Automotive Sales - Why Do They Expect a Sale Even before Inspection

This is my rant on Auto dealers and sales.

Even before the test drive they expect the sale to be done and then expect to the consumers to accept the quoted price or be looked up like cheapo person where they sound humiliating.

Any dealer that you walk in, the first question is are you serious on buying/are you prepared to put in a deposit/what price are you looking to pay blah blah blah..it is sort of sickening with this kind of behavior by sales.

The expectation of you is that you do your homework on models available, features on it, make up your mind, browse through pics of the car and just walkin to dealership to make payments, the only time you should be going in there is when you are BUY READY. SICK.

The least expected of these folks are to brief you on the car, allow the consumers to make choice, give them enough space and time before you start pushing and take the customers NO with a smile and stop treating customers with arrogance.

From where I come in India, had dealt with various dealers of various brands. Consumer is treated with utmost dignity and respect. You are explained well about the car, features shown and explained on a car standing in air conditioned building, you are offered a test drive even before they ask "are you serious about buying" or "are you ready to put deposit". No wonder the sales of new car in Aus is 98,000 (http://www.tradingeconomics.com/australia/total-vehicle-sale…) compared to India's sales of 2,601,111 (http://www.siamindia.com/statistics.aspx?mpgid=8&pgidtrail=1…)

Time for the dealers to grow up!

Comments

        • @deepudips:

          That's nice. As I said, besides the metallic paint charge, no colour costs more than another. There's no reason why a brand new silver auto couldn't be obtained for ~$31k drive away with the required negotiation.

        • +1

          @Spackbace: Point taken

        • +7

          @deepudips: I think the more you talk, the more you're just digging yourself a hole, showing that you actually know nothing, that you're complaining about nothing and it's you who needs to get a grip on reality, not the salesmen you've been dealing with. You've been exposed as a whinger, a cheapass, a liar and a dodgy person with all this handing over cash and deal/no deal business.

        • @Spackbace: Do you really think a blue one(carsales.com.au) can be sold for $30,490 drive away but a silver one can't?

          YES, metallic paint costs more!

          what do you really want, charity?

        • @robertbruce:

          What?

          Blue and silver are metallic paints… Both of them.

          what do you really want, charity?

          Who's that in response to?

    • Although I'm pretty sure that OP has dug himself a nice cushy "hole" with his flawed perspectives and self-entitlements, to be fair, there are sales people who do not make buying a remotely palatable experience.

      My worst experience is at GWS Mazda. I couldn't wait to let my mates hear about it and no surprise, they've all been there before and had the same thing to say. They never stop talking about a deposit, make you feel like you are obligated to buy the car after a test drive, dismiss all your other choices with ridiculous claims, have no mechanical knowledge… list goes on.

      The salesman from GWS had a purchase order for me to sign as soon as I got off the test car. He offered me a "special" price that was RRP. When I looked surprised, he started being verbally aggressive. I walked out with him saying sh!t behind my back (audible).

      More infuriatingly, he called me up the next day to ask me if I've changed my mind. Lots of forced small talk but I quickly dismissed him and he didn't so much as say good bye. He just hung up as soon as I said I'm not interested.

      If OP had that experience at every stop, I'd be inclined to feel the same way.

      • Whoa, that is absolutely horrible.

      • This doesnt stop at sales people, i had the head of our local police say shit behind my back, while trying to make his job easier. He didnt like it when i did it back though.

        Too many people take shit these days without standing up to it, if that sort of behaviour happened to me at a dealer i would ask to speak with their manager of the dealership.

    • -2

      Well yes, you should be doing your homework on the models available and the features each one provides. You have plenty of access to resources. To be honest, I would prefer that I do my own research at home rather than being told

      Spot on mate…..I do my research …check the shoes on internet ….then try the shoe size in a brick and mortar shop and make sure the guy at the shop provide me the best service as for what he is getting paid for…..and then buy it from the cheapest possible spot on internet…that's called optimum use of resources and time and anyway that's why we all are here on ozbargain……

  • Maybe, just maybe, OP understands the term of willing to put a deposit as in he has to commit to the car right now instead of what the salesman meant i.e. if it's good enough are you willing to go all the way with it? This acts as a prevention for salesman wasting their time with windowshopper and also financial availability. You can say yes if you have the money but can still walk away if you think the deal is not good enough for you so why can't you just assure them that you are willing?

  • +1

    Any dealer that you walk in, the first question is are you serious on buying/are you prepared to put in a deposit/what price are you looking to pay blah blah blah..it is sort of sickening with this kind of behavior by sales.

    1. Which city?
    2. Which brand?
    3. What price range?
    4. How many dealerships?

    I ask because I live in Perth, was shopping for Kia/Mitsu/Ford/Toyota ($20k-$30k), and went to half a dozen dealerships and was never asked for deposit information or any other questions about my seriousness at all. So I'm curious what the differentiating factor is.

    The expectation of you is that you do your homework on models available, features on it, make up your mind, browse through pics of the car and just walkin to dealership to make payments, the only time you should be going in there is when you are BUY READY. SICK.

    I never felt this way. My impression was that the dealerships were more than happy for me to come take test drives, and even come back a few days later for a second test drive, with zero commitment. I was looking for a car and had no trade in; that's all they knew.

    • What did you buy? :)

      • Mitsubishi Lancer. Cheap and with a long warranty.

        Partner sent the Toyota Corolla route. A little more pricey and a little less warranty, but nicer.

  • +2

    I'm going to recount my recent car shopping experiences just to share that it's not all bad all the time.

    Over the past six months, I've visited 9 separate dealers, some of them multiple times. I did not encounter a single pushy salesperson. In fact, in the earlier months I flat out replied that I was just looking around, trying to get a feel of what cars were available in the market as I was soon to be in the market for another car. Every single one responded cheerfully to that and were happy to answer any questions I might have about any particular car or particular trim level. I think for the first few visits, I didn't even ask for prices as I was honestly still unsure of what make and model. Again, my inquiries were answered in a cheerful, helpful manner. I didn't get any bad vibes or pushy behaviour. Most offered test drives - even without me asking at all.

    I eventually did test drives of 4 vehicles, still no pressure. One dealer even offered to lend me the car for the whole day so I could drive it around in different conditions. No deposits were asked for, however each one photocopied my license and made sure I was aware that I would be liable for the excess if any incidents befell the car while out on a testdrive - all standard and completely understandable stuff.

    As I was zeroing in on the make and model that I wanted, I requested another test drive of the same make and model but with a different powerplant. He didn't have any in the yard, but got back to me within the week when he had sourced one.

    At this point, I hadn't done any negotiating with any of them at all. I had the prices for the vehicles, but they were the published drive-away prices. They were realistically more for me to have a ballpark figure to keep track of. There was still no hard sell and everyone was still totally friendly and helpful.

    Now, I had to put my shopping on hold because I had to go overseas. Now it's three months later and I've decided on a specific make, model and trim level. I go back to the dealer and tell him that I'm now ready to do business. We negotiate and I'd like to think I got a pretty good bargain, but I really wouldn't know. This is the only time hard numbers have been discussed and this is also the time I put in a deposit and sign the dotted line.

    Now just waiting for the car to arrive from the factory and hoping that there won't be any surprise stuff-ups. But all-in-all, it's been a very pleasant experience from 9 separate dealers!

    Also, like I mentioned in a separate reply above, at no time was I dressed exceptionally well. Imagine a chubby bald guy in thongs, shorts and a t-shirt and you've got me perfectly pictured.

    • +3

      You sound like a good customer :)

      Oh and on behalf of car salespeople around the country, thankyou for buying from the salesperson that test drove you and went through the car with you :)

      • +2

        I certainly hope no one I spoke to in any of those dealerships felt I was wasting their time.

        And yes, I did purchase with the same salesperson, although they had a funny round-robin thing going, I spoke with 2 different salespeople over that period and the first one said it was cool for the person I eventually negotiated to take over.

    • I had similar experience not too long ago. Sometimes i'm dressed in work clothes (shirt/pants or suit), sometimes in thongs, shorts and a t-shirt. Been to 5 different dealers, all of them great and nice to deal with. Eventually bought off one after a decent nego over the course of a week. I think he gave in and finally relented my asking price. LoL.

    • +1

      Good info. I am also chubby…also wear in thongs, shorts and t-shirt…but not quite bald yet…I am getting there. When I do, I am also ready to visit a dealership to get a car….

  • I had the exact same experience as the op first time I ever went to dealership. it must work but not on me

  • Personal experience has been mixed , some sales people are really pushy and want you to pay deposit as soon as you enquire about the particular model
    Some are really good and looking at personal preferences recommend another car
    Another one said it won't fit your purpose and offered sake to another deal ship in same complex
    Once went to buy a Pajero the sales guy was really pushy
    Wanted me to accept 10 thousand for a 4 Year old Territory TS
    I said no the price offer is ridiculously low as the same model older cars in same dealership were more than double, he got really grumpy
    I asked him sell me your car for 10 thousand which were lower specs, he wouldn't , I said how about 15 answer was very low his best offer was 20 go figure ..
    Bought another new car , They were trying to Palm off scratched car basically not prepared for delivery, said no - they made us wait because we already paid for it full
    Never trusted them and never will

  • Many dealers have upped their game but there are still a few dodgy ones out there.
    If you know what your car is actually worth, (2010 Honda Accord is it?), and you know exactly how much you want to spend and stick to it you will get a good deal.
    They will realise that you have a plan and will not push you around.

  • This is where all the bs artists con artists get their training
    The same guys try to be your best mate and screw your missus as soon as you turn your back
    Retail :dead-end jobs for desperate people
    This is why there's usually more than one camera watching the till

  • +2

    I went shopping for a used car and the sales person exact words were "if you're not going to buy it there's no point doing a test drive" go figure. This was a few years back during the boom. I guess nowadays they're desperate enough to let you take new cars for the weekend.

  • perhaps the salesman had previous appointment with real buyers… believe it or not, every second person usually replies, yep, im ready to buy today

  • +2

    Would not be surprised if this is a result of salespeople being frankly sick of dealing with Indian customers based on a few poor experiences.

    A very typical interaction with an Indian customer is one which begins with the Indian asking many questions. Ok, maybe not a big deal, they're just doing their DD on a large purchase. Then, the Indian proceeds to begin bargaining, showing interest in the product. Salesperson accommodates, and the price is beginning to be reduced. Come to agreement on a lower price. Indian walks away and negotiates with others. Sometimes its honestly like their time isn't worth anything - they'll bargain with a number of places the same way. Then they'll come back and try to bargain some more.

    Don't forget the step where you agree on a price and they try to bargain AFTER delivery of a service.

    The precedent has been likely set by your fellow countrymen - people don't like their time wasted.

    • +2

      I hope that this is just a few Indians and not the majority that resort to deceptive tactics but back in the 1990's-2000's a common tactic I kept hearing would be to haggle on price then ask for a business card. After walking a way they would write a lower price on the back of the card. Take the business card into a competing franchise and lie about how another sales person was able to offer a lower price.

      This practice was sooooo wide spread that during the 1990's-2000's I met sales people that would not give out their business card because they didn't want their good reputation to be tarnished + the hassle.

      I'd be interested to hear if other OzBargainers have heard such behavior or if its just a one off instance from a few Indian aquaintances and scared sale staff in my local area.

      • A policy of mine that I adopted from someone else, was to get the customer themselves to write any prices down (as oppose to me writing it on the card). Probably derives from your example

  • Interesting thread.

    Not sure where you are based in but in WA, John Hughes say "Choose Your Dealer before You Choose Your Car"….maybe quite true?

  • OP you're post has too many over generalisations while providing too little detail. You need to mention which car models you are trying to test drive, your age, the sales persons age, how does the salesman approach you eg. do they come out of the office to meet you in the yard, or is it over telephone/internet, or do you walk up to a counter/sales desk. Who does most of the talking? eg. wife, father, son …

    All of the above WILL result in a different outcome.

    Even before the test drive they expect the sale to be done and then expect to the consumers to accept the quoted price or be looked up like cheapo person where they sound humiliating.

    Many newly released cars that first hit the market cannot be test driven. Demand is so high that the dealers don't have to give test drives or negotiate on price. When the 2011 MD Hyundai Elantra first came out I couldn't even negotiate $500 off on a $24,000 car! Which car is the OP shopping for?

    If a 20 year old male walks into a Ferrari dealership and asks to test drive a Ferrari then they would get the same result. Heck, I look 10 years younger than my real age and dealerships NEVER let me test drive the latest Renault Clio, Subaru Sti, Nissan 370Z. You really ought to mention which cars you are after, your age, whether you are shopping alone so that OzBargainers can help you better.

    Any dealer that you walk in, the first question is are you serious on buying/are you prepared to put in a deposit/what price are you looking to pay blah blah blah..it is sort of sickening with this kind of behavior by sales.

    Depending on the car you are interested in, it is very reasonable for the dealer to ask if you are a serious buyer. It actually doesn't take much time to convince them you are a serious buyer and even push you to test drive their car.

    Some strategies:
    1) show them what car you currently own. If a 20 years old male walks into a Lamborgini dealership I am sure the dealer would have less concerns after discussing the trade-in value for his 6 year old Ferrari.
    2) show the dealer you have done research on the car you are interested.
    3) tell the dealer of the other cars you have test driven and researched.

    It only takes 2 minutes of conversation to go through the above three points and will address the OP's original points.
    - "what price are you looking to pay" = the value of your competitor's cars.
    - "are you prepared" = depends if I get a good trade-in/change over price on my current vehicle.
    - "are you serious" = the last dealer thought I was. I better go back to them cause you are being a douche bag to me.

    New car dealerships can be daunting at first but after building up your experience/tolerance you are going to realise that ALL of the car sales people will treat you identically regardless of where you go. My unique difficulty is that I look too young to even afford a Hyundai. I realise this so I mainly enjoy talking with the very mature and/or quirky sales staff that don't prejudge on appearances.

    • Damn it I have been doing it wrong the whole time

    • No self respecting ferrari owner will be "trading up" to a lambo

  • I am thinking about a second car for myself. I usually just buy my cars through my company, but I doubt I can buy another one.

    Are used car dealerships worth going to? Sometimes I see LEXUS and BMWs for like 50% off RRP.

  • my personal GRIPE is when private car sellers post "first to see will buy", wtf is that? I want to take a look at a few cars, and then make a decision, why do some sellers expect only 1 person to see it and then buy it?

    Sure it deters all time wasters, but you'll be getting no people looking at the car, and no people you can try to talk/negotiate to in buying it.

    • What a weird rant. All it is is a sales technique to make you think 'ooh this is value for money'! Not for the other weird reasons you picked!

    • +6

      You are reading: "first to see the car has to buy it"
      What they are saying: "this car is so good, the first person who comes to see it will end up buying it"

    • Problem with comprehension?

  • I have experienced the "I need to put down a deposit and\or apply for finance before I let you take it for a test drive". This was when I was younger and obviously that dealer got told where he can shove his car, I did end up buying a car that day too so that was his loss.

    Not sure why people want to defend car sales people, their job is to sell cars and the buyers job is to try and get the best deal possible. I don't really have any sympathy for them as it's part of the job to deal with all types of customers including the ass hats.

    Obviously some sales people are better than others but from my experience (4 new cars and 3 second hand ones from car dealers) all of them don't like having to work hard to get a deal done and none of them are out to be your friend. One of the big issues I find is that nearly all car salespeople I have spoken to don't know their product, this generally leads to them talking shit which really puts me off buying from them.

  • +3

    I used to work in dealerships firstly sales and then finance.

    To be bluntly honest you're being treated that way because you're Indian.
    In the car industry Indians are notorious for wasting time and lying, haggling to a ridiculous point of pettyness and being dirtier/more scheming than any other customers.

    That's why they ask you if you're serious about buying before they invest their time with you.
    Their assumption is that you will use them for a test drive and spend hours of their time and you don't care about their time- you'll just go to 5 dealerships and do the same there until you have what you think is the best price.

    In the aussie car industry, indians= time wasters that couldn't give a toss about anyone but themselves and don't even try to hide it.

    That's the truth mate, it's a cultural thing.

    • If i was going to buy new, i would figure out what options i wanted then phone other dealers up and ask if they can beat it and use those prices to bargaun down the price.

      I guess there isnt a lot of difference to what an indian is doing, but my time is money too so i wouldnt be driving around to dealers, i would call.

  • -5

    Bluntly speaking, I used to hate serving indian customers in my previous sales role. They drive you nuts due to their pathetic negotition tactics.

    BTW Op, you really need to respect country where you live. Otherwise I am sure Auatralia can easily afford to loose you so pack your bags and return to your Utopian Indian world.

    • -3

      your loss my friend.

      You feel the negotiating skills are pathetic, just because we do not accept the rates you offer?

      Cant help the racist you!

      EDIT1: by the way, more than 50% of the people responding here have had such issues, you cant hope all of them were Indian's.

      EDIT2: show me my comment where I was disrespectful towards Australia (where I was initiator)

      you cant expect me to stay quiet when someone abuses India.

      • +15

        It's not about 'not accepting the rates you offer', it's about wasting people's time and not reaching a deal with the person that's given you their time and made the effort to accommodate you. It's about being cheap and scheming/cheating and pretending to be willing to do a deal, when you never really intended to in the first place.

        When I did finance for a dealership and as a broker is was so common. Without even realizing they were doing it, the majority of Indians would just lie all the time. They would sit in my office for 45 minutes saying they were ready to buy, and that if I got them a certain price or interest rate, that we had a deal. The time would come and I would do what they asked, and they would say 'we'll think about it for one more day' etc and wouldn't answer calls or call back or even text message me to let me know if they'd gotten finance somewhere else- it's just really poor etiquette and rude. I mean I had the power to sell cars at a loss, just so we could get finance bonuses- these guys were simply not getting a deal better anywhere, and they'd leave and you'd never hear from them again. Or even worse, they'd come in 2 months later and try and do the exact same thing!!!

        This sounds harsh, but from reading your replies and the original post it seems like you need a reality check. You come across as a smug guy, slightly entitled, wondering why people treat you a certain way and are cautious to do business with you, when you don't stop to think how you are treating others. It's called selfishness and I can understand that in a country like China or India, with a billion people, that's it's everyone for themselves. That attitude isn't acceptable in Australia. If you want to do business like that people with think you're an asshole and won't respect you.

        Unfortunately the majority of Indian buyers (not all, but MOST) in my experience- and probably every active and former salesperson on this forum's experience, just have a very unethical way of negotiating and doing business. They don't mean to be rude, they are just trying to get the best deal- unfortunately it seems that they don't care who they step on to get that deal and they view all salespeople or people trying to help them as someone they should use and exploit.

        This is a harsh realist view of why you are being treated this way.
        Not all dealerships are perfect, but it's because they're experienced with the horrible side of humans and the selfish, scamming/scheming side of human beings that they have to deal with literally every day. Humans become another form of monster when they make large purchases.
        C
        ar salespeople don't give a shit about you because they think you don't give a shit about them.
        People don't have to give a shit about car salespeople- but if they're going to come into a dealership and ask for service, help and to try and do business- it MUST be done with respect.

        • +1

          Look at this way.

          You (not pointing at you), offer a better deal and meet the price or deal that a client is looking for "If a deal is made now".

          We look at it this way,

          you are not being honest with the deal and you have room for more. You are making 100 loans a day but for someone the other end its ONE.

          you are trying to Rip me with a bad deal, for someone dealing there is never one price offered. a person makes a deal today or tomorrow how does the offer change? someone is being selfish here to meet those targets and get that bonus for meeting target etc. Its your job, its my purchase. You try getting someone pay RRP, while I look at buying the same at cheapest possible.

          Obviously I go with someone who is honest and offering the best deal though not a great, but at least is being honest.

          People dont return calls or just text saying a deal is made somewhere because we find there is a better deal which you never offered in first place to make that higher commission.

          People specially from India do lot more research before we step into your showroom or before they sit in front of you to make a deal. Do you think that 45 mins wasted of yours comes free for us? is that not wastage of our time? When the pushy sales guy say we will do the best, please come down. We waste all the time to go there only to hear oh, this price is not possible, make a deposit we will talk and similar tactics. If treated well without bias you would see deals happening without even sales asking to put a deposit. There have been instances when the sales guy is talking to Indian's and see a fairer skin guy, we have been left waiting there at mercy of sales guy to come back and he expects us to put a deposit like I am buying a bag of onions there. Who is wasting whose time here?

          Buying a car may be one of thing for others, but for us coming from other country it means we are settling down again, trying to make a place for our self here. Very fortunate few come with huge bank balances or have no other priorities so every penny saved is earned. Very similar to OzB site.

          We care a shit abut crappy sales guys if they care least abut treating well. You rub someone on wrong side and still expect a timely response is not justified.

          A fair sales is a sales without prejudice, treating anyone walking in with due respect, offer a good deal, give enough space and time to make decision.

          Cars are for customers, with all due respect sales are enablers to close the deal.

        • +5

          @deepudips:

          People from India don't do more research than the average car buyer in Australia lol.
          You think because you look at 10 websites and some finance rates on the internet that you are researching more than anyone else? Everyone does that. The average car buyer now spends at least 4-6 hours of internet time doing research and narrowing it down to a test drive list.

          In fact most Indians care less about the specs of the car, and more about the badge and the price.
          Indians love Toyotas even though Toyotas have been average cars for at least 10 years now- they just think that they're the best build quality (when they were in the 80's and 90's and now they're no where near the quality of other Asian brands).

          Because Indians are often migrants or from a poorer migrant family, they are trying to get on their feet and start life in Australia- I understand that.
          The problem for car salespeople is that Indians are suspicious of everyone no matter how good the deal is.
          I have had dozens of Indians who have been to every dealership in town and come to me and say: I want a 5.75 % interest rate and I want the car for 21, 500 drive away- if you can do this deal I will buy the car. I say yes, I do the deal (making almost no money on the deal), and yet the Indians still want more.
          They want to keep going and going even after they'd agreed to a price.

          I actually turned Indian customers away who had left after agreeing to a deal, then came back when they realized they couldn't get a better price anywhere else. Why? Because they lied and I didn't give a shit about a sale where I don't make any money. I had the decency to give them a great deal in the first place, and they abused that deal.
          So guess what? Screw em.

          Anyway man I understand it's a cultural thing- the problem is you are in Australia now. So try and be more accommodating and be up front.

          Also, if you give a deposit to a dealership like a Ford, Hyundai, Kia, Toyota etc (all the good brands), they will give you it back even if you cancel the order. It is the law and they MUST give it back to you. I promise you this.

          Good luck man, just remember that car salespeople are humans too and they want to do a deal just as badly as you do.

        • +9

          @deepudips:
          I think I'm beginning to see where you're coming from…

          You want the absolute best deal. Literally the lowest number you can get. And I'm getting the impression that you feel that you're getting cheated if you don't get that. Mate, I don't think dealers/retailers/sellers are trying to cheat you when they're trying to business and the sole purpose of a business is to generate profit.

          I'm not trying to defend dealers per se, but flip it around, let's say you're trying to sell a particular item. You've priced it at $100 and expect to make a profit of $20. Someone comes around and asks, "what's your best price?" Are you going to say $80 and not make a profit? Are you going to say $90?
          Let's say you reply $90 and not a penny less and the buyer shops around and finds someone selling the same item for $89. Do you think it's fair for the buyer to get angry and think that you were trying to cheat and lie to him?

          At any rate, since you say you've done so much research, you probably have a good idea of how low you can price the car that you want. Have you considered sticking to a price that you're comfortable with and negotiating with dealers to get it to that? It might work out easier with less angst.

        • @tebbybabes: I agree to all your points. I never even asked for a price.

          sales guy push for putting in a deposit in first contact when I clearly say I need a test drive.

        • @deepudips:
          I would walk away if that was the attitude.

        • @tebbybabes: which is what I did and posted a rant here without even shaming the dealer.

      • +2

        First of all to clarify, I was working for money service bureau where the customers used to purchase foreign currency from us.

        I can recall dozens of transactions where the customers were very push and negotiated hard which I eventually agreed to meet our targets. As the currency was not available in stock, we had to order from the head office however the customer wanted them immediately so I used to place emergency orders.

        Here is the interesting part: I rang them next morning to advise that the money arrived but the customer advised they no longer need it (may be found better deal from another place). I don't mind if they buy from another place however they should have courtesy to tell me about cancellation.

        CONS: I lost 10 to 15 minutes which could have been used to serve other serious customers waiting in a queue and we had to pay emergency delivery fee for no gain. Due to these issues, the head office started taking deposit for emergency orders after few months.

        Surprisingly majority of these customers were Indian How do I know? As part of AML requirement, we have to ask different questions so we could figure out the background. It could be also because I was working in Parramatta and lot of Indian live there.

        My friend, I was not fond of serving these customers after a while because I don't like seeing my bonus and targets going down the drain. I was spending time negotiating with them while other customers started leaving the queue to buy from competitors.

        If such customers make a commitment, fulfil it and don't waste other people time. It's not rant or racism, it's personal experience which hit me hard financially.

        • I agree on the call back to cancel the deal.

  • I'm in my late 20s, of oriental background. When I walk into a dealership, no one offers to sell me anything. I actually have to ask them. Even during the test drive I was only allowed 5 mins (which was around the block, apparently their insurance doesn't allow them further).

    Happened at a few dealers. Really disappointing.

    • Even during the test drive I was only allowed 5 mins

      Brand new or used? With normal registration plates, or dealer plates?

      • Dealership was new. I wanted a new car at the time.

        • If they had to put trade plates on the car, it's understandable you were given a short-ish test drive, that's someone's brand new car being taken for a drive

        • @Spackbace: they weren't trade plates. it was a dealer demo car.

        • +1

          @Kranbone:

          Ok, then that's crap :/

    • +2

      Ha. In my early 20s, I went into Holden to test drive a car-which they didnt have on site, but their other site had the car. So the manager offered to drive me there in one of their demo cars, pick up the car of interest from the other site and allowed me to drive it back. The trip was about 15-20mins each way.

    • +2

      I know how you feel because I've been through the same. Whenever I would go car shopping on my own the sales people never came out to the yard regardless of what I was doing. However when I'd browse with an older person like my Dad or my friend's Dad they would serve us like normal.

      The reason I would guess for your short test drive is that the dealer was an Australian who carried the negative stereotype that all asian's are bad drivers. It's a pervasively strong stereotype. They might have been concerned of a high risk, especially if an urban/city dealership.

      For me, just getting to test drive is my biggest hurdle. Driving at length isn't an issue for me. I start the test drive by stating what type of driving I am interested in eg. "Do you know any nearby windy roads we can drive to?", a 100m/h zone, stop start traffic, steep hills, etc. I spend the first 2km driving at slower speeds to intentionally build up the passenger sense of security. In the first few kilometers I intentionally drive 50km/h streets in 5th and 4th gear (to test out low RPM torque). After getting myself accustomed with the steering controls, mirrors, A-pillar sight lines I'm ready to drive my normal style. If you appear methodical, in-control, aware but relaxed its likely the passenger will let you test drive the way you want.

      Don't forget that if you feel you haven't had a long enough test drive then book another day so that you can show your partner/parent/sibling/friend. Most car sales people know how important family is to Asians.

      About being disappointing, Yep you'll receive the same crappy service in many other businesses too. Waiting for a TV salesperson, a waiter to take your order in a restaurant, lining up at a pub for a beer, etc …

      Car sales people have no idea that "respect" is a huge currency for most Asian cultures. On a whim I bought my WRX from a new car dealership just because the sales person treated my Dad so well! It was Fathers Day and my dad was visiting and wanted to get a trade-in valuation for my sister's Subaru Forester. We had a nice sales person who gave us a low trade-in valuation, then asked what else he could help us with. Dad joked and asked to test drive the WRX. Sale person instantly said sure, no problem, let me get the keys. Dad let me test drive. We all got in the car and went off. Came back and the sales person asked what we would like to offer for the car. A contract was signed in 15 minutes. I didn't know I would like the car and figured I would buy the car, then a months later sell it at $1K-$2K loss just because the sales person made my dad feel so valued.

      • You've pretty much outlined the experience perfectly. Shame the industry is so judgemental. I'll probably use a car broker next time and contact the manufacturer directly through social media to organise a test drive.

        • contact the manufacturer directly through social media to organise a test drive.

          Who will just give your details to the nearest dealer… It's really no different to walking in the door. Either way, if they get a whiff of the fact that you're using a broker, they'll be less likely to help. After all, a broker will just contact the dealer that offers him the best finders fee. That's right, brokers charge a dealership around $500-$750 as a fee. Guess what? That doesn't come out of our profit, it comes out of your bottom line.

          So, let's say a broker quotes you $15,000 for a car. The dealership could actually sell that to you for $14,250-$14,500. But you've hidden behind a broker so you lose out. They also don't know anything about the car they're selling, so don't expect an amazing delivery showing you through the vehicle. Hell, sometimes the broker doesn't even come to the dealership at point of delivery! So it's a case of 'here's your keys, there you go'.

          Also, have further questions about the vehicle after delivery, don't bother contacting the broker. Again, they won't know.

    • Hell, if I ain't driving that RPM on 5's and 6's at 110kph I ain't buying no car (";)

  • I'll also add that most new cars in the middle income market (Toyota, Hyundai, Honda, Kia, Ford, Holden etc) make the dealership between $120-$800 per sale, depending how much the factory/manufacturer is giving them as bonuses and what extras they sell. There are the occasional outliers where someone will walk in and buy the car for the RRP, but that's very rare. The profit from full retail RRP is about $1200-$1500. So if you're getting more than $2000 off the retail for a small or medium sized Asian car with good warranty you are usually getting a good deal.

    To work out how low you can go, just go onto carsales.com.au and have a look. The cheapest one on the net is often an outlier with a specific bonus from the factory or a demo bonus for the dealership who just want to move the stock.

    Just use common sense.

    Most car salespeople get a minimum of $50 to $80 per sale (even less at Toyota) or 10% of the profit from the sale price. The average money for a salesperson selling a new car is about $80 and a very good sales manager will make most of their money from selling used cars and trade ins.

    Dealership finance rates will usually be better than anything your bank can get you unless you draw down on the home loan.

    • please explain "Delivery fee"

      • some places will add this on to the total price but it's generally part of the retail price.
        Just ask for a drive away price and ignore the delivery fee.

        Are you looking for a new car or used? It makes a big difference.

        • why ignore?

          What is this delivery fee for?

          and u said u offer finance, how much of it goes to dealer? what %?

          Insurance brokerage
          manufacturer bonus
          margin on accessories
          margin on spares and service

        • @deepudips:

          If I'm not mistaken, it's the list item for the cost that the dealer incurs for taking the car from the manufacturer, having it sit in their yard taking up space, and prepping it for delivery to the customer. I think it also forms a source of profit for the dealer.

          I think the reason @murphy84 was saying to just ignore it is because you are negotiating on the drive away price. Part of the cost that you can negotiate down comes out of that "fee."

        • @tebbybabes: I agree on drive away price, its just that the dealers margin on new car sold is not 100 or 200$$$.

        • +2

          @deepudips:
          Oh I'm sure the dealer's margin has to be a bit more than just $100-$200. Otherwise, it would be unprofitable and who would want to stay in the business.

          But does it really matter how large or how small the margins are? My take is, when doing a deal, margins on drive away, finance, trade-ins, accessories are all fungible between each other. A dealer might be giving you an amazing price on the car price, but might be earning huge on finance or give you lower tradeins. That's possibly why they ask all of these things during the negotiation process. At the end of the day, the dealer definitely wants to profit. If I was the dealer, I certainly would.

          But I think all this shouldn't matter. Whether the dealer makes $100 or a $10000! Because ultimately I think what is really important is whether you're happy with the price you've paid for it, happy with your car, and your warranty and your service. And that comes back to finding a price you're comfortable with.

        • @deepudips:
          -Dealer gets a one time fee for finance deals-about $120 for any rate under 7%. If they get more than 7% they get 5% of the total profit over the term of the loan. But less than 7% usyally nothing more than $120 one off commission. They also get a bonus for getting a certain amount of dollars financed for the month eg if they finance a total of $1 million for the month, the dealership will get a bonus from the finance company of $3000-$4000.
          -Insurances they get a one time fee which is about $45-50 for a 12 month policy.(thought it was more but just looked at an old policy I had for my wife)
          -Accessories can be big margins depending on what accessories-eg tint at $600 only costs dealership $150-200
          -spares is mixed like accessories and you can usually negotiate a bit but the margins are like 10-15% at RRP.

          Delivery fee is just what the dealer would like to charge for selling the car-although you can negotiate this and just ask for a drive away price. The delivery fee is not important-it's just extra margin they are hoping the customer will pay-the ones that don't negotiate and don't care about price.

          If you want the best price just go on carsales.com.au and look at what the cheaper same cars with similar kilometers are- then you'll have a good idea of what a good deal is.

          There isnt much profit in new car sales or finance unless the rate is over 10% interest.
          For example a new Kia Rio at $1800 below RRP would make the dealership maybe $100-$250.
          The European cars can still make a lot of money but even a Mercedes usually only makes $600 or $700 for the dealership.

          Is the car you want new or used?

        • +2

          @deepudips:

          I agree on drive away price, its just that the dealers margin on new car sold is not 100 or 200$$$.

          And you have evidence to back that up do you?

          As has already been pointed out, some advertising campaigns leave that much margin in it, hell sometimes it's a loss.

          But hey, we can't seem to convince you of that because your cultural background dictates that everyone is screwing over everyone.

        • +1

          @deepudips:

          I promise you it is for a brand like toyota, hyundai etc…
          At most for a $65000 toyota kluger the dealership buys the car from the factory for $59,000 but also pays interest to borrow that money.so the RRP is $64,990 and the buyer can negotiate to $61,000 or $60,000 and then the dealer pays taxes and interest on the loan, and if it's a goo deal they might make $700.
          Most of the money the dealership makes is on trade ins, not the new car itself.
          Average car Salesman in Australia makes no more than $45,000-$50,000 a year-it's a terrible job. Some good car salespeople can make $65-75,000 but that's pretty hard and you need to work for someone like Mercedes or BMW with higher profits in sales.

        • +3

          @murphy84: Without going too far into the notty-gritties, dealers also get "holdback commissions" and volume bonuses which are paid if they make certain targets. As such, they are willing to make a low margin (of $50 or $100) on a new car, knowing that they may get to sell finance, aftermarket or benefit from these factory incentives. Profit margins on new cars are tiny

        • +1

          @antt:

          Hi antt, I usually never delve into holdback when explaining profits in cars.

          To continue what you're saying, each manufacturer gives their dealerships a target and if they reach that target of buying stock, they will get bonuses. It can be a very ugly/tricky business and the demands of the manufacturer are crazy sometimes.

  • It's a shame that 1 or 2 people have to derail this post by waving the racism flag.

    • I agree, they need to look at the dictionary and read up on the actual meaning.

      Sure there is racial profiling going on but that even happens to the old gramps out for a sunday drive to the indian car buyer who thinks car salesmans tactics is a reason to come on ozb and complain.

      I also find that indians are always the first to pull out the racism card.

  • Sounds like OP just wanted the lowest price possible and was not prepared to pay more for good service.
    Likewise, it sounds like the salesman saw that and therefore did not waste his time offering good service

  • +2

    I have to agree with both the OP and the people blasting him.
    Yes, every car salesmen I've dealt with in Oz was an arrogant pushy bully, I've witnessed everything from them positioning themselves between the cars so that you can't even leave their yard (after indicating that you might look elsewhere) to abuse and threats over the phone (when they've found out you bought the car somewhere else).
    And when I was selling my car and had about a dozen people rocking up and test driving it, large majority were in fact Indians - and yes, their negotiating tactics were ridiculous. It looks like they're fishing for a desperate seller who will happily drop the price 20-30% below the current market value. Each of them started off with "what's your best price?" - "ahm, the one I've advertised, it's your turn now to make an offer and I might consider it". And when they then came up with an offer, it was always a couple of grand below what car dealerships were offering me - which is absolute rock bottom. A complete waste of time, and unfortunately I can't really blame car salesmen if they get dismissive when an Indian buyer turns up. As brutal as it sounds, and I say that despite the fact that I deeply despise (most if not all) car salesmen.
    FYI, I ended up selling the car to a pushy car salesmen who was harassing me over the phone for days… What he paid was over a thousand dollars better than the best offer I received from the Indian buyers.

  • OP, I'm not sure I fully understand what you're getting at?
    Perhaps you've had some poor experienced with some used car salespeople / dealers, but I am sure they aren't all alike, but there's nothing wrong with them asking
    "Now, are you just shopping around, or did you need to buy a car urgently?".

  • +3

    My take in from reading the whole thread is that Indians (generally) are really good for getting the rock bottom price. kudos for ozb spirit

    And salesman are not happy with that :p

    • +1

      I have seen almost everyone does the bargaining. But sometimes Asians and Indians are taken for granted to be offended by few cheap and arrogant sales persons. You can just move on if you dont like how you were treated to talk to their manager.
      As the customer you are giving them business and if you are not happy. move on.

      • +3

        This is good in theory, but when a salesperson is like this, it's usually because his sales manager has told to him to make it quick and get to the point (the price). When you know how much you bought a car for and how much profit is in the sale at a certain price, many sales managers won't bother with the rapport.

        Again, not all Indians are like this- it's generally people who've been in Australia for only a few years or more 'fresh off the boat' so to speak. Full on Indian migrants in Australia are good, honest, hard working people for the most part. They are often the hardest working, smartest and most reliable employees and they are just lovely people trying to get by and build a life in Australia.

        It's just when a recently migrated Indian puts on a negotiating hat they start literally fighting for their self interest and natural habits die hard when you've been raised that way-which is fine, just keep in mind that you aren't the only person trying to benefit from this deal. Car dealerships don't sell cars for free and salespeople don't work for free- and respect that.

        • -3

          correct yourself..we dont come on boats :P

        • @deepudips:

          It's an expression :) No offense meant by it, it just means someone who is recently migrated to the country.

        • @deepudips: that term changes slightly now from FOB to FOP. Fresh of the plane.

        • @tomleonhart:

          FOB : Fresh Off the airBus

    • +1

      They're really good for trying to get rock bottom. Negotiation helps when there's rapport, and they just don't build that because of how they typically do business

      • -6

        They're really good for trying to get rock bottom. Negotiation helps when there's rapport, and they just don't build that because of how they typically do business and are doing good all over the world

        Completing your statement.

        • Ok, keep believing that, meanwhile the nice people, combined with decent negotiation have us bending over backwards to earn their business. We know they'll recommend us to family, we know you won't!

        • -2

          @Spackbace: time will come when you will believe that. Matter of time.

  • Too much abuse flying around both ways for my liking.

    Op could always go through a broker or 2 after they have decided on which car to buy.
    Takes the whole haggling and harrowing with dealers out of the equation.

    I did buy a new car from a dealer few years ago.
    Was pressured into buying a car on the spot. Love the car btw. Not the experience.

    I also do not agree that new car dealerships make a pittance on new car sales.
    Look up John Cadogan's videos before you step into a dealership (if you must).

    • They make the majority of money out of trade ins.
      New cars, especially small new cars, have barely $200-300 in them in most cases after some negotiations. I mean you have the occasional customer that walks in and pays the 22,990 sticker price, but most people will look around and see the same car for 20,990 and then haggle it down some more.

      When I left the industry a few years ago, we were laughing at how Toyota salespeople would make $50 for a new car sale (before tax). It's gotten pretty thin because there's just so much competition and the internet means people can shop between 5 dealers in their city in 10 minutes.

      The way dealers make money now is from factory bonuses and moving as much stock as possible and trading in good cars that they can re-sell for a profit.

  • +4

    So from what I could gather from this thread is that for the car industry in particular, it is acceptable and reasonable to be judgemental on the buyer before commencing business? Reading some posts here show that it is acceptable to judge a buyer based on:

    1. Age - Too young would be assumed to be not affordable
    2. Current owned car - Currently driving a 10 year old Hyundai would most probably cannot afford a BMW
    3. Ethnicity - Have been covered in various posts here. Better chance to be treated better/worse if you were different race.
    4. Dress code - Showing up in casual wear would be treated differently than showing up in suits
    5. Gender (maybe?) - Does men get treated differently to women?

    Seems like everything that yells discrimination in likely all other industries (and in Australia) is acceptable and reasonable in the car industry? Is that right? Serious question here just so I know better next time when shop for cars.

    • +2

      Fair question to ask, especially based on this thread (and I congratulate you if you read it the whole way through!)

      To answer most of your questions, salespeople have a list of their own, a list of qualifying questions. A good salesperson will ask you and make it feel like a general conversation. It's all there to ensure a) We can find the right car for you (that's right, if we think the next model up might be better for you, we'll show you why), b) Work out where you are in the buying cycle, how far away you might be to purchase, and c) Work out if you can actually afford the car you're looking at.

      Now, we're paid a base retainer and have commissions on top. We are also assessed by our numbers sold. We also have Managers watching the customers we talk to, how long we spend with them, asking why we didn't do things, why they didn't buy a car. It's the nature of the beast. It's sales after all.

      So, back to my first point. We ask questions so we can rule out any judgement. You rock up in a POS car and you look at a $50k car, I ask you what you do for a living and you say you've been working FIFO for 6 months, great, rules out the reason you drive an old car. If you look young, again asking what you do determines your affordability.

      A lot of people will divulge things anyway, things like:
      "No I don't need finance, we've just sold our house/come into money etc"
      "I just started my job" - Most finance companies require 3 months minimum employment
      "I'm hoping to wait till EOFY sales" - So why are you wanting a test drive today?

      …The list goes on. Unless you really clam up, which doesn't exactly help the whole experience, we find out things and it helps us. It helps build rapport, it helps us to show you things, etc. Don't feel like it's a bad thing to show some of your cards to the salesperson, he will find out anyway but this way he just knows straight away. Looking at the base model but you like the nicer things, great here's a demo I have of the next model up and it won't cost you much more! Looking at buying in a few months, but just sizing up the cars now? Great, I'll answer your questions to build rapport and hope you come back to me, but leave the test drives till you're closer to making a decision please!

      Gender makes no difference, we will not treat people differently based on gender. Back to those qualifying questions, we will find out what you're interested in and highlight those points - Some females love a V8, some don't, some love tech, some don't. We will try to find out.

      Ethnicity - Now here's the big one because of this thread. I daresay that Indian customers are the only ones that get judged like this, purely because of their own buying and negotiation culture. They don't care about building rapport with the salesperson, as has been pointed out (by Indians here) that the salesperson is there to do a job. Yeah well they also get paid if you buy a car, or more to the point, they lose money if they're dealing with you and lose the genuine customer that walked in behind you. It's a cultural thing and something OP acknowledged early on, they bought their first car by asking 'what's your best price?!' That negotiation technique doesn't work here.


      Side note along the lines of your question, what ethnicity are you?

      • I guess the responses to this thread wouldn't have been the same had my username been more english sounding and had I not mentioned India in my initial post.

        There is no shame in being Indian, I walk proud!

        coming to the point of this particular rant, i guess there is every effort to derail and deviate from the actual issue. Which not only Indian's but also more than 50% of fellow OP's have agreed that most of the car sales guys are pushy, arrogant and lack basic customer care skills. (few exceptions of very rare breed of genuinely good sales guys exist)

        If you serious and willing to get out of denial mode, get real and take India or Indian's out of discussion and ask the real question. You will have answers.

        Lots been spoken of Indian culture, i guess it is time you get on top of the cultural issues and stop discriminating based on what has happened in early 1950's. Change your culture of how you do sales.

        Everyone has bills to be paid and everyone loves that extra money, doesnt mean you leave basic ethics of sales. Gone are days when you push and someone silently accepts that.

        • +1

          If you serious about discussing, get real and take India or Indian's out of discussion and ask the real question

          You acknowledged you bought your first car here by asking 'what's your best price'…! No other nationality or culture insists on that sort of negotiation tool. It might come out once as a matter of what they've learnt from the movies or something, but they certainly don't persist.

          I guess the responses to this thread wouldn't have been the same had my username been more english sounding and had I not mentioned India in my initial post.

          Sigh Again, people here are smart enough, they would've qualified you, and would've know there was another side to the story. To claim 1 or 2 salespeople are 'pushy' would be acceptable, to claim all 3 or 4 were would be to reflect on what your notion of 'pushy' is or how much of a time waster you were.

          Stop trying to claim the pity vote here, you were the one that first highlighted Indian and Aussie sales differences (albeit with really messed up figures). You tried to show that difference, not us! But now you're trying to take the culture/race card away from the discussion? Cmon…

        • -1

          @Spackbace:

          Whats wrong in asking 'what's your best price' i still dont get it. I am looking to pay least to get what I want, if you can sell it at that price sell, else say not possible. No one at gun point is asking you to sell for something that has been asked. That's the principle on how every business runs, no one pays RRP on anything. If that was the case you wouldn't be in OzB today.

          We dont need pity or ask for it. Reason for highlight was despite of such huge sales in India, customer care remains the same. Sales do not get arrogant, they have fixed salaries or retainers as you call and top it with bonus on sales. Does not imply you push someone into sales and bind contractually just to fill up your plate of sales and bonus.

        • @deepudips:

          Whats wrong in asking 'what's your best price' i still dont get it.

          You first offer a price you'll buy it at, then see if they accept it, if not they come back with a counter-offer. If you're at a market in India, buying an item from a fellow Indian, do you ask them for their best price, or do you offer a price you want to buy his product for?

          Reason for highlight was despite of such huge sales in India, customer care remains the same.

          Looking at the real figures, in Australia we buy more new cars per person than Indians do, yet you still believe there's 'huge sales' in India. Yet I've shown you the figures to prove otherwise. In Australia last year there was 50% new cars sold compared to in India over that same time. Someone here must be doing something right.

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