Dodgy dealer?

[sydney85]

I've sent through an email to the dealer outlining that I am aware that they have 30 days to deliver the car to me from the estimated delivery date. I wouldn't mind a couple of weeks but almost two months is ridiculous. I've followed this up with a phone call this morning and spoke with the manager of the dealership who assured me that he would look into it.

Regarding the cool off period - I actually did look into this when I realised that they had duped me about the emergency city brake (radar). It was over the weekend so I couldn't call fair trade to confirm if the cooling off period would apply. Anyway I drafted up and gave the dealer the appropriate letter and got the manager to sign a copy stating the time and date the letter had been received. Next day I called fair trade to discuss it with them and they told me that most dealers circumvent the 24 cooling off period because of the clause that says you have to sign for finance with the dealer in order for the cooling off period to apply. The dealer had provided me quotes for finance but hadn't asked me to sign anything. So buyers beware - if you want the cooling off period you have to sign a document saying that you will need finance from the dealer!

I am hoping the dealer will just get back to me and say 'sorry - we won't have a car for you on time'. I'll be happy with that and ask them to terminate the contract and go elsewhere.

I'll keep you all posted on this one - it's given me a real crash course on how little we are all protected as consumers when it comes down to buying cars. You can say that you should go in having done your research but no matter how much research you do the dealer will always know more!

[DV52]

Sydney: You raise many good points, but the one relating to information asymmetry between the buyer and the seller is particularly pertinent to purchasing a new car (IMO).

I don't care how skilled new car buyers think that they are at negotiating a deal, the fact is that the buyer is at a considerable disadvantage. Even if the buyer's job is a commercial negotiator, he/she can never have the in-depth knowledge of the car salesman.

More likely, the buyer will be an average bloke/woman for whom negotiating a new car deal is a once-in-many-years experience. Nevertheless, the hapless buyer is pitted against an adversary who negotiates car deals every day of his/her working life. And regardless of the friendly, honest face that the salesman portrays, you can be assured that they know all the tricks-of-the-trade (and they will be willing to use them).

In the main, the performance standards of new car salesmen are driven by the targets that are set by their employers. Doubtless, the desire of the seller's shareholders for a return on investment ensures that these are "stretch" targets. I've no doubt that each person on the management pecking-order will blame their immediate bosses - but the dynamic is allowed to persist and the inevitable compromises are found to achieve the monthly KRAs. Alas, some of these compromises are...well... less than honest (not in all cases, but in some instances)!

Plus, the asymmetry in skills between buyer and seller is then further exacerbated by the process for making the final decision whereby the salesman needs to get sign-off by their boss. What's that about? Why must the new car buyer be forced to negotiate against multiple seller representatives? Why isn't the buyer given the same opportunity?

Surely there must be a better way of buying a new car?? Problem is that the whole process of negotiation is what game theorist call a "net-sum game". That is: the size of the profit pie is fixed - it's just a matter of how to slice-up the pie and which parts are then given to the buyer and the seller. Not sure that either party is willing to overtly accept the smaller piece of the pie!

Perhaps another way of thinking about this is that by definition whenever a commercial deal is done (including the decision to buy a new car) "money is left on the table" by both the buyer and the seller. The only question is - which side leaves the most money? Given the asymmetry in skills and information described above - I think that answer to this question is clear!

Here endeth the rant - thanks for allowing me the opportunity to vent-my-spleen
Don

[Sunny43.5]

In line behind pedophiles are car salesman , I had my run in with one a couple of years ago and went to two dealers before being sort of happy with the outcome .

[beingaware]

Eh I toyed with a few dealers before getting my current R.

Walk in with all the facts about the car.
Ask the dealer a lot of questions about how many they sell etc, do your research on their profit margins, bonus on finance etc.
Then insult them by offering $9k less then what they were selling for.
Then walk away when they don't want to play.

That's how I got my R for $5,000 less with free floor matts and tinting thrown in.

Dealers will play ball when you give them incentives.



Sent from my GT-I9505 using Tapatalk

[DV52]

beingaware: Sounds like you have adopted a very reasonable approach!!

Don

PS: When I went through the process (2 years ago now), I found the most important piece of information to be the seller's initial offer. This number is deliberately intended to set the buyer's expectation. In lot's of cases I suspect, the buyer subconsciously accepts the number: not as the final sales price, but as a yard-stick for the estimated saving in the deal. Best not to ask the seller his/her initial offer because subsequent negotiations end-up discounting from this number - far better to start negotiations with the price that the buyer is willing to pay. That way the buyer can point out that he/she has paid more for the car in agreeing the eventual sale price

[Amalgam]

How is your Evo X? I bought mine back in 2010 and always surprised why people buy an Evo X in 2015 over the S3, MK7 Golf and the updated STi..

I bought my 2009 Evo X because I couldn't deal with the BS from the big 3 Germans. In Perth there is only one dealer for each of the big 3. Some have multiple branches with differing names, but at the end of the day you are dancing with the same dealer. I have previously owned BMWs and Mercedes, and ultimately been disappointed.

I have also owned a 1998 WRX and a 2006 Liberty GT turbo and including the EVO X, although finishes may not be at the same level as the big 3, I found them honest and the dealer experience ( purchase and servicing ) far superior. I always felt that the German dealers were doing me a favour by selling me one of their cars. I guess that is the advantage of being a monopoly.

The EVO X was a great car but drank like a sailor when pushed, but isn't it what we buy them for

[Libertyrx1]

I reckon name and shame

[sydney85]

I'd love to but they'd likely either get the website to take the post down and/or they'd sue me for defamation.

[Raiden337]

Best thing I can suggest here and sadly it's a hindsight kind of approach, use the services of a car finder and have them look after you every step of the way. Businesses like this may ask for an extra couple of hundred from you but they always get the best terms of sale. Whilst I have a specific company in mind I feel like forum rules prevent me from recommending them directly.

Regardless, I highly recommend having a reputable business represent you as they'll have national access to vehicles

[sydney85]

Hi everyone, thanks for all the input so far. A quick update. I sent the dealer an email saying that from my understanding of the contract working the dealer has 30 days to present me with a car and that if a vehicle matching my specifications was not forthcoming the dealer could take my email as formal notice that the deal was off.

Anyway the dealer called me today and left me a message to call him back - to make sure he wouldn't put me on the spot I emailed him and asked that he sent me through whatever he had to say via email. He has offered a car with metallic paint (I had asked for Red or White - my missus has always wanted a red car) and has told me that the black car will attract an additional $500.00 fee. I'll be refusing this offer. If the dealer wants to get the sale he'll have to swallow the $500 loss.

[Swallowtail]

Hi everyone, thanks for all the input so far. A quick update. I sent the dealer an email saying that from my understanding of the contract working the dealer has 30 days to present me with a car and that if a vehicle matching my specifications was not forthcoming the dealer could take my email as formal notice that the deal was off.

Anyway the dealer called me today and left me a message to call him back - to make sure he wouldn't put me on the spot I emailed him and asked that he sent me through whatever he had to say via email. He has offered a car with metallic paint (I had asked for Red or White - my missus has always wanted a red car) and has told me that the black car will attract an additional $500.00 fee. I'll be refusing this offer. If the dealer wants to get the sale he'll have to swallow the $500 loss.

Well done... keep up the pressure.

[Sunny43.5]

I would imagine in view of the current situation VW dealers would be nuts to piss off a potential new car buyer as their cars are not exactly moving off the showroom floors in any hurry .As Swallowtail said keep up the pressure and dig your heels in .

[Greg Roles]

Yep I agree, I'd call VW Australia and tell them you are very concerned with their current reputation over the diesel scandal, and how your resale values may be affected. Ask them what their stance is on that. Tell them the problems you are having at the current dealer ( name and shame ), and let them know EXACTLY what you want. VW worldwide are in the WEAKEST position they have ever been, and it's a perfect time for the consumer to start getting better deals and service. I have no doubt HQ would be VERY keen to make sure the sale goes through, heck their numbers will have halved this month because of the software scandal. You are in a VERY strong position, you just need to make noise, gather facts, and realise you can indeed take your VALUABLE business elsewhere.