Parts Prices. Dealer vs Online

Like I said, the one near me doesn't even discount to the local body shops!

While everyone makes mistakes, some of the on-line dealers are very good about double checking part numbers and everything before completing the order. Mistakes are rare with the one I deal with.

The small dealer stocks *only* the common stuff like fluids - pretty much zero parts - so they always have to order *anything* I need. I can order from a dealer in OH from their web site and have it either the next day or the second day after I order by ground shipping. That beats the dealer across the street from me by 2 to 3 days typically.

Hah! I don't blame the owner for doing that.

Reply to
Bill Putney
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Note that you could have had exactly the same experience with a local dealer.

Years and years ago, we ordered some furniture from a store in town (not auto parts, but I think the lessons apply). When the delivery date came and went we tried to phone them... and got the phone company's recorded "disconnected" message. We went by the store, and found a padlock on the door, with a notice saying the landlord had had it padlocked due to non-payment of rent. Uh, oh.

A little bit of research later, we established the company was still in business in Albuquerque. After a short chat with an attorney friend, we decided there was enough money involved that it was worth while to sue them in small claims court to establish our right to the money. We did, they didn't show up for the hearing, we got a judgment for the money they owed us plus a hundred bucks or so in court costs.

We went to our credit card company with the judgment, and they refunded our money (fortunately, the furniture company had been using a single bank account for both of their stores, so the credit card company was able to extract the money. Otherwise, things would have gotten more interesting). The court costs weren't enough to be worth pursuing from 200 miles away, so we never got that back.

In retrospect, we could have skipped the lawsuit, but we had visions of the furniture company going back to the credit card company claiming to have delivered the furniture and wanted to avoid any possible fights.

Reply to
Joe Pfeiffer

Yes, I get it Bill.

Maybe you hadn't noticed that I had mentioned I HAD been under the IMPRESSION that franchised dealers were restricted to only selling within a pre-described region and I asked if this is, in fact, the case.

If it IS the case then the online dealers may end up losing their franchise. If it is OK by Chrysler to sell that way then of course, it is every man for himself. That said, the dealers in larger centres have an obvious advantage over those in smaller centres so I still think it is a bit hard on "local" dealers if their local customers buy elsewhere. It is a vicious cycle...the lower the sales the higher he has to mark them up to cover his costs...don't be surprised if you don't have a local dealer at all in the near future.

Now, if you are saying that your local dealer is a crook who is making a fortune and ripping people off with his pricing then well, fair enough, take your business elsewhere. Have you ever had a conversation with him about his prices? It might be interesting to find out what his thinking actually is.

So, what is the deal with Chrysler...is selling outside the franchised region OK or not?

Simon.

Reply to
Simon

Yes, but how does a physical dealership with all the associated costs compete with an online warehouse type of business? It is an unfair fight. The online sellers cream off the easy sales while the dealer is left to take on the heavy lifting.

Really, the dealership as we know it is pretty much doomed....clearly a new business model is needed...one more area where the auto manufacturers have failed to move with the times.

Reply to
Simon

Can you read at all?

Reply to
Simon

It is what it is. So what's your point?

If you want to talk "fair" (I don't know why you keep bringing that word up), the local dealer has an advantage in that 98% of the public is ignorant of the existence of discount on-line dealers - so they can keep soaking them at 10 to 20% above list. With the typical customer being totally captive for both service *and* parts, what's fair about that. Talk about bringing a knife to a gun fight!

Maybe. You're saying in a way it's like the mom & pop hardware store competing with Lowes. I'll give you that. So if that's the better business model, what's the complaint? Shouldn't a better business model win out over the dinosaur business model.

Again - what is your point?

Reply to
Bill Putney

It even happens to non-internet dealer operations. Two weeks ago, Desert Chrysler-Jeep-Dodge was happily doing business here in Las Vegas. A coworker dropped his car off for service that morning, with business as usual. Then at 5:00 PM, the GM got everyone together and told them, based on decisions at "AutoNation" group, they were closed as of that moment. Clean out your personal belongings and leave The only exception was for customers picking up their cars from service. .

Reply to
QX

Same question for you.

Reply to
News

Even though the OP claims to run his own business, he seems to have trouble comprehending the simplest of business concepts or realities such as the one you just presented, or that there's no difference between the "local" dealer and the "local" dealer who *also* does internet business other than that the latter *also* does the internet business which the former could do if they so chose, and yet, something about that is "unfair".

Reply to
Bill Putney

But you seemed to be going back over the same stuff over and over again.

I don't know the answer to that. If it is a violation of their franchise, then Chrysler is turning a blind eye, because there are many, many dealers that have been doing it for a few years continuously - as well as with Ford and GM.

That would not affect me in the least. I know it would be a problem for most car owners, but I avoid dealers like the plague because I think

*most* of them are unethical and take advantage of people who are ignorant of alternatives or who otherwise lack knowledge or leverage to be treated fairly (I'm talking about most women and the elderly and anyone who generally doesn't know one end of a car from the other).

Thanks for your permission. :) My first new car experience (over 25 years ago) was a nightmare because of a dealer (in a different location than I am at now). Every few years my distaste for dealers is revalidated by my testing the waters or because of something I personally witness. I can count on two fingers anything close to a good experience with a dealer in the 25+ years since that first one. I will say that I do know of a very good and honest dealer somewhat close to me, but they are not close enough to be convenient enough for me to forego my DIY nature.

Have you ever had a conversation with him about his

I've mentioned it to a couple of the parts guys - they just say flat out 'no' and don't discuss it. Like I said, even local companies in repair business don't even get a discount from this dealer. That's how much they *don't* want people's business and are willing to suffer under what you are calling an unfair system (of competing with on-line dealers).

I honestly don't know for sure. But like I said, either it's not a violation or it is just not enforced. I doubt if Chrysler has enough leverage with anyone right now to be enforcing much of anything other than paying the bills that are owed them. It also is to their advantage to *not* enforce it (if it is in fact a violation) because it means more parts sales for them - they probably welcome that right about now.

Reply to
Bill Putney

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