Unbelievable Dealership Experience - RANT

[Pete02LSE]

<RANT ON>
My wife and I are looking at replacing the LS with something bigger...think expanding family. While the LS will work for two car seats...it certianly will not work with two car seats, a double stroller...etc. Everyone knows that the trunk on the LS is less than large.

That said...we looked at a Chevrolet Avalanche today. And...it was extremely nice...04 with every imaginable option. So...while I knew it would probably be a joke, I told them to go ahead and see what they would give us for our 02 LSE AND my 94 Silverado. They came back with a total of $14k for BOTH!!! To boot...they didn't budge off of the price of the Avalanche. I all but told them where to stick their deal and that they were not only screwing us out of our LS they were trying to get my truck for free. I asked why so low...they said they rated the LS as fair. WTF??? It's immaculate. So...I threw it back at them and told them to price the Avalanche as fair...of course...no way. Funny thing is...they had a then new 04 GTO FOREVER...I mean...loooonnggg after the 05s were announced and on the road. Now I know why...they wouldn't budge on the price.

So...it looks like I will be selling the LS outright. I have already ordered the coils to fix the misfire at high RPMs and I'm going to see if that corrects my SST problem. If not, I'll be taking it to the dealer to see what they can do.

If you know anyone who is interested in an 02 LSE with or without the cat-back (I'd have the factory exhaust reinstalled if it would make the deal), let me know. It's got 67k on it, a new set of Cooper Zeon 2XS tires, valve cover gaskets replaced, new plugs and every option on an 02 except for heated and cooled seats. Metro-Atlanta I could meet you to see it. If you are interested...please PM me.


<RANT OFF>

Thanks for the vent,
-Pete
02LSE

 

[MangoMan]

I know how that can be. The sad thing about these cars is that their trade in value is nothing. In the wholesale market, theyre not very deireable for some reason.

 

[Beamer]

Well that experience sounds like nothing compared to how I was treated by a chevy dealer called Parks Chevrolet on N. Tryon in Charlotte, NC. NEVER GO THERE to anyone around my area, what they did to me was unexceptable and I could of sued I found out.

Anyway, sorry to hear that man. Getting out of a LS is a very difficult thing to do w/out getting a raw deal.

 

[ToddG]

Pete, its probably a good thing you found out early on that the dealer will not give you a fair price for your cars. Now you know you can sell them yourself and get the best price to put towards your new vehicle.

 

[DLS8K]

I have already ordered the coils to fix the misfire at high RPMs and I'm going to see if that corrects my SST problem. If not, I'll be taking it to the dealer to see what they can do.

I think you've answered your question as to why they evaluated it as fair. Unless of course you would like to fix everything that is wrong with the car, pay for advertising, pay for a detail, and then pay to put a dealer warranty on it. Also, if you wanted to pay the interest on the car when it sits on their lot, then I am sure they would be willing to give you an excellent rating. Honestly.....I'm not trying to sound rude, but they have a right to make money off of you just like your favorite restaurant.

 

[Pete02LSE]

I think you've answered your question as to why they evaluated it as fair. Unless of course you would like to fix everything that is wrong with the car, pay for advertising, pay for a detail, and then pay to put a dealer warranty on it. Also, if you wanted to pay the interest on the car when it sits on their lot, then I am sure they would be willing to give you an excellent rating. Honestly.....I'm not trying to sound rude, but they have a right to make money off of you just like your favorite restaurant.

I 100% agree that they have a right to make money. However, I just figured it up and they could have the potential to make $9.5k on the deal with my two AND whatever they make on the Avalanche. Here's my math:

$14k for the LS and the Silverado

They sell the LS for $17k and wholesale the Silverado for $3k. That's $20k. Less the original $14k...that's $6k in their pocket.

Now...give them the benefit of the doubt on the Avalanche and figure they have $22k in it. They sell it to me for $25.5k. That's another $3.5k in their pocket.

Think $9.5k will pay for their marketing and interest? I'm sure it will. However, how much more interest is that $22k going to continue to draw the longer it sits? And how many more marketing dollars will it tie up?

I have been around the car business my entire life. My Dad has sold new for a number of years and in between, he was a wholesaler. So, I have a pretty good idea what a dealer is going to do. Now, I may very well be a little off on the market value of the LS...however, I somehow doubt it is much. The one unknown I have is the Little Black Book. Which I can get...I just figured I wouldn't need it. I went off of kbb and NADA.

Ehh...all that to say...I don't have a problem with them making money...I really don't. But...just be fair about it.

BTW...we got the car from a DEALER with leaking valve covers and a misfire...neither of which we were told about and could not determine from a test drive around the block...is that right?

 

[machlsowner]

I think you've answered your question as to why they evaluated it as fair. Unless of course you would like to fix everything that is wrong with the car, pay for advertising, pay for a detail, and then pay to put a dealer warranty on it. Also, if you wanted to pay the interest on the car when it sits on their lot, then I am sure they would be willing to give you an excellent rating. Honestly.....I'm not trying to sound rude, but they have a right to make money off of you just like your favorite restaurant.

I am guesing that you are somehow involved with used car sales or at least know someone who is. Like he was saying, making a profit is not a big deal they are a business and that is how things are run. Almost 10k isn't a profit that is a rip off. Say they spend 2k on all that used car salesman pitch sh*t you were talking about. I would say making a profit of another 2k or 3k would be okay. That is 5k less then what they were trying to do to him. I bet if they would have gave another 2.5k on trade and knocked 2.5k off the avalanche he woud have took the deal. I probably would have, although I would not be buying an avalanche.

 

[Fla02LS]

I just got $10,200 trade in for my '02 V6 with 87k miles. I owed $7600 so i made out alright. Depends on who you deal with. I dont think your '94 silverado was doing you much good. If i had to guess it was probably something like $11k for the LSE and $3k for the silverado.

 

[BanginLS]

well.. talking about being fair.. i'll give u 50 dollars for the LSE.. let me know..

 

[daves2000ls]

Well that experience sounds like nothing compared to how I was treated by a chevy dealer called Parks Chevrolet on N. Tryon in Charlotte, NC. NEVER GO THERE to anyone around my area, what they did to me was unexceptable and I could of sued I found out.

Anyway, sorry to hear that man. Getting out of a LS is a very difficult thing to do w/out getting a raw deal.

would you care to elaborate on your experience?

 

[nittanylion64]

So don't go there, they have a right as a business to make as much money as possible. Kind of like if you don't like what's on TV turn the channel. You didn't like the deal now move on, there will always be another.... The best would be to go to a different Chevy dealer, get a deal on that particular Avalanche and have them ship it to the new dealer.

 

[BanginLS]

lol.. that would be pretty funny actually

 

[Beamer]

would you care to elaborate on your experience?

I have told it before on here, not about to hijack this thread, its a long story anyhow.

 

[DLS8K]

I am guesing that you are somehow involved with used car sales or at least know someone who is. Like he was saying, making a profit is not a big deal they are a business and that is how things are run. Almost 10k isn't a profit that is a rip off. Say they spend 2k on all that used car salesman pitch sh*t you were talking about. I would say making a profit of another 2k or 3k would be okay. That is 5k less then what they were trying to do to him. I bet if they would have gave another 2.5k on trade and knocked 2.5k off the avalanche he woud have took the deal. I probably would have, although I would not be buying an avalanche.

Yes.......I sell cars and grew up in a dealership so I know what goes on. And honestly, I don't appreciate you calling it "car salesman pitch sh*t." I'm sorry to say that is how things operate in the real world. If you would like to dispute any of these facts, I would encourage you to own your own business and then find out how the numbers really add up.......as a rule of thumb, you ALWAYS try to make as much money as possible on anything you do in business. It's kind of like you ALWAYS want to save as much money as you possibly can as a consumer. It's the nature of the beast.

 

[Pete02LSE]

So don't go there, they have a right as a business to make as much money as possible. Kind of like if you don't like what's on TV turn the channel. You didn't like the deal now move on, there will always be another.... The best would be to go to a different Chevy dealer, get a deal on that particular Avalanche and have them ship it to the new dealer.

And that is exactly what we did. As for the Avalanche...ehh...I've already found about 4 more with similiar options around here for $22-23k. I was hoping to work a deal a little closer to home and offer up the two for one. But...alas...it wasn't going to happen. And...now I'm even thinking Trailblazer SS...something to compliment the 99 Camaro SS in the garage...and with a few mods would probably blow it's doors off.

And I hear what DLS8K is saying about making the most money for a business. And while it does piss me off that a dealer will low ball me...what really pisses me off are the folks that will take a low ball deal. It's really quite amazing to me. We own the LS outright. So, whatever I get on it is money toward another car. However, I refuse to give it away. So...I'll probably try to sell it myself first.

I mean no disrespect to car salesmen or car dealers because my Dad's entire family has either owned a dealership or worked in the business since the late 60s. Started with VWs, went to Datsuns then Toyotas. This was up through 78. After that there was wholesaleling and various other dealership opportunities. Now, my Dad works at a LM dealer. That said...the business helped me through life. But...that does not mean I have to agree with all of it's practices. Part of that is because I am a firm believer in selling at a lower profit and a higher volume. If you keep the cars moving...you will do better in the business. Take the 2.5k profit and move on...you may sell 5 cars at that profit...instead of the one at 10k.

Oh...and...had they gotten within maybe 3.5 - 5 k I may have not been as aggravated.

Anyway...thanks for the replies.
-Pete
02LSE

 

[JES_LS]

Take the 2.5k profit and move on...you may sell 5 cars at that profit...instead of the one at 10k.

Don't you mean none at 10K.

Having worked as a saleman, the problem is with the basic operations of the dealership. The saleman only make commision on the profit in the sale of a car, not the total price of the car. So there is no incentive for the saleman to sell a car at the sticker.
There are only two ways a salesman can make a good commission on the car.
1. Keep the price of the new vehicle higher than the real cost.
2. Keep the trade in value as close to wholesale as possible.

Add in that some dealerships will undercut a salemans commission to sell secondary products (like extended warantees, anti theft trackers, etc...), when the deal is close to the limits of what can be worked out in financing.

 

[ToddG]

I am guesing that you are somehow involved with used car sales or at least know someone who is. Like he was saying, making a profit is not a big deal they are a business and that is how things are run. Almost 10k isn't a profit that is a rip off. Say they spend 2k on all that used car salesman pitch sh*t you were talking about. I would say making a profit of another 2k or 3k would be okay. That is 5k less then what they were trying to do to him. I bet if they would have gave another 2.5k on trade and knocked 2.5k off the avalanche he woud have took the deal. I probably would have, although I would not be buying an avalanche.

I think you also have to take into account the other costs incurred by the dealership. Remember, they have to pay for salaries for non-sales people, insurance, taxes, utlity costs, etc. There are a lot of costs involved in running a car dealership (or any business for that matter), and those costs have to be figured in when setting car prices or making offers on trade-ins. This is why as a general rule private party sales of cars give you better deals -- they do not have the overhead costs involved with running a dealership.

 

[DLS8K]

I think you also have to take into account the other costs incurred by the dealership. Remember, they have to pay for salaries for non-sales people, insurance, taxes, utlity costs, etc. There are a lot of costs involved in running a car dealership (or any business for that matter), and those costs have to be figured in when setting car prices or making offers on trade-ins. This is why as a general rule private party sales of cars give you better deals -- they do not have the overhead costs involved with running a dealership.

I agree 100%. I'm not saying that some dealerships try to rip your head off when you try to buy a car, but keep in mind, they have ALOT of overhead. At the Nissan store I work at, we had 8 sales consultants, 1 used car manager, 1 general manager, 1 finance manager, 1 inventory controller, 1 receptionist, 1 title clerk, 2 office assistants, 2 janitors, and countless other employees who ran the service shuttle, parts shuttle, and sales shuttle. Also, let's not forget the huge energy bills required to cool down an entire dealership, heat it, internet connections (network), and all the other things that cost money. It's alot of money just to stay open. Again I say, own a business or do the books for one and you'll see just how much money it takes to run a car dealership profitably.