Wal-Mart selling cars -- the end of the dealership?

[midjd]

www.autonews.com/article/20170123/RETAIL01/301239805/wal-mart-carsaver-will-sell-cars

Wal-Mart Stores Inc., the nation's largest retailer, is jumping into car sales through a partnership with CarSaver, an online automotive retail platform. CarSaver, in turn, is setting up partnerships with dealership groups, including AutoNation Inc., the nation's largest new-vehicle retailer.

CarSaver will launch the program April 1 at select Wal-Mart Supercenters in four markets: Houston, Dallas, Phoenix and Oklahoma City.

Ally Financial is the program's preferred lender.

CarSaver's digital platform allows car shoppers to select, finance and insure a vehicle through its website or on a touch-screen kiosk, backed by bilingual auto advisers available by phone. Staffers at CarSaver Centers -- set up inside Wal-Mart stores across from checkout lanes and alongside other services, such as vision centers and nail salons -- will explain the car-buying program to Wal-Mart customers.

Customers will be able to select a new, used or certified pre-owned vehicle and apply for financing and auto insurance on the kiosk at the CarSaver Center, on their mobile device via CarSaver's website or by calling an 800 number.

My husband works at a dealership and told me about this today, so I had to look it up. He's aware of the implications but seems unconcerned, probably because he doesn't work in sales and they'll still do all the warranty repairs (for now), but I think this could be the death knell for the traditional dealership model. Wal-Mart has the economy of scale and access to resources to make this work, and sticking what's essentially a dealership financing office in one of their little storefronts makes sense.

I can't think of anyone who enjoys the car-buying process, and no-haggle places like Carmax seem to be gaining in popularity. If you can go to Wal-Mart and order any make or model vehicle from a kiosk and feel like you're getting a good deal, why on earth would you deal with a salesperson? 

Now the next step is for Amazon to start shipping cars to your door.

[sesfw]

Personally  I think this is great.  The car sales people have done it to themselves.  I got totally screwed by a salesman last summer and the day of reckoning is coming.

I really don't like Walmart but for this one I'll say YEA!!!!!!!!

[billisonboard]

Impulse buying by the young and impressionable is a concern I have on this setup.

[Tennesseer]

A lot of this (the attraction of Walmart selling cars) will depend upon what WM will offer consumers.  Will WM have their own maintenance garages to help maintain the health of the vehicles bought through them?  Will WM have demo cars of every single make and model on site for a potential car buy to test drive?  

Few car buyers buy cars without first test driving them. 



ETA: Never mind. I just read the linked article. That will teach me to read article first, comment after.

[midjd]

Feb 16, 2018 11:02:21 GMT -5 sesfw said:

Personally  I think this is great.  The car sales people have done it to themselves.  I got totally screwed by a salesman last summer and the day of reckoning is coming.

I really don't like Walmart but for this one I'll say YEA!!!!!!!!

That's almost exactly what I told DH. The dealerships' sales departments have treated customers like crap for decades, blatantly lied to them, manipulated them, and now the chickens are coming home to roost. (Much of DH's job frustration comes from having to be the one to tell customers, "Yes, I know the salesperson said X, Y, and Z services were included in your purchase, but they had no authority to offer that and we don't provide it...")

Now if only the same day of reckoning could come for the cable/satellite providers.  

[Tennesseer]

Feb 16, 2018 11:25:30 GMT -5 midjd said:

Feb 16, 2018 11:02:21 GMT -5 sesfw said:

Personally  I think this is great.  The car sales people have done it to themselves.  I got totally screwed by a salesman last summer and the day of reckoning is coming.

I really don't like Walmart but for this one I'll say YEA!!!!!!!!

That's almost exactly what I told DH. The dealerships' sales departments have treated customers like crap for decades, blatantly lied to them, manipulated them, and now the chickens are coming home to roost. (Much of DH's job frustration comes from having to be the one to tell customers, "Yes, I know the salesperson said X, Y, and Z services were included in your purchase, but they had no authority to offer that and we don't provide it...")

Now if only the same day of reckoning could come for the cable/satellite providers.  

[midjd]

Feb 16, 2018 11:13:52 GMT -5 Tennesseer said:

A lot of this (the attraction of Walmart selling cars) will depend upon what WM will offer consumers.  Will WM have their own maintenance garages to help maintain the health of the vehicles bought through them?  Will WM have demo cars of every single make and model on site for a potential car buy to test drive?  

Few car buyers buy cars without first test driving them. 

From what I understand, they're not doing any of the warranty repairs or service (I'm sure they'll still do oil changes, tires, etc. as they do now), so the dealerships will be around for a while to handle that. I'm not sure what "floor models" they'll have available, but I'd assume they have the lot space to at least have a dozen or so of the most popular makes and models. 

If not, it may end up being similar to the Best Buy/Amazon setup, where customers go to the dealership, test-drive the vehicle(s), say "thanks, see ya!" and then go order them from WMT.

[Happy prose]

I wish they would lease cars.

[thyme4change]

Feb 16, 2018 11:08:31 GMT -5 billisonboard said:

Impulse buying by the young and impressionable is a concern I have on this setup.

That happens all the time at car dealerships. One of my friends bought a truck at 8 pm on a Saturday night. It wasn't a planned purchase. He didn't shop around. Did I mention that he was so drunk he doesn't even recall doing it. Just woke up, his old crap car is gone, and there was a shiny new truck in its place. Spoiler alert - he did not get a great deal on price, or financing. I suspect a large number of cars are sold on impulse by savvy salesmen.

I won't buy directly from another dealership again. I will hire a broker, use the Costco program or use a service like Carvana. Car manufacturers are going to figure out how they are going to provide test drives as fewer people want to deal with their slimy dealers.

[NomoreDramaQ1015]

DH impulse bought the truck.   Didn't do any research, didn't visit multiple lots. . .nothing.   DH is one of those people that if you sound like a nice person believes you are a nice person.  Such a "Stand up" guy would never screw him over.

That truck was a f-ing money pit. Happiest day of my life is when the truck got hit and the other drive's insurance company declared it totaled. 

I made him take my dad with him to purchase a new car.  I would have gone as the "bad guy" but my dad is a mechanic so there was the added benefit of having him there to check out the car on the lot.

A LOT of people fall for slick sales tactics.  If they didn't work they wouldn't use them.  I would think the Wal-mart set up would actually make impulse purchase go down because you don't have someone whispering in your ear that there is another buyer coming back in an hour so you need to hurry up and sign if you want to  beat him to this awesome deal.

Boy was the look on the guy's face priceless when we told him to go ahead and let the other guy have the car.

[billisonboard]

Feb 16, 2018 14:25:14 GMT -5 thyme4change said:

Feb 16, 2018 11:08:31 GMT -5 billisonboard said:

Impulse buying by the young and impressionable is a concern I have on this setup.

That happens all the time at car dealerships. ...

But at least they have to go directly to a car dealership, not just stop by Wally World to get some diapers for the newborn.

[billisonboard]

Feb 16, 2018 15:05:23 GMT -5 NomoreDramaQ1015 said:

...

A LOT of people fall for slick sales tactics.  If they didn't work they wouldn't use them.  I would think the Wal-mart set up would actually make impulse purchase go down because you don't have someone whispering in your ear that there is another buyer coming back in an hour so you need to hurry up and sign if you want to  beat him to this awesome deal.

...

Why is your ear at a car lot? You might be talked into purchasing that vehicle but at least you pulled in with the idea that you might be in the market for a vehicle.

[cktc]

Feb 16, 2018 11:08:31 GMT -5 billisonboard said:

Impulse buying by the young and impressionable is a concern I have on this setup.

Yeah, and the kiosk financing makes me worry this will be more predatory lending than bargain pricing.

[NoNamePerson]

Is Amazon selling cars yet? I know OT but not a big user of Amazon but WalMart and Amazon seem to follow each other around so just wondered?

[jkapp]

Feb 15, 2018 21:23:50 GMT -5 midjd said:

www.autonews.com/article/20170123/RETAIL01/301239805/wal-mart-carsaver-will-sell-cars

Wal-Mart Stores Inc., the nation's largest retailer, is jumping into car sales through a partnership with CarSaver, an online automotive retail platform. CarSaver, in turn, is setting up partnerships with dealership groups, including AutoNation Inc., the nation's largest new-vehicle retailer.

CarSaver will launch the program April 1 at select Wal-Mart Supercenters in four markets: Houston, Dallas, Phoenix and Oklahoma City.

Ally Financial is the program's preferred lender.

CarSaver's digital platform allows car shoppers to select, finance and insure a vehicle through its website or on a touch-screen kiosk, backed by bilingual auto advisers available by phone. Staffers at CarSaver Centers -- set up inside Wal-Mart stores across from checkout lanes and alongside other services, such as vision centers and nail salons -- will explain the car-buying program to Wal-Mart customers.

Customers will be able to select a new, used or certified pre-owned vehicle and apply for financing and auto insurance on the kiosk at the CarSaver Center, on their mobile device via CarSaver's website or by calling an 800 number.

My husband works at a dealership and told me about this today, so I had to look it up. He's aware of the implications but seems unconcerned, probably because he doesn't work in sales and they'll still do all the warranty repairs (for now), but I think this could be the death knell for the traditional dealership model. Wal-Mart has the economy of scale and access to resources to make this work, and sticking what's essentially a dealership financing office in one of their little storefronts makes sense.

I can't think of anyone who enjoys the car-buying process, and no-haggle places like Carmax seem to be gaining in popularity. If you can go to Wal-Mart and order any make or model vehicle from a kiosk and feel like you're getting a good deal, why on earth would you deal with a salesperson? 

Now the next step is for Amazon to start shipping cars to your door.

I enjoy the haggling of car shopping...I can't understand those that don't.   Where else, other than shopping for a house, do you get to haggle on the price of something?  I think it must be that people hate to walk away from something they really want to buy - but that is where the power lies in the deal!  I walked away from a car deal over $300 once - it was epic!!

[thyme4change]

Feb 17, 2018 8:33:18 GMT -5 jkapp said:

Feb 15, 2018 21:23:50 GMT -5 midjd said:

www.autonews.com/article/20170123/RETAIL01/301239805/wal-mart-carsaver-will-sell-cars

My husband works at a dealership and told me about this today, so I had to look it up. He's aware of the implications but seems unconcerned, probably because he doesn't work in sales and they'll still do all the warranty repairs (for now), but I think this could be the death knell for the traditional dealership model. Wal-Mart has the economy of scale and access to resources to make this work, and sticking what's essentially a dealership financing office in one of their little storefronts makes sense.

I can't think of anyone who enjoys the car-buying process, and no-haggle places like Carmax seem to be gaining in popularity. If you can go to Wal-Mart and order any make or model vehicle from a kiosk and feel like you're getting a good deal, why on earth would you deal with a salesperson? 

Now the next step is for Amazon to start shipping cars to your door.

I enjoy the haggling of car shopping...I can't understand those that don't.   Where else, other than shopping for a house, do you get to haggle on the price of something?  I think it must be that people hate to walk away from something they really want to buy - but that is where the power lies in the deal!  I walked away from a car deal over $300 once - it was epic!!

I hate haggling. I never, ever feel like I got a good deal. When I go to Mexico and have to haggle, I just give them the extra buck or two. Whatever. They can call me a stupid tourist and I can pretend that I improved their life with my massive 2$ tip. But with a car, I know all that just goes to profit, and the guy up the street from me got a better deal.