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Monday, April 28, 2014

Buying new Car from Branch OR Dealers better?

Are you looking to buy a New car?  Now, many people throwing me this Question:

IS it better to buy From < insert Brand... > Branch or Dealerships?

Well, let me run through the pros and cons and differences from buying with Branch and dealerships.
I am a Hyundai Salesman for a Dealer but I have a friend working in branch (Hyundai Sime Darby Motors).  So we often exchange information...

Here's what I gather...

BRANCH (Sime darby)

Pros:

- Quicker to get car allocations (most models)
- They do QC before delivery (Eg. Alignment and balancing, headlight levelling)
- PRIORITY  for defect claims
- HUGE discounts on "Passport" models only (At the moment it's Elantra and i10)
- Branch salesmen only Hyundai Roadshow at Motorshows, 1 Utama, Mid-valley, KLCC, The Curve
- 1st hand information on Production line (hence more accurate waiting lists)
- 1st to get NEW Trading terms.  Often 1 week earlier (headstart) than Dealers.
- Cars are Paid after SOLD.  So more Varieties/Colors in the Inventory. 
- Got chance to do SPONSORED Roadshows (such as World Cup, Maybank Malaysian Open Golf)
 - Got chance to sell Pre-owned, Demo cars (SO TRUE for HYUNDAI SIME DARBY MALAYSIA)
 - FOR SALESPERSONS: Tied down with Legal Employment contract.

CONS:

- No previous year stock (all passed to dealers)
- less discounts (on other models)
- Less Commission
- Less margin
- Standardized Bonus, leave and Company annual trip/incentives.
- NEED TO WEAR Formal (Long sleeve and tie for guys, Long-sleeve blouse, scarf and skirts for girls) UNIFORM at duty.
- Higher pressure for Sales performance (especially 3S branches)
- LOTS OF POLITICS / Backstabbing / Group-think.
- YOU ARE ON YOUR OWN.  Very little Teamwork, support from other Colleagues.
- TOO MANY SALESMEN (At least 15, up to 25)

DEALERS

Pros:

- ALL cars are PAID with Cash upfront before SOLD
- Therefore, to compensate (get back the cash), Better Discounts and freebies given
- Sometimes faster than branches if they keep OR force to take STOCK.  Eg. CBU Cars.
- Can offer to Submit Loan 1st, only pay Booking upon loan approval
- Can offer to Mark up for full loan
- Previous year (OR 2 years back stock - Kah Bintang) available.  So HUGE Discounts.
- For Salesmen, bigger commissions and margins and better Incentives (with passport models)
- ALSO for salesmen, more hands on Learning experience (ALL ROUNDER), more things to learn.  Cause everything Salesmen do.  Eg. Puspakom inspection, JPJ registration, collect AP from HQ.
- NO Politics,  LOTS OF TEAMWORK!  Cover 1 another, help one another.
- Less Hassle/formalities in Transactions VS Branches.  Eg. No need Wear tie and long sleeves.  Flexible Annual leave.  LESS FORMAL or NO EMPLOYMENT CONTRACT.
- Less salesmen.  Average 7 only.


CONS:

- No Pre-delivery QC
- Slightly more difficult for Defects claims.
- for Salesmen, Only "small scale" roadshow allowed.  As Major roadshows only Branches can do
- Lots of disappointments in Delivery date cause no access to Production line.
- Slightly higher mileage (for CBU cars)
- Sometimes slow selling cars HQ forced Dealer to take (in exchange with HOT Selling cars)
- Selling "While stock lasts".  "Sell what we have".
- Trading terms and promotions we were always 1 week behind Branches.


CONCLUSION: It's NOT Branch or dealers that matters.  It's SALESPERSON Services.  It's our JOB to guide you/ make you feel comfortable to buy your NEW Car.  Some salesmen I know DO Provide DOOR TO DOOR Service.  1 salesman (HYUNDAI ADVANT SPEED MOTORS) even do the FOLLOWING EXTRA MILES:

1)  Collect car from Client's house or office, drive to service centre and return to Client office. 
2) Helped Client to renew Roadtax and insurance and Deliver to their Doorstep.
3) And many more...  Salesmen Extra miles service. 

That's all folks, thanks for having the time and patience to read this blog entry. 

Tags: Branch VS Dealers, HSDM vs Dealers, "Shall I work in Branch or Dealers?", "Where to buy?" Branch OR Dealers.

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