Advantages and Disadvantages of New Car Dealerships

January 27, 2012

Shopping at new car dealerships allows you to see and test-drive the latest models. If you prefer to trade your vehicle in every few years or you are partial to the benefits of leasing, a new car dealership can be a good place to shop. Before you start your search for a new car, you can request quotes and get pricing information right here on CarsDirect. Our services can put you in touch with local dealerships with specially-trained Internet sales managers. These staff members provide low-hassle price quotes on new vehicles and can also set an appointment for you to complete a test drive. This guide highlights some of the advantages and disadvantages of visiting a new car dealership before making your next purchase.

Advantages

  • Brand new cars. One of the best things about new car dealerships is that they offer brand new, untitled vehicles for sale. When buying from a new car dealer, you can feel comfortable that the vehicle is in perfect shape and that if any concerns arise, they will be quickly handled by the dealership
  • Good warranty. New cars come with great bumper-to-bumper and power train warranties that provide protection and peace of mind for many years. Visiting a new car dealership will allow you to learn more about any possible warranty exclusions on a vehicle you are considering
  • Nice facilities. You can also expect a nice experience by visiting a new car dealership. The sales staff at a dealership should be friendly, and facilities are normally in very good shape. This can be a big concern when it comes to having your vehicle serviced
  • Accessible information. New car dealerships offer a variety of brochures and advertising literature that you can take home with you. Many car shoppers prefer to have the printed record of information on the vehicles under consideration

Disadvantages

  • Expensive cars. Compared to buying a comparable used car, buying a new car can be an expensive endeavor. Even with large rebates and employee/supplier discounts, a new car costs thousands more than a one year old used car
  • High pressure tactics. The business of new car sales can be very cutthroat. Salesmen know that customers may leave for another dealership and buy a vehicle, even if it is only a few dollars less expensive. As a result, you can expect a new car dealership to keep you negotiating in the showroom as long as possible. You may be "turned over" to several salespeople or managers, all in an attempt to wear you down and close a deal
  • Inconsistent service. Visiting a new car dealership can be a hit-or-miss experience. Some salespeople may ignore you and provide no information if you are "just looking," while others will gladly provide you with information, even if you are not going to make a purchase decision immediately

Although there are many positives to visiting a new car dealership, it is important to make sure you get the information you need while at the showroom. You can find local dealers who are committed to Internet customers by requesting quotes on CarsDirect.

How to Stay Updated with New Car Dealership Rebates

New car rebates change regularly and are intended to offer discount sales on vehicles that may be in low demand or those that have upcoming design changes. Rebate amounts vary significantly from month to month. This guide highlights how you can stay informed of rebates offered at new car dealerships.

Request Price Quotes Online
The first step to staying up to date with rebate information is to request price quotes via a service like CarsDirect. After you request an online price quote, you will be put in touch with an Internet sales manager who is charged with providing a low-hassle purchase experience for online shoppers. Once you have a point of contact in the Internet department, you can ask about rebates and you may also ask to be put on an email follow-up list for future incentive programs. Alternatively, many dealership websites have a link that allows you to research rebates without having to contact a salesperson.

Visit Manufacturer's Websites
Manufacturers update their websites on a regular basis with new rebates and discount sales. New incentive programs are normally introduced at the start of each month, although offers can vary by brand. By visiting a brand website you can check out current rebates in your area. You could be required to provide your Zip code to get information. The manufacturer may also have an email follow-up list for which you can sign up. Staying in touch with dealerships and manufacturers will help you know when attractive rebates are available on your vehicles of choice.

How to Find New Car Dealership Ratings Online

It is always best to shop around to as many dealerships as are convenient for you to visit in your area. Compare prices and selection, along with warranty offers and dealership incentives. It is also helpful to find the online ratings for that car seller and to determine the overall customer satisfaction ratings.

Customer Satisfaction Index
The Customer Satisfaction Index, or CSI, is a ratings value established by automotive manufacturers to help consumers find the best dealerships. A quick internet search for dealerships in your area will yield results about the customer satisfaction index for each car seller. Compare different dealerships that stock the same types of cars in order to see how previous customers have rated them.

You can also find customer comments and feedback along with the CSI on many different review sites. JD Power is one of the most widely-cited websites with reviews of dealerships and customer responses. Searching for the JD Power rating and reviews of the dealerships in your area is another way to learn about the approval ratings of new car dealerships in your area.

Customer Testimonials
Another potential source of feedback and reviews of new car dealerships in your area are customers themselves. Many customers share information about their cars and purchase history on different message boards and groups online. If you're in the market for a particular make, model or year of a certain car, look for interest groups related to that type of car in your area and online. You're likely to find other people who have had experience shopping for the same car as you, and they may be willing to offer advice about purchasing cars from dealerships in your area.

If you have any additional questions about new car dealerships in your area, you may also wish to speak with mechanics that service the type of car in which you're interested. They may be able to tell you more information about the customers who have worked with the dealership that you're considering.