Recently, I had the miserable experience of being a buyer. Not a home buyer BUT a used car buyer. I must say this was not a pleasant experience but an experience that must be shared.
My college son’s Mazda 3 whom he loves more than the dog (if that’s even possible) was totaled due to the hail storm that hit San Antonio a few weeks ago. We have not settled with the insurance company yet but since my son was home for the weekend, we decided to jump on the opportunity to shop around.
On a miserable pouring Saturday afternoon, we visited several used car dealers and my son decided on another Mazda 3 vehicle. We specified 2 things to the car sales person, #1 our “out the door budget” and #2 a Mazda 3. 2 cars met this criteria, both above our budget but the sales person assured that it met our budget. My son test drove the first car, it was love at first sight. The 2nd car was not in the lot but was due to arrive in 2 days which we wanted to wait and see it since we were still waiting for the insurance decision. The following day, we received several calls from the sales manager of the dealer to confirm we were returning to see the 2nd car. We hurriedly accepted the insurance company’s offer, released the car to the collision repair company and overnighted the title with all the instructions by the insurance company. A few hours later, we were back at the same dealer to see the 2nd car. An hour later, we sat down with the manager to discuss other details including the price. At that point, the manager told us that the car was way above our price and that the sales person was not here for him to discuss what he told us. My husband and I left in disgust.
The following day, I was in No Austin and my husband points out another Mazda for sale at a nearby dealership. I stopped at the dealer to see the car and realized it was not a fit. On the way out, the sales person says, he has a Corolla that would fit our budget. I took a look at it, sent photos to my son whom was drooling. We went back inside to discuss the bottom price. Then he tells me that he cannot give me the car at my budget. This is BTW after I told him my terrible experience with another dealer.
In many ways, this car buying experience is similar to home buying. Yes, it is a frustrating process but this could be avoided by asking, listening and providing the expected results.
3 main questions to ask home vs car buyers:
1) What is your price range? VS What is your car budget?
2) Do you need to sell a home before you purchase? VS Do you have a vehicle to trade in or do you need to sell your car on your own before purchasing?
3) Are you going to finance or pay cash? (Same question to car buyers)
At this point a good sales person would listen to all the answers and deliver! IT’S SIMPLE but perhaps not EASY (if the inventory is limited or the criteria is too specific, etc). Why would I show homes above my buyer’s budget? It’s a total waste of time for me and my buyers; it gives them false hope that they can afford the property; and misleads the seller thinking I have a qualified buyer for their property.
As an experienced Realtor, my aim is to earn each of my client’s referrals by having a stress free transaction. So please tell me, how do these car dealerships make money and get repeat business?
