Reasons for Extended Wait Times
Why do car dealerships make you wait so long? They want to keep you as a customer. If your car needs repairs, you may buy your next used car from them. They may offer other services like a loaner car or a discount on your next purchase while you wait.
The most common reason for a long repair time is that the dealership doesn’t have the parts in stock.
Car dealerships buy cars from manufacturers at a wholesale price and sell them to consumers at a retail price. The difference between the two prices is the dealership’s profit. They conduct a comprehensive diagnostic process to accurately identify the root cause of car issues. Modern vehicles with advanced electronic systems make this process time-consuming.
Dealership Operations and Profitability
Automotive retail is changing. Average dealership operating profits plunged from 8.9 percent in 2015 to 1.7 percent in 2018. Gross profits fell from 3.3 percent to 2.4 percent over the same period.
Repair Process and Customer Experience
Car repairs at dealerships involve a thorough process, parts ordering, and following manufacturer guidelines. They handle a high volume of vehicles, leading to longer wait times compared to independent shops.
A woman on TikTok shared why salesmen make you wait. She said: “Play the game baby.” A sucker gets taken advantage of every minute. Don’t fall into that category.
Independent repair shops may offer faster service due to a more personalized approach and potentially lower workload.
Changing Market Dynamics
Automotive retail is changing fast for many car dealers—and their bottom lines.
It is not ideal for the dealership to keep vehicles in the warehouse for long as it directly impacts their pricing. Their rates can get lower after a few months compared to the new cars with the same models. Therefore, they have to move the automobiles out of their inventory quickly if they want to get a better profit margin.
Everywhere, car buyers are experiencing long waiting times for a brand new vehicle, prompting a rise in prices with second-hand vehicles to fill the demand and dealers charging extra markups on whatever new cars they have.
The Car Buying Experience
Why does the car buying process take so long? The process can take longer for several reasons. Researching different models and comparing features takes time. Securing financing also adds considerable time with additional documents and approvals required. Paperwork is another factor – signing sales contracts and transferring ownership involves processing that extends the duration.
In most cases with other dealerships, financing causes delays. The salesperson submits applications to various banks for approval. This back and forth takes time.
Consumers typically spend over 9 hours researching vehicles online before purchasing. Trade-ins can also cause delays.
There are three main timeline factors – dealership protocols, financing and trade-ins. Each dealership has unique procedures and paperwork affecting duration.
The shopping itself takes one to two days. Paperwork finalizing the sale usually takes 30 minutes to an hour. With a trade-in, inspections and negotiations add one to a few hours more. The overall timeline varies, but can range from a few days to a couple weeks depending on preparation, financing, vehicle availability and repairs if needed.