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Watch what you say about your competition

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A dealership owner shares a cautionary legal case in which a Toyota dealer was hit with a $7.5 million slander verdict for making disparaging claims about competitors, emphasizing that mudslinging isn't worth the legal risk or lost focus on customers. Subsequent replies discuss how competitors sometimes make false or exaggerated claims about warranty offerings to undercut each other's business, though the posters note their own dealerships compete on service offerings without crossing into slanderous territory. The key takeaway is that dealers should focus on their own value proposition rather than attacking competitors' credibility or products, as such claims can result in serious legal and financial consequences.

BrianJ

BrianJ

Lot Lizard
Mar 13, 2012
8
2
First Name
Brian
#1
I know none of us would ever slander our competition, but I spotted a new story today about a dealership that got hit hard with a slander suit and it reminded me how critical it is to stick to the things we know sell cars, and leave the mudslinging to the politicians.

Take a few minutes to read the article (Eastern Shore Toyota case: Judge refuses to overturn $7.5 million slander verdict | al.com) and verdict (http://media.al.com/live/other/eastern-shore-toyota-verdict.pdf).

Remind your managers and sales teams it isn't worth 7.5m for an extra car deal or two. These guys spent so much time selling against their competition they forgot that the customer came to buy a car.
 
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#2
Interesting, the other night I got an e-mail from a customer saying another dealer today them our warranty was a scam, and it's extra $, etc. Even though it's complimentary and legit.. I wonder how many other customers they are sending that same message to.. They don't include a warranty so to get business they'll act like it's nothing and price as low as possible and call ours junk.
 
#3
My dealership constantly has sell's against the other dealers who offer free warranties,car washes,2 yrs oil change etc...

However we do not go to the extreme saying that those services are a scam or call another honda dealers vehicle junk.

BrianJ .... Thanks for sharing the article.
 

✨ AI Highlights

A dealership owner shares a cautionary legal case in which a Toyota dealer was hit with a $7.5 million slander verdict for making disparaging claims about competitors, emphasizing that mudslinging isn't worth the legal risk or lost focus on customers. Subsequent replies discuss how competitors sometimes make false or exaggerated claims about warranty offerings to undercut each other's business, though the posters note their own dealerships compete on service offerings without crossing into slanderous territory. The key takeaway is that dealers should focus on their own value proposition rather than attacking competitors' credibility or products, as such claims can result in serious legal and financial consequences.

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