Confessions of a car salesman
- Thread starter gregshin
- Start date
Hehe, yea this is a pretty good read so far. Just bought a car last week and I saw some of these things being used..
Most important thing in there is the bitching about customers who do the deal via the internet or phone. Know what you should pay for the car ahead of time, get the financing arranged ahead of time, stick to your guns on the price and you're much less likely to get screwed.
We bought a car earlier this year and we got pushed around a little. I negotiated a little more than 3,000 off of MSRP, but I think we should have gone lower. My dad was willing to pay that much ... but after reading this article, I will listen more clearly to what they say. Who really buys a car for anything near retail? I never go a couple percent above invoice (only because there is a demand for the car
).
There is a simple solution if you are paying cash ... make out a check for how much you want to pay and put it in front of them without signing. Showing the dealers you are very serious is your best bargaining chip.
). There is a simple solution if you are paying cash ... make out a check for how much you want to pay and put it in front of them without signing. Showing the dealers you are very serious is your best bargaining chip.
Oh yeah, I know that. Edmunds and here are where I will be going concerning price/options for the car. And as I am upgrading from a good car to a better car, I know I have no problem just walking out of a deal if it goes sour.
I read that the first week of my training for new car sales (I was only on the floor for a month before I got back into the IT industry). But, it's sad there are places that still work like that. Fortunately, most of that did not happen at the dealership I was at.
I hate dealers. However, we had an excellent experience back in July when we purchased our Mazda Millenia. We didn't have a trade and we secured a good rate of financing in advance. We paid over $8,000 under the MSRP price for the car - actually, more like $9K off. The finance officer asked what rate we had received and asked us if he could run a credit report on us. After about 10 minutes, he told us that he could be the rate by 1/2%, so we went with the dealer's financing.
However, all of my car negotiations at car dealerships has not gone smoothly. In fact, 9 out of the 10 times I've been to a dealership, it hasn't been pleasant. Hopefully, if someone is going to buy a vehicle, they live in an area with 2 - 3 different dealerships selling the same makes of automobiles. This will allow you to keep shopping until you find the one that you're comfortable to deal with.
In regards to the individual only spending 1 month in the car sale business, I don't have any issues with that amount of time. Clearly, there's a lot that goes on at a dealership and in one month, it appears that he was able to document quite a bit.
However, all of my car negotiations at car dealerships has not gone smoothly. In fact, 9 out of the 10 times I've been to a dealership, it hasn't been pleasant. Hopefully, if someone is going to buy a vehicle, they live in an area with 2 - 3 different dealerships selling the same makes of automobiles. This will allow you to keep shopping until you find the one that you're comfortable to deal with.
In regards to the individual only spending 1 month in the car sale business, I don't have any issues with that amount of time. Clearly, there's a lot that goes on at a dealership and in one month, it appears that he was able to document quite a bit.
To be honest, if I wasn't in such dire straits, financially, I would have stuck it out longer. I delivered 7 vehicles in the month of Feb. (with its awful, cold, wet, weather). I can only imagine how I would have done in the warmer (and longer) months.
One thing I did find was that customers will routinely lie! I mean flat-out, in-your-face lies! I'm sure much of their reasoning is the fear of the car dealership in general but geeez.
I had one guy buying a Honda Civic Hybrid. He didn't have his trade w/him (a friend had driven him to the lot). We gave him $500 for his trade (1996 Dodge Neon w/over 100,000 miles). He was fine with that. When I went over the used car appraisal form with him and asked questions such as, "Does your vehicle require any mechanical repairs?" he answered, "No...it's fine." Well, I shudder at his definition of 'fine'. I got in the car to bring it back to the dealership and noticed the inside of the windshield had hand-swipe marks. Okay, I figure the A/C needs to be recharged so the defrost doesn't work so well. Then, about 5 min. into the drive (interstate driving back to the dealership) I realize I'm still freezing (heat was on high). I'm thinking...'oh boy...'. I get to the off-ramp toward the dealership and notice the temp gauge is pegged on High and I hear boiling/gurgling from under the hood. Lovely! I pull into the dealership parking lot and right then (no kidding here...the mgrs were laughing when I got back to the showroom), plumes of white smoke start pouring out from under the hood. I pull around back and it dies (had to push it up against the fence). The thing had a cracked head! "No mechanical repairs" my a$$! :|
And there are the umpteen false phone #s given by people who come on the lot, or hide trades till the last minute, or pull out low-ball numbers from another dealer after an hour of negotiating. It's easily just as frustrating on the sales side but, overall, I was enjoying it.
I relished the comments from the people to whom I sold cars, "You've been wonderful!" "I can't believe buying a car can be so easy!" (and others)
Zebo
Elite Member
- Jul 29, 2001
- 39,398
- 19
- 81
Cliff Notes: We are the scum of the earth. Do not finance though us, use your credit union or bank. Do not lease. Do not buy any x-tra like undercoating etc. Do not buy an extended warranty though the dealer use your insurance. And do not budge off your price. Always work several dealers against one another to get the price you have in mind.
And remember all cars have a 16-18% markup over actual invoice price which is the MSRP plus a 0-5% dealer holdback so whatever invoice we show you is a lie. Take the the MSRP and deduct 15% and don't move.
And remember all cars have a 16-18% markup over actual invoice price which is the MSRP plus a 0-5% dealer holdback so whatever invoice we show you is a lie. Take the the MSRP and deduct 15% and don't move.
PricklyPete
Lifer
- Sep 17, 2002
- 14,582
- 162
- 106
Zenmervolt
Elite member
- Oct 22, 2000
- 24,514
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Honestly, if the dealership is only making a 16% markup on a car, that's really not all that great. Then again, I'm not sure how much money the service department brings in. If it's comparable though, a 16% margin isn't really that great at all. It's not uncommon for retail stores like Target to have a markup of 50%-100%, we just don't realise it that much because the nominal numbers are so much smaller.
ZV
ZV
Dealer holdback is not something accessible to the customer. It's a holdback from the mfr to the dealer so that the dealer can make minimal profit if a car is sold at invoice. They have to make money, too.
In what other industry can you walk into a showroom and know exactly what the store paid for each item in its inventory?
Yes, some dealerships are unethical and some may even be borderline illegal but you can't honestly expect everyone to go in and buy a car at invoice. A fair deal is what is fair to both sides. If someone thinks $5000 over invoice but gets treated fairly and always has the car serviced quickly and satisfactorily, then, to them, it was a fair deal.
conjur, Were you always honest with the customers? How would you characterize your dealership? Last time I was at a Honda dealer they wanted me to lease an Accord EX v6 for something like $470 a month... and that was something like 5 years ago. I laughed at him and just walked out.Originally posted by: conjur
To be honest, if I wasn't in such dire straits, financially, I would have stuck it out longer. I delivered 7 vehicles in the month of Feb. (with its awful, cold, wet, weather). I can only imagine how I would have done in the warmer (and longer) months.
One thing I did find was that customers will routinely lie! I mean flat-out, in-your-face lies! I'm sure much of their reasoning is the fear of the car dealership in general but geeez.
I had one guy buying a Honda Civic Hybrid. He didn't have his trade w/him (a friend had driven him to the lot). We gave him $500 for his trade (1996 Dodge Neon w/over 100,000 miles). He was fine with that. When I went over the used car appraisal form with him and asked questions such as, "Does your vehicle require any mechanical repairs?" he answered, "No...it's fine." Well, I shudder at his definition of 'fine'. I got in the car to bring it back to the dealership and noticed the inside of the windshield had hand-swipe marks. Okay, I figure the A/C needs to be recharged so the defrost doesn't work so well. Then, about 5 min. into the drive (interstate driving back to the dealership) I realize I'm still freezing (heat was on high). I'm thinking...'oh boy...'. I get to the off-ramp toward the dealership and notice the temp gauge is pegged on High and I hear boiling/gurgling from under the hood. Lovely! I pull into the dealership parking lot and right then (no kidding here...the mgrs were laughing when I got back to the showroom), plumes of white smoke start pouring out from under the hood. I pull around back and it dies (had to push it up against the fence). The thing had a cracked head! "No mechanical repairs" my a$$! :|
And there are the umpteen false phone #s given by people who come on the lot, or hide trades till the last minute, or pull out low-ball numbers from another dealer after an hour of negotiating. It's easily just as frustrating on the sales side but, overall, I was enjoying it.
I relished the comments from the people to whom I sold cars, "You've been wonderful!" "I can't believe buying a car can be so easy!" (and others)
I recently worked with Acura, and I thought they would be nice to deal with but they didnt even want to go below MSRP because "demand was too high for RSX" I said "Demand??? You have 7 RSX's sitting outside, there isn't that high of a demand" It took forever to haggle even 1,000 with them bleh.
Lexus has been incredibly to deal with. We have bought 3 of them from the same salesman as he has been excellent. There is little bargaining. He throws out a price, we reply to it, he talks to his sales manager and deal is done. The more Lexus' you buy the less haggling there is, thank god for the repeat customer program
Originally posted by: Spac3d
conjur, Were you always honest with the customers? How would you characterize your dealership? Last time I was at a Honda dealer they wanted me to lease an Accord EX v6 for something like $470 a month... and that was something like 5 years ago. I laughed at him and just walked out.
I recently worked with Acura, and I thought they would be nice to deal with but they didnt even want to go below MSRP because "demand was too high for RSX" I said "Demand??? You have 7 RSX's sitting outside, there isn't that high of a demand" It took forever to haggle even 1,000 with them bleh.
Lexus has been incredibly to deal with. We have bought 3 of them from the same salesman as he has been excellent. There is little bargaining. He throws out a price, we reply to it, he talks to his sales manager and deal is done. The more Lexus' you buy the less haggling there is, thank god for the repeat customer program
Yes, I always was honest.
I'd had a few bad experiences in my days and wanted to prove to people that buying a car could be an enjoyable process. I told one customer and her husband to keep their old Bronco as they would get nothing for it on trade and they did end up keeping it.
Leasing a new Accord for $470/mo sounds rather high but I don't know the details of the deal. An EX V-6 with leather and DVD on a 2yr lease and bought at MSRP just may very well be that much (I'd hope not, though
) As for Acura, well, their volume is typically lower (at least it is here) and they have to stick close to the MSRP or the dealership will be hurting. I think being a repeat customer anywhere is a good thing. Heck, I bought a 2nd car from a Budget Car Sales place and dealt w/the same salesman and I didn't negotiate much as he gave me a decent price and I liked dealing w/him on the first one.
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