We think that the more you know about
Planet, the better we look. So we're eager to let you know all about us
and our unique approach. There's no disinfectant quite like sunlight.
Most dealers do not share our enthusiasm for transparency. In fact, the typical dealership separates you from your money by separating you from the truth. Some of their techniques:
Bait and Switch. How
it works: Typical dealer puts an unbelievable price in an ad, but
provides the stock number for only one vehicle. When you show up, the
car "just got sold." Of course! The one that's just like it is going
to cost you thou$ands more.
Asterisk pricing.
How it works: Typical dealer advertises an unbelievable price, and
then burying in the fine print that you need cash down or a trade to get
that price. Alternately, the typical dealer uses a rebate to lower the
price, but not everyone is entitled to the rebate.
Model Misrepresentation.
How it works: Typical dealer uses a picture of a premium model but the
price for the base model, or fails to disclose that the car does not
have an automatic transmission when nearly every one buys an automatic
(according to the Detroit News, over 90% of cars sold in the United
States have automatic transmissions. If you exclude sports cars, it's
close to 100%.)
Low Ball.
How it works: Typical dealer advertises at a price or quotes a price
that does not represent the final price of the vehicle. For example,
all manufacturers charge dealers a destination charge, which we all have
to pass on the purchaser. These are in the $600 to $900 range. The
typical dealer advertises or quotes the car without it, and doesn't
disclose it until the last minute, when you try to take delivery of the
car.
High Ball.
How it works: When you tell the typical dealer about your trade, they
don't give you a range in good faith, but rather tell you an
unbelievably high price (perhaps found on Kelly Blue Book or Edmunds)
that they have no intention of honoring. When you show up, they make
various deductions so they can justify giving you a lower price.
Poisoning the Well.
How it works: After you make the mistake of visiting a typical
dealership and they fail to pressure you into a car, they walk you out
the door with an impossible price so when you go to an honest dealer,
there is no way for the honest dealer to match the price that you think
you were offered. If you fall for the trick, you go back and they get
another shot at you, even if they have to tap dance to explain why they
can't give you the price they say they would.
Why do dealers do these deceptive practices? It
works on enough people. We see it every day, from people you would
expect to know better. Some people are seduced by the temptation of
visiting these stores even though they know in the back of their minds
that the deals are too good to be true. Some people will suffer any
indignity to think that they saved money on a car (even if they end up
paying more). And once there, after they've been beat up for a few
hours, they just want to get the grueling experience finished, so they
do business with unsavory characters. And the bad guys get rewarded
with your profits.
What are these typical dealers thinking when they use these tricks? Many
car purchasers visit only two dealerships when they buy a car. So, if
they can lure you in, that means the bad guys have a 50% chance of selling you a
car. Once they get you in, their salesmen are trained to "put you on
the elevator"....to get you to forget about the ad car and pay more for
another car. How do dealers get away with all of this stuff? It can't be legal. Massachusetts
law is pretty explicit about the illegality of deceptive practices in
car dealerships. But drunk driving is illegal too, and a lot of people
get away with it because governments can
only afford to put so many police officers on the road. In
Massachusetts, the attorney general enforces advertising laws, but her
resources are quite limited. Many dealerships just pay the attorney
general's fines and consider it a cost of doing business.
So how do I protect myself when buying a car? All
dealerships are not created equal, so stay away from typical
dealerships. It's not a fair fight when the deck is stacked against
you, so go to a dealership where there is no fight and the deck isn't
stacked against you. At Planet, for example, we've built our entire
business model on the assumption that you'll come back again and again
to be treated with dignity. We intentionally hire our Purchase Partners
from outside the car business, so you'll never get the typical dealership treatment at Planet.