Local dealership takes global view

When Kai Tang drives around campus, he points out the cars he has sold.

“That’s my customer, that white Audi,” he said, tilting his head to catch a better glimpse as he drove down Third Street.

Tang is a 2012 IU alumnus and international student who started working as a sales consultant at Royal on the Eastside last fall.

A Chinese flier at the dealership advertises his ability to speak English, Mandarin and Cantonese.

“When I see a luxury car like Audi, first I would take a look at the drivers,” Tang said.

If the driver happens to be Asian, he said, he’ll quickly scan the back of the license plate frame, looking for his company name. Most of the time, he said, the car is from Royal because the dealership has a large customer base with international students.

Tang has proved to be a valuable asset at the dealership because of his ability to communicate with international and local customers, his colleagues said.

“He sells more than just to the students. He sells to everybody,” Royal on the Eastside General Sales Manager Chris Pernatoni said. “The customers love him.”

Before Tang was hired, Perantoni said there were sometimes difficulties in communicating with international students, who form a significant portion of their clientele.

“I think we got through most communication problems, but sometimes it would take longer for some clients than others,” Perantoni said. “I think one of the things they prefer is obviously that we have someone who speaks their language.”

He estimates the dealership sells about 110 new and used cars a month. International students account for 10 to 15 percent of sales, he said.

“And that number seems to be growing,” he said.

Sometimes, he said, international students who buy a car will return with a group of friends. They become regulars, he said.

“They will pull me aside and say, ‘I like the fact that you treat us with respect and you seem like you appreciate our business,’” Perantoni said. “ And I say, ‘well of course I do. You guys are a big part of our business.’ Some of these students come in with quite good budgets, and they really seem to enjoy our line of high-line vehicles.”

Sophomore Alvin Zhan is an international student from Zhejiang province in China. He purchased an Audi A7 from Royal last September, before Tang was hired.

The car rung up to $60,000, he said.

He marveled that the price was significantly cheaper than he would have paid in China, he said.

The Audi A7 on the United States Audi website starts at $60,100. The Chinese website has the Audi A7 Sportback, the Chinese equivalent, for about $112,000.

Tang explained the difference in market structures in the two countries contributes to the wide discrepancy in pricing. China also has a higher vehicle tax than the U.S.

Zhan said he wishes he had been able to speak to a salesperson like Tang when he bought the car. Instead, he brought a group of friends to help him with his questions for the salesman.

“They have lots of experience, so they help me to communicate with them,” he said.

Many of his friends who are international students also have high-end cars, he added. He rattled off a list: BMW, Mercedes Benz, Range Rover, Nissan GT-R, Maserati.  

“Maybe the Asian people drive a lot of the famous cars, because, you know, once you can get to America to study, maybe your family has a lot of money.” he said.

Some of Zhan’s friends contacted Royal for help in getting these luxury lines of cars, he explained, as they aren’t available locally.

Perantoni said Royal receives these request occasionally and will try to order the specific car directly from the manufacturer.

“They all seem to have unique budgets,” he said. “We remember the ones that spend the most money, obviously, because they all buy cars that we can only dream about.”

For example, one international student came in a few years ago and wrote a $150,000 check for two cars, a Mini Cooper R54 and an Audi TT, he said. Then he ordered a pink Mini Cooper for his girlfriend.

The dealership even has a program with Volkswagen and Audi called the Foreign College Student Plan, which allows customers to purchase a car without a social security number if they have documentation such as a visa or verification they are a student, he said. Although the FCSP website lists a social security card as a requirement, Perantoni said a letter explaining the international student cannot obtain a social security number can substitute.

“It does allow us to stretch their budgets a bit better,” Perantoni said.

Stephens Hyundai has a similar program: the Corporate Sponsor Program. The CSP allows students’ families back home to finance the car without worrying about social security numbers, Hyundai sales manager Randy Bush said.

International students, mostly from Asian countries, make up about 15 percent of their sales, he estimates.

While some students are looking for a low-cost vehicle for transportation, others will “buy a $38,000 vehicle without the blink of an eye,” Bush said.

Bush said the Hyundai dealership would love to have a consultant like Tang with the ability to communicate with their international customers.

“It’s fantastic for business, because you want the client to feel comfortable,” he said. “We have dictionaries and all that, but having that person who has been speaking the language since birth is more like talking to a friend as opposed to a salesperson.“

Tang’s Occupational Practical Training Visa has allowed him to work in the U.S. for a year after graduation. Pernatoni said he has been trying to apply for a longer-term H-1B work visa for Tang.

“We’re aggressively trying to help to keep him here as long as possible,” Perantoni said. “There are some pretty hefty costs that we are willing to pay.”

Tang said he would love to continue working with the international students who come through the dealership, putting his trilingual skills to practice.

“The job is challenging, but I really like it, and I want to keep working here as long as possible,” he said.

And as long as Tang is there to explain horsepower in English, Mandarin and Cantonese, the dealership will be able to meet the demand of international students who are attracted to luxury vehicles at lower American prices.

“Our family prepared for this fact,” Zhan said. “We know America is car country.”