When buying a car becomes a game of Pusoy - Editor's Note

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In-house financing + in-house insurance + accessories = SUV/Van/Pick-Up allocation 💸

A few days ago I got a call from a friend in the north. A very agitated one.

They'll say take it or leave it, because if you say no to any one of those conditions or even hint at negotiating, the allocation goes to someone willing to subject themselves to those terms to get the car. They will not even blink if you drop a bag full of cash in front of them; they want the transaction. And they do it with a smile.

Why do auto dealerships do that? It's easy enough to understand: they are maximizing the profit of the transaction. It's about markups and commissions. That's why insurance rates, financing rates, and accessories sold at dealerships are ridiculously high. Some wonder why the brand isn't doing anything to address this issue for the sake of the customers, and the answer is rooted in the political relationship that exists between dealers and the brand. Think of it like federalism in the US. The dealerships are the individual states with their own government, while the brand is the federal government. The latter cannot simply tell the former to do something against their will and not expect pushback.

In the case of unfair dealer sales practices, you can expect the same. A brand can't come down hard on dealers for how they sell a car. Even with the price; if you notice, the term is manufacturer suggested retail price and not manufacturer dictated retail price because dealers can't be told how much they can sell a car for. It's only a"suggestion".

If a dealer is shoving unwanted accessories down your throat to get an allocation, or if a sales agent is pushing for exorbitant in-house financing and insurance premiums, then go to another dealer. There are plenty to choose from. If all the other dealers do the same, go to a different brand altogether.

 

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