Wednesday, November 19, 2014

The process of buying a new car--totally different in Germany than the US

We've spent the past few weeks choosing Dave's new company car (it should be ordered next week for pick up in mid February), which has me reflecting on how very different the process is here in Germany than in in the US.

We only bought a new car once in the US, back in 2000, but based on ads and what I hear from friends, the process hasn't changed much.

Of course, in both countries consumers start off just looking online, asking friends, and going by past experience to get an idea of what make or model of car they want to purchase.  The dealer experience is vastly different though.

In the US, dealerships are generally very large with lots of inventory.  Often, consumers choose to shop at specific dealer because they saw online that the dealer has the particular model (color, features, etc) they want in stock.  Or, perhaps, there is an advertised special.

It is the norm to go into the dealer, once seriously shopping, sit in and even test drive (for 20 minutes or so, often with the sales person in the car with you) the car you want, hammer out a deal and leave with your new car on that same day.  Back in 2000, I was determined that if we were investing in a brand new vehicle, I would get "exactly" what I wanted.  Not many stick shifts were in stock, and none with leather seats and in my preferred color--so I waited two weeks for one to be brought up for me.  The dealer pushed hard for us to just take the black car that was on the lot, and several people we spoke to seemed to find it odd that we would wait two weeks just to get those specifics all together.

On the opposite end of the car buying spectrum, there is no new car inventory at a dealer here in Germany.  There are a few new models on the showroom floor as samples, generally one of most models from that particular manufacturer. with a good range of exterior colors, interiors, etc. There will not everything though (for example, we prefer sedans to hatchbacks, most Germans prefer hatchbacks, the local BMW dealer does not have a 5 series sedan in the showroom to look at, just a hatchback).

Once you have an idea of which model you want (which, honestly, you probably knew before you arrived---certainly before you made an appointment to work with a salesperson), you will spend an hour or so with the salesperson, going over all the options on the computer.  There are an enormousness number of options and for the most part they are not packaged together.  These include colors, heated seats (front and rear), self parking options, and tons more.

A few days later, you will receive an "angebot" (offer) for your car with a final price (sometimes some feature can be packaged together for a cheaper price).  This is the price--not a starting point for negotiations (though it may be a starting point for the consumer to work from in eliminating some extras to bring the cost down).

You can arrange a test drive of a vehicle that will be similar to what you are buying, but will not be your vehicle and might not be the same model or engine size (the dealer will pull something from the pool used by several local dealers that is as close as possible).  Most test drives involve keeping the car overnight, or through the weekend.  We'll be picking up a car to test on Friday evening to be returned Monday morning.  One final step before placing an order.

The car, once "bought" will be custom assembled with our exact options right in the factory--you do not buy a premade "generic" car, or one other people have sat in or test driven.  To most Germans, the thought of a "new" car being sat in on by other prospective purchasers and driven more than a kilometer or so to get it on and off the delivery trucks means it is no longer "new."

That car, YOU car, assembled to your specifications from a wide range of options will probably be available two to three months after you buy it.  It depends a bit on how busy the manufacturer has been and what you are getting.

I see pluses and minuses to both systems.  Mostly I just find it fascinating how different they are and how each does reflect the cultures a bit.

--Hadley

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