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Auto-Buying Roundtable Experts discuss what's new and what to expect when shopping for a vehicle

by Judy Burnett

Even if their names don't always appear on the title, women play a big role when it comes to buying a vehicle, experts agree.

Read on to discover what's hot for 2005, from new models to safety features such as on-board computers and navigation systems. And find out what to expect before you hit the dealership.

Participants

Lynda Goeke - Owner, Goeke Dodge Chrysler

Jeff Denney - Operations Manager, Jiffy Lube

Nicole Cheesebourough - Sales Manager, Dreyer & Reinbold

Eric Dickerson - Owner, Eric Dickerson Buick

Linda Butler - General Manager, Don Hinds Ford

Q. What's new for the 2005 model year?

Linda Butler: Ford has a new sedan called the 500, and that will replace the Taurus in the lineup. The backseat folds down. The front-seat passenger side also allows you to haul a ladder in it.

We have what's called the Freestyle, which is between the [sport utility vehicle] and car line. It has three seats. Two adults can comfortably sit in the third seat. It has a fold-down DVD screen available in the second seat. It's an all-wheel drive, as is the 500.

The Mustang has been revamped and restyled. The Mustang enthusiasts are very pumped up about that. Our F-series trucks are very strong.

Eric Dickerson: [General Motors] has been revamping each of its divisions over the past four or five years and it's finally our turn for Buick [with] two great vehicles coming out this fall. Buick has refocused on whom we are trying to sell cars to. We are still going to maintain our traditional customer base of mature people, but we are also making changes to bring in a newer customer base.

We are getting a vehicle this fall called the Terraza. It's a minivan that does not look like a minivan. It looks like a mini-Suburban. The DVD is on a rail so that it can slide back and forth between the second and third rows.

Another vehicle we are going to get is a sedan called the Buick LaCrosse; it replaces the Century and Regal and has lots of new styling cues on it.

Nicole Cheesebourough: BMW came out with the X3 last year. That really is for women. It is a smaller SUV and very sports-minded, but with room for the kids and the stroller in back. It's on a car frame, not a truck frame, so it has the handling BMW drivers are accustomed to. The price point is a little less than our signature sport-activity vehicle, the X5.

The other vehicle is the 6 Series at a higher price point. It appeals equally to men and women.

Lynda Goeke: We've gotten a ton of new cars this year, which is very exciting. We have a revamped minivan with stow-'n-go seating. The seats fold into the floor, and you have stadium seating in the back so you can turn the seats around to tailgate.

We've also gotten the Magnum, which is a very manly station wagon.

The Chrysler 300C is getting a lot of great play. They've put in this technology called ESP, which makes the car drive like a front-wheel-drive car. It has a Hemi engine in it, and we are selling tons of them to men and women. It's really a good-looking car.

Q. What percentage of your customers is female?

Jeff Denney: In my particular market, it's 50-50. Moms are a big part of our business. They come in between the morning and evening rush hours.

Cheesebourough: I think 75 percent of our buyers are women. I say that because the men may come in and look, but the women have the power in the home and are making the final decision about which car is going to be purchased.

Dickerson: We track the data every month, and it is about 50-50.

Butler: Even if the woman's name doesn't appear on the title, somewhere between 70 percent and 75 percent of the decisions are made by women.

Goeke: Our customers are 60 percent women. That's really changed with the minivans and the Pacifica. Being a woman business owner, I know women are decision-makers.

Q. What percentage of your sales team is female?

Cheesebourough: Right now we are 90 percent male. We are always looking for real strong women.

Dickerson: That's the same for everyone. It is tough to get women salespeople. It's always hard to get good salespeople, but to get women is twice as tough. If you get a woman to come in who has what it takes to make a good salesperson, she can write her own ticket.

Q. Has the Internet changed your business?

Goeke: It's changed our business dramatically. The Internet lead is a very different kind of lead for us. We have to respond to that immediately. An Internet lead goes directly to a pager, which my Internet guy carries. He immediately e-mails that person.

Denney: We market on the Internet. We have a substantial Web site. You can go there and purchase your service needs with a deeper discount. It's a built-in communication mechanism with your customers.

Dickerson: In terms of new car sales, we are probably selling about 10 percent on the Internet. The biggest thing we see from the Internet is that 30 percent of the people who come in have a Kelley Blue Book or Cars.com evaluation for their car for trade-in. Sometimes that gives them a convoluted idea of what their trade is worth. Your trade isn't worth $5,000 to me and $15,000 to another dealer.

Q. What are the hot options people want right now?

Cheesebourough: Navigation systems are very, very hot. All the latest technology like MP3 players and satellite radio are what people want.

Goeke: DVD players and navigation. I have navigation in my car. It's really cool and people love it.

Butler: People can't go to the grocery without using a DVD player. Sound systems are always big. Sunroofs and moon roofs are must-haves.

Dickerson: Heated seats, without question. If you have not experienced the pleasure of a heated seat, you need to test drive a car. It's the greatest thing. Tied into that are remote starts. I don't care whether it is summer or winter, remote start is one of those things like a cell phone. Before you had it, you didn't think you needed it, but once you get it ...

Butler: I had one with that last winter, but you use a lot of gas.

Denney: It's incredible on diesels. You can set them temperature-specific and restart the vehicle automatically overnight.

Cheesebourough: Another product that's pretty popular is park-distance control.

Q. Let's talk about leasing

Butler: Leasing is very individualized. I am a great fan of it because you are always driving a new car, and you are always in warranty. If you plan for a car payment in your budget every month, leasing is probably for you. But if you are the type of person who cannot wait until your last payment, leasing may not be for you.

Goeke: Leasing is not as attractive as it was because of the residual values. It is a great way to get a car, but you have to look at the payments both ways and see what works for you.

Dickerson: If you lease a car, do not buy that car when the lease is up. The reason is simple. Add up whatever you have paid in payments over the term of the lease. Add to that what they are going to sell the car to you for. What you will find is that you are buying a car for more than sticker.

Q. What's new in safety for automobiles?

Dickerson: The biggie is GM's OnStar. Other manufacturers are doing things like that. It's a little GPS system in your car that if someone hits you, or you hit someone, a voice is asking you if you are all right and will dispatch the police or an ambulance. I've personally had six customers who I have sold [to] in four years that say OnStar saved their life.

Butler: Don't you have to pay a fee?

Dickerson: The first year it is free. It's $199 a year after that if you want to continue it.

Side air bags are great. Some manufacturers have rail air bags, and they are outstanding. They come out of the top of the car and go down to protect the people in the back. Given the choice of saving a couple of bucks on your payment, it is well worth it.

Denney: On-board computers. It's black-box technology for cars. After a wreck, you can plug it in and it will tell you when the brakes were applied and how long the vehicle speed sensor was active after that. If you lose the car, they can tell you where it is.

Butler: Side air bags that protect on impact, especially in minivans and SUVs. When people come in, that's what they want.

Goeke: We have this new technology that is kind of interesting. There is a weight-limit mechanism in the front seat that allows you to put a child in the front seat. It controls how much the air bag inflates based on the weight of the child.

Cheesebourough: We have a smart air bag system that does measure weight distribution and deploy accordingly. BMW Assist is kind of like the OnStar system.

Dickerson: With all of our vehicles now, if you are in a wreck, the car looks bad but you are OK, and that's because the cars are designed to absorb the impact. The same technology that is in the Indy cars is rolled into all of our car lines.

Q. Jeff, how do companies like yours support or compete with dealerships?

Denney: I see Jiffy Lube's role as an assistant. We are there to perform the maintenance needs on your vehicle.

We have no plans to perform any repairs and refer those to the dealer. We actually use all the manufacturers as the industry expert. If there is a question, we direct the customer to the manufacturer. Our greatest ally is our convenience and our speed. That's what our business is based on.

Dickerson: Competition is good. There is some loss of customers to companies like Jiffy Lube. It's just the way of the world.

Q. If our reader is going to go into the dealership and test drives a car, what should she be looking for?

Butler: Have some idea of what you want and can afford when you come in. Before you come in, write down the things that are important to you.

The first thing is what you can afford. If a Ford Focus is what you can afford, don't look at other models.

No. 2: What is it you cannot live without? If you have to have heated seats, then that should be No. 2.

No. 3 might be color - do you like dark or light colors? Be flexible with color. Then how many people are going to be in the car? What are you going to use it for?

Goeke: You have to be comfortable in what you are driving. Look at the practicality of things. I cannot drive a truck. I wish I could drive a truck, but I cannot park the thing.

People have unreasonable expectations on payments. People are still looking for $250 or $300 payments. The average new car price today is about $25,000; you aren't going to get that for a $250 payment. If that's the payment you need, then maybe you should look at pre-owned.

Dickerson: I like the test drive to start off with a salesperson along. Then, we like you to drive the car by yourself, without the salesperson, so you can talk honestly. We encourage people to take the car home overnight. Put it in your own garage.

Some people don't want to take a test drive, but we will not sell you a car if you do not test drive it.

Q. What is the advantage to buying a pre-owned car?

Chessebourough: BMW has a certifying program for vehicles that are less than 5 years old and have less than 60,000 miles on it. That vehicle goes through a 103-point inspection and any repairs are made. It works well and you get a new-car financing.

Goeke: Price is a definite factor in pre-owned. We all have certified programs now so you get a car with a warranty on it. ... Pre-owned cars are better than they have ever been before.

Dickerson: The biggest thing is price.

Q. What do car buyers have a right to expect from their dealership?

Goeke: Definitely respect. We absolutely respect our customers and know that without them we would not be there.

Dickerson: I agree with Lynda. I believe in treating people fairly.

Butler: It's all about taking care of the customer. You want the customer to trust you. It's all about respect and communication.

 


Article appears as published in the IW September 2004 issue.

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