CAR DEALERSHIPS IN TROUBLE? Kevin Hunter The Homework Guy

[@KevinHunter]

Did you know our FREE Blog has tons of great info for car buyers? thehomeworkguy.com/car-buyers-blog/ Need our Hassle Free Car Buying Service? thehomeworkguy.com/hasslefreecarbuyingservice/ If you have any trouble, text 701-441-3399 and Liz will get you what you need. Thank you, THG Viewers!

[@BrianFiltz]

I went to look at a car that was listed for $28,000. After all the dealer games and fees , they wanted $44,000 without any extended warranty. I was pissed and walked out . RIDICULOUS!

[@robertkeefer1552]

Thank you folks for helping car buyers to not get hosed by shady dealers!!

[@peterbowman5750]

Too many shady dealerships brought this on themselves

[@KevinHunter]

They most certainly did!

[@tanthony3895]

Kevin and Elizabeth keep trying to convince people that dealerships are bad so they can bolster their car buying service. Very apparent what the angle is. They are generating their own existence with these videos that continually highlight the marketing for THEIR SALES.

[@georgegordian]

I wish I could give this video more than one thumbs up!

[@thehoneybadger8089]

If the car was finished and ready to drive right off the assembly line, it shouldn't need all the dealer prep add-on crap applied at the dealership.

[@KevinHunter]

Not one single add-on adds any value to the vehicle. Everything sold in dealer Finance is stuff that you will never see on a car book out value sheet

[@jstephens2758]

@@KevinHunter Unfortunately, some of the add-ons come from the factory. My car had a spoiler that was a $300 chunk of plastic that caused dirt and road salt to accumulate on the edge of the trunk lid. The lid was already contoured for airflow and the spoiler likely would not be effective below the setting of the speed governor. Unfortunately, the spoiler, and two other extra cost add-ons came on every vehicle of that model delivered to every dealership in town.

[@mattdecker6791]

The whole car dealership experience has become so unpopular with consumers, it can't possibly survive long-term. The Tesla model of direct sales is the future.

[@mattdecker6791]

@@buckjones4901 Agreed. It's so bad I tell my grown kids not to go in there without me. They know they could easily be financially ruined if they enter a dealership alone and inexperienced. How could any business survive long-term with that type of reputation.

[@tanthony3895]

Not good. Even as bad as dealerships are at least there is competition. Once it goes direct to consumer, that's when you're going to see prices going through the roof. Consumers need to wake up

[@140ex5]

You walk into a dealership and it's like walking into a palace. How many cars do they have to sell to pay for it? Lately these dealerships are deserted. The last time I purchased a car i had to spend a half our declining add ons from the finance manager.

[@bjm23vancity92]

Awesome video! Couldn't agree more, the typical car buying experience is long painful and frustrating. The Stealerships are trying get every penny from you, and could care less about whats important to the consumer. The current dealership model is antiquated dishonest and needs to change yesterday. I believe the general public and politicians have no idea how Stealerships are and have been ripping off consumers for years. Direct to consumer is here now in many areas and the future.

[@HEADEDWESTWARD]

I am a single female, and despite being a lawyer (the other most untrustworthy profession), I still feel like I am being thrown to the wolves. I am really fed up with SUV shopping - there is always something I do not like about each one. I haven't even gotten to the price and finance battle yet.

[@thehoneybadger8089]

They say that 99% of lawyers give the rest a bad name😁🙃🌵

[@kwilliams1958]

Merry Christmas to the AMAZING ELIZABETH and the other guy (HOMEWORK GUY, too!).

[@KevinHunter]

Thank you so much! Merry Christmas to you, too!

[@thehoneybadger8089]

The manufacturers need to do away with the dealership system. Make the dealerships distribution centers and put the managers, and service, parts, and body shop technicians on the factory payroll. Have the States provide a grace period for the new car buyer to get the car licensed at the DMV.

[@dvader3263]

The manufacturers can't "do away" with dealerships, because of dealership franchise laws. The dealerships don't want to get rid of dealerships, and they lobby the politicians to keep franchise laws in place, so that they can stay in business. Tesla is able to get around the dealership franchise laws in many States because Tesla doesn't have, and never had dealerships.

[@socal1ohya]

Keep up on all your maintenance and keep your car. The best payment is no payment

[@jstephens2758]

Didn't Ford try this not too long ago? They bought up most of the dealers in our area and called it the "Ford Collection." After a few years, they gave up and sold the dealerships back although not necessarily to the same people as before. While GM did not try to bypass the dealer, the Saturn division sold cars at a fixed price. This was very profitable for the dealers but lost money for GM.

[@Dac54]

Indeed, to this day, my best experiences in car dealerships were easily at Saturn; the price of the vehicle and its options from the factory were stated clearly for all to see. At no time did I feel like I was being lied to or that any games were being played. I was able to order, to my specifications, a 1999 SL2 and, when the lease was expiring, a 2002 SL2, which was the last good model year. Not long after this, Saturn came fully under the GM banner, which ruined a really good thing.

[@nsns1996]

Like Kevin said, this advise goes right over their head. They still don't want to change the old model and same script and i refuse to buy the car. In the end, i will buy from whoever is willing to sell it direct and EV is likely my next car. Manufacturers also need to allow direct selling model in 2025 and can keep the old dealership model for people who still wants it. I prefer to order my car online, customize it and pay

[@buckjones4901]

I so hope Toyota, Honda will adopt this. The thing is the dealerships can still stay in business just convert to full service centers, and even still have sales on the side.

[@tanthony3895]

This entire video is the setup to sell their service for buying cars. Also consumers are being convinced that dealerships are bad so they get rid of them. Manufacturers will not share any of the savings and they will only increase prices once they have a monopoly on sales

[@jrs9264]

Despite state franchise monopoly laws, car makers CAN bypass those laws by setting up factory dealerships on native american reservations. they are legally federal land and states have NO tax or legal jurisdiction there. 💯👍🤗

[@KevinHunter]

I like that idea a lot!

[@nv1493]

I'm surprised that this model based on lies, misinformation, overpricing, fake add-ons and general deception is still around.

[@raymond_sycamore]

the ones I keep calling don't seem like they're in trouble. I was actually told by three different ones today that they "don't go under MSRP"

[@donhebel1011]

Lol those dealerships are cutting their own throats in future sales and service. Spamming their way to bankruptcy. Just run away from those idiots.

[@allenellzey5735]

Most dealerships costs are covered by the service department, well used to be when i was a technician at a Chevy dealership many years ago. Sales was all profit for the dealership from what I remember.

[@KevinHunter]

The number one profit producing square footage is dealer finance at the moment.

[@MarcoGallo-ud8qd]

Thanks for this video guys. Also, true keep up the great work. Have a very merry Christmas and God bless you guys and.

[@mikegruber3888]

DaSantis only represents the wealthiest in Florida and there is lots of them. Horrible representation for the working class in that state and very representative ( I think )of whats happening nation wide. Thank you very much for the wealth of information and really sheading light on what really happens in the typical dealership.

[@charlesrohlena6208]

I dont like subscriptions either.

[@KevinHunter]

Oh well!

[@joedonbaker1673]

Let's end the current car sales model. Buying a car should be like buying a shirt. No need for salesmen...

[@lifestooshort6801]

It's inevitable 🤔 Right now though, their pockets are too deep 😒

[@LGB-FJB]

I always love the $400 document fee... My state will not allow manufacturers sell directly to consumers any time soon. Dealerships should just be able to order any car for a customer and have it delivered to the dealership.

[@christophmayer5916]

You critize the big show rooms and offices. I strongly assume that the car manufacturers give imperative guidelines about the size of show rooms and so on. This applies here in Switzerland.What wonders me are the hugh number of cars on the lot in the USA. Are the car manufacturers determine the number of cars on the lot in the franchise contract with the car dealer ? Why not make follow more the line of FACTORY ORDER like in my country. I really appreciate your comments / remarks on this.

[@KevinHunter]

Car manufacturers do indeed insist on given amenities, but they also know dealers can afford them. Many manufacturers have launched online shopping sites for consumers of their cars, often sharing where the best deals are in the country.

[@ericgofreed1651]

In the U.S., having lots of cars on the lot is seen as an advantage because many people like to test-drive and buy a car on the spot, rather than wait for a factory order. However, the factory-order model has benefits too, like lower costs for dealers and more customization for buyers. It could also reduce waste if dealerships kept fewer cars in stock, like in Switzerland. I agree that some U.S. systems lack common sense. Maybe a balanced approach could combine convenience with efficiency and sustainability.

[@jeffreybischoff6772]

Car manufacturers companies might be greedy and bad, but stealerships are worse. No holding your breath, but maybe (but unlikely) can change the laws, and allow the manufacturers to open direct stores, similar to cell phone companies direct stores. Just like cell phones direct stores vs authorized retailers; it would direct stores vs stealerships.

[@failuretolaunchdrums]

manufacturers should really be selling direct to consumer. you’d see an explosion of custom-ordered vehicles if manufacturers simply asked for a security deposit, optionally lended them a vehicle for the time being, and then a month later you have your dream car sitting in the driveway.

[@KevinHunter]

I agree with you 100%! That day of reckoning is coming, too!

[@thethirdrailchannel]

So what would be the estimated savings to buy direct? Surely the car would be far cheaper.

[@8m617]

After a dozen OTD electronic contacts reach outs today, I have a dealer 200 miles away sending me vin stickers printouts (Dealer name poorly blacked out) of vehicles/dealers much closer to me! I mean, it helped me find one vehicle not on GM’s vehicle inventory search, but wonder how they would proceed if I bite? Do you reference this in another video? Just subscribed a day/two ago.

[@kjcolby1978-pr8wf]

similar models were attempted... Saturn and Scion come to mind... and failed

[@masterthnag105]

What states allow for direct to consumer car sales??? I didnt think that was a thing for anything other than a tesla

[@AltTechFan]

Being the Devil's Advicate for a moment, let's remember why the dealer model was enshrined in law: to shift power to the consumer. When Tesla says the price to buy a Model 3 $59,999, that *is* the price. There is no dealer network that competes for your sale. Or your service. There is no one in your state and local community with a vested interest your community being well served. If you aren't well served, there is no one local to complain to or sue. The manufacturer will almost certainly have a choice-of-venue provision in the sales contract so have fun suing them in their back yard. Moreover, it will be you vs. a mega big manufacturer. Sure, your local dealer peobably has $ and good attorneys but it is at least a more fair fight. Yes there are exceptions (like the pandemic), but the *normal* situation is that buyers *can* shop around and pit one dealer against another to drive a better deal. You recommend this and even encourage travelling outside your local state or region when necessary. All of this goes away when there is one single price nationwide. Honestly, I'm surprised that you are tsking this approach. Doesn't your car buying service rely on you being able to work with specific dealers to achieve better pricing than is generally available? How would you be able to do this under single DTC pricing? In case anyone wonders, I'm not in the car business so I have no dog in the hunt.

[@KevinHunter]

If this happened, it would have a definite negative impact on us. However, you use Tesla as your example of why this shouldn't happen. Yet, you didn't mention that Tesla has the highest consumer satisfaction ratings of ANY car manufacturer, despite not having multiple dealers to pit against each other. If DTC were to happen across multiple manufacturers, it would take years to get there. Dealers could make changes to prevent it from happening as we shared in the video. They would need a culture makeover to do it, and there are some who are trying it.

[@wyatt92563]

I've been looking for a Wrangler 4-door for several months. I've never owned one. I finally found a 2024 S model 4 door, 6cyl, auto trans. MSRP $48,155. After some negotiating, I got them down to $39,000 OTD. Is this a good deal?

[@MarcoGallo-ud8qd]

If I were you with your hassle, free car bank service how do I go about getting his car inspected if I’m not there it’s another Steve. Is there services out there? Good ones let me know. Thank you.

[@gahvno]

Tesla, sure... But then how do we explain the demise of Saturn?

[@jordez1]

Lexus are taking advantage because they can. Not the best way to build a customer relationship.

[@KevinHunter]

We've had a ton of requests for Lexus. Very difficult to get dealers to pony up discounts, etc, but we are finding a few of them! The stories we hear before we get involved are incredible!

[@midnightcaller200]

Simple solution BOYCOTT THE DEALERSHIP AND BUY USED!!! there are a lot of great used cars out there

[@tsunamieyes]

Sounds like DeSantis is on the payroll 🤨

[@buckjones4901]

I like much of what he does, but not this one, the government at any level shouldn't be involved shaping how capitalism works unless it is a serious danger to the public, the old bad way of selling things should just be allowed to go extinct.

[@lot2196]

I don't believe that EVs don't need service one bit. They have issues like any other mechanical object. They are a nightmare ehen issues arise.

[@tanthony3895]

The homework Guy videos have turned into nothing more than a marketing campaign for their car buying service. A blind man could see what's going on.

[@lot2196]

They will downsize, they will not go away. Most dealerships don't want to sell to you. They are only interested in selling outrageously priced models to the top percentage of wage earners. Plus the occasional wannabe baller. If they downsize enough they can survive on this business model.

[@6ehunter]

While the auto industry needs to clean up its act and stop playing games with consumers, eliminating dealerships won’t help. People still appreciate the help of a professional when making a big ticket purchase, similar to you making money off your car buying services.

[@KevinHunter]

I would tend to agree with that

[@guestuser1212]

@@KevinHunter the dealer is NOT on your team!

[@WhittyPics]

Crooks going to crook

[@davidsiddall2289]

Most non- haggle car buying options make about $8000 dollars in profit per car and do NOT negotiate. The model 3 sold first sold for about $70k and keeps getting reduced down to about $30k now, what an insane high profit for so many years! Many buyers like to haggle out a more fair deal. It would be sad to always have to pay full sticker, however we all seem to love paying 30-40% markup for all the cheap Chinese plastic sold at Wall Mart.

[@javiersuarez5499]

🦉

[@TheRS1969]

No need to have 2 people speaking just like the evening news with the back and forth

[@HEADEDWESTWARD]

Get your own channel and do it your way. No one is forcing you to watch!