Dealing with car dealers are always ranked near the bottom in consumer surveys for many reasons.

I took my Corolla to the dealer for a simple air bag recall.An hour later, I was told my car needed $2300 worth of repairs, including a new water pump, which was strange since I bought a new water pump a few months before.I knew it was a ripoff, but took it to my mechanic to be sure.He laughed and said I did not need any of that stuff.

"The only reason dealers exist is a franchise law lobbied by dealers..." Yeah time for change. Let the manufacturers sell directly to consumers and cut some middle-man cost.

It's also terrible that the government has made a mandatory middleman! The franchise dealership law needs to be scrap.

Dealerships are useless now over pricing every single car way above sticker price. Car manufacturers need to start selling straight to the buyers

The era of small business is coming to an end by design

dealerships still only exist because they lobby for favorable laws. i see no value for the customer from dealerships, just adds a greedy middleman between me and the product i want to buy.

I saw a video the other day about a dealership marking up cars 70% over MSRP. There should be a cap on market adjustments that dealers can add on to the price of new cars.

What dealerships have done during this chip shortage is ridiculous. It is also terrible that the government has made a mandatory middle man. The franchise dealership model needs competition. Direct to consumer sales is that competition. We need to end the franchise dealership law. The government shouldn’t mandate a middle man.

Have dealerships tried not being utter trash? Might be a good thing to try.

Mandating a middle man is equivalent to profiteering. They are basically guaranteeing the profiteers merchandise will make it into their possession.

If I owned a dealership, I would jump at the chance to sell to these guys. Direct sales is the future.

*00:08* Calling a car dealerships a _"Mom-and-Pop"_ small business is a bit farfetched. In most communities the owners would be top earners in their region and more often than not they own the franchise for more than one brand and subsequent dealerships.

You aren't tested until a company you own and believe in is down 30-40-50% from its highs. You will question your conviction, your strategy, your process. The market has a way of finding your breaking point. Nothing tests your conviction like falling stock prices.

Yes we are in the last days of dealerships as we know it. Many electric car manufacturers have a retail store you can go ask questions but you will have to place and order and at times wait months or more than a year to have your car delivered. In the future it will be more like Amazon. Your car will be delivered next day or with in the week.

Dealer association groups and their lobbies are literally cancerous for American consumers. And they’re only becoming more consolidated and although the chip shortage is partly to blame fore the massive increase in used car values these massive groups are also partly to blame because they were the first to run to auction with lots of cash to outbid each other just to keep inventory on their lots. Drove up costs even more as a result

Here in Germany many dealers are actually owned by the manufacturers, evenso, we still have dealers, both independent and manufacturer owned.

I have been not much good for car dealers in my life. I am 62 and my first and only new car was in 1984. No dealers or new cars before or after that year and my current car purchased from my aunt in 2009 is now 22 years old like new and a 2004 pickup I bought in 2012. To be fair all of my motorcycles, sailboats, and airplanes were bought used as well and not from dealers. I like depreciated values.

No one wants to go look at a car. Instead we want to buy online, with some kind of warranty like a dishwasher would have, and have it delivered. I have dreaded buying cars my entire life, and we changed to looking for a good salesman instead of a car going from dealer to dealer. When my husband was on chemo they said oops we messed up you have to come back again for the paperwork. They wasted tons of our time and he was sick there for hours waiting for them to do what? I refuse to buy the old way and my current car was bought from a friend.

I"m glad the automakers are smacking down the dealerships, I have NEVER had a good run in with a dealership ESPECIALLY with the service department where we REPEATEDLY found that they were either purposely sabotaging our car to make more money. We got lucky we were running a dashcam with audio via a battery unit and caught it all on tape and this happened REPEATEDLY. I bought my last car used due to MASSIVE markups by dealers and have all my work done by an independent auto mechanic who has been vastly more trustworthy that the dealers.

I don't look forward to dealing with dealerships... takes forever to get the vehicle. Just not worth the wait. I pretty much only buy a car only when I need to replace my aging one. I'm taking care of my car 100% in order to maximize it's life.

I don’t know where they get the idea that a car dealer only makes 2.2% on a car. The holdback on its own is 3%. The you have invoice to MSRP gap, dealer fees, finance. To say they only make 2.2% just doesn’t make sense. I think it’s probably closer 10% (pre Covid). Post Covid probably closer to 25% if they are marking up.

Dealerships should be made obsolete going forward, completely unnecessary extra step between the factory and consumer that adds more price

What is the best way to take advantage of the TSLA stock considering the current state. A friend advised I look into these Chinese stocks NIO and BIDU. I need to diversify my $250k portfolio made up of volatile TSLA. What is my best bet!

The YEARS it took the BMW and Honda dealerships to resolve the Takata airbag issue on my two cars was not an impressive example of dealership success.

My 1989 civic is on its last leg. Looking at new and used car prices, I will buy a new d15 engine before I overpay these insane prices.

I'll be celebrating the day when all car dealerships are out of business

I have known several family owned dealers that have sold to big companies. The biggest reason for this is the "old man" dies and the kids don't want to do that kind of work or have the passion to keep it. Also, in one case, the father of the kids didn't have a succession plan and they started fighting over who was going to control and they couldn't decide so it was voted by the majority to sell. These were all single dealership owners in smaller communities.

Everyone saying GOOD, close the dealerships- this will cause your repair costs and even basic automotive maintenance costs to skyrocket. 16,000 less new car dealers is 16,000 less repair shops. All the non dealership repair shops will be slammed and be able to charge whatever they want. Bigger picture here people, automotive repair costs are already ridiculous. I'm a mechanic so this isn't a problem for me- but for most of you it will be a masisve problem, including having to wait a month to get basic work performed while you wait in line, and for twice the price...

Dealing with car dealerships is always a box full of surprises, and more often than not, these are unpleasant experiences. Online purchase is the future. No hassle, no bs.

Dealerships are still needed for warranty repair and new car maintenance. You want to stick with OEM parts and service if possible. People are delusional if they think buying online is the way to go.

Manufacturers can sell directly to consumers and have service shops. Partner with lenders or self lending.

Unfortunately these dealer groups tarnish the image of all dealers. My nephew works for a "Mom and Pop" dealership which has put in a policy to reprimand or fire anyone trying to sell above MSRP. Another thing people miss is what was stated in the video about warrantee and recalls. Without dealerships, whose technicians are trained to fix that brand of car by the people who built it, you might be required to have your car towed a long distance to an authorized repair center. OEMs are not going to let tire stores or shade-tree mechanics make warranty repairs. Many dealership run promotional discounts on top of any being offered by the manufacturers. Dealerships across North America employ millions of people. Lastly, especially with "Mom and Pop" stores, dealerships give a lot back to the community above and beyond employment, through charities and fundraisers. The big problem of unscrupulous dealers is exacerbated by these corporate stores. They come down on workers with low pay and demanding unrealistic profits that force people to do business in ways they wouldn't do otherwise. Very, very last thing, if you ever have to deal directly with a manufacturer, you quickly appreciate what dealers do.

The power of dealerships is maintenance and warrantee coverage. If auto dealers can work a show room/ service model, they will thrive. If national companies can open their own service/ maintenance model, they will dominate.

Dealerships need to go away ASAP. Minimal benefit for the consumer and a needless and unpleasant middleman

Why would there be a law forcing companies to work through dealerships? I thought this was a free market?

The dealership model has to go. I ordered a 2022 Kia Sorento PHEV SX Prestige ($50,000+) from Kia of Beavercreek Ohio on December 4th, 2021. They said they only charge MSRP for cars ordered and they require a $500 deposit. So I paid the $500 deposit and signed for it and built out my sorento phev exactly how I wanted it. They printed out my order with the order number, my name, address, phone and email, along with the exact specifications for my sorento. I thought it was odd they only charge MSRP without a mark up so I had the salesman initial next to the MSRP and the total out the door cost of the car including tax and everything. He said it should take 12 weeks (3 months)... at the 3 month mark i called to check on my order.. no information.. I call Kia America and they have my order number but no information. I repeat this process multiple times as the weeks go by. I stop by Kia of beavercreek ohio where I find out that the original salesman who I ordered the car with no longer works there. The dealership/manager never bothered to contact me to tell me this. He said he already assigned a new salesman to my order. ...months go by and my son gets fed up waiting so we go to a tesla store and order a model 3 long range. We put a $250 deposit down and order the car on May 14th, 2022. Less than a month later we get a text saying that they assigned the vin number to the tesla and they're building it. We were shocked how quick this was and the fact we get notified when the car is being built AND when the car is on its way to the store for delivery. We ordered the tesla model 3 on May 14th and it was built, transported from Fremont California, and delivered to Cincinnati on June 20th! Unfortunately we were on vacation so they had to give the car to the next person in line. They put us next on the list and expect the car in August to September. Back to the Kia situation: after 4 months of waiting we were told that there was only one person ahead of me to get the car. Then a month later I was the next one on the list... 7 months go by since ordering from Kia of beavercreek ohio.. not a single phone call from the dealer or manager.. not even an email. We randomly out of pure luck show up at the dealer on July 18th (Saturday) and I stand outside the managers office and ask any update on my order? He says "yeah it's in the back, didn't your salesman call you? It just got here 3 hours ago" I honestly thought he was joking.. I walk to the service area and there it was fully covered in plastic and plugged into the outlet to charge. I was so happy I took a picture with it. The salesman said he was "too busy to call us ".. since the store was about to close we agreed to pick up the car on Monday. Monday morning I go to Kia of beavercreek ohio to get the final numbers. I see my car parked next to the other cars for sale and it was locked with no "sold" sign which was strange. I wanted to see see what my wife's car was worth so I let them test drive it to get it appraised.. car max said they'd give me $22,000 for it.. Kia of Beavercreek ohio said they'd give $17,000.00.. I said no ill just buy the sorento I ordered. The manager said "I'm not going to sell you the car you ordered unless you trade in your current car" .. I said no, that's my wife's car. The manager, Zac, said "I can make more money selling this car to someone else.. give me your credit card so I can give you your $500 deposit back".. I was shocked. After 7 months of waiting , Kia of beavercreek ohio screwed me over.. I said I'm going to get a lawyer. The manager said "go ahead " as if it means nothing to him. I then said I'm going to the police.. the salesman said "they're not going to do anything".. I go to the police station and told my situation to them and everyone there were disgusted by how Kia of beavercreek ohio treated us. They all told us we should sue the dealer and their parent company Martin's auto group based in bowling Green Kentucky. A female police officer asked if she could call the dealership to explain the situation. As she was on the phone with the salesman he hung up on her.. the police officer said she would come with me and my wife to the dealer to get my $500 back. Ever since then I've called the local news to tell my story and gave Kia of Beavercreek ohio a scathing review on dealer rater dot com. Please read the review and give my review a thumbs up 👍. The manager responded to my complaint with a ridiculous comment. I'll link the review below. www.dealerrater.com/dealer/Kia-of-Beavercreek-review-117729/

I’m glad the car dealer I went through was a family friend. These mark ups are crazy

I take great pleasure in knowing stealerships have dug their own grave with their greedy dodgy practices. Let them all go under and lose everything.

I like buying from new car dealerships, even when I buy used because you always have the manufacture's complaint line if there is a problem. I have found if you just mention the complaint line dealers will start to listen to a reasonable complaint.

websites can out all the pretty pictures on line, but it is always a good idea to go to the dealers to check out the cars because pictures do not show all of the details.

My experience with Autonation Jeep dealership so far... Put on my steering Damper backwards and used cheap oil filter which resulted in low oil pressure during start up...but as for sales part no experience all problems were from getting my Jeep service for repairs

My cousine work at a multi dealer (mostly honda) with some insane mark up.. She says it's mostly some aged people and those who are not technology oriented who fall for those prices, I wonder what the consumer protection does!

Last hurray before the inevitable fall to direct on-line sales. The consolidation from Mom & Pops should make it easier for the hard realities that will force change to more consumer friendly service.

And this is why I only buy low mileage used cars from my trusted local used car dealer and have the vehicle serviced by my local mechanic. Coffee, resturants, cars, etc, I’m done with cookie cutter, nationwide, corporate owned retail!

I think shottenkirk is a big one too. They just came into northern Alabama and bought out a family of Honda and CRDJ dealerships that had been operating for decades

I've seen many reports on this topic and they all mention the high sale prices and limited supply. What they don't consider or even seem to mention is that the sale numbers between 2020-2021 are an inflated phenomenon that is not likely to happen again. That phenomenon was the stimulus payments. There were people that had never had any savings in their life but suddenly received their backpay stimulus checks of $20,000-35,000 and all of a sudden you have thousands to tens of thousands (possibly even hundreds of thousands) of people that for the 1st time in their lives could afford to buy a car outright in cash. Considering that there are many parts of the country where it is nearly impossible to live without a car that's what many did. Just like the sale quantities were inflated so were the prices for the same reasons. The number of used vehicles being sold are falling off and the prices should soon follow. Anyways, my point being is that investors may want to be wary when looking to invest in companies that are investing heavily into used car dealerships.

Stock prices are surging in the same way for oil companies due to short term profits being dumped into dividends and buy-backs. I don't think many people are expecting these companies to be doing as well in another 10 years, but the profits in the mean time are worth holding on for now.

0:10 If I think about it, there are a *lot* of businesses that are more "Mom and Pop" than auto dealerships. Upholstery, dry cleaning, lawn care, automobile repair...

Thanks for the insight

Same thing are going on in my country the Republic of Trinidad and Tobago car dealers are selling they vehicles very expensive and they are paying next to nothing form manufacturers in Japan,south Korea and Germany, untied kingdom and United States they are also bring in Chinese made vehicles and still charging a lot and this is getting people upset

One of my neighbors visited a dealer to buy a new Honda Civic, which had a dealer sticker that added over $9200 in additional charges, above the manufacturer's sticker, including $1995 for "reconditioning". From what I read, times have gotten really tough for those selling cars. I guess "what goes around, comes around".

People to try to avoid car dealers entirely while in the buying process in order to avoid getting ripped off. If politicians care about the people they represent, they would do away with laws that forces people to buy cars from automobile dealerships.

sales declines while lack of dealer support. In Cherry Hill, NJ, Tesla established a dealer, sales picked up like wildfire,

"The auto retail the last bastion of the mom and pop industry"? Lady are you out of your mind? Dealers are almost like scammers with a license!! Ever taken your car for a repair, sometimes even just for maintenance? They'll gouge out your eyes if you don't pay attention at what you agree with. Last time I tried to repair the AC controller (the thingy with buttons), they wanted to charge me 480 freaking dollars!!! I went to the junkyard, got one. I spend $42... *Is that the ideal of a mom and pop experience?? Thanks but no thanks.*

With the big companies its almost as if the manufacturers own them. The whole point was for consumers to have choices but that isnt the case anymore.

Hopefully everything will be made to order eventually. Won’t have to deal with sales people

People hate dealers but need to get their car serviced and have questions about a car , nothing like a test drive before you buy

These companies will try to take over but being a car dealer is hard . No app , no franchise , no Amazon will ever take over .

The dealership model will eventually go extinct as manufacturers sell directly to consumers online. They need to transform from being dealerships to being solely service centers to survive.

My girl needed a bank statement and stub last week and I was worried about her not getting a new car frm the dealer 😴 but everything good now only because of deelscafe good work 👍.

This recently happened in Minnesota, the pohlad companies just sold carousel motor group to lithia auto group. The are getting twincities performance, the only Ferrari dealership in mpls, BMW Minnetonka, and the Audi and Porsche stores . Should be interesting to see what happens. Also the dealership needs to stop market adjustment pricing. No wonder people can't buy a new car. Yet, the manufacturer is always allowing it.

I bought my car off a lithia dealership (Toyota). I pre purchased oil changes. That Toyota dealership stopped being affiliated with lithia. We were told our oil change would be charged as the deal was with lithia. I was referred to a Hyundai dealership but when it came to scheduling an oil change months later we were told that dealership was not affiliated with lithia. So, we were referred to a dealership nearly an hour away. I think that’s their business model. Charge fees for services but then leave the dealership so those already paid services cannot be redeemed

Deaker provided an important feature called service. That feature can not be replaced by remote, over the phone.

Went to buy a car this week and saw what was happening I changed my mind I can’t believe government is allowing this to happen

I don't like buying chairs or clothes online, let alone a car. But that's just me.

Look at Ford. That CEO is clearly not happy with the dealerships and how they kept up selling the F150 and the Lightning ⚡ I say it'll take awhile but absolutely get rid of these greedy bean counters. All they want to do is emulate the oil industry and control supply. So they can squeeze every little bit more money from your wallet. Just in bad taste for them to be doing it now. Not that it was good at any time but it put a light on them and I'm more than happy to see dealerships change going forward. ngl I do regret those family owned or locally owned. They were probably the best dealers out there in my state

Once the dealerships go away it will be the manufacturer who starts gouging.

Supply goes down, greed goes up.

Afaik, Penske started at 48th and Chestnut Sts, in Philadelphia.

I purchased a car from a car dealership and I needed to bring in paystubs and bank statements last week and that got my stressed out asf till I came across some great comments about deelscafe💯💯

We bought a Tesla. Avoiding dealerships made the buying process quick, simple, and painlee. No idiotic haggling, no games, no feeling like we were being ripped off. I'll never buy from a dealership again!

I refuse to pay high mark ups! I detest the dealer network.

The USG regulates mergers and buyouts and monopolies of every industry EXCEPT the car market. They should follow up with this. Dealerships control too much. Just like Apartments. People buy out a handfull of Apartments in a City, then they raise rent. And dealers also dont want to do warranty work. So they tell you stuff like, Its your fault, or it is a characteristic of the car or sometimes just plainly tell you "you dont have your oil changes done here, why should I do your warranty work"? Yes David McDavid Acura of PLano, TX told me that once! (I actually change my own oil at home)

I refuse to pay over MSRP for a car/truck. If dealers want to screw consumers, with "markups," and the manufactures are telling them to stop doing that, but they aren't then the manufactures need to pull their franchise from them or stop allocating all cars to them for that next quarter or longer.

I am hoping interest rates climb massivly so all those leasing and on PCPC/Bubble schemes etc get hit hard and this brings the daft prices down.

Good. It’s time to get rid of car dealers or at least their current tactics. The part I dislike the most is when the salesperson tries to push me to buy the car he wants to sell and not assist me to buy the car I want to get. Then it comes the added warranty and all those overpriced BS markups. Those are some of the reasons why I keep my cars for about 10 to 12 years before I get a new one.

Wow 💯 i never seen this day wpuld come to cars

Dealerships taking advantage of the situation. Marking up vehicles, it’s outrageous

Online is killing everything

As a part service advisor for Lithia a decade ago,I can tell you they are HORRIBLE to work for.They care about their shareholders bottom line profits and not their employees. So glad I left them years ago

What I loved about buying my Tesla was 1- Minimal range of options (much easier to make decisions) 2- No salesman pressure and BS 3- Test Drive experience was the best ever 4- Delivery without the hassle of magic paint protection, voodoo Nitrogen, service contract pressure, etc. I have to say that for those people that like to haggle the price Tesla is not for you. But frankly, do you really know what the best price for the car you buying is the one you paid for or is it $1000 less the next customer was able to negotiate at the end of the month? Yes Teslas have gotten cheaper, so has gas and sugar and meat sometimes and I do not get mad at it. It is the free market working.

I do all the finance thru my Credit Union When I show to the dealer with the check in hand they go thru all the BS fast. I tell the finance guy hey Im here just to sign the paperwork and get the hell out. Thank you

Penske would by far be the largest among them all... if only it weren't for the losses from the can opener bridge.

this is all about monopoly pricing. internet allows consumer price shopping and dealers will undercut one another. now if you call a sonic dealer in one city and compare with a sonic dealer in another city you won’t be able to negotiate.

Tesla WAS also involved in the Takata airbag recall, and they did just fine. 👍

Think about. If you are a large dealer group then there is zero effect on allocation rules. If I own every franchise dealer , who cares if one dealer gets zero allocated or a lower allocation. The other dealers will get a larger allocation. Also , “ dealer swaps “ are very common. It’s an old business model , and when the OEMs start collapsing all these dealer groups will go bust too. So they take the cash and run for now. As soon as it’s not a cash cow the dealers will shut down faster than a cat can lick its ass.

Dealerships especially for Band new cars is how the government enables certain rich individuals to get richer.

"Over 80% of vehicles sold in 2022 were over MSRP ". Think about that. Even if you are paying $1,000-20,000" people are still paying over MSRP. Not sure if many people have heard of the massive repo's that are going on, but there were TONS of repo's on people who were paying $1,000 per month on their car note. How on Earth is anyone paying $1,000 a month just to drive a car and THEN you get it repossessed because you can't afford it.

Haven't been in a dealership since '09 & have no interest in ever stepping foot in one again.

I don't care about car dealerships I buy my vehicles private and they last me for years I never ever buy brand new vehicle which is why I'm debt free.. plus car payments are very high now only the middle class can buy a new cars and they find it hard to even pay the car payments themselves with the middle class dying..

No company should ever be allowed to buy back stock. Car company or otherwise.

We have missed the point: Shareholder value for dealerships = more cost for consumers. Consumers lose. This is not good.

Umm Glenn Chin doesn't know what he's talking about at 8:04 , Tesla was involved in the Takata Airbag Recall and they handled it very well.

So, large companies are trying to create monopolies. Being able to purchase direct from the manufacturer is much better for the customer as less entities are hiking up the price for the consumer.

Dealership model will never be overtaken by the online model

You thought the 1% thing was bad wait until iyou see the power of .1%. Were headed that way. Its happening in transportation and shipping, building materials, real estate...pretty much any market or industry you can think of the middle to lower class is being squeezed out at pace that is increasing exponentially.

Daniel is the Michael Cera of analysts

I wouldn’t work for ANY publicly traded dealership group. I got some good confidential advice from a manufacturer zone manager many years ago that I never forgot. Don’t work for the soul less publicly traded groups. Their employees are typically unhappy. It’s easy to recruit talent out of those stores. I’ve been blessed to work for some awesome private owners. It’s the only way I would ever work for a dealership.

I just received mine… Works pretty good, better than shears