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Why do dealers lack incentive to sell new Volvos?

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Old 12-30-2009, 04:25 PM
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Default Why do dealers lack incentive to sell new Volvos?

After researching Volvos for a few months, I sent the precise specs of the car I would like to purchase by e-mail to a number of dealers with a request for a quote. I thought we were in a recession and dealers would respond quickly with an offer, eager to get another deal in before the end of the year.

So imagine my surprise when hardly anyone bothers to respond after a week, even after following up by phone. Could it be the fact that the car will have to be ordered from the factory? Is there no incentive for dealers on factory-ordered cars? Have they all met their quota for 2009 and just don't care any more?

After all, how much time does it take to add up a few figures for the base and options, apply a discount, and reply? How much more easy could it be to sell a $40k consumer item to someone who just wants a decent offer and sign on the dotted line?!

I'm just baffled. Can anyone explain my experience, or even better, recommend dealers in the NY/NJ/CT area who can get a factory order done swiftly?

I would also appreciate a dealer who actually knows the product they sell. You would not believe how many dealers have no idea what accessories Volvo offers until I show it to them in the Volvo Accessory catalogue.
 
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Old 12-30-2009, 11:57 PM
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The special order is the exact problem you are having. They want to sell their lot inventory, they already owe money on it.
Sales people also want to see you in person, they feel they can more readily sell you something you don't quite want (their stock) if they can talk to you directly. This is a very old fashioned belief and only works with weak minded people.
Many more consumers are much better educated thanks to the internet than ever before, and smart sales people know this and will respond to emails etc.
The old dinosaurs unfortunately are still clinging on to their old ways and haven't retired as yet.

Regards, Andrew.
 
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Old 12-31-2009, 02:56 AM
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I think it depends on what you consider a decent offer? My wife and I have decided to purchase a V70 and will probably go for a 2008 used model, but decided this week to see what end of year deals plus Safe + Sound would do on the value scale? Unfortunately there are very few V70s with more than basic equipment on lots - and we want one relatively loaded (at least with convenience and technology packages). Several dealers out here in SoCal do not even have V70s in stock, others have just one or two. Most seem to not be interested in selling one at all - really prefer to discuss an XC60 or XC70. And my experience has been similar that only 1 in 3 sales folks really know their product.

That said, I have been offered some decent deals on V70s in stock. Not quite the Saab blow-out deals ($10k off MSRP) I saw when I started my car search a few months ago, but prices that approach the low end of all the current market pricing graphs I see on the various websites. Most are white/black exterior and just have premium and climate packages, so not for me and probably not what you want. If you are interested in an R-design I think you could do very well - every dealer I visited in person immediately tried to sell me their r-design when we established they did not have a well-equipped traditional model in stock - and they seemed to be ready to deal on those. I would assume the in-stock deals would be similar for other models.

If you want to order one, most dealers I spoke to will give you the Costco price (employee price) less the 3000 dealer incentive on a V70. Even though the V70 is not officially part of the Costco program, they'll use it as a basis - again I would assume for other models too. My guess based on sales person reaction is that ends up being a lower price than most pay. But I do not consider it great in this economy. Before settling on Volvo we visited all the brands selling a wagon, and there was a lot of hunger almost everywhere else. Ford especially - if only my wife could drive a Flex! But the answer has been pretty universal of going no lower than Costco + volvo cash on a V70 ordered from the factory. Closest we came to saying yes on a new car was one offer to buy a model off the lot in an acceptable exterior/preferred interior color with premium and convenience packages at a little better than above - thought about it for an hour - but ultimately decided not good enough to compromise on the desire for a fully loaded car if we go the new route or to make up the difference in price between a well equipped 2008 with low miles.

For dealer response, have not had the same problem. I have gone onto several dealer websites and inquired about a specific car they have in inventory. Even if that does not end up being one that suits my needs, it starts an email conversation with the internet/fleet manager about the possibility of other cars or even an order. Still continuing those today - and most sales managers have been very responsive. Because there are so few equipped V70s in stock, have even looked across other parts of the country. The internet manager at Ramsey Volvo in New Jersey was especially responsive and followed up.

In terms of quotas, I spoke to a sales manager at a dealership back east/friend of a friend before starting to contact dealers out here and they said sales have been better lately due to the Costco offer on the XC models. They are not so happy about the sales price they have to offer on the XC60, but it has been good for units sold. I asked about end of year incentives for their department, and there did not seem to be any significant drivers on overall volume where orders count for something - just to get cars off the lot. They said overall volume may be a bigger concern once the Geely sale is announced, but that was pure speculation about wanting to show a good trend in Q1 in case dealer consolidation was part of the deal. From all announcements so far it does not look like Volvo operations would change much right away.
 

Last edited by dbuckho; 12-31-2009 at 03:31 AM.
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Old 06-29-2010, 02:16 PM
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I know this is an old thread, but if someone else runs into this you can try to call the fleet manager or internet manager of whichever dealership. They are more concerned with volume and may be more receptive than a floor salesman.
 
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