What makes for a good car buying experience? Good relationships and leaving out the funny business
By JOSEPH D’AGOSTINO
Purchasing a new or used car can be frustrating, but if you stick to a plan and find the right dealership, the car buying experience can be memorable.
According to the New York State Automobile Dealer’s Association, New York has about 1,000 new car and truck dealers. So, where should one buy a car?
Before stepping into the showroom, customers can research the type of car they desire by visiting websites like cars.com, kelleybluebook.com, caranddriver.com, and truecar.com. The buyer can search for new or used cars and the different makes, models, years, and trim levels. TheNewsWheel.com website defines a trim level as a version of a model that comes equipped with a combination of features preselected by the manufacturer. Higher trim levels and additional features are offered at a higher price. It is essential to figure out what features are non-negotiable and which are worth paying extra for.
A local salesman from a Smithtown dealership has been selling cars since he was recruited to join the industry while working at Walmart. He said he was born to sell cars because he enjoyed the car buying experience when he was younger. After 20 years in the business, he can spot well-prepared customers when they walk in the doors. He encourages it. The salesman prefers his customers to know what they want when they walk in. “Watching YouTube, asking a friend what kind of car to buy, what’s a good brand to buy, looking for promotions by going online doing research, that would make an educated consumer,” he said.
While conducting research, buyers should get a sense of what the car of their choice will cost and establish the going rate. If you are buying new, the MSRP or sticker price is the manufacturer’s suggested retail price. The dealer is required to post this, and they can sell above it or below it, depending on demand. There is another price the dealer looks at, and it is called the Invoice Price. This is simply what the dealer pays the manufacturer for the automobile.
Consumers often wonder if there is any wiggle room when it comes to MSRP and Invoice Price. The Smithtown salesman explains that if you look at certain models, they all have similar profit margins of about 5% to 6%. Going to different dealerships shows how much the managerial staff is willing to cut into their profit margin. The more expensive the car, the more profit the dealership can make. Once you establish the price range you are willing to pay, customers have to watch out for dealer tricks, like hidden fees.
Donna Valencia of New Hyde Park was looking for a car for two or three months because her Nissan Rogue was coming off lease. Leasing a car will give you a lower monthly payment, but you must turn in the car after a prefixed number of months. You do not own the vehicle, but you have the option to buy it after the lease expires. With financing or paying cash, you own it. One negative is that you have a higher monthly payment; if you pay cash, you must shell out a lot to own it.
Valencia was interested in a Honda or another Nissan. After going to several dealerships, she ran into some funny business. “They would give you a price over the phone or on the internet, you would go into the dealership, and they would flip flop,” Valencia said. For example, if you go on a local dealer’s website, a price of $20,988 is given for a 2021 Nissan Rogue SV. It has two asterisks next to the price. If you scroll down, four asterisks are next to a paragraph full of terms and conditions. It says you must finance through a dealership (you can only get a loan through the dealership), and the price reflects a $1,999 down payment and dealer fees. With this pricing system, you have no idea what the cost of the vehicle is. Make sure you know what the car is worth to get the best pricing when you walk into the showroom. Also, be prepared to walk out and not pay more than you must. There are other cars out there if you don’t come to a deal you are comfortable with.
A Long Island service manager who also wanted to remain anonymous said, “Customers want transparency.” You do not want to overcharge customers just to make more of a profit. Buyers want to get the fairest deal and not feel they were taken advantage of. The manager said a lot of dealerships do internet pricing, and customers get upset. You think the price is $X, but it is $X + $4,000 because of all the added fees.
When asked how he became successful, the Smithtown car salesman said: “We don’t play games. We don’t trick people. When you come to pick up the car, the numbers are not going to change.”
The salesman also said he has repeat customers and has built relationships with his customers. When looking for the right dealership, ask for referrals. Look to see where friends have bought cars. Look for people to trust. Creating relationships goes a long way, and the car buying experience can be exciting.
Joseph D’Agostino is a math teacher at Freeport High School. He is finishing his second bachelor’s degree in broadcasting and mass communications at SUNY Oswego. Has a love for broadcasting, journalism and sports. Enjoys playing softball, racquetball and pickleball. Married to Danielle and they have two children, Ava and Ryan.