Cox Automotive- Top 5 Car buyer Frustrations:

1) The amount of time the entire process took to complete.  41%

2) Negotiating a purchase price. 37%

http://agameautotrader.com/ids/wp-content/uploads/2015/03/TimeStudyWhitePaperFINAL11-7-14.pdf

When I see that the #2 frustration of car buyers is price negotiation I must ask:  If profit margins on car sales are shrinking, why would consumers be frustrated with how they negotiated their price?  Of course, a bit of sarcasm was used in asking that question because as someone who sold cars myself all that mattered in the end was the bottom line.  It isn't any secret however that for consumers this just isn't the case.  We know there are customers that happily overpay and then there are many who get a great deal then subsequently submit the worst reviews imaginable.  For the consumer, every step of the process is part of the experience and it's important for us to always remember that.  Considering that negotiating the price, or the deal in general, is usually the first point of friction, we should try and figure out what we could be doing to improve the experience for that 1 in 3 car buyers cited above.

There is no secret recipe.  Negotiating price is something that can be improved now if we allow it to be, and If there is one problem technology has solved and solved well, it's getting two parties together and allowing for a conversation.  So surely by now, we have found a way for our customers to avoid those awkward and tense moments at our desk right?  Well, not quite.  Actually, many times, the moment price comes up online or over the phone that's what we tell people they "must" do if they want to move forward.  People always ask why a dealer would intentionally create such a disconnect and the truth is as simple as a reference to home field advantage.  When the buyer is at their desk they have control over the process, anywhere else and they really can't be sure what or even who we are dealing with.  Although this is somewhat of an understandable strategy it is descended from a time when you had the reasonable expectation that it was your way or the highway (Yes a Pun).  People were visiting 4-5 dealerships before making a purchase and there was simply no reason to cater to someone who would probably still come through anyway.  Times they are a changin!  The consumer used to consider other options to the traditional experience as only being ideal.  Today, 86% of car buyers say if they were choosing between multiple dealerships they would choose the dealership offering more of the process online, and it's not unreasonable to believe many of those consider online negotiating to be part of that package.  That's signals that ideal has become expected and if so much as one of your competitors offers such an experience, they undoubtedly have an advantage over you if you don't.  

The people who are asking you about your pricing are probably on another device ordering their groceries, while outside, an Amazon drone flies in and drops off a package.  How much longer is the modern consumer, largely becoming significantly millennial, going to accept, "This is how we have always done things here".  Sure you want to control the process, sure you want to defend your price, and sure you don't just want to be shopped so that person can take your offer somewhere else.  But, there was never a day when you could control who contacted you and their intentions.  If someone wants only to get a written offer from you so they can get a better deal elsewhere, why force those people to come in to do that and waste even more of your time and resources?  "Well Hitch, maybe we can flip them or change their mind".  Well, OK, but if car buyers were so easily influenced why are they only visiting 1.6 dealerships?  How can we declare car buyers today are more decisive than ever while at the same time implementing policies that treat them as people easily influenced?     

Hitches conclusion:  In a world where the process of elimination has moved from the showroom to the living room, consider this:  Do you want to be the dealership people contacted that provided the least amount of information?  Don't lose someone that genuinely wants to do a deal because you are worried about someone that never will.  We are not suggesting that "What's your best price" should be answered with a number, we are only suggesting it shouldn't be answered with a policy.  For the most part car buyers still don't expect much from dealers which sounds bad, but oddly at times like this can be considered favorable because it makes exceeding those expectations easier.  In this instance, it means you don't really have to agree to a firm deal before an in person visit for a customer to feel you are working with them on their terms, which is really all they want to see at this point.  Dealers should do what it takes to let their customers know they are here to facilitate their purchase, not a sale.  There is a difference there and understanding it is key if we ever wish to see these frustrations dissipate.