Orphan w/ Dealer Options - Fine by me

Iceberg · 03-04-2008, 05:59 AM

I really don't see the big deal w/ my dealer added options on my orphan. In most other dealerships that sell high demand vehicles, they add a second sticker (ie.VW New Beetle, PT Cruiser, Mini, Dodge Challenger, Ford Mustang, etc.). There can not be much profit margin in a $14 smart passion coupe for a dealer. Honestly I don't know how the dealerships are going to make it w/ two years worth of reservations of low profit cars. Our dealership in Portland only sells smarts; with no high profit margin SUVs or loaded high end cars to sell, they have to sell boatloads of these little buggers to make a go of it.

Anyway my blue/silver w/ red interior passion coupe came w/ LoJack, floormats & a 3M bra kit. Yes it cost me $2000 more, but at least I actually got something for the extra coin. All you will get w/ a second sticker is a lighter wallet! When I bought my '08 Civic hybrid there was a $2500 market adjustment sticker on it. Market adjustment....lol!

Another point that most folks are missing is that the cars are worth more on the secondary market than the dealers can sell them for. Even w/ $2K in dealer installed options the car is still worth more than I paid for it. Try that w/ another make/model of car. It has to be hard for the new smart dealerships that invested a pile of cash in starting their businesses to sell products that are immediatley resold by their customers at a big profit on the secondary market....ouch. Anyway, I have to give credit to smart USA for holding down their new car prices.

My wife loves her little car and I found the orphan buying experience much more enjoyable than waiting another year for a special order car. They offered my four cars over the last few weeks (2 cabs & 2 coupes) before we settled on a car that pretty much matched our reservation car.

Susie 1382 · 03-04-2008, 08:16 AM

smart center Portland added Lojak, invisible bra, and the protect-o-spray. (~I~ wanted an invisible bra, but they didnt have my size...) Yes, about two grand, no, I didn't care enough to pass up my fully loaded Orphan.

I disagree with the above post about Portland not selling anything else, because they take trades and have a full lot of nice used cars. Big whoop. Some dealers add on, some don't. I sure could have done without the add ons, but, they do add value to the car, don't they? And, I want the dealers to succeed, just as I want the smart to succeed.

The smart is a niche vehicle for small families of two, or singles, and for most will be second/third cars anyway. Designed for commuting, I think it was wise to limit distribution at first, betting on slow, steady growth, rather than building a zillion, flooding the market and incurring a mountain of debt on a new idea. Better to have happy workers building on demand than acres of cars sitting unsold which, still must be stored/insured, advertised, and moved before the next year's model comes out.

.................................. .........................the future.

Amethyste · 03-04-2008, 08:29 AM

Why would I want a clear bra when it is cheaper to buy replacement parts? It's plastic! If you just WALK IN and there is an orphan to buy then yes, I agree that the dealer reserves the right to add these things on, granted that the car has been sitting there with no one claiming it for its own - but what iks me is when you put a deposit on a car, prior to delivery ( like it is your own ) and when the car gets into the dealer, they install all this crap ( sorry for this ) and then call you to TELL you that that's what it is and you are stuck paying for it. I can scotchguard my car for WAY less than $495!

Lainey_1347 · 03-04-2008, 08:36 AM

Hi Amethyste -

I think Susie was making a joke about wanting a clear bra, but they didn't have her size. (A girlie joke... wink, wink).

Anyway, I agree, let the dealers do what they will with the orphans, but hands off the reserved cars!

Susie 1382 · 03-04-2008, 08:43 AM

Amethyste, I think we are talking apples and oranges. If the dealer adds to an ordered car? Is that being done? I know there was a Florida problem with the tinted windows thing, but I thought they stopped that, and returned added costs to buyers. Other than that snafu, is it common practice now for dealers to add onto delivered reserved smarties?

If it's limited to the Orphan, there really isn't much to say, except you are right, it's a boon for the dealers, and poses the take-it-or-leave -it option to the Adopters. I took it, and I'm happy.

Amethyste · 03-04-2008, 09:38 AM

Quote:

Originally Posted by Susie 1382

Amethyste, I think we are talking apples and oranges. If the dealer adds to an ordered car? Is that being done? I know there was a Florida problem with the tinted windows thing, but I thought they stopped that, and returned added costs to buyers. Other than that snafu, is it common practice now for dealers to add onto delivered reserved smarties?

If it's limited to the Orphan, there really isn't much to say, except you are right, it's a boon for the dealers, and poses the take-it-or-leave -it option to the Adopters. I took it, and I'm happy.

Oh Susie!!! I wasn't aiming at you, sorry if it felt that way. But I know of a dealer in the area that has done that. I called my dealer yesterday and made sure they wouldnt be adding junk on my car, even if I secured my orphan with a deposit a month ago. She assured me that they will call me when they receive the car with possible "options" on the car. I might want LoJack and tires/wheels insurance, but not much else...

cosmart · 03-04-2008, 10:11 AM

Quote:

Originally Posted by Iceberg

Another point that most folks are missing is that the cars are worth more on the secondary market than the dealers can sell them for. Even w/ $2K in dealer installed options the car is still worth more than I paid for it. Try that w/ another make/model of car. It has to be hard for the new smart dealerships that invested a pile of cash in starting their businesses to sell products that are immediatley resold by their customers at a big profit on the secondary market....ouch. Anyway, I have to give credit to smart USA for holding down their new car prices.

I think you are delusional about what the car is worth. Cabrios on EBay are going for about $20K, Loaded Passions are going for $16-18K. When you consider your taxes and fees, and in your case the extra $2K in stuff, there is no way the car is worth more than you paid for it.

Not to say you couldn't find someone who just had to have your car and had cash flowing out of various orifices, but the general market of a used smart is not above sticker, and is not likely to ever be.

If you look at actual auctions that have ended on EBay, the prices range from 16.1K for a Pure (that person did the best), 16.5-18.6 for Passions, and one Cabrio sold for 20.1K. Considering taxes, auction fees, dealer fees, and add ons, no one has made a killing. The person who sold the Passion for 16.5 likely lost money. Most of the auctions with reserves have ended without a sale.

You have to like the car for what it is, because it is going to depreciate like every other car ever sold. Don't get caught up in the PT Cruiser mentality. If you want pain, talk to someone who paid $27K for one of those, and can't get $12K for it now.

SmartIsland · 03-04-2008, 05:19 PM

Man I'm happy to have dealt with smart Center Seattle. When I picked up my orphan, I was offered LoJack and an extended warranty, but no pressure was used, no markup, no mysterious fees, no funny-business.

A great way to do business.

Iceberg · 03-05-2008, 06:01 AM

I test drove a smart passion coupe at smart center Seattle last month when I was up on business and really enjoyed the experience. Both Seattle and Portland have great smart delaerships. It still is hard to believe that a dealer of cheap economy cars can treat us as well as most high end dealerships. This has been one of our better car buying experiences!

Alustiza · 03-05-2008, 08:38 AM

First off, the person who indicated that they don't understand how the dealer can make it by just selling the smart at list price, well no one forced the dealer to open the dealership, and you have no idea as to what the dealer actually makes on each car sold. Also there overhead is very low compared to other dealers, as the cars are selling themselves, in that the dealer does not need to advertise, or have those annoying campaigns to sell the cars. Now about the other person who can't believe that a low cost car dealer would treat people well, I find it hard to believe that people out there have come to the reality that they should be treated like crap for buying something that does not cost a huge amount of money. What ever a business sells, the people in that business should treat the customers with respect. I don't care if you work at the 99 cents store, in order for that business to thrive, they have to treat their customers well, or that business will go under. It's a sad state when some of the people out there judge how well they should be treated by the amount of money they are spending.
In short stop trying to justify the rip off dealers actions, as they are not right. For those dealers who are not ripping people off, I thank you. If anyone wants to know what counts at ripping people off, look at the threads about dealer fees, dealer add ons, clear bras, damn I wish women would wear those clear bras, etc...