Industry in a nosedive -- the real reason

Posted on November 03, 2008
Filed Under: Enterprise Computing. See Also:

I just read an article about car sales taking a nosedive. I honestly don't expect to see the result of this where I live because I have been fortunate enough to find one of the pockets of America that has so far been un-effected. Of course, I could have been more fortunate if I were those lucky few that joined in on the bail-out lotto we just had, but that's another story.

Anyway, this article was particularly touching to me because, during a month of extreme bad luck (battery exploded in my car and my wives car, water leak somewhere in the walls of our house, and really just everything around me breaking), I gave up on trying to maintain an older car. So, I picked up my family, and we drove to the near-by Honda dealer. Found a very nice brand new 2008, and asked them to offer me a price on it. It was a 2008 after all, so I figured we should probably get a good deal. Well, Mr sales guy runs into his office to talk to the manager, and comes out fifteen minutes later. All this time, I am toting my 2 year old around the sales floor trying to keep her entertained. So, after 15 minutes he emerges from their salesman panic room.

"I think we can make you a good deal on this car. Tell me about your trade-in and what you want to pay monthly".

I was stunned. I asked for a price for the car. I had no intention of financing through these guys, I just wanted a price. And I re-iterated that, again. I did however cave on the fact that we had not discussed trade-ins, and although a trade-in is just a coy way for them to invent another way to rip you off, I gave him the details of my car. By this time, my 2 year old was cranky, I was hungry, so I asked him to call me on my cell phone when they had rubbed their magic 8 ball enough to come up with an answer. He agreed and I went on to find food.

30 minutes later, my phone rings. It's the sales guy, and he was ready to give me a price. Just kidding. We talked for 5 minutes where he tried to convince me to drive my trade in to their shop so they could fully investigate the car. Now, having done this dance before, fully investigate means "bring us your only way to escape so we can torment you until you agree to pay whatever we demand to release you".

"Ok, let's skip the trade-in," I said. "Just tell me what it will cost to buy the car in cash. What is the price."

His response: "If I gave you a price, you could just do to another dealer and get that price from them."

I hung up the phone and decided that I could maintain my cars a bit longer.

Of course there is a point to this story. We are seeing dropping sales numbers from a lot of organizations these days, and the blame is running like wild fires. Yes, I completely agree that the market is righting itself, but wouldn't a 24,000 dollar sale have helped that dealerships numbers a bit. So if the economy is really that bleak, why are they still treating weary consumers like targets?

by Chris Gamble

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