Brian Benstock of Paragon Honda Supports American Honda's Warning Against TrueCar.com

The #1 volume Honda dealer sides with its manufacturer and customers, explaining that the third party's business model can negatively affect the relationship between a dealer and prospective customers by making promises they can't deliver

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Paragon Honda

Dec 15, 2011, 01:01 ET

NEW YORK, Dec. 15, 2011 /PRNewswire/ -- In a recent article, Automotive News (www.autonews.com) covered American Honda's warning to its dealers about offering vehicles below invoice price on Internet shopping sites, such as TrueCar.com, which collects $299 for each new vehicle and $399 for each pre-owned vehicle sold by dealers from a TrueCar lead.

Brian Benstock (www.BrianBenstock.com), Vice President and General Manager of Paragon Honda (www.paragonhonda.com), the #1 volume Honda dealer, sides with the American Honda, suggesting that TrueCar's business model is ineffective in the way it can affect the relationship between a dealer and prospective customers.

Benstock gives the following scenario: A customer visits a dealership expecting a guaranteed low price listed on a third party website. When the dealer can't offer that specific car and/or the price listed on the website, the customer will automatically be disappointed, perceiving the situation as an unethical move on behalf of the dealer.

"It takes what is already a contentious encounter and adds fuel to the fire because the customers feel like they were bait and switched," says Benstock. "This feeds the unnecessary fear that sometimes divides customers and dealers, and hurts the overall buying experience. It also affects our brand because of the expectation created by a third party who wasn't giving the customer all of the accurate information they need to make an informed decision."

Benstock says his job is to protect his customers from being misled with unrealistic promises. He says, "When a customer arrives to find that their expectations can't be met, it's the dealer who has to be the bearer of bad news due to the false promises of a third party that guaranteed a haggle-free buying experience."

In addition, Benstock says the low pricing on the vehicle will inevitable be indirectly extended to the customer. "With a $300 fee per car sold, at some point the consumer is going to have to pay more than the advertised price for this to be a winning proposition," he says. "Whether they are given less for their trade-in or charged higher interest rates, the fee has to come from somewhere."

He concludes, "All of the above hurts the manufacturer because the customers are having a terrible experience that is being reduced down to a lowball price that too often is impossible to deliver. In the end, providing the customer with a transparent buying experience is the most cost and time effective process for all parties involved.

About Paragon Honda: Paragon Honda's aggressive marketing helped them grow from number 17 to the number one Honda retailer, selling twice as many certified Hondas than the second ranked dealer, and selling more new and certified pre-owned Hondas than any other dealer in the world – all in just six months. The New York Honda dealership serves customers in Queens, Brooklyn, Bronx, Manhattan, and Staten Island, offering a variety of automotive services, including expert financing and service departments. For more information, please visit www.paragonhonda.com.

Related Links:
www.paragonhonda.com
www.brianbenstock.com

SOURCE Paragon Honda