Chris Collins and a guest walk through a recent car purchase that took 25 minutes to negotiate but hours more for paperwork and financing. Used cars cost as much as new ones due to supply shortages, inventory info varies wildly between dealerships, and the F&I process pushes unnecessary add-ons. The dealership model needs automation and price transparency.
Tell me about why we should automate salespeople.
Yeah, so super interesting, right? My girlfriend was in the market and needed a car. So she did her research. She decided exactly what car she wanted, what options, what color. So we did the online research and we found a place, this first place that had it. So we drove out there on Monday and got.
How hard is it right now in the climate we are to find a new car when we have the, you know, disruption of production and chips and all that.
That's part of this whole story, right? So we get to the dealership and Toyota dealerships typically have a pretty decent amount of inventory in them, right? Like usually, especially the ones in la, they have pretty decent volume and they usually have really nice inventory. And we get there and I go to the, to the salesperson, I'm like, I'm looking for this car, this VIN number, you know, just want to, if we have it, can we look at it and then, you know, work the deal.
Pulled it up online before you got there?
Yeah.
Okay.
So then of course the first thing that happens is, oh, we don't have that car, it's sold. And I'm like, okay. So then he proceeds to drive us to the pre owned chrs. Now a brand new chr, the one that we specced out, 25,700 bucks. Guess how much they wanted for this? Pre owned 2019 with 16,000 miles on it.
23,000.
More.
25 grand. So the same, the same price. And then I think the thing that I just could never wrap my head around, but I bet that people do, is I bet that some people are buying that car anyways because they want a car so bad.
Well, I mean, clearly if they're pricing them at that, somebody's buying it.
Somebody's buying it, right? So we didn't spend a whole lot of time at that store. And I do my online search again. And then a new, she wanted a blue one specifically. So a blue one pops up on my search and I'm like, okay, so let's run over there. So I did, from sitting in the chair at the other dealership, I did the Internet inquiry, right? And usually those Internet inquiries are pretty fast.
So then I'm like, okay, well, didn't hear back from the Internet people. So we just drove over to the place.
So this is a second dealership.
Second dealership. So I pull. So pull onto the lot in front of the building. Actually maybe like five rows up is the car that I found on the Internet. I go out, I take a picture of It. Because I know that he's gonna need. The person's gonna need the stock number. So then I walk in.
Beautiful. Walk around looking around for people for a little while. No one comes up and ups us. No one asks how our day is or anything like that. Make my way to the reception desk. They page a salesperson. Then salesperson comes up. I'm like.
Yeah, I'm really interested in buying this car. So I show them the picture of the stock number, everything like that. You know what? The salesperson proceeds to. Tell me.
We don't have any chrs in stock. I'm like, interesting.
So is it possible that that one is sold already?
You would think, right? So I'm like, well, I'm pretty sure you do, because I took a picture of this while it was on your lot.
That's how you said it.
Yeah.
So they came up and he's like, wait a minute. Can you show me the car? So then I walk him out and I show him the car. He's like, okay, let's go back in. I'll make sure that it's not sold. And he did, in fact, and it was available, which is great.
So at that point, you feel like you're doing their job for them a little bit.
We sit down and we start to go over all the numbers and everything like that. And it took us. So let's say that this was 5:15 at night. We agreed on a price, but let's say that by 5:40, we'd agreed on the numbers.
So another 25 minutes.
It was a pretty fast negotiation.
Okay.
Okay. So we go through, and it's like, 5:40. We do all the negotiation, everything like that. I was really comfortable with what they gave for the trade and everything like that, so. So I'm pretty happy. And 5:40 is when we ran the numbers. What time do you think we left?
8, 9, 15.
Of course.
How does that happen?
Yeah. And then was most of the time you were waiting for F and I. Yeah.
So the only thing I could think of is how often you'll talk to somebody in the sales department, and they'll be like, I hate our service department. They take an hour to do an oil change. And it just makes me want to say, well, it takes you five hours to sell a car to somebody that knows what they want already. But I don't know how hard would it have been for us to go in there, pick the car we wanted, pick the options, pick the financing, and just click a whole bunch of buttons and walk out with the car. I mean, comparing that to the last purchase experience I had before, it was a disaster.
So. And then what happens when you go on F and I?
The usual, Right? There's the warranty, there's the gap insurance, there's all that. Extended warranty. Yeah, I'm a huge fan of extended warranties, by the way.
We should have, like, music playing under this, like, news alert. Breaking news.
Someone in service likes extended warranties.
A fan of extended warranties. So you left at what time?
9:15. Oh, I'm sorry. So by the time we got the delivery done, which was six minutes, 9:21. And the delivery of six minutes was my fault. Not. Not the salesperson because he was willing to go through everything.
So your thought process is that you would have much rather dealt with a kiosk.
Yep.
Walk up is what it is. Which I think is why a lot of places are going to one price.
Yep.
Because it's headed that way. Right.
I think so too.
Thanks so much for watching this clip of Service Driving Revolution. We're uploading new stuff every day, so make sure you subscribe and click the bell icon so you don't miss out. If you have a question you'd like us to answer on the show, call 8333 Ask SDR and we'll answer your question on the show. That's 8333 Ask SDR. For special deals on our books and training, head over to offers.chriscollinsinc.com now that's offers.chriscollinsInc.com I'm Chris Collins and I'll see you in the next video.
