What do you think makes an excellent buying experience at a dealership for you???
08-30-2013, 11:07 AM
#41
The dealership I worked at had two dedicated internet sales specialists. They got any and all e-mail and on-line chat sales. Generally customers set up appointments with them on-line in advance and were told to specifically ask for them by name. Once an UP names someone, the UP is off limits. Also, the internet sales specialists were forbidden from approaching all other UPs.
The internet people got a flat $500 per car they sold, the amount went up a certain dollar about per car after a certain number of sales per month, for example cars 20-29 make them $600 each, 30+ $750 each. New or Used, they got the same. They generally only sold new.
Our non-internet commissions were a %age of actual profit and the commission went up based on volume as well. While commissions varied a lot depending on what the customer bought, I would take $500 flat per sale any day over a %age we made. Most new cars generally make only $800-$2,000 in "profit" meaning my 20% commission made me $160-$400 per new car. (Commission went up to 30% after 20 cars for each car above 20 per month).
Used cars on the other hand had a profit of $4,000-$6,000. I loved selling used cars. And this is exactly why car salesman low-ball you on used cars. I made an average of $1,000 per used car, and $250 per new car.
What I couldn't stand were the sales people who lied about features, added fake costs to the car, etc. They all did this to pad the profit and make higher commissions. The biggest tricks were:
1. Negotiating only based on monthly price. They charge you far more than the MSRP when they do this and most people don't notice.
2. Taking the MSRP, and then adding the options on top of it when they were already included in the price. Again I am shocked how many people don't catch this.
3. Waiting until they leave with the car, then picking out a bad item in their credit report in the past, calling them, and telling them that the bank denied their loan due to XYZ, and they need to pay an additional $1,000 or more down to keep the rate and payments they are getting. (Biggest lie of all, 100% went to the sales persons pocket, usually they had to pay the finance guy lunch for cashing the check).
Also, the up sells were highly profitable. I may only make $200 on the car, but I get an additional $50 if I sell a warranty, and an additional $100 if I get them to buy LoJack.
When I buy a car now, I want to know the price of the car and what they will give me for the trade in. I go in with KBB, Edmunds, and NADA values for the car I am buying and my trade in. If you say NADA, they say "We use KBB in our area." So I prepare myself with everything in advance and if I sense any funny business I walk. I often see them enter a different ZIP to get different values as well. I have walked out of a lot of dealerships.
The internet people got a flat $500 per car they sold, the amount went up a certain dollar about per car after a certain number of sales per month, for example cars 20-29 make them $600 each, 30+ $750 each. New or Used, they got the same. They generally only sold new.
Our non-internet commissions were a %age of actual profit and the commission went up based on volume as well. While commissions varied a lot depending on what the customer bought, I would take $500 flat per sale any day over a %age we made. Most new cars generally make only $800-$2,000 in "profit" meaning my 20% commission made me $160-$400 per new car. (Commission went up to 30% after 20 cars for each car above 20 per month).
Used cars on the other hand had a profit of $4,000-$6,000. I loved selling used cars. And this is exactly why car salesman low-ball you on used cars. I made an average of $1,000 per used car, and $250 per new car.
What I couldn't stand were the sales people who lied about features, added fake costs to the car, etc. They all did this to pad the profit and make higher commissions. The biggest tricks were:
1. Negotiating only based on monthly price. They charge you far more than the MSRP when they do this and most people don't notice.
2. Taking the MSRP, and then adding the options on top of it when they were already included in the price. Again I am shocked how many people don't catch this.
3. Waiting until they leave with the car, then picking out a bad item in their credit report in the past, calling them, and telling them that the bank denied their loan due to XYZ, and they need to pay an additional $1,000 or more down to keep the rate and payments they are getting. (Biggest lie of all, 100% went to the sales persons pocket, usually they had to pay the finance guy lunch for cashing the check).
Also, the up sells were highly profitable. I may only make $200 on the car, but I get an additional $50 if I sell a warranty, and an additional $100 if I get them to buy LoJack.
When I buy a car now, I want to know the price of the car and what they will give me for the trade in. I go in with KBB, Edmunds, and NADA values for the car I am buying and my trade in. If you say NADA, they say "We use KBB in our area." So I prepare myself with everything in advance and if I sense any funny business I walk. I often see them enter a different ZIP to get different values as well. I have walked out of a lot of dealerships.
08-30-2013, 12:11 PM
#42
Racer
Join Date: Aug 2011
Location: Displaced New Yorker living in Denver
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Love the list Boe! The only thing that I disagree with is #3. At all three dealerships I worked at, all deals under sticker had to be approved by a manager. It was a pain in the butt, but that was how they did business.
I agree that the finance department is mostly trying to up sell. When I have been upfront with them about my refusal to by anything extra, and had my own financing check in hand, I have breezed through in minutes. Often there is a wait to get with financing however. They tend to only have a few people and a big bottleneck to get with them and only the financing people are authorized to take the check and do the paperwork.
I agree that the finance department is mostly trying to up sell. When I have been upfront with them about my refusal to by anything extra, and had my own financing check in hand, I have breezed through in minutes. Often there is a wait to get with financing however. They tend to only have a few people and a big bottleneck to get with them and only the financing people are authorized to take the check and do the paperwork.
08-30-2013, 02:35 PM
#43
Burning Brakes
Love the list Boe! The only thing that I disagree with is #3. At all three dealerships I worked at, all deals under sticker had to be approved by a manager. It was a pain in the butt, but that was how they did business.
I agree that the finance department is mostly trying to up sell. When I have been upfront with them about my refusal to by anything extra, and had my own financing check in hand, I have breezed through in minutes. Often there is a wait to get with financing however. They tend to only have a few people and a big bottleneck to get with them and only the financing people are authorized to take the check and do the paperwork.
I agree that the finance department is mostly trying to up sell. When I have been upfront with them about my refusal to by anything extra, and had my own financing check in hand, I have breezed through in minutes. Often there is a wait to get with financing however. They tend to only have a few people and a big bottleneck to get with them and only the financing people are authorized to take the check and do the paperwork.
Interesting to know you worked at dealerships with more than one financing person - seems like every dealership I go to no matter how big has A financing guy to complete the sale that can't be done without him. Not sure what would happen if they got sick or quit, I guess they just don't sell cars that week. Frankly I'd love to do everything online once the price is agreed to by the sales person and avoid the interaction with the finance guy.
Last edited by boe_d; 08-30-2013 at 02:39 PM.
08-30-2013, 03:46 PM
#44
it sounds like what your saying is that finance guy=
for you? lol
for you? lolGood to know about #3 - I got some under sticker at some dealerships without them going to the manager. I did not realize some or most dealerships have that policy so I'll feel OK the next time they tell me that.
Interesting to know you worked at dealerships with more than one financing person - seems like every dealership I go to no matter how big has A financing guy to complete the sale that can't be done without him. Not sure what would happen if they got sick or quit, I guess they just don't sell cars that week. Frankly I'd love to do everything online once the price is agreed to by the sales person and avoid the interaction with the finance guy.
Interesting to know you worked at dealerships with more than one financing person - seems like every dealership I go to no matter how big has A financing guy to complete the sale that can't be done without him. Not sure what would happen if they got sick or quit, I guess they just don't sell cars that week. Frankly I'd love to do everything online once the price is agreed to by the sales person and avoid the interaction with the finance guy.
08-30-2013, 06:34 PM
#45
Instructor
Some valid points
I think Emanon256 has some valid points but I also think that happens to ignorant people. My last 4 cars were purchased used, with one of those purchased over the Internet sight unseen.
I've obviously done my research, knowing what I want to pay for the car, the money I'm going to put down, the amount I want to finance & the interest amount and my monthly payment. No way they can fleece me.
It's an amazing process when we sit down after a test drive. I basically tell the salesman that I've done my research, know the value of the car, I'm looking to buy at that point and I don't appreciate the whole back & forth stuff-that I've got better things to do than sit at a dealership & waste my time, his time, & the GM's time. I tell him the price, which I believe is a fair price based on what I've seen for the same car on various sites, Edmunds, etc.
Amazing how quickly he comes back & says we have a deal. When I get to the finance office, they basically tell me that they can get me 5% (just throwing a number out there), I tell them my credit union can get me 2%; if they can get me 2%, I'll finance through them, if not, I'll come back tomorrow with a check. They want to get a deal one without me walking out that day, so they've always found a bank that'll give them 2%.
I then tell them I not want any of the upswell products & they've been respectful and didn't bring them up. When I financed my 2010 TL at Acura of Libertyville, the finance guy was one of the coolest I dealt with, he got me in & out in about 15 minutes.
So in short, a great buying experience is not playing the games that Emanon256 describes.
Plus there's always www.dealerrater.com to give you a head start in dealing with a reputable dealer.
Cheers,
Nick
I've obviously done my research, knowing what I want to pay for the car, the money I'm going to put down, the amount I want to finance & the interest amount and my monthly payment. No way they can fleece me.
It's an amazing process when we sit down after a test drive. I basically tell the salesman that I've done my research, know the value of the car, I'm looking to buy at that point and I don't appreciate the whole back & forth stuff-that I've got better things to do than sit at a dealership & waste my time, his time, & the GM's time. I tell him the price, which I believe is a fair price based on what I've seen for the same car on various sites, Edmunds, etc.
Amazing how quickly he comes back & says we have a deal. When I get to the finance office, they basically tell me that they can get me 5% (just throwing a number out there), I tell them my credit union can get me 2%; if they can get me 2%, I'll finance through them, if not, I'll come back tomorrow with a check. They want to get a deal one without me walking out that day, so they've always found a bank that'll give them 2%.
I then tell them I not want any of the upswell products & they've been respectful and didn't bring them up. When I financed my 2010 TL at Acura of Libertyville, the finance guy was one of the coolest I dealt with, he got me in & out in about 15 minutes.
So in short, a great buying experience is not playing the games that Emanon256 describes.
Plus there's always www.dealerrater.com to give you a head start in dealing with a reputable dealer.
Cheers,
Nick
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tlmane03 (08-30-2013)
08-30-2013, 07:10 PM
#46
Cruisin'
interesting topic. I also wondered what you guys thought of some dealers adding a speciality position on their website lineup of people titled "internet sales specialist"? 
Does that mean that all the interest generated by the internet goes to only 1 employee with this title? Or do internet leads get distrubuted to entire sales staff?
Does that mean that all the interest generated by the internet goes to only 1 employee with this title? Or do internet leads get distrubuted to entire sales staff?
Only about 10 percent will actual purchase. Still probably the best way to get the best deal, even ext. service contracts!
08-30-2013, 07:29 PM
#47
Hey Tlmane03....tell us about your previous dealings !
!! 
Yeah, most of has had the sales pitch of a dealership salesperson, but really...... 
what are ya looking at presently and what are your personal expectations of the overall sales process. Used or new car in mind ? Internet or traditional sales ? Tell us your opinion !!!
08-30-2013, 08:28 PM
#48
Not only that but I feel a good quality nice car will last much longer than crap!
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3.2TLc (08-30-2013)
09-01-2013, 10:14 AM
#49
Cruisin'
You are incorrect sir, if the salesman is asking you what your looking for monthly payment he is trying to help you out!! They have cars that range from 5,000 to 62,000 he is trying to save you time and make it as quick as possible, there is no point in showing a $500 a month car when their budget is $300, if he didnt ask and set you down with figures you would be pissed he got you excited on a car you couldnt afford. A smart knowledgeable buyer wouldnt be offended by a payment question.
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tlmane03 (09-02-2013)
09-01-2013, 12:18 PM
#50
Drifting
I have had some horrible experiences with dealerships, but in recent years, I have had excellent car-buying experiences. What's the difference? Sales people who treat customers with respect and honesty, who respect my time, and who realize this is a simple business transaction. Either we agree on terms, or we don't. If we don't, it's not a personal thing. We just didn't agree. All of these things and service follow-ups, etc. The salesman who sold me my TL met all these conditions and has been at the dealership for over 20 years. I'll buy my cars from him as long as I can.
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tlmane03 (09-02-2013)
09-01-2013, 01:12 PM
#51
Burning Brakes
Agree with Bucky. You should always know the total cost of your purchase. It is the best way to determine whether you are getting a good deal. The industry has played a huge trick on folks getting them to focus on monthly payments. Now they are even quoting biweekly payments to be able to talk about more acceptable numbers. You should know how much you are going to pay in interest charges over the life of the loan if you finance the deal. You should know the % of your after tax income you are paying for the ownership experience. Etc.
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Buckyten (09-07-2013)
09-02-2013, 04:56 PM
#52
I work at a dealership now. This is my first car sales job ever and I'm pretty grateful to work at a high volume dealership. As far as everything goes, if you are inquiring about a vehicle always try and go online and do research on the web. Dealerships will put their best price online as a way of advertisement for the dealership to gain interest. Always read fine print and call ahead and ask exactly what is going to be added on to the price. I would recommend calling maybe 4-5 dealerships within a reasonable distance from where you are to get a feel for the market.
As far as trades to try and get as close to kbb or edmunds nada and other car sites. The dealership is a business and they most likely will not give out as much as kbb or edmunds and other websites say. You have to remember in the end the dealership may most likely keep your trade as long as it is of value to the dealership and easy to sell. I would also shop around take your car to maybe three dealerships and see what they're offering for your trade as well as webuyanycars.com
These are my two cents in the car business and am happily working at a dealership right now. I don't mind small commissions because the volume more than makes up for it.
Not all sales people are out there to ruin people's lives. Some of the older veterans are, but it's a whole new ball game now and some of them are not used to it.
As far as trades to try and get as close to kbb or edmunds nada and other car sites. The dealership is a business and they most likely will not give out as much as kbb or edmunds and other websites say. You have to remember in the end the dealership may most likely keep your trade as long as it is of value to the dealership and easy to sell. I would also shop around take your car to maybe three dealerships and see what they're offering for your trade as well as webuyanycars.com
These are my two cents in the car business and am happily working at a dealership right now. I don't mind small commissions because the volume more than makes up for it.
Not all sales people are out there to ruin people's lives. Some of the older veterans are, but it's a whole new ball game now and some of them are not used to it.
09-02-2013, 08:43 PM
#53
Cruisin'
Perhaps but I don't think so. I configure PCs and servers all the time. It takes about 2 minutes to configure them and there are actually more variations on their configurations than you can have for cars. Since I'm telling them EXACTLY what I want on the car (no need for them to try to sell me anything I haven't requested e.g. undercoating 
) they really can't make a mistake as long as they don't get distracted trying to sell me things I don't want. I usually only get them with about 5 variations from base unit. And since there is no financing needed, how complicated is it for them to take a check since they don't even have to check the price as it was already agreed upon before we got stuck waiting around for the finance guy.
) they really can't make a mistake as long as they don't get distracted trying to sell me things I don't want. I usually only get them with about 5 variations from base unit. And since there is no financing needed, how complicated is it for them to take a check since they don't even have to check the price as it was already agreed upon before we got stuck waiting around for the finance guy.
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emanon256 (09-06-2013)
09-13-2013, 09:34 PM
#56
So..oooo, TLmane03: RU buyin' ??? or just surfing.....
.... Huh ???
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