Debunking The Top Myths About The Car Business

Before you even cross the Southbank Dodge threshold, or any other dealership, you may have some preconceived notions of how a dealership works; while you may be right in some of your assumptions, for the most part, there is much more fiction out there than fact.  The car business has long been plagued with consumer's assumptions towards them and the product they are selling.  Today, we hope to put the top myths of the car business to rest, for good!

Myth #1: 

Profit margins for car dealers on new cars are huge.

Every customer goes into a dealership ready to negotiate.  This is still the case today but it has become a much simpler process. The margins on most cars for dealers are so small that manufacturers themselves are providing cashback incentives, incredibly low interest rates, and in some cases both to help your purchasing decision. Dealers are helping as well by offering vehicle accessories, dealership gift cards, or other incentives to help earn your business. Once you become out client, we would like it keep it that way!

Myth #2: 

Anything for a sale!

Although some dealerships still pay their salespeople a commission, many are turning toward salary scales instead. Either way, the focus for every franchised new car dealer, Southbank included, is on customer satisfaction and building long-term relationships.

Myth #3: 

Servicing your car is more expensive at a dealer.

The reason your dealer may charge more per hour is because their technicians can complete that job in significantly less time. If you took your vehicle elsewhere they may charge less per hour but I’d bet that your final bill will be the same, if not more than if you had gone to your franchised new car dealer. Add in the fact that your dealer is going to be around for a long time, their techs are always up to date on new vehicle technology, and the quality of service you get is top notch, and it’s always a no brainer for me when I get my vehicle serviced.

Myth #4

There is too much turnover in a dealership, I never see the same face twice.

While every employer experiences staffing changes, including dealerships, the myth that turnover is rampant in the car business could not be farther from the truth.  At Southbank, we have a large number of staff who have been loyal to us and our customers for five, ten, fifteen, twenty and yes, even thirty years.   

I hope that we have put some of the most common myths to rest and that you now know the difference between fact and myth!