Why Are Car Dealerships So Shady?
Let me start off by saying that not all car dealerships are shady. If you’re buying a new car and you can go directly to the manufacturer’s website. That way, there’s no room for haggling or other strange tactics that people use in order to get more money out of you.
But if you’re going through a dealership, there are certain things you need to watch out for. Whether or not they’ll work with your credit union or bank. You might be surprised at how many dealerships won’t work with institutions like that and it’s because they want to make sure they get every last dollar from you before they close the deal.
Another thing is that a lot of dealerships will try to sell you an extended warranty or protection plan even though those don’t do anything for your safety or reliability while driving around town. So just be careful! And remember if something sounds too good to be true when buying a new car.
What’s the history of car dealerships?
The first car dealership was founded in 1902 in New York City by Walter M. Wilmot and George A. Lawrence, who began selling their cars from the back of horse-drawn wagons. The business model was simple they would drive their cars around town and then stop at local businesses to show off their wares.
This allowed them to sell many more cars than they would have otherwise been able to do.
As the automobile industry grew, so did its marketing strategies. In 1917, the American Motor Company created a network of dealerships called the Servicing Dealers Association as part of its plan to sell cars through independent distributors rather than direct salespeople.
This meant that customers had to go through local car dealerships rather than directly contacting AMC itself when they wanted new cars or repairs done on existing ones.
This system worked well for decades until the mid-1970s when people started buying more used cars instead of new ones because they were cheaper and more fuel efficient than new ones were at that time period due to rising gas prices caused by the OPEC embargo against the United States during 1973 oil crisis which resulted in a dramatic increase.
How do they make money?
There are a number of ways that car dealerships make money, but it all comes down to one thing: the sale. While the car dealership has to pay for the cost of the vehicle, they also have to pay for overhead costs such as employee salaries, advertising costs, and administrative expenses. They also need to make a profit on each sale so they can continue to stay in business and continue making sales in the future.
Why are they so shady?
It works! If a dealership simply told customers this is our best deal, then most people would walk out of the store and never come back. The fact is, however, that most people don’t actually know what a good deal looks like they just trust what the salesman tells them.
And since most people aren’t experts on cars or car salesmanship, they’ll often take whatever price they get without questioning it too much. So while it may seem unfair that these companies can get away with treating their customers poorly and still make money off them every day it’s probably better than having nothing.
It’s no secret that car dealerships are shady. They’re designed to make you feel like you need their product, even if you don’t, and they have all sorts of ways to make sure you stay in the store and buy something.
From sales managers who will try to put one over on you to pushy salesmen who think they know more than they do, car dealerships are definitely not the friendliest places to be.
The reason why they’re shady
There’s a lot of money on the line for them, and if they can get away with it, they’ll do whatever it takes to make sure you buy their product. They work on commission, so they need to sell as many cars as possible in order to make enough money at their job.
Car salespeople aren’t exactly trained in ethics or customer service they’re trained in how to sell cars. Car dealerships can be intimidating places, especially if you’ve never bought a car before. And even if you have bought a car before, it can still be intimidating!
How do they get away with being so shady?
There’s a lot of pressure on car dealerships to make sales fast. Because they are selling cars and other vehicles, which are big-ticket items, there’s a lot of money at stake if they don’t move enough inventory in a given period. So they have to get people into their showrooms and convince them to buy right away.
Car dealerships actually have a great relationship with the state governments and federal agencies that regulate them. That means they can get waivers that allow them to do things like charge higher interest rates or fees than what is allowed by law and even go so far as ignore certain laws altogether.
Car dealerships have developed special relationships with credit card companies that offer them special deals on financing options for customers who use certain cards when purchasing cars from them.
This gives them an edge over other businesses when it comes time for those customers to pay off their purchases the card company will often waive all interest charges if you make the minimum payment each month.
Car dealerships are shady. They’re not primarily designed to help you buy a car, but rather to make money off of you. They want you to think that you’re getting a great deal and that they’re doing everything they can for you, but really it’s all about getting your money and making them money.