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A Dark Cloud Over the Dealership Industry

joe.pistell

Uncle Joe
Apr 7, 2009
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The dark cloud over the dealership industry has got to be one of the most fascinating studies in business psychology ever.

About 4 weeks ago, I'm havin' a beer at a house party at my place, and my neighbor is talking about his new ride:
neighbor: "It drives me nuts, why can't car dealers just post their lowest price? They force me to negotiate"
me: "you shopped on the internet and you visited the dealer with the lowest price... right?"

neighbor: "yea..."
me: "did you buy it, or, did you ask for a lower price?"

neighbor: "well... I offered a lower price to close the deal that day"
me: "I see, it was YOU wanted to negotiate a lower price, so, it was you that forced the dealer into negotiations..."

neighbor: [silence], then [mumbling], then [back peddling],
me: "still holding on to the idea that dealers are bad? Think about this. Would you be happier if Verizon's store managers competed against each other and you could get a discount on your phone AND your cell bill?"

neighbor: "yea, that would be cool"
me: "this is how car dealers work, they FIGHT EACH OTHER for your business!"

neighbor: [silence]
me: "think about it. If you bought a Tesla, do you think they'll ever cut your a deal?"

neighbor: "nope"
me: "Game. Set. Match."

The anti-car dealer fever is generations old, yet NO ONE has updated how the Internet has blown up the old model. The tide has turned, car shoppers have enormous power.

Everyone! Buyers are selfish. Let go of the Urban Legend!

Be apart of this conversation over in the dealer forums.
 

✨ AI Highlights

Joe Pistell shares a telling anecdote about a neighbor who complained that car dealers force negotiations, only to reveal he himself initiated the price negotiation. The thread uses this irony as a launching point to explore the psychological disconnect consumers have about car buying — blaming dealers for a process they actively participate in and often benefit from. The key insight is that much of the industry's reputation problem stems from consumer behavior and perception rather than dealer practices alone.

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