Massachusetts Car Dealers:
Misconceptions, changes in the industry, and tips for getting a fair deal.

by Christopher Burdick

Many of the customers who have contracted AutoHeroes for our services have said that one of their primary reasons for doing so is that they had a poor experience with a dealer in the past. Massachusetts car dealers have had a reputation for taking advantage of their customers, using false advertising tactics and pressuring potential buyers into making a purchase. Though this reputation is often undeserved (yes, there are many great car dealers out there), we still hear stories about these experiences on a fairly frequent basis.

To understand why (some) car salesmen can be so pushy, let's take a look at how they are paid. Most Massachusetts car dealers pay their salesmen a commission based on however much profit they sell a car for. In general, the salesman makes about 20% of the profit on a car. Therefore, if they sell a car for $1000 over the invoice price, the salesman makes $200. So the lower the price on the car, the less money the salesman makes.

Some car salesmen use pressure tactics to get customers to sign on a deal that is very profitable for the dealership. Some Massachusetts car dealers have told us that 60% of customers that leave a dealership without buying a car do not return to that dealership, but buy a car from another dealer. This means that dealers everywhere do not want customers to leave without buying something! To prevent this, salesmen will say things like "I can get you a great deal today" or "what will it take to get you to buy this car today?" or "I only have one of those cars left". I have seen salesmen stand in the way of a customer that was trying to leave a dealership, almost physically preventing them from leaving. Expect some kind of tactics from your salesman, but do not tolerate any pressure or bullying.

The term "used car salesman" has been used to describe a dishonest salesperson in any industry. The rumors of customers buying used cars only to have them break down the moment they leave the dealers lot are largely fabrications, however they are not too far from the truth. In recent years, laws have been passed to make Massachusetts car dealers liable for problems associated with their products. The Lemon laws in Massachusetts have guaranteed that the consumer will not be left without recourse if a dealership sells an unsafe or poorly manufactured automobile.

You can check out the Lemon Laws at the Massachusetts Office of Consumer Affairs and Business Regulation

Since the public's access to information has been increased dramatically by the development of internet resources, Massachusetts car dealers have had to change the way in which they sell automobiles. An example: A savvy buyer can now go online and find the dealership's price on a new car. Now instead of negotiating discounts off of sticker price, the customer can use the dealerships price as a starting point. Since this information is so readily available, Massachusetts car dealers often advertise the invoice prices on vehicles, or disclose them to customers during negotiations.

Consumers who are searching for a new or late model used car should take advantage of the information located throughout various sites on the internet. An uneducated consumer who walks into a dealership and buys a new automobile is much more likely to be taken advantage of than a customer who does research and uses that information when negotiating with the dealership.

So, before you walk into a dealership, do your research on what car you want, the options you would like, and make sure you know how the pricing breaks down. When you get to the dealership, remember the following:

• You are the customer. You can leave at any time, and you have to say yes before any sale is made.
• If you feel uncomfortable, or you feel like you are being taken advantage of, either leave the dealership of ask to speak to the manager on duty. Tell the manager that you are not happy with the way you are being treated by your salesman, and that you would like to talk to someone else.
• Do not be afraid of walking out if you do not like the way the dealership treats you. There are always multiple dealers for any one make of car in any metropolitan area. If you don't like one, then go to another.

However, before you do any of these things, give us a call here at AutoHeroes. We can save you time and aggravation by personally handling the negotiations for you. We pride ourselves on working closely with our clients to make sure that they are comfortable with the entire purchasing process. And in the end, we can save you a bunch of money as well.

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