My expriences as a pre-owned car salesman

[mwmorph]

A little background, I used to be an auto tech until my ASE certs ran out after 2 years this April. I worked at a large franchise dealership anybody in the area would know of. It was possibly the worst job I could have ever imagined. I hated the bosses, I hated the corporate culture and how business was done and I had problems with some coworkers "half assing" it.

I was young, basically the youngest ASE tech many of them have ever seen and with that comes being bitched around by everyone. The corporate culture was screwed up, it was high pressure, all about profits. We were discouraged from taking the time to do things that were "optional" like adding the BG fuel cleaners and trans cleaners to save time (something we still advertised and said we did in the big posters and sales pitches). I was a flat rate hourly paid fast lane tech so everything was always about get the car out the door quickly. I had multiple bosses with multiple objectives needed being done at the same time, putting in 10+ hours of unpaid overtime a week (paid for 40 hours no matter how much I worked) and I said, "Fuck it, I'm done."

I started work selling cars on Saturday, May 17th, at a small, independent dealership. We basically take auction cars from our parent company, a large auto auction company anyone in the auto business would have heard of and we turn around and sell the newer luxury cars, usually no more than 3 years old to sell at retail. Our highest prices are just around KBB private party value and our lowest are maybe $1000 or more below trade in.

Now keep in mind these aren't POSes they're clean title, mostly accident free 1 owner vehicles that are fully reconditioned to retail standards.

It's a no haggle dealership. I make a flat rate commission on selling the car and another small one on selling an extended warranty from a large nationwide warranty program.

Now let me just be the one to say, wow what a difference. I enjoy work. I like my coworkers and I feel like I still have my soul intact. I haven't been pushed to do anything unethical. You either buy the car or you don't no, let me check with my manager, no "let me sweeten the deal", just here's the car, here's the info, here' the final price, let me know if you want it.

I've sold 3 cars so far, 2 BMWs and a Mini with another BMW lined up for a customer to line up a deposit.

Basically what I'm trying to say is that there are "good guys" out there. My parents just bought a car from this dealership and keep in mind this was before I was employed here and I checked the billing sheet on it from the auction company. The dealership made, after the $250 processing fee being factored in (a flat fee that's prominently displayed in a picture frame on our wall, without of which, the dealership would have taken a $240 loss), literally $10 in profit on a $30,000+ car(The guy felt for us and how pissed off my dad was coming from a buying experience at a large used car franchise dealership). I just sold a BMW 3 for under KBB and Edmunds TMV trade in today for ~$1500 to $2000 under trade in value, the one I sold yesterday was $1500 under private party value.

In my experience this just proves how antiquated the traditional franchise dealership business model is. There are bargains out there and buying a car shouldn't be 2 hours of negotiating hell to get down somewhere near KBB private party value with pressure added sales pitches for maintenance packages, extended warranties, gap insurance and mystery fees.

Give independent dealerships a try, if you find a good one, the deals and buying experience can be second to none. I don't understand why everyone doesn't just go for this.

 

[Black88GTA]

The dealership I used to work at was the same way. Was a summer job for me in college (I was a service porter) :laugh:, but some of the things I saw the techs do on customers' cars were just unbelievable. Half-assed repairs, damage...ugh. Working there was one of the things that really pushed me to learn how to fix my car on my own, so I'm not at the mercy of places like that.

That said, the only car I've ever bought from a dealership came from a very large dealer in the East Lansing area, and I paid $200 out-the-door for it. 🙂 I think the price of the car itself was ~$125 or so, and the rest was fees, registration, and plate.

 

[alfa147x]

 

[T2urtle]

like you.. i was a ASE tech at the age of 20. i only had 2 certs (brakes and engine repair) i went 1 year with the dealership. i gave up packed up and called it quits. I cant do it the way they want. like yourself i was flat raped. i was at the dealership for 50 hours and i booked 30-38. THere were weeks i made 52 hours but i also put in 52 hours. and it was time and a half. the dealership wants it done fast and faster.

i see that your local and you have a PM from me.

 

[rh71]

Well you're at a no-haggle dealership so it is destined to be much more relaxed for you as a salesman. I took like an hour to read confessions of a car salesman at carbuyingtips.com I believe it was and it was pretty similar.

As a customer, if you do your homework with the invoice vs. msrp, then you have a good idea of what you want to pay and it cuts down on the supposed 2-hr negotiations. I talked to 4 dealerships (first contacted via internet depts - cars.com, etc.), giving them my specific desired options, and I asked how close to invoice they can get for me. After I got a lowest price, I had each of them tell me if they could beat it. I was literally face-to-face with the final guys for only 15 minutes. Then I put my order in.

My point is, a lot of people are negotiating to "make me feel like I got a good deal" and they're letting the salesman lead them down that path. With the internet's help, they should be punching numbers, figuring out options/packages, and have a price in mind already. Some companies don't sell under invoice. If you are armed with the invoice price, let them know it - they can't do much else but try and sell you warranties and addons which you can easily say no to. Of course you're still supposed to leave them a little room for profit and they already have holdback to consider.