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REPORT: Acura dealers treat customers best whether or not they buy
A dealership can be a downright scary place for someone looking to buy a new car, with four-box scams, shady financing, dodgy service, and pushy salesmen. Consulting firm Pied Piper surveyed customers at 1,592 dealerships to show what we already knew, that not all dealer experiences are created equal. The survey covered the customer service regardless of whether or not the perspective buyer actually purchased a vehicle. Predictably, luxury car dealerships topped the list, lead by Acura and Land Rover, but volume brands Saturn, Nissan, and VW were among the automakers that scored above the industry average. The folks from Pied Piper say Acura scored in the "top five or six" across the board regardless of whether the customer bought anything. Honda, Toyota, and Hyundai were right at the industry average in the customer survey, and Ford, Chevy, and Chrysler all scored below the Mendoza line.
Perhaps the Pied Piper survey's most important statistic is that eight out of 10 of the top automakers averaged over 250 sales per year per dealership, and only three of the bottom ten dealers hit the 250 mark. Hit the jump to read the Pied Piper press release, it does a great job of breaking down the vast amounts of data collected.
PRESS RELEASE
PACIFIC GROVE, Calif., July 16 /PRNewswire/ -- Acura dealerships ranked highest in the newly released 2007 Pied Piper Prospect Satisfaction Index(SM) Auto Industry Study, an industry-first study that measures how consumers are treated when shopping for a new car, SUV or truck. The independent study evaluated and benchmarked shopping experiences at 1,592 mdealerships nationwide, representing all major brands.(Photo: http://www.newscom.com/cgi-bin/prnh/20070716/CLM021 ) Following Acura were Land Rover, Saturn, Jaguar, Volkswagen, Nissan,and nineteen other brands at or above the industry average. Twelve brands finished below industry average.
Acura dealers were ranked consistently among the top brands for most of the 50+ sales process aspects evaluated by the study, and ranked first for giving prospects compelling reasons to buy from their specific dealership. Other brands led the industry in different areas. For example, Land Rover salespeople were most likely to provide a "walk-around" showcasing product features and benefits, and were also most likely to offer a brochure.
Saturn salespeople were most likely to offer a test drive, and to provide compelling reasons to buy now. Jaguar salespeople were most likely to mention financing options. Lexus salespeople nearly always -- 98% of the time -- asked for contact information. BMW salespeople were most likely to appear responsible for setting the sales price themselves.
"Pied Piper PSI results show that it is possible for automobile salespeople to effectively ask for the sale without seeming either overbearing or ambivalent," said Fran O'Hagan, President of Pied Piper Management Co., LLC. Long a subject of criticism, many auto manufacturers and dealers have substantially improved the effectiveness of their sales processes. For example, salespeople offered a test drive 89% of the time, asked for contact information 83% of the time, asked for the sale 75% of the time, and offered a brochure 66% of the time. Since the study figures
are averages across brands, opportunity abounds for performance improvement at individual dealerships. One area of opportunity is the fact that salespeople provided compelling reasons to buy from their specific
dealership only 51% of the time.
Pied Piper PSI studies have been conducted in other industries too. Harley-Davidson was ranked first in the 2007 Pied Piper PSI(SM) Motorcycle Industry Study, and Monaco was ranked first in the 2007 Pied Piper PSI(SM)
RV Industry Study (Class A). A comparison of dealership performance across auto, motorcycle and RV industries shows substantial differences. For example, auto salespeople are most likely to ask for the sale, set up a future appointment or ask for contact information. Motorcycle salespeople are most likely to conduct "walk-around" showcasing product features, involve prospects with visual aids, and appear primarily responsible for setting the price. RV salespeople are most likely to determine a prospect's price range, to give compelling reasons to buy from their specific dealership, and to discuss product features unique from the competition.
"Most businesses carefully track sales and take care of existing customers," O'Hagan said, "but 75% to 90% of motor-vehicle shoppers don't buy the same day they visit a retail location, so maximizing prospect satisfaction is an important key for turning those shoppers into tomorrow's buyers."
The 2007 Pied Piper Prospect Satisfaction Index(SM) Auto Industry Study was conducted between April 2007 and June 2007 using anonymous shopper evaluations at 1,592 dealerships located throughout the U.S., representing
approximately one in fourteen of all U.S. light vehicle dealership locations. For more information about the Pied Piper Prospect Satisfaction Index SM, and the patent-pending Pied Piper PSI process, go to
http://www.piedpiperpsi.com.
Reader Comments (Page 1 of 2)
Patrick 7:31AM (7/17/2007)
Things must different in the US ... My last two car shopping experiences put Honda and Toyota at the bottom ... the staff were knowledgeless and didn't give a sh*t because they know their products sell regardless.
In the last year, I bought two cars, and both were from Ford ... the salesman made the sale a great experience.
PS: There are my first American cars, I had always sworn by Japanese.
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Ligor 7:40AM (7/17/2007)
I agree
I went to Acura and they even gave me the TL for an afternoon as I had been there 3-4times.
At teh end I told them the G35 was it, ans it was all because the FWD - they accepted it and said they hope Acura is working on a solution (maybe they meant the SH-AWD)
But, last time me and my brother went to Ford, he was looking at a Fusion, we waited outside for 15min, no one showed, we went inside for 15min and no one showed, so we just left
as we were leaving the sales guy asks if we were all set. we said yeap and left.
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Avinash machado 8:11AM (7/17/2007)
Can Acura be considered to be a luxury brand? I think it is more like an entry level luxury or tier 2 luxury brand.
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rob 9:16AM (7/17/2007)
don't know what makes you think its not a luxury brand. where i live, its considered right up there with most of the others...and i live in a supposedly well-to-do area. just because their cars are not ridiculously overpriced doesn't make them non-luxury.
Mark 8:12AM (7/17/2007)
I completely disagree with this. Foreign dealers tend to be a lot more sly and a lot more willing to stab you in the back. That's my experience from my parent's Toyota vs GM purchases. Toyota dealer pretty much refused to admit anything was wrong with the car. Dead batter? Well you must have replaced it on your own and killed it. But don't take my word for it. Go to Edmunds.com and read their confessions of a car salesman (http://www.edmunds.com/advice/buying/articles/42962/article.html). I don't know if it is specifically stated in the article, but I believe it was a Honda or Acrua dealer. All the article mentions is that it's foreign. The person also worked at a US dealer and the experience was vastly different. The problem with people taking these surveys is that they're too dumb to know they're getting screwed.
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Ken 8:21AM (7/17/2007)
I also completely disagree. I bought an Acura in 2002 in Austin, TX. At the time they were the only Acura dealer in town - and they knew it. They treated customers like complete sh!t.
Everyone from the salesmen to the manager to the service department could not have given a flying @#^% about you or your car and seemed to strive to make any experience with them as difficult as possible.
And whether Acura is near luxury, luxury, tier 2 luxury doesn't matter. No dealer should treat customers that way. I've had the absolute best customer service with Saturn. I doubt I'd ever buy an Acura again, regardless of how reliable they are.
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Kowell 8:26AM (7/17/2007)
Over here Acura dealer employees are pretty much the only one who don't have a union so it makes sens that they work harder to do a good jobm thus ensuring to keep theirs.
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rob 9:12AM (7/17/2007)
i'm always treated very well at my acura dealer in va... they are in the top 2 or 3 dealers in U.S. sales so i guess they're doing something right.
hopefully, my next car will also be another acura. its been a very reliable car so far and drives great.
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Gooch 9:19AM (7/17/2007)
What is "luxury," "near-luxury" or (first time I've ever heard this) "tier-2 luxury?" What defines luxury?
Is it the thickness of the leather seat? Is it the features? Is it because the automaker or the press says a certain vehicle is "luxury?"
Many of the features a lot of people take for granted today are absolute luxuries to people like my parents and grandparents, who have different definitions of "luxury" than some of the people here.
I don't know your financial level, Avanish, but by most any definition, an Acura TL is a luxury car. Whether it is "entry level" or "tier-2" (sounds like a subprime credit status), I don't think anyone in the market for it really cares to define it that clearly. The fact is it is not a car that is comfortably affordable by most of the people in the country -- it is considered a luxury. It has features many people don't have even in their homes. It seems to me that it is a luxury car, despite the fact that the standards of "luxury" have obviously moved.
I've had an excellent experience in the Acura dealership close by. They also let me drive a TL for an afternoon, but in the end I have decided to give in to my lustful desires instead of practicality and buy an E46 M3. The features in the TL were impressive, however, and I'm certain I would have been happy with that car and the dealership.
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Stoneman 10:08AM (7/17/2007)
When I got my Impreza, not only was the dealer truthful and forthcoming, but they disclosed every fee. There was no stupid 4-way box. Of course, this was completely different from when I visited the Mazda dealership. In that dealership it was a hostile experience. (I got laughed at when I suggested their price was too high). Perhaps the best advice I can give is before you buy a car, visit carbuyingtips dot com, because Jeff can show you how to CORRECTLY buy a car.
Stoneman
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Aaron 10:07AM (7/17/2007)
Whether it was to get electrical bugs worked out, my transmission replaced or to fix the speakers in my 03 TL, my experience with Acura service was fairly good. Of course the fact that I was driving an overpriced lemon (and they knew it) and was less than happy about it could have influenced thier delicate treatment of me.
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Tracy 11:37AM (7/17/2007)
The survey is bullshit. Proof in point is .... how can Mercury be above industry average when Lincoln and Ford are both below. There is no such thing as a stand alone Mercury dealership. How could Mercury get a better score than Ford or Lincoln when it is usually dualed with Lincoln and in some instances Ford or both?
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Bennet Pullen 12:39PM (7/17/2007)
Because not all Ford dealerships have a Mercury or Lincoln add-on. So if the dealerships that just sell fords tend to suck worse than the Ford average would go down but the Mercury average would not change.
Also, at least in my area the dealerships are connected but they have their own buildings and sales staff. The only truly connected dealership is the Ford/Mazda dealer, where they have Mustangs and Miatas right next to each other on the showroom floor.
Tracy 2:46PM (7/17/2007)
That makes no sense Bennett....there is no such thing as a Mercury or Lincoln franchise that stands alone. They would either have Ford or each other within the same store.
James Mannix 2:21PM (7/17/2007)
I also agree with the majority of the negative comments. I owned an Acura when they first arrived and the dealer was super. I loved that Integra till it got smacked across the front. Now years later I had a service to be done on my then current G35 and with the loaner they supplied I went to appraise the new RDX...after asking about prices and options with this model all I got the cold shoulder ,that they were sure that the asking price of the new RDX with all the options was one I couldn't afford. Did they know something I didnt? They offered no help or assistance what so ever and seemed annoyed as I sat in all the models on the floor...... Needless to say...my recent purchase was the new G35...great sales, greater service department, great car
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Rick Watts 11:23AM (7/17/2007)
The four square sheet is not a scam. It is a tool. (AOL has to add drama to insure readership. They being more like the National Enquirer everyday.) If the consumer would learn basic math this would not be needed. Do you know how many people come into a dealership upside down $3,000 or more in their trade and want to buy a $35,000 vehicle for $300 per month? This is why salespeople ask about payments upfront. When you work on commission, you don't want to waste time selling a G35 to a buyer that should be at the Nissan store looking at a Sentra. The average consumer would not believe how many times a week this happens. Learn basic math and we can treat you like adults.
All consumers would be treated better if they did not spend money with people that treated them like crap. Get up and leave. Dealers with this problem will be forced out of business and they will be replaced with dealers with good business ethics. The consumer keeps these people in business. It's your choice!
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McGrady 12:49PM (9/06/2007)
Yeah Acura sucks! I went there to buy a TL cash. They ignored me for 15min or more, they asked if i was looking for the service department i told them no i needed a sales person so he gets another younger dealer. I asked for a test drive and the guy says they don't give test drives unless your really going to buy the car. I'll admit I'm young I'm only 24, but age has nothing to do with how much I'm worth. I ended up leaving never getting a test drive and went to infiniti and got a M45 and couldn't be happier. oh and this was at Acura of Carlsbad i also no longer by parts from them.
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iamhoff 12:50PM (7/17/2007)
Years ago I lease an Integra from a San Diego area Acura dealer. The sales staff were a bunch of pricks, but the service staff were phenomenal! For an Integra, they'd give me a loaner anytime I went in, even for one of my "free" in-between oil changes if I needed it.
2 years ago my girlfriend bought a 1 year old 3.2 CL (she really wanted but couldn't quite swing the G35 coupe) from the same Acura dealer. Again sales sucked (some things never change), so she took it for service at an Acura dealer closer to our place. Again, the service is above and beyond. One of the headlights went out, and Acura wants $400-plus for one of the HIDs (confirmed at 2 separate Acura dealers). Her service manager went ahead and found a way to call it a warranty issue, which ultimately saved her more than $200. Good on Acura. Now, if they could just work on their sales staffs.
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DJ 1:18PM (7/17/2007)
We purchased my wife's Jaguar XJ8 and Volvo XC 90 from the same dealership. The entire experience was not only great, but less high pressure than a nearby Lexus dealership. That dealership is now completing a complete renovation with deep leather sofas, plasma TV's, internet stations, free coffee, ice cream, juice, cookies and muffins. It's actually a great place to hang out while getting a free carwash (which includes complete vacuuming and interior window cleaning).
As far as why Lincoln scored lower than Ford, I can answer that. Ford wants Lincoln to compete at a luxury level, yet it's dealerships look and feel like a 20-year old Wal-Mart. The sales experience isn't much better than the average Wal-Mart either and I'd guess their sales people are slightly older than the average Wal-Mart greeter!
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Gardiner Westbound 1:22PM (7/17/2007)
Acura permanently lost my business when a dealer unsuccessfully billed me $90 for unsought "chemical services," assorted gasoline, engine and transmission additives.
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