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C-Hyundai Blog
Is zero per cent financing legit?
February 2, 2012
Lately, a few customers at Castlegar Hyundai have asked, "Is Hyundai's zero per cent financing 'true' zero per cent financing, or is there a catch?"
I wasn't sure what to make of these concerns. So, I did a little research to see what people have been reading about zero per cent. I can see why people are skeptical. If you Google "zero per cent financing" you will read numerous complaints and conspiracies about zero per cent financing. Some examples:
Zero per cent is only available for short term loans and you need a very large down payment.
Maybe this is true for some brands, but Hyundai Canada offers zero per cent up for six, even seven years on several models. Generally, zero per cent is less common on newly-introduced models, but there are exceptions. There is renewed competition in the automotive industry right now, so we are seeing zero per cent or very low rates on a wider selection of vehicles. A prime example is the 2012 Hyundai Elantra, recently named North American Car of the Year. As for the down payment, there is no requirement to plunk down 25% or 50% up front just to get zero per cent.
Dealers will increase the price of the vehicle, and even add extra fees, if you take zero percent.
This could be a U.S. thing, but we don't claw back any money or charge extra if a client chooses zero per cent. To offer this finance rate, Hyundai Canada pays for the difference between the prime rate and zero per cent. This subsidy or discount from Hyundai can amount to thousands of dollars in savings to customers. But Hyundai does not entice people with the offer of zero percent, only to charge more in extra fees.
Zero percent just is a 'teaser' rate and the percentage will suddenly increase.
The reality: when you buy a Hyundai with zero percent, it stays at zero percent for the full term of the loan. We leave those kinds of tactics to predatory credit-card companies.
It's hopeless! Only the wealthiest car buyers are eligible for zero per cent.
To finance a vehicle, you need a reasonable credit rating, of course. But the majority of customers at Castlegar Hyundai qualify for this offer. Zero per cent is not the exclusive domain of the rich and famous.
Overall, much of the commentary on zero per cent revealed deep suspicion of the auto industry. We get that. It is always important to read the fine print, ask plenty of questions and get to the facts when making a major decision. But many of the conspiracy theories about zero per cent don't endure closer scrutiny. At Castlegar Hyundai, we provide several options for financing a vehicle and customers can choose what is best for them.
Keith Kalawsky, Dealer-Principal
Castlegar Hyundai
Lately, a few customers at Castlegar Hyundai have asked, "Is Hyundai's zero per cent financing 'true' zero per cent financing, or is there a catch?"
I wasn't sure what to make of these concerns. So, I did a little research to see what people have been reading about zero per cent. I can see why people are skeptical. If you Google "zero per cent financing" you will read numerous complaints and conspiracies about zero per cent financing. Some examples:
Zero per cent is only available for short term loans and you need a very large down payment.
Maybe this is true for some brands, but Hyundai Canada offers zero per cent up for six, even seven years on several models. Generally, zero per cent is less common on newly-introduced models, but there are exceptions. There is renewed competition in the automotive industry right now, so we are seeing zero per cent or very low rates on a wider selection of vehicles. A prime example is the 2012 Hyundai Elantra, recently named North American Car of the Year. As for the down payment, there is no requirement to plunk down 25% or 50% up front just to get zero per cent.
Dealers will increase the price of the vehicle, and even add extra fees, if you take zero percent.
This could be a U.S. thing, but we don't claw back any money or charge extra if a client chooses zero per cent. To offer this finance rate, Hyundai Canada pays for the difference between the prime rate and zero per cent. This subsidy or discount from Hyundai can amount to thousands of dollars in savings to customers. But Hyundai does not entice people with the offer of zero percent, only to charge more in extra fees.
Zero percent just is a 'teaser' rate and the percentage will suddenly increase.
The reality: when you buy a Hyundai with zero percent, it stays at zero percent for the full term of the loan. We leave those kinds of tactics to predatory credit-card companies.
It's hopeless! Only the wealthiest car buyers are eligible for zero per cent.
To finance a vehicle, you need a reasonable credit rating, of course. But the majority of customers at Castlegar Hyundai qualify for this offer. Zero per cent is not the exclusive domain of the rich and famous.
Overall, much of the commentary on zero per cent revealed deep suspicion of the auto industry. We get that. It is always important to read the fine print, ask plenty of questions and get to the facts when making a major decision. But many of the conspiracy theories about zero per cent don't endure closer scrutiny. At Castlegar Hyundai, we provide several options for financing a vehicle and customers can choose what is best for them.
Keith Kalawsky, Dealer-Principal
Castlegar Hyundai
Hyundai Super Bowl Commercials
January 31, 2012
Our Hyundai representative sent us several links to the Hyundai commercials that will air during this year's Super Bowl on February 5. The television spots are a mix of funny, serious, and in the case of the Veloster ad featuring DJ Porter Robinson, really entertaining. Check them out below.Veloster featuring Porter Robinson
Think fast
Rocky theme
Cheetah
Era of quality
Have you tried?
Elantra victory lap
Genesis
"Certified" used vehicle sales are soaring
January 27, 2012
Automotive News reports that sales of certified used vehicles hit a new high in 2011. It's a growing part of the industry. Many automotive companies now offer certified programs, which typically include a detailed inspection, additional warranty and other benefits. In the U.S., certified sales increased 6% in 2011 at a time when new-vehicles sales were sluggish for many manufacturers. Several certified programs posted double-digit growth. Hyundai's certified sales more than doubled, likely prompted by recent improvements to its program. Hyundai now offers finance rates on used cars once reserved for new cars only. The savings can add up to thousands of dollars based on Hyundai's rates compared to typical bank or credit-union rates. At the same time, more people are turning to certified pre-owned based on the condition of these cars. As vehicle quality improves among most brands, used cars are lasting longer. At first, I was a little skeptical of most certified programs. Dealers incur costs to participate in the program and there didn't seem to be much benefit other than the "certified" label. But I have changed my mind. In Hyundai's case at least, there are key benefits to customers that are worth the cost of the program. This segment of the market will continue to expand.
Keith Kalawsky
Castlegar Hyundai
keith@castlegarhyundai.com
Automotive News reports that sales of certified used vehicles hit a new high in 2011. It's a growing part of the industry. Many automotive companies now offer certified programs, which typically include a detailed inspection, additional warranty and other benefits. In the U.S., certified sales increased 6% in 2011 at a time when new-vehicles sales were sluggish for many manufacturers. Several certified programs posted double-digit growth. Hyundai's certified sales more than doubled, likely prompted by recent improvements to its program. Hyundai now offers finance rates on used cars once reserved for new cars only. The savings can add up to thousands of dollars based on Hyundai's rates compared to typical bank or credit-union rates. At the same time, more people are turning to certified pre-owned based on the condition of these cars. As vehicle quality improves among most brands, used cars are lasting longer. At first, I was a little skeptical of most certified programs. Dealers incur costs to participate in the program and there didn't seem to be much benefit other than the "certified" label. But I have changed my mind. In Hyundai's case at least, there are key benefits to customers that are worth the cost of the program. This segment of the market will continue to expand.
Keith Kalawsky
Castlegar Hyundai
keith@castlegarhyundai.com
Eyewitness account: Hyundai re-sale values on the rise
January 26, 2012
Once a week, I log-in to a popular car auction website, excited and optimistic about finding some used Hyundai vehicles for our dealership lot. This week, I was especially jazzed about the first Hyundai on the auction block in Vancouver, a loaded Santa Fe with low kilometers. It didn't take long for the auction to dampen my enthusiasm. Once the auctioneer started his patter, it took a mere 60 seconds to push the price thousands of dollars beyond what I thought it would fetch. Buyers flocked to this Santa Fe. Eventually, the field narrowed to two dealerships, which went toe-to-toe for another dozen bids or so. While I didn't buy this Santa Fe, I took away one positive note from this experience. Clearly, there is strong demand for used Hyundai vehicles, and this demand is pushing up resale values. At Castlegar Hyundai, customers will occasionally ask us how Hyundai's resale values stack up against the other import brands. We point to studies that Hyundai prices hold up comparatively well. For example, the new Hyundai Elantra is predicted to have the highest resale value in its class. But the craziness at the auction today really drove home the point that the Hyundai brand is popular and valued. This dynamic ultimately benefits Hyundai owners. When they trade in their vehicles, there is a receptive market waiting to purchase these cars. I will keep checking the auction -- and keep looking for those great buys -- but I'm not getting my hopes up.
Keith Kalawsky
Castlegar Hyundai
keith@castlegarhyundai.com
Once a week, I log-in to a popular car auction website, excited and optimistic about finding some used Hyundai vehicles for our dealership lot. This week, I was especially jazzed about the first Hyundai on the auction block in Vancouver, a loaded Santa Fe with low kilometers. It didn't take long for the auction to dampen my enthusiasm. Once the auctioneer started his patter, it took a mere 60 seconds to push the price thousands of dollars beyond what I thought it would fetch. Buyers flocked to this Santa Fe. Eventually, the field narrowed to two dealerships, which went toe-to-toe for another dozen bids or so. While I didn't buy this Santa Fe, I took away one positive note from this experience. Clearly, there is strong demand for used Hyundai vehicles, and this demand is pushing up resale values. At Castlegar Hyundai, customers will occasionally ask us how Hyundai's resale values stack up against the other import brands. We point to studies that Hyundai prices hold up comparatively well. For example, the new Hyundai Elantra is predicted to have the highest resale value in its class. But the craziness at the auction today really drove home the point that the Hyundai brand is popular and valued. This dynamic ultimately benefits Hyundai owners. When they trade in their vehicles, there is a receptive market waiting to purchase these cars. I will keep checking the auction -- and keep looking for those great buys -- but I'm not getting my hopes up.
Keith Kalawsky
Castlegar Hyundai
keith@castlegarhyundai.com
Three-Day Super Sale Event - October 27, 28, 29
October 27, 2011
Earlier this week, Hyundai offered a few hints about an upcoming sales event for dealerships in western Canada. Hyundai finally released the details yesterday. There will be a Three-Day "Super Sale" Event that starts today, October 28 with offers on most vehicles and 0% financing. The motivation for the event really starts with the worldwide demand for Hyundai vehicles. Hyundai distributes its vehicles based on each country's sales record; the more you sell, the more inventory you get. Dealers in western Canada are battling for more vehicle allocation from head office as we head into winter season. So the sale is designed to offer a little boost to inventory "turn" and drive an increase in the number of vehicles sent to dealerships. It is a truly a three-day sale as the offers only apply to vehicles delivered in these three days. Customers will save as dealers fight for more product.
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Earlier this week, Hyundai offered a few hints about an upcoming sales event for dealerships in western Canada. Hyundai finally released the details yesterday. There will be a Three-Day "Super Sale" Event that starts today, October 28 with offers on most vehicles and 0% financing. The motivation for the event really starts with the worldwide demand for Hyundai vehicles. Hyundai distributes its vehicles based on each country's sales record; the more you sell, the more inventory you get. Dealers in western Canada are battling for more vehicle allocation from head office as we head into winter season. So the sale is designed to offer a little boost to inventory "turn" and drive an increase in the number of vehicles sent to dealerships. It is a truly a three-day sale as the offers only apply to vehicles delivered in these three days. Customers will save as dealers fight for more product.
"Amazing Eight" Hyundai Accents
July 2, 2011
The first day of each month is a big deal in the car business. It is the day that most manufacturers announce the latest programs and interest rates, tweaked and designed with the hope of finding just the right formula for sales success. In July, Hyundai has put some pretty aggressive incentives on the 2011 Hyundai Accent. The price on the Accent L hatchback is now $9,999 plus $1,495 freight for a total of $11,494. That works out to a payment of just $79 bi-weekly, including tax and environmental levies. (See us for the details.) At Castlegar Hyundai, we have eight Accents remaining that are eligible for this program. Along with a great price, the Accent includes a five-year or 100,000 kilometer warranty and envious fuel economy. The Accent has got to be one of the best buys in the compact car segment.
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The first day of each month is a big deal in the car business. It is the day that most manufacturers announce the latest programs and interest rates, tweaked and designed with the hope of finding just the right formula for sales success. In July, Hyundai has put some pretty aggressive incentives on the 2011 Hyundai Accent. The price on the Accent L hatchback is now $9,999 plus $1,495 freight for a total of $11,494. That works out to a payment of just $79 bi-weekly, including tax and environmental levies. (See us for the details.) At Castlegar Hyundai, we have eight Accents remaining that are eligible for this program. Along with a great price, the Accent includes a five-year or 100,000 kilometer warranty and envious fuel economy. The Accent has got to be one of the best buys in the compact car segment.
Upgrades to the 2012 Sonata
June 13, 2011
By now, finding a 2011 Sonata is something like discovering the Holy Grail. Most dealers are very light on inventory, so Hyundai has wisely pushed up the launch of the 2012 Sonata. We don't have pricing yet, but Hyundai has revealed some excellent upgrades to certain Sonata models. For example, the Sonata Limited, both the Turbo and regular version, gets a panoramic sunroof and a proximity key system with push-button start. The Sonata GLS and Sonata 2.0T gain rear heated seats to keep your passengers even more comfortable. Hyundai is all about helping people stretch their dollars further and these additions add even more value to the Sonata.
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By now, finding a 2011 Sonata is something like discovering the Holy Grail. Most dealers are very light on inventory, so Hyundai has wisely pushed up the launch of the 2012 Sonata. We don't have pricing yet, but Hyundai has revealed some excellent upgrades to certain Sonata models. For example, the Sonata Limited, both the Turbo and regular version, gets a panoramic sunroof and a proximity key system with push-button start. The Sonata GLS and Sonata 2.0T gain rear heated seats to keep your passengers even more comfortable. Hyundai is all about helping people stretch their dollars further and these additions add even more value to the Sonata.
Hyundai's pricing (r)evolution
February 17, 2011
Last week, Hyundai dealers from all over British Columbia gathered for a meeting with Hyundai executives. Before the first coffee break, it was clear that Hyundai is changing, and rapdily. Strategically, the car maker is moving away from competing mostly on price and massive rebates. With Hyundai launching so many new products in recent months -- including Tucson, Sonata and Elantra -- its focus now is competing on value. It is striving to convince consumers that they are getting a world-class product with a stick price that reflects its true value. That means shifting away from "cash on the hood" discounts to offering extremely competitive prices on all its new vehicles, right from the initial lauch of new products. For example, the new 2011 Elantra, despite the addition of new options and features worth more than $2,000 -- features the previous version did not have -- the car's price did not change. The goal is to improve Hyundai's brand image. Despite awards, increased sales and positive reviews, a significant number of consumers still won't consider Hyundai. However, more than 50% of people choose Hyundai after coming to a dealership. The goal is shift the mindset that Hyundai is nothing but a bargain-priced vehicle.
This new strategy comes with certain risks, of course. Will consumers, who are bombarded with rebates, discounts, special programs, push-pull-and-drag schemes and all the typical sales tactics, recognize the value in a Hyundai vehicle? Can we explain and show that value without the lure of $5,000 rebate? It helps that Hyundai vehicles are earning solid reviews from consumers and journalists. The new Elantra was the best selling car in Canada in January. If Hyundai continues to produce high-quality vehicles, packed with features, that appeal to Canadians, its strategy should work just fine.
Keith Kalawsky
Dealer-Principal
Castlegar Hyundai
keith@castlegarhyundai.com
New Elantra top-selling compact car -- in the first month
February 7, 2011
Hyundai Canada just announced that the all-new 2011 Elantra was the best-selling compact car in January, the first month the vehicle was offered in Canada. When you consider the number of vehicles in this competitive segment, the Elantra's early success is an admirable achievement. So why has it done so well? You can't point the finger at heavy marketing. Hyundai did not roll out its advertising campaign until late January. It comes down to value. Not only does the Elantra look better than its predecessor, it is full of new technology and features. It offers the more power, better fuel economy, more safety, and more comfort. Yet Hyundai did not raise prices from the previous version. Now that more consumers are checking out the brand, they are seeing how far their money goes with Hyundai. The new Elantra offers even more evidence that Hyundai is determined to win the loyalty of Canadian consumers through high quality, reliable, well priced and now incredibly stylish vehicles. We are extremely excited about this car and can't wait to show it off to our customers in the Kootenays.
Keith Kalawsky
Dealer-Principal
Castlegar Hyundai
Hyundai Canada just announced that the all-new 2011 Elantra was the best-selling compact car in January, the first month the vehicle was offered in Canada. When you consider the number of vehicles in this competitive segment, the Elantra's early success is an admirable achievement. So why has it done so well? You can't point the finger at heavy marketing. Hyundai did not roll out its advertising campaign until late January. It comes down to value. Not only does the Elantra look better than its predecessor, it is full of new technology and features. It offers the more power, better fuel economy, more safety, and more comfort. Yet Hyundai did not raise prices from the previous version. Now that more consumers are checking out the brand, they are seeing how far their money goes with Hyundai. The new Elantra offers even more evidence that Hyundai is determined to win the loyalty of Canadian consumers through high quality, reliable, well priced and now incredibly stylish vehicles. We are extremely excited about this car and can't wait to show it off to our customers in the Kootenays.
Keith Kalawsky
Dealer-Principal
Castlegar Hyundai
Hyundai's 24-7 Mission Continues
December 3, 2010
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It is an exciting time as Hyundai is rolling out seven new vehicles in 24 months. The latest installment: the 2011 Sonata Turbo or Sonata 2.0T. Our first arrived at Castlegar Hyundai this week, a Limited version in Venetian Red. More than just a new vehicle, this new Sonata really reveals Hyundai's focus on squeezing more fuel economy and power out of four-cylinder engines and its efforts to ensure its entire fleet complies with emerging environmental regulations. For years, the knock on four cylinders was lack of power and excessive engine noise. With the gas-direct engine in the Sonata, you essentially get V6 power -- 274 horsepower -- with 50 mpg in the regular Sonata and 47 mpg highway in the turbo version. In the years to come, we will see more vehicles move to four-cylinders as the technology improves even further.
The next vehicle in Hyundai's 24-7 roll out is the 2011 Elantra. This completely redesigned sedan, which follows the same design approach as used on the Sonata, is packed with features and will be priced to continue Hyundai's market share growth in Canada. We expect our first to arrive later in December.
The next vehicle in Hyundai's 24-7 roll out is the 2011 Elantra. This completely redesigned sedan, which follows the same design approach as used on the Sonata, is packed with features and will be priced to continue Hyundai's market share growth in Canada. We expect our first to arrive later in December.
The Facts on Hyundai's Warranty
November 3, 2010
Lately, several customers have visited our dealership and asked about Hyundai's five-year or 100,000 kilometer warranty. These customers had shopped another dealership in the area and were told that Hyundai offered only a three-year comprehensive warranty and that the last two years were limited to a few vehicle components. This is simply not the case. Hyundai's industry-leading warranty offers the same coverage for the entire five years or 100,000 km. All the details can be found here. More Canadians than ever are choosing to Hyundai because of this amazing warranty, along with incredible styling, quality and fuel economy. During November and December, Hyundai is offering some excellent programs to clear out the remaining 2010 models. We would be happy to answer your questions and show you what Hyundai has to offer. Above all, we'll provide you with all the facts about our products and our warranty.
Keith Kalawsky
Dealer-Principal, Castlegar Hyundai
keith@castlegarhyundai.com
Lately, several customers have visited our dealership and asked about Hyundai's five-year or 100,000 kilometer warranty. These customers had shopped another dealership in the area and were told that Hyundai offered only a three-year comprehensive warranty and that the last two years were limited to a few vehicle components. This is simply not the case. Hyundai's industry-leading warranty offers the same coverage for the entire five years or 100,000 km. All the details can be found here. More Canadians than ever are choosing to Hyundai because of this amazing warranty, along with incredible styling, quality and fuel economy. During November and December, Hyundai is offering some excellent programs to clear out the remaining 2010 models. We would be happy to answer your questions and show you what Hyundai has to offer. Above all, we'll provide you with all the facts about our products and our warranty.
Keith Kalawsky
Dealer-Principal, Castlegar Hyundai
keith@castlegarhyundai.com
New Sales Record for Hyundai in the West
September 30, 2010
Hyundai has set a new monthly sales record in western Canada. In September, the company sold nearly 1,800 vehicles in B.C., Alberta and Saskatchewan. More Canadians than ever are choosing Hyundai vehicles because of the style, quality, exceptional warranty and value. Hyundai is focused on getting more people to consider the brand. When consumers actually check out what Hyundai has to offer, a large percentage end up purchasing a Hyundai. So put Hyundai on your shopping list and see what other Canadians have discovered.
Keith Kalawsky
Dealer-Principal, Castlegar Hyundai
keith@castlegarhyundai.com
Hyundai has set a new monthly sales record in western Canada. In September, the company sold nearly 1,800 vehicles in B.C., Alberta and Saskatchewan. More Canadians than ever are choosing Hyundai vehicles because of the style, quality, exceptional warranty and value. Hyundai is focused on getting more people to consider the brand. When consumers actually check out what Hyundai has to offer, a large percentage end up purchasing a Hyundai. So put Hyundai on your shopping list and see what other Canadians have discovered.
Keith Kalawsky
Dealer-Principal, Castlegar Hyundai
keith@castlegarhyundai.com
Enemy No. 1: Car Dealers
September 24, 2010
In "Exposed: Secrets of the car dealer", Peter Cheney at the Globe and Mail "explains the tricks, tactics, strategies and scams" used by car dealers to exploit customers, according to the national newspaper. The article offered a lengthy list of common complaints about dealerships and how a root canal is probably more fun than buying a car. Following the article were dozens of reader comments with loads of complaints and stories of brutal experiences. There was also plenty of advice on and how to fight back against unscrupulous dealerships.
As a new dealer, reading the story wasn't easy. It's tough not to take this kind of thing personally. Working six days a week at my new store, the car business is everything to me. And really, doesn't everyone want to be liked? To hear that many people dread dealing with car dealers -- and are inclined to dislike you even before they meet you -- is a downer.
But I'm also realistic. I know there is bad behavior in the car business. There are misleading advertisements. There are old-school dealers who believe in pressure tactics over product knowledge. There are businesses who give only lip service to customer service.
I also believe the industry is changing. I see more dealers doing business ethically and responsibly. And I believe those dealers should be rewarded with more business. In B.C., dealers are regulated by the Motor Vehicle Sales Authority. All salespeople and managers must be trained on consumer laws and licensed. Today, the industry is more knowledgeable of the law and more professional.
But the biggest catalyst for change might be pricing. Profit margins are shrinking as more manufacturers dispense with inflated pricing offset by massive rebates. What customers want is vehicle that is well-made, suited to their needs and fairly priced. Don't we all want to know we aren't paying more than someone else for the same product?
This is the philosophy at Hyundai. It might have taken this to the extreme as Hyundai dealers often complain that profit margins are too slim! With vehicles priced much closer to the actual transaction values -- the price at which they ultimately sell -- it takes off the pressure. There is less motivation for salespeople to pressure, confuse or mislead customers. There is no need for protracted negotiations as there is little room to discount. The price is the price. The focus then turns to one thing: finding the car the meets the client's needs and budget. Customers can start to feel more comfortable with the process if they feel the pricing is fair for the value received.
Temptation is everywhere, that's true. Whether it is ego or economics, manufacturers feel the pressure to drive up monthly sales figures with larger and larger rebates or sales. When sales are slow, some dealers resort to advertising with impossibly low payments, they offer giveaways, or make all kinds of guarantees to get people in the door. Then the pressure tactics and grinding begins.
In our area, you can't get away with the kind of tactics mentioned in the article and survive over the long term. We need repeat business. We can't afford to alienate clients. We aren't perfect, but we try our best to be straightforward with our customers, to find out what they really want and need. Instead of conflict and hassle, we would rather develop a relationship with our clients so they become advocates for our brand and our store. These days, with so much information available to buyers, it is our job to help people make sense of it all. So as much as I don't like reading stories about shady car dealers, it motivates me to be different and to help change the image of our industry, however long it takes.
Keith Kalawsky
Dealer, Castlegar Hyundai
keith@castlegarhyundai.com
In "Exposed: Secrets of the car dealer", Peter Cheney at the Globe and Mail "explains the tricks, tactics, strategies and scams" used by car dealers to exploit customers, according to the national newspaper. The article offered a lengthy list of common complaints about dealerships and how a root canal is probably more fun than buying a car. Following the article were dozens of reader comments with loads of complaints and stories of brutal experiences. There was also plenty of advice on and how to fight back against unscrupulous dealerships.
As a new dealer, reading the story wasn't easy. It's tough not to take this kind of thing personally. Working six days a week at my new store, the car business is everything to me. And really, doesn't everyone want to be liked? To hear that many people dread dealing with car dealers -- and are inclined to dislike you even before they meet you -- is a downer.
But I'm also realistic. I know there is bad behavior in the car business. There are misleading advertisements. There are old-school dealers who believe in pressure tactics over product knowledge. There are businesses who give only lip service to customer service.
I also believe the industry is changing. I see more dealers doing business ethically and responsibly. And I believe those dealers should be rewarded with more business. In B.C., dealers are regulated by the Motor Vehicle Sales Authority. All salespeople and managers must be trained on consumer laws and licensed. Today, the industry is more knowledgeable of the law and more professional.
But the biggest catalyst for change might be pricing. Profit margins are shrinking as more manufacturers dispense with inflated pricing offset by massive rebates. What customers want is vehicle that is well-made, suited to their needs and fairly priced. Don't we all want to know we aren't paying more than someone else for the same product?
This is the philosophy at Hyundai. It might have taken this to the extreme as Hyundai dealers often complain that profit margins are too slim! With vehicles priced much closer to the actual transaction values -- the price at which they ultimately sell -- it takes off the pressure. There is less motivation for salespeople to pressure, confuse or mislead customers. There is no need for protracted negotiations as there is little room to discount. The price is the price. The focus then turns to one thing: finding the car the meets the client's needs and budget. Customers can start to feel more comfortable with the process if they feel the pricing is fair for the value received.
Temptation is everywhere, that's true. Whether it is ego or economics, manufacturers feel the pressure to drive up monthly sales figures with larger and larger rebates or sales. When sales are slow, some dealers resort to advertising with impossibly low payments, they offer giveaways, or make all kinds of guarantees to get people in the door. Then the pressure tactics and grinding begins.
In our area, you can't get away with the kind of tactics mentioned in the article and survive over the long term. We need repeat business. We can't afford to alienate clients. We aren't perfect, but we try our best to be straightforward with our customers, to find out what they really want and need. Instead of conflict and hassle, we would rather develop a relationship with our clients so they become advocates for our brand and our store. These days, with so much information available to buyers, it is our job to help people make sense of it all. So as much as I don't like reading stories about shady car dealers, it motivates me to be different and to help change the image of our industry, however long it takes.
Keith Kalawsky
Dealer, Castlegar Hyundai
keith@castlegarhyundai.com
Hyundai launches certified pre-owned program
November 8, 2011
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The idea or concept of a "certified" used vehicle has been around for many years in the automotive industry. For some manufacturers, it was little more than a marketing gimmick. Besides a fancy label, a certified used car didn't seem much different than any other pre-owned vehicle. As dealer, it seemed to me that a certified pre-owned program was just a cash grab by the manufacturer as they took a portion of your profit on every used vehicle. So I'll admit, I was a little skeptical when Hyundai recently re-launched its certified program. But after digging into the details, I think there is a real heft behind this offer. A certified Hyundai includes much more than a label. For a pretty reasonable investment, a customer can enjoy extra warranty on top of Hyundai's already long and comprehensive factory warranty. The finance rates on certified used Hyundai's compare very favorably to rates on new vehicles. We've seen rates well under three per cent on some models Customers also get a free oil change and the comfort of knowing the vehicle had to pass a very thorough inspection. We've had many customers choose certified pre-owned vehicles already and I suspect that many more will go this route. Given the quality of today's cars and trucks, used vehicles last a long time. With the savings available and now the ability to enjoy attributes once reserved for vehicles, it should create additional demand for these high-quality pre-owned units.
Hyundai launches certified pre-owned program
November 8, 2011
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The idea or concept of a "certified" used vehicle has been around for many years in the automotive industry. For some manufacturers, it was little more than a marketing gimmick. Besides a fancy label, a certified used car didn't seem much different than any other pre-owned vehicle. As dealer, it seemed to me that a certified pre-owned program was just a cash grab by the manufacturer as they took a portion of your profit on every used vehicle. So I'll admit, I was a little skeptical when Hyundai recently re-launched its certified program. But after digging into the details, I think there is a real heft behind this offer. A certified Hyundai includes much more than a label. For a pretty reasonable investment, a customer can enjoy extra warranty on top of Hyundai's already long and comprehensive factory warranty. The finance rates on certified used Hyundai's compare very favorably to rates on new vehicles. We've seen rates well under three per cent on some models Customers also get a free oil change and the comfort of knowing the vehicle had to pass a very thorough inspection. We've had many customers choose certified pre-owned vehicles already and I suspect that many more will go this route. Given the quality of today's cars and trucks, used vehicles last a long time. With the savings available and now the ability to enjoy attributes once reserved for vehicles, it should create additional demand for these high-quality pre-owned units.
Contact Information
- Castlegar Hyundai
-
#713 17th Street
CASTLEGAR, BC V1N 4J4 -
- sales Sales:
- (888) 378-0024
- service Service:
- (888) 693-5749
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#713 17th Street
CASTLEGAR,
BC
V1N 4J4