Help me understand...

[Limited2021]

Hey fellas getting on my soap box for a minute here. I know I’m new to the forums and may get beat up a little bit for this, but here it is. I am switching from Chevy to a new Ram. Been getting a ton of knowledge from the members here to learn about it. I have posted and been reading “the below MSRP post” and its great to see what everyone gets for a deal. Here’s where my opinion differs…

I need to lay a little groundwork as to my situation as it will be different from yours. I live the country or rural area. My hometown has a population of around 5000 or so. The local dealer is 10 minutes/miles from my house and the volume dealer that a lot of people in my area drive to is around 100 miles from me. My hometown dealer has sales and service employees that I know by first name and have kids that are in my kid’s classes/sports/ community activities. I have never lived in bigger city or heavily populated area. Ok moving on.

I have been reading about people flying/driving hundreds if not thousands of miles away to get a truck to save from the best I can tell a few thousand dollars. This happens here too with people in my community. What happens when you need service work done or warranty repairs, a tow in because your truck broke down? Are you going to go the same dealer you bought it from or are you going to go the closest ram dealer to you and have them do it? Should they have the right to refuse warranty work? How long before this local dealer needs to close its doors because it just can’t support itself or employees anymore? In my case the employees would be the people I see all the time in the community. I know that if I had a problem with my truck my dealer will make it right with me. If that means giving me a truck off the lot to drive till mine is repaired, they will do it. If need a ride home because I don’t need a loaner, they would do it. Pretty much within reason of course they are willing to do whatever I need. I believe that when I payed the extra couple of bucks up front to my local dealer I am supporting my community and buying a piece of mind for issues that I may or may not have in the future.

Ok getting down from my soap box now but before I do please help me understand this? Tell me your situation and why you do what you do. As I explained before I don’t live in the same area as you and don’t have the same reasons I suspect.

 

[Wsmith]

I have no issues with buying local and helping out your community. Where I live there are eight dealers within 30 miles of me. I bought from one about 15 miles from me. I did shop around and some would deal, some wouldn't. I ended up buying from a smaller dealership, that only has one shop. In my hometown there is a dealer, but they have over 12 dealerships regionally of different brands. The dealership I used was small and I knew the owner from a golf league. I may have been able to get a better deal, but I was comfortable with the one I got. I guess it all depends on how tight of budget you have, and if you are chasing the thrill of getting the best deal. This is tremendously important to some people, not to me. I am not wealthy, but comfortable, if I can afford it I am all for helping out the small guy, assuming he is not trying to stick it to me.

 

[Scmil]

I have driven to the next state(2 hr) for a car before a long time ago due to a 3k difference. My RAM was bought instate, but I do go to a dealer 45mins away for all service needs just due to the fact they have a great track record, reviews, and recommendations.

 

[Snofire]

It makes no difference where you buy your vehicle from on getting maintenance or warranty work from. Dealerships make more money in the service dept than in the sales area. Warranty work they get paid from the manufacturer. No difference would be if you took your vehicle on vacation 400 miles away and something happened that needed warranty work. Are you going to be wondering if they will or won't fix your car? Probably not. Same should be here. I came from a city of 10,000 and had only 1 Ford, 1 Chevy/GMC, and 1 Dodge/Ram/Jeep dealership. The next closest one was 60 miles away. If you didn't get the deal locally then you drove to 60 miles to get what you wanted. If a dealership says they won't work on your car then I would report them to FCA and never trust that dealership with anything. My last 3 vehicles were bought over 2hrs away and I have never gone back to them for service, only used the dealerships here. Service Dept doesn't care where you bought it from as long as they can make money that is all they want. So for me, I wouldn't worry too much about that.

 

[TravisJ]

Personally, I am not paying an extra $4k or so to buy local. A good dealer is going to treat you well regardless of where you bought your truck. They understand it could earn your business in the future or earn your service business, which is certainly a profitable situation. They also can't deny your warranty work. If they did just because you didn't buy your truck with them then they probably don't treat anyone well. How do they know they just flat out didn't have the truck I was looking for?

Glad you have a nice dealer to buy and take your truck to. Everyone is different and has different things they need in a truck purchase.

 

[BobK]

I know people who when its time for a new vehicle will spend 6 months looking, shopping, comparing prices and go wherever to save $2000. I am not like that, It gets time to get something new and I dont enjoy price shopping and hunting around. Often my purchase is done in a couple days from when I decide its time to get something. I go back to my same dealer I have been buying from for 20 years now. I didn't even compare the prices or consider going else ware to save a little. Also when I go to this dealer, and have to deal with a different sales person because the last one moved on or whatever, I tell them "please pull up and look at my account" so they can see clearly I am a long time customer who has bought probably 15 vehicles from them between me and my wife over the those last 20 years. I know I might be paying a little more, but I expect a certain level of service for that extra. Its like insurance to me and worth it. I got my RAM there in November and while my wife wanted a Subaru they didn't have anything in stock she wanted so we ended up going an hour away to get the one she wanted, but I will bring it to my local guy from now on. Even though it was not purchased there, they will make money from the manufacturer even on warranty stuff so they are happy to get that business.
I think it all comes down to how much of a savings there will be for driving to a larger or different dealer and if you willing to pay more to stay local and how much more.

 

[c3k]

I live in a small town, too. In your situation, well, it seems like you should return the dealer's friendship/loyalty to you by doing your purchasing with them. Great.

I, too, would like to keep my money local. But.

1. To purchase a previous vehicle, a Ford, the closest dealership was ~30 minutes away. (The in-town dealer closed a year or two before I purchased.) Still, I went to the closest one. I explained I travel and they don't need the bottom dollar, just competitive. The performed classic shyster moves: took my vehicle (the one I said I didn't know if I would trade or not) and "hid" it. Next, they came to me with FULL MSRP. I laughed, demanded my vehicle or I'd call the police, and I left.

2. My Ram order. My two closest dealers are 30 minutes away. I sent them the same letter I sent to other dealers. One, since I'd visited and done a test drive, I told them that I was specifically including them as a courtesy due to the test drive and that the deal was theirs to win or lose. MSRP minus rebates and incentives was their response. The other one did not reply. I assume that their business is doing well enough that they do not need me as a customer.

For warranty/repair work, yes, I will use one or both of the 30 minute-away dealers.

I give my "local" guys a a shot, but if they're not interested...well, I'm not here to give them thousands and thousands of extra dollars just because that's what they want. (Ford it was ~ $6,000 for an extra hour's drive; Ram, it's ~ $12,000 for a much, much longer drive. )

 

[Amerinamese]

I bought my truck at a dealer about 40 minutes from my house even though there is a dealer within 10 minutes. I just got a better deal at the one 40 minutes away. I still take my truck to the local dealer for warranty work though. The warranty is a manufacturer warranty so it shouldn't matter which dealer you take it to.

 

[securityguy]

My quick response. No dealer, anywhere, can turn you away for service because you didn't buy a vehicle from them. Warranty is warranty and is supported by the manufacturer and not the dealer. Your tow is covered under your Road Side Assistance from FCA. As far as not supporting your local dealer and them going out of business because of it...that's totally on you. Would I spend a few extra hundred dollars to buy local? Yes! Would I spend more than $300-$500? I, personally, would not. Your money, your decision.

 

[NorthStar]

Brand loyalty and dealer warranty mean nothing as neither the brand nor the dealer pays my bills.

And, my loyalty to the brand and/or the dealer will never translate into loyalty to me as they too have a bottom line they will protect at all cost.

It is a business transaction...not an emotional attachment.

 

[slatersan]

I try to buy everything local when I can, provided that it isn't considerably more expensive. For the reasons you mentioned such as I know employees by name, do business with them in other areas, our kids play together, etc, I try to keep money circulating in my small town ( surrounded by big towns) as much as reasonably possible while still watching my family's financial priorities as well. In the case of my truck, the closest RAM dealer was 15 minutes away, but was tiny and had no inventory that interested me and trying to inquire about an order was like pulling teeth. 30 minutes away...that's not really local and they are part of a regional chain that doesn't move the needle for me on pricing. I went 5 hours away and spent the night in a hotel for the benefit of getting exactly what I wanted, optioned how I wanted, and a price that was 4k below anything remotely comparable within 2 hours of me. My affinity for and habit of spending local has limits. I'd have spent a little more than I did if I was able to get something closer and keep the money circulating here, but it is still incumbent upon local(ish) dealers to EARN my business, either through inventory, price, or service. When they can't get me the truck I want, at a price I can live with, in a manner in which I feel taken care of...I have no option but to go elsewhere. Some people are ok to compromise on lots of things, but at this price point, I wanted what I wanted and I don't make apologies for that.

 

[Willwork4truck]

I bought my truck at a dealer about 40 minutes from my house even though there is a dealer within 10 minutes. I just got a better deal at the one 40 minutes away. I still take my truck to the local dealer for warranty work though. The warranty is a manufacturer warranty so it shouldn't matter which dealer you take it to.

I did almost rhe same, except adding one more price/distance level.

1st attempt was through a forum sponsor 12 hours away. His supposed end price was about $3K less than what I paid but I didn’t like the back and forth on email and text that never seemed to answer my direct questions. Then there was going to be 24 hours of driving plus fuel, meals and a hotel. Lastly since it was for my wife (who detests car sales), she had to be good about the whole process.

2nd was the local dealer literally 10 minutes away. No real attempt at giving me a good price save for whatever RAM’s monthly incentives were. No real attempt to find the truck elsewhere as they didn’t have the color combination and options. Basically it was “buy from me since I’m right here”.

Last was a higher volume dealer an hour away who gave me a “fair” price, had two different trucks (out of about 20 Limited’s) that fit the color and option requirements and was a pleasure to talk with. I probably paid $1-2K less there compared to the “local” guy and had the truck on the lot.

So all in all I didn’t get the lowest priced deal but she was happy and that’s what counted.

 

[z0n3]

I bought from one state over before and also 2 hours away. I still choose to go to the dealership right down the road for service. Good place for repairs but didn't want to make a sale at the price I wanted.

 

[thewdb]

I’ve always purchased my vehicles within 30-45 minutes of my home. When I bought my last two Toyotas, I bought them from the same salesman at the same dealership where I purchased a couple cars back in the early 90s. But... They’re not close enough for a routine service visit. So my closer, more local to me dealer, gets the benefit of the profitable service work. Neither of the Toyotas have needed anything but routine maintenance... so I don’t feel too bad for the dealer not being able to charge me more to do a bigger repair.

For my RAM, I bought it at the closest RAM dealer. Would I have purchased elsewhere? Absolutely. But the local dealer was able to swap a vehicle with a further away dealer and get me the truck that I wanted at a reasonable price. The RAM dealer where I purchased also happens to be the Toyota dealer where I get my other vehicles serviced. For me - I haven’t seen a ton of difference in my interactions with the local dealer whether I purchased from them or not. The service department is its own profit and loss center within the business, and they have plenty of business.

With all of this being said, I don’t see myself at any point in my life traveling halfway across the country to get a better deal, but I understand why some folks find that appealing or necessary.


Sent from my iPad using Tapatalk

 

[NCShooter]

As others have stated, I contacted my local dealer first about my new vehicle order. They gave me their price. I contacted the much higher volume dealer 45 minutes away and their price was $1600 cheaper.
$1600 for about an hour of my time (the difference in drive time) is a pretty good rate.
The higher volume dealer is even trying to deliver the vehicle to me as part of their service.
I will probably still have mine serviced at my local dealer.

 

[KCViper]

Sometime the cheapest deal is not the best deal.....just depends. I, too, want the best deal. However, I also value an established relationship with my preferred dealer....this is worth something.....up to you to decide how much this relationship is worth to you! I live in a heavily populated area with many dealers, so a little different story than yours (OP).

 

[Limited2021]

Couple of things as I read the posts.

1) If the dealer closes, you are forced to go farther for warranty work. Then you have to deal with things like towing and getting there and back. Fighting with FCA with what they will cover or not cover and so on. Other service could possibly be provided by any local shop of your choosing. Providing warranty work maybe is a good deal for a dealer too. I really have know idea.

2) Can't most dealer get any truck you want from other dealer along with ordering it? If they can, have we become so dependent on the instant gratification so to speak that we can't possible wait any amount of time? To some extant I am very guilty of this and not just in vehicles but other purchases as well.

3) Isn't it possible that the local dealers just can't offer the same discounts as a volume dealer can because of that exact reason? Volume discounts? I don't know exactly how it works for dealers just trying to figure it out.

4) I do also understand that when you have a bad taste left in your mouth from a dealer it would be hard to give them any of you money as well. So traveling to get you truck would be the option. Unless it been a while then things can change like sale people and managers that may be more open to closing a deal. Maybe not too...

I know moneys worth is very subjective to everyone. My value of $100 is not the same as someone else value of $100. I do like the discussion about this thou.

 

[c3k]

In my case, as stated, 1 nearby dealer ignored me. The other dealer offered MSRP minus national rebates/incentives. Basically gave me the finger. Okay. Hope they find buyers at full MSRP.

Instead, I opted for a volume dealer and am saving $12,000 (minus driving/hotel costs). The drive is pretty far. But, I'm looking at it as a road trip/vacation/sight-seeing opportunity. Plus, I get to shake-down the truck, hard and fast. (I'll let ya'll know if I get stranded on a highway with a breakdown. )

I really wish the local guys wanted my business. Shrug.

 

[securityguy]

Couple of things as I read the posts.

1) If the dealer closes, you are forced to go farther for warranty work. Then you have to deal with things like towing and getting there and back. Fighting with FCA with what they will cover or not cover and so on. Other service could possibly be provided by any local shop of your choosing. Providing warranty work maybe is a good deal for a dealer too. I really have know idea.

2) Can't most dealer get any truck you want from other dealer along with ordering it? If they can, have we become so dependent on the instant gratification so to speak that we can't possible wait any amount of time? To some extant I am very guilty of this and not just in vehicles but other purchases as well.

3) Isn't it possible that the local dealers just can't offer the same discounts as a volume dealer can because of that exact reason? Volume discounts? I don't know exactly how it works for dealers just trying to figure it out.

4) I do also understand that when you have a bad taste left in your mouth from a dealer it would be hard to give them any of you money as well. So traveling to get you truck would be the option. Unless it been a while then things can change like sale people and managers that may be more open to closing a deal. Maybe not too...

I know moneys worth is very subjective to everyone. My value of $100 is not the same as someone else value of $100. I do like the discussion about this thou.

1. That goes with anything
2. Yes, there dealer can TRY to see if another dealer will do a TRADE. However, when doing a trade, you will usually pay more as there is a cost involved in the trade
3. They all pay the exact same thing for a truck. No "volume" discounts. The difference is the size of the end of month bonus they receive based on units sold

Again, you just need to do what you want. No one on this forum can tell you what's best for you and it sounds like you already made up your mind anyway to buy local.

 

[slatersan]

2) Can't most dealer get any truck you want from other dealer along with ordering it? If they can, have we become so dependent on the instant gratification so to speak that we can't possible wait any amount of time? To some extant I am very guilty of this and not just in vehicles but other purchases as well.

Some can, some can't. Some will, some won't. Low volume dealer getting a swap from a high volume dealer isn't going to give me the high volume dealer price because they aren't getting the high volume dealer incentives and kickbacks. A swap WOULD solve the inventory issue for those that can get the swap, but the receiving dealer isn't likely to give you the same price as the high volume guy. If he can/will...that solves inventory AND price. Let me know when you find one of those. That also gives great service.

3) Isn't it possible that the local dealers just can't offer the same discounts as a volume dealer can because of that exact reason? Volume discounts? I don't know exactly how it works for dealers just trying to figure it out.

It's likely exactly why they can't/won't. A tiny dealer with a decent building has different margins requirements to stay in business than the big guys. They need to make a set amount per deal in aggregate to keep the lights on. We all joke that the finance manager tells us all "I lot money on this deal." A low volume guy selling for what a high volume guy sells for IS losing money on the deal with little to no prospects for making it up on incentives/bonuses. When these high volume guys get close to or exceed manufacturer incentive targets, they pour gasoline on the fire and churn deals that may in fact be for less than they actually paid/will pay for the truck. BUT if they are losing, say 1k per truck for 50 trucks that gets them to a hypothetical manufacturer incentive bonus of $100,000...do the math. That pays for the loss on each vehicle and buys the GM a new bass boat. I used to work for a large payroll processing company, and one of our clients was a large national auto dealer group. Seeing the compensation amounts for many of the sales/finance/general managers would make you think these guys were doctors in private practice, no dealing cars. They don't make that kind of money losing money on deals with no way to make it back.


I don't want to see any business close that employs locals and is a decent part of ther community. However, their business model and how they run their finances is not under my control or my responsibility.