The Real Deal Inside the Car Business: Car Buying Made Simple

By Brian Giblin

HOW TO NAVIGATE YOUR WAY THROUGH THE CAR BUYING EXPERIENCE . This book will provide you with valuable insight into the methods and practices used by car dealers today. It will teach you the art of car buying in a simple concise manner including the step-by-step sales process that new and used car dealerships use in today's information age. I

• Language: English
• Publisher: Brian Giblin
• Release date: Apr 15, 2015
• ISBN: 9780996505154

Book preview

1

HORSE TRADERS AND HAGGLING

The history of the motor vehicle dates back to the 1800s, when the horse was the primary method of personal transportation. Horse traders, also known as road traders, would haggle over price. The trading, selling, and buying of personal transport was common practice in the 1800s. Horse trading became an art, swapping an old ride for a new one. Wrangling over the price of a horse often included a saddle, tack, a blanket, or in some cases a bottle of whiskey to finalize the deal.

Horse traders would often hide faults, even disguising a horse’s worn teeth. Let’s give credit to the horse trader for the way the automobile industry does business today. The evolution of modern day car buying through negotiation stems from the early-day cowboy who just needed a new ride.

Horse-drawn carriages and buggies became popular, as they were able to carry multiple passengers and baggage onboard. By the late 1890s, the luxury carriage, or horse-drawn passenger vehicle, reached one million units produced annually. The horseless carriage, or motorwagen, dubbed the modern automobile, was patented in 1886 by German inventor Karl Benz. The motorwagen was powered with a gasoline internal combustion engine. The Duryea brothers are credited with producing the first American automobile in Springfield, Massachusetts, in 1893.

It was the bicycle that really paved the way for cars in the 1890s, creating the need for surfaced roadways. From 1885 to 1905, bicycles were a very popular mode of transportation. Stores would take a used bike in trade for a new bike. Bike shops and even livery stables sold cars.

In 1909, the nationally recognized department store Sears, Roebuck & Company introduced the Sears Motor Buggy. It sold for $370 and was shipped to the customer partially disassembled. In 1912, self-starting ignition was invented. By 1915, annual auto production reached one million vehicles. By 1923, the car had replaced the horse as the most common mode of transportation.

In the early 1900s, independently owned automobile dealerships were scarce. Automakers sold vehicles through department stores, consignment agents, mail order, factory-owned stores, and the efforts of the traveling salesman. The prevailing delivery system was direct-to-consumer sales. Today, in almost every state, motor vehicle franchise laws do not allow direct-sales marketing channels to operate. New cars are only sold by licensed, independently owned, franchised dealerships.

2

THE AUTO EVOLUTION

Over the years, the economy has played a significant role in shaping the foundation and evolution of the automobile industry. By World War I, autos were being sold in upscale department stores with advertised prices. Retail automobile outlets were established, and the dealership concept was born.

Henry Ford had already introduced the Ford Model T, and assembly lines were mass-producing an affordable new car every five minutes. Modern retailing began in the 1930s. Dealers were offering driving lessons as a method of selling