Due diligence key when choosing a dealership
Today I want to talk about why car buyers choose one dealership over another.
For some car buyers, it’s a sense of comfort and familiarity. They’ve purchased from Dealership A before and feel reasonably confident that their expectations will be met (if not exceeded) again.
Sometimes shoppers are drawn to a dealership because of its involvement in the community — sponsoring various activities and fundraising initiatives. Other times it’s because of a dealer’s great reputation or a referral.
For a majority of car buyers, choosing a new car dealership involves conducting proper due diligence. It’s never been easier to access the maze of dealership websites and online resources, but consumers run the risk of being overwhelmed with too much information and feeling confused.
My best advice is to try and manage your information as best you can. Visit websites that are easy to navigate and, if you’re unclear about any aspect of buying a car, seek assistance from a friend or someone “in the know.”
If you’re a newcomer to the carbuying process, you may wonder whether it’s best to choose a make and model before choosing a dealership or vice versa. In most instances, I’d say choose the brand and model first, although there are exceptions.
For instance, someone may have a history of dealing with a local dealership and they would have no qualms recommending that store to their spouse or child. In such cases, the salesperson will work with the buyer to determine driving requirements and budget and then suggest models that fit those criteria.
After you’ve chosen a vehicle that suits your driving needs and budget, you’ll want to start the due diligence process in selecting a dealership to purchase that vehicle.
In the pre-Internet days, car shoppers would visit multiple dealers in person before making a decision. Nowadays most car shopping is done online.
One mistake car buyers can make is restricting their search to price alone. They may think that saving $100 on a new car from a dealership 200 kilometres away represents a fantastic deal. Price is always important but the loss of potential VIP service from a local dealer over several years cannot be measured, and is certainly worth more than $100.
If price is your sole criteria for buying, consider this: Most dealers, regardless of volume, pay exactly the same price for the same car. Your local dealer can, given the chance, easily match the $100 you think you are saving.
Some car buyers are inclined to hire car brokers to buy on their behalf, in order to save money. I don’t recommend using a broker because he/she can only buy a new car from a dealer, who sells the car to the broker at a profit. The broker, in turn, marks it up a second time to the buyer. In most cases, the broker fills the order from an out-of-market dealer.
When you are ready to buy, your goal should be to find a dealer who has a solid reputation, who is easy to work with and whose dealership is conveniently located, preferably close to home or work. Plan to visit a few dealerships and pay attention to the salespeople and service advisers. Is the staff friendly and courteous to you and to their fellow staff members?
The process of searching for the right dealer should be a comfortable process. If you have any nagging doubts about a dealership, or if it’s not providing the information or service that you need to make an informed decision, find another dealer. This column represents the views of TADA. Email president@tada.ca or visit tada.ca. Doug Sullivan, president of the Trillium Automobile Dealers Association, is a new-car dealer in Huntsville. To reach Wheels editor Norris McDonald: nmcdonald@thestar.ca