-in value, and because of the company I worked for then (and now), the special pricing I was entitled to as a corporate employee per the agreements with that manufacturer and my employer.

The first dealership was a joke. The sales guy saw me pull up in my little Miata, and pretty much insulted my intelligence by assuming I knew nothing about the vehicle I was there to see. Instead of showing me the car I asked about, he kept trying to show me other “sportier” options– all of which were more expensive and not what I wanted. I played along until I finally got to the car I wanted. When we started talking about the price, he (and none of the other salespeople) would acknowledge my employee pricing as valid, and they also tried to lowball me on my trade-in price of the Miata… until I pulled out printed copies from KBB, and NADA, as well as the pricing guide for my company. Even then, they tried to argue with me and change the price.

Because of this unpleasant first impression, I told them I needed to think about it, and then visited the other dealership to see if it would be a better experience.

When I pulled up at the other place, the sales guy actually listened to my request and showed me the car I asked about without trying to show me other more expensive options. I didn’t even have to request the special pricing or haggle on my trade, as he noticed my company logo on my shirt and gave me that price from the get-go, as well as a fair quote on my old car. After deciding that I wanted to do business with that dealership, we set our appointment for my purchase for the next day, and when I arrived to do the paperwork, I was surprised to see that my new car was getting a little extra freebie of tinted windows, without my asking about them or being charged, just because the sales guy wanted me to be 100% happy.

Since then, I pretty much only deal with the second place. I was most impressed a few months ago when I visited that dealership’s service department, and the service manager remembered me so well that he asked how my dog was doing. Knowing that they paid that much attention to detail with their customers really impressed me, and made me glad I didn’t buy from that other place (which coincidentally is now out of business).