Figuring Out Auto Advertising – The Ad Vehicle

Most car dealerships are still stuck in the stone age, but it is a virtue of the fact that customers too are stuck in the stone age. By stone age, I mean the newspaper. Dealerships spend thousands of dollars per advertisement to get in front of a handful of car buyers that are not internet savvy or are looking for a steal. The problem with these advertisements is that the dealerships are collocating themselves with their competitors. Even if there are only 2 competitors in the paper, they will still exhibit Bertrand like pricing.

Price! Price! Price! That is really what it is all about in the newspaper. Be cheaper than the next guy. Dealers aren’t selling product or features. They are relying on the customer having done enough homework (but hopefully none at all) to know the vehicle they are looking for and just want the price. So, in order to attract those phone calls and the walk in customers, dealerships will tend to take a single vehicle for their advertisement and discount that vehicle up to $3000 below their cost.

So why do dealerships spend thousands to advertise a vehicle that will cost them another couple thousand if they sell it? They hope you don’t want the features or options or color that the vehicle in the advertisement has or is. Remember, just that one vehicle is the special. Some dealerships have gotten so “smart” that they advertise vehicles they have already sold weeks earlier. That’s a big No-No to the county regulators. There are some honest car dealers still around that have the vehicles they advertise, can willingly take the offers that they advertise, and don’t charge you an arm and a leg for cheap options when switching from the advertised vehicle to a better equipped vehicle.

Tips to mitigate the liars from the honest car dealers:

#1: Shop the newspapers, then call the dealerships and ask one question: “Do you have the vehicle?” If they do not, move on. If they have a similar vehicle, ask exactly how much more than the advertised unit. If they are honest, they will have a replacement unit ready even if it is more money.

#2: If they say they have the vehicle, go to the dealership and ask to see it. Note: Do not get dragged around in the hot sun for an hour looking for the ad vehicle. Go inside and have the salesperson find the advertised vehicle himself and pull it up to the door for you! The fatigue tactic is a common tactic hoping you will break down and get tired of shopping without ever seeing what you came to see.

#3: Don’t get turned off by normal fees. Just because you are getting a cheap vehicle does not make you exempt from certain fees that are charged to everyone. These include TAX (do not even attempt to negotiate tax), Tag, License, and the Doc fee. I will have a separate article just on the Documentation fee, but simply, it is state regulated in most states, it must get charged to every customer, and it includes a lot of the things you take for granted in a vehicle purchase. See my other article or visit my website: Miami Dodge Finance for more information.

If you have any questions, feel free to contact me directly by filling out an informational form on Miami Dodge or Miami Chrysler Jeep. I am an MIT Sloan Business School graduate and a former Goldman Sachs employee now working in the auto industry owning and operating dealerships in South Florida / Miami area.

By: Ali Ahmed

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Ali Ahmed is a partner of Atlantic Coast Automotive which retails Chrysler Jeep & Dodge Vehicles nationwide through the internet. Vehicles delivered to your home and a no hassle buying experience. If the Dealership feels like the Dentist office, then purchase online. Low overhead. Best Prices. Unlimited Selection. Visit University Dodge or Hollywood Chrysler Jeep