To some, the thought of purchasing a new car or visiting a dealership causes cold sweats. Others would prefer a root canal. Neither reaction is necessary. Dealers recognize the anxiety that people have when it comes to a major purchase. And to squash the misguided stereotype, they do want to help you every step of the way.
Today’s consumers are more informed than ever before. They are prepared as they enter a showroom. That’s a good thing. It can help the process move along smoother and more efficiently. Dealers want you to feel comfortable and exceptionally satisfied. They really do want to provide the vehicle that best fits your needs.
Keep in mind, most Kansas City dealerships are locally owned family businesses. They live here, pay taxes here and are your neighbors. They have a vested interest in the community. Yes, there are some larger operations that have out-of-town ownership, but the goal remains the same: take care of the customer with professionalism, respect and courtesy.
Consumers have bought automobiles from local franchised new car dealers for decades. Over the last 24 months or so there has been growing noise as to why automakers don’t sell directly to consumers, or online through websites like Amazon. Why is the buying and selling of automobiles regulated at all? Cars are different from other products bought online, like books, clothing or computers. Cars are durable goods that are highly regulated at nearly every step of manufacturing, buying, operating, servicing and repairing – unlike virtually any other product in the marketplace. To operate a car, a consumer must have a license issued by a state government agency. Before driving off the lot, a customer must have insurance that is regulated by a state government agency. About 85 percent of car sales require financing, which is regulated by state and federal government agencies to help ensure that credit is given fairly.
In the end, automobiles are sold through franchised dealers because that business model is a good deal for everyone. Consumers are given extra protection in the marketplace, local communities benefit when local businesses compete to sell and service great products, and manufacturers get to invest their capital into designing, engineering and marketing great products in lieu of low margin retailing. The franchised dealer system has been in place for more than 100 years and has survived despite repeated attempts to derail it. Why has it survived? Because it works.