Bark's Bites: How Do New Car Dealers Make Money?

If I’ve seen it once in the comments on this site, I’ve seen it a hundred times.

Never once in the history of the Internet has anyone, anywhere admitted that they paid more than invoice for a new car.

Everybody gets the best deal possible. We all “ stick it to the man.” However, despite the well-known and understood tendencies of most people to lie on forums, in comments, or even when writing about their own business practices on the Internet, this might be one of the few times when the braggadocio matches reality.

The truth is that virtually everyone gets a “good deal” on a new car.

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And the Worst Car Seller Is ...

I buy a lot of cars, which means I often find myself thinking about car sellers and buyers. These are two interesting groups of human beings. In many cases, they’re openly trying to screw you. In other cases, they have no idea they’re screwing you, and you don’t discover they have until four days later when you go to put your briefcase in the trunk and it’s full of rain water.

This got me thinking: What is the least trustworthy group of automotive sellers in existence?

I’ve bought cars from all of them. New car dealers. Used car dealers. Family members, friends, auctions, and strangers on the Internet, from Craigslist to Cars.com to Autotrader to web forums. Every transaction is a little different. And every time, I’m wonder to myself: Is this person going to screw me?

That’s why I’m soliciting your opinion on a topic that’s near and dear to my heart (and wallet). Which car seller can you count on to be the very worst?

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Bark's Bites: Here's What Bark Motors Would Look Like

I come before you today to state a simple truth, a truth that is so obvious that it doesn’t even need to be said, yet it has never been properly addressed. The car franchise dealership, as we know it, is broken.

It’s too bloated. It doesn’t live in the now. It spends far too much to acquire its customers. It doesn’t focus on the things that matter. Some OEMs wish that they could eliminate it. In most cases, it’s owned by a guy whose only achievement in life is having been born to the owner of a car dealership.

It’s also the only business in America that intentionally operates in a way that is frustrating and oppressive to its customers. You could never run any other business in America the way that a car dealership is run. The posted price means nothing. Virtually no two people will pay the same price for a car. Even once the price is finally negotiated, surprises keep coming to the point where virtually nobody is entirely sure if he or she got a fair deal on his car.

But it doesn’t have to be this way. If I owned my own dealership (and, honestly, could I really be any worse at it than 90 percent of the guys who own dealerships?) here’s what I’d do to help my dealership make more money, sell more cars, be more ethical, increase customer satisfaction and loyalty, and even have more fun doing it.

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Question Of The Day: Would It Be Better To Test Drive A New Car… Without The Dealership?

Imagine over 500 cars at your disposal, and you pick the exact ones you want to test on the open road.

There are no mind games. No bait and switch tactics. Nothing but you going to a computer, figuring out the most worthy candidates, and letting a salaried employee fetch the keys and answer the relevant questions to your car search.

Sounds too good to be true? Well, it’s already happened. There’s only one problem.

The place that does it primarily sells used cars, not new cars.

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  • Plaincraig 1975 Mercury Cougar with the 460 four barrel. My dad bought it new and removed all the pollution control stuff and did a lot of upgrades to the engine (450hp). I got to use it from 1986 to 1991 when I got my Eclipse GSX. The payments and insurance for a 3000GT were going to be too much. No tickets no accidents so far in my many years and miles.My sister learned on a 76 LTD with the 350 two barrel then a Ford Escort but she has tickets (speeding but she has contacts so they get dismissed or fine and no points) and accidents (none her fault)
  • Namesakeone If I were the parent of a teenage daughter, I would want her in an H1 Hummer. It would be big enough to protect her in a crash, too big for her to afford the fuel (and thus keep her home), big enough to intimidate her in a parallel-parking situation (and thus keep her home), and the transmission tunnel would prevent backseat sex.If I were the parent of a teenage son, I would want him to have, for his first wheeled transportation...a ride-on lawnmower. For obvious reasons.
  • ToolGuy If I were a teen under the tutelage of one of the B&B, I think it would make perfect sense to jump straight into one of those "forever cars"... see then I could drive it forever and not have to worry about ever replacing it. This plan seems flawless, doesn't it?
  • Rover Sig A short cab pickup truck, F150 or C/K-1500 or Ram, preferably a 6 cyl. These have no room for more than one or two passengers (USAA stats show biggest factor in teenage accidents is a vehicle full of kids) and no back seat (common sense tells you what back seats are used for). In a full-size pickup truck, the inevitable teenage accident is more survivable. Second choice would be an old full-size car, but these have all but disappeared from the used car lots. The "cute small car" is a death trap.
  • W Conrad Sure every technology has some environmental impact, but those stuck in fossil fuel land are just not seeing the future of EV's makes sense. Rather than making EV's even better, these automakers are sticking with what they know. It will mean their end.