Let's hear your stories, what was the dumbest thing a salesperson has said to you?
- Thread starter Timpo
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Is turnover really the main reason why the experience of buying a car is the way it is?H-carWizKid said:
Could it be partly a consequence of paying on commission? The most dignified treatment I ever received while shopping for a car was at a Saturn dealership, and I don't think that's an accident.
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
Hey car salesman have a reputation! You can't deny it, and we didn't make it up either... So don't be so sensitive about it!
I'm sure there are some "nice" salesman out there, but if they are "nice guys", then they probably don't last in the industry anyway...
H-carWizKid said:
Hey car salesman have a reputation! You can't deny it, and we didn't make it up either... So don't be so sensitive about it!
I'm sure there are some "nice" salesman out there, but if they are "nice guys", then they probably don't last in the industry anyway...
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
Okay, try this.
We need you to hold up a sign "Saying that you know you are buying this car as is" so that we can take a picture. Me as I take my paperwork and title and say WTF? GTF out of here.
Upon looking at their file upon the BBB for missouri, they have scammed more people than Enron.
I was told by the State's Attorney General's Office that this is illegal if you say no to there request and they try to enforce the request and or take the picture without your consent.
Give me a break. This Friggin dealer is a POS.
Okay, try this.
We need you to hold up a sign "Saying that you know you are buying this car as is" so that we can take a picture. Me as I take my paperwork and title and say WTF? GTF out of here.
Upon looking at their file upon the BBB for missouri, they have scammed more people than Enron.
I was told by the State's Attorney General's Office that this is illegal if you say no to there request and they try to enforce the request and or take the picture without your consent.
Give me a break. This Friggin dealer is a POS.
Tom239 said:
No- The reason the car buying experience is this way is perception.
The customers perception is that the dealership (or STEALership, as so many of you so eloquently slander it) shouldn't be allowed to make a profit, and there are all kinds of sneaky ways he will try to make a profit unbeknownst to poor you who just wants to buy a car.
The Salesmans perception is that this month he owes for a car note, a mortgage, the phone bill, the ability to feed himself and family and to enjoy the sort of comfortable lifestyle anyone desires, and that ain't gonna happen on a $75.00 (generic) per unit flat commission. Even if he moves a volume, $75 per after tax is like minimum wage when you divide it by the hours on the floor.
There is a conflict of interests there since the salesman gets paid on a percentage of the profit you don't want to let him have.
You liked Saturn? Cool! If you had come in and offered me sticker for one of my cars, I guarantee it would have been the best car buying experience you ever had, and you could run around and tell all your friends what a great guy your Honda salesman was.
You come in, and try beat us out of our paychecks- we dislike you. Our confrontation is adversarial, and yes it may be uncomfortable. If you want to buy any car other than a Saturn in the market today you will have to deal with it.
If you come in to try to joy ride our product, and waste our time diminishing our opportunity to talk to an actual buyer and make money- we will dislike you
Does Saturn build a ZO6? Until today has Saturn built anything other than appliances you can drive? Right now they don't deal with "joyriders"
I guarantee when the "Sky" comes out, Saturn presenters will learn about the joys of dealing with joyriders, and they will have to alter their operations to deal with the nuisance.
Did a Honda guy ever deny you a test drive in a bread and butter product like an Accord, or a Civic (non-Si)
For those who get pissed when they can't drive without a deposit...
Why isn't it reasonable that we would place restrictions on a product that is restricted from us- The allocation for "specialty vehicles" like a Mustang Cobra, or a ZO6, or once upon a time the S2000, and NSX are restricted. Do you really think the potential buyers of such a car want one that you put miles on when you weren't seriously considering purchase?
I have seen threads here where new NSX deliveries were rejected due to "excessive" milage on the odo at delivery.
It isn't unreasonable to ask you for a deposit (refundable) if you want to test drive such a vehicle in the interest of purchase. The deposit is a qualifier- your looking at a 70k sportscar- If you balked at the idea of leaving a check for 5k in order to try it out, you weren't a buyer, and guess what? You aren't driving the vehicle if you aren't a buyer.
You pulled up in an NSX?
Joy.
So you own an NSX, does that mean you can buy a new 70k sports car?
Not neccessarily.
Am I looking at a potential nightmare of a trade-in negotiation?
Absolutely.
Do I still want the deposit before you roll out in my specialty car?
It ain't up to me, but I approve.
Quit crying. I hate it when you cry.
AU_NSX said:
So you would lump all car salesman into one big group to which you are prejudiced against when you walk through our doors?
Nice. Good luck having an easier deal with an attitude like that.
Of course, it is two sided by now-
You know, the customer has a reputation at the dealership too...
An old industry joke...
How can you tell if the customer is lying?
their lips are moving.
Customers come in with the same lip service on every deal
guy: I got KBB printouts, and I know your invoice...
Me: Really, well then let me introduce you to my sticker, and we can work out a number somewhere between. Yes?
Sneaky customer holds back the trade until we have worked all the numbers on the new car, then wants to see an ACV value on their trade that is comparable to their KBB printout.
I want to buy the new car for cost, but the ACV on the trade had better be KBB retail value...
(after 3 hours in negotiations) I got a better deal down the street, I just wanted to see if you could match it. (Why not tell me what I have to beat in the first place? what did you have to lose?)
My favorite example found here?
After 3 hours of negotiations, the number is right. You get into our finance office and something isn't "just right" so you walk out the door. You just left me with nothing because the finance guy messed up. You didn't give me a chance to go scream at him and get it corrected- you just left, and took my paycheck with you.
F--- you.
Your damn right nice guys don't last in the industry, and the reasons are explained in my posts above!
The customers attitude toward the salesman is just as much a reason salesmen are the way they are, so unless you want to play straight pool on your end of the deal- quit bitching when the salesguy you get is an A$$hole.
BTW- I have NEVER had a negative car buying experience, and i have negotiated for cars for friends and family, as well as for myself. I end up satisfied because I know how to treat people from both sides of the desk.
Maybe more people should learn.
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Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
I've always thought the same thing about Saturn's "no haggle" pricing strategy. If a $15k Saturn is a $15k Saturn for everyone, but a $15k Civic can be negotiated down to $14k, which is the better deal? I don't think many people are paying more than sticker, especially in the economy car class.
I've always thought the same thing about Saturn's "no haggle" pricing strategy. If a $15k Saturn is a $15k Saturn for everyone, but a $15k Civic can be negotiated down to $14k, which is the better deal? I don't think many people are paying more than sticker, especially in the economy car class.
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
Part of the problem with buying a car is for the consumer to try to figure out what the true cost of the car is to determine if they are getting a "fair" deal.... I use to do the accounting work for the Adv Assoc that consisted of about 300 dealerships. Many times, a dealer could sell the car BELOW invoice and still make a nice profit. How? Dealer Rebates, Holdbacks and all sorts of incentive payments from the manufacturers. As a salesman, do you even know how much the actual car costs the dealership? If you say invoice I am going to puke!
This was a many years ago, but I remember going to one of the dealerships to buy a Dodge Daytona Tubo. Salesman started with sticker. I told him that I didn't want to haggle, I actually knew the TRUE cost of the car and would pay $750 over that cost. What he didn't know was that I had brought with me the paper trail of all the holdbacks and insentives for that VIN# car that I wanted to buy. So in my hand was the accounting work of the actual TRUE COST of the car. The only additional would be an allocation of the overhead of running the dealership, commision, etc. In the end, the sales manager refused to even deal with me because he was so frustrated. That is until the GM came into the office to say hello to me and explain to his Sales Manager that I was the new CPA for the dealership.
MOST people aren't looking to steal the car from you, they aren't looking for the absolute best buy (a few nutcases are the exception) they are looking for a fair deal. On the otherside, most dealers/salesmen aren't looking to make a "fair deal" they are looking for the best deal without loosing the deal or letting the customer feel like he got screwed.
So when you say that the price is somewhere between invoice and sticker, depending on the car & OEM that may not even be close to a fair deal. How much gross profit should a car dealer make on an "average" car? $500, $1000, $5000?
Now, once the person gets into the Finance Managers office, there is where they really start to pile it on.... upsales, extended warranties, etc.
Part of the problem with buying a car is for the consumer to try to figure out what the true cost of the car is to determine if they are getting a "fair" deal.... I use to do the accounting work for the Adv Assoc that consisted of about 300 dealerships. Many times, a dealer could sell the car BELOW invoice and still make a nice profit. How? Dealer Rebates, Holdbacks and all sorts of incentive payments from the manufacturers. As a salesman, do you even know how much the actual car costs the dealership? If you say invoice I am going to puke!
This was a many years ago, but I remember going to one of the dealerships to buy a Dodge Daytona Tubo. Salesman started with sticker. I told him that I didn't want to haggle, I actually knew the TRUE cost of the car and would pay $750 over that cost. What he didn't know was that I had brought with me the paper trail of all the holdbacks and insentives for that VIN# car that I wanted to buy. So in my hand was the accounting work of the actual TRUE COST of the car. The only additional would be an allocation of the overhead of running the dealership, commision, etc. In the end, the sales manager refused to even deal with me because he was so frustrated. That is until the GM came into the office to say hello to me and explain to his Sales Manager that I was the new CPA for the dealership.
MOST people aren't looking to steal the car from you, they aren't looking for the absolute best buy (a few nutcases are the exception) they are looking for a fair deal. On the otherside, most dealers/salesmen aren't looking to make a "fair deal" they are looking for the best deal without loosing the deal or letting the customer feel like he got screwed.
So when you say that the price is somewhere between invoice and sticker, depending on the car & OEM that may not even be close to a fair deal. How much gross profit should a car dealer make on an "average" car? $500, $1000, $5000?
Now, once the person gets into the Finance Managers office, there is where they really start to pile it on.... upsales, extended warranties, etc.
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Talk about stereotyping. You suggest that the experiences I've had were my fault. Not so. I don't walk into a dealership with a chip on my shoulder.H-carWizKid said:
I'll give you an example. When I was in the market for an Integra, I called an Acura dealer that had newspaper ads saying they gave price quotes over the phone. The first thing the dealer said to me is "who am I talking to" and when I told him my name, he laughed at me and said that sounded like a name one of his competitors would make up when calling him to find out what his pricing was. And it wasn't in a pleasant, lighthearted joking tone; you should have heard the voice he talked to me in, right off the bat. And this was Acura, supposedly Honda's class-act line.
In pretty much any other business, you don't treat customers who call on the phone that way. But this was car sales, so anything goes.
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
I will give you that- but I expect you to appreciate that many times the floor salesman won't see a penny of that "back-end money"
what salesman get is "spiff" or "spin" money is money for the salesman from the manufacturer, and if you want that from me as part of your deal, then I have a hand gesture for you. :wink:
When I sold Hyundai at a multiline dealership the Spiff was the only way we could make a respectable paycheck.
I do not recall Honda having Spiff, or "Spin" promotions on their product line
F&I- yes they do make a lot of income back there, and you can avoid that by obtaining your own financing through a credit union, or other third party vendor like eloan, or lending tree. I was just as happy to deal with your third party financing, or your check as I was to turn you over to the F&I dept-
As mentioned above, I truely hated being held accountable for their sins, and the only thing I hated more was when a deal was lost in that little room.
Holdback or "dealer cash" is primarily meant to support the floorplan loan- (in the millions) the site maintainence (in the millions) and the paychecks of support personel (receptionists, accountants, lot attendants ect)
again we are dealing with a problem of perception- from your post it appears that you believe holdback to be negotiable as part of a sale. It isn't.
Hold back is not for you, so if you are thinking you are entitled to it in order to have gotten "a good deal", you are kidding yourself.
A dealer might dip into holdback at the end of the month on a special to move volume, but that is usually on the cusp of breaking a volume percentage that will lead to an allocation, or floorplan bonus.
Once again the dealer deals to make a profit.
Really, when you think about it, the people getting "rich" on car deals are the owners of the dealerships, they are like "The House" in Vegas- they always win.
Salesman are just pawns in the game, occasionally they figure out a way to cut out a better than average living, and if they actually know their shit, maybe you should cut them a little slack.
CL65 Captain said:
I will give you that- but I expect you to appreciate that many times the floor salesman won't see a penny of that "back-end money"
what salesman get is "spiff" or "spin" money is money for the salesman from the manufacturer, and if you want that from me as part of your deal, then I have a hand gesture for you. :wink:
When I sold Hyundai at a multiline dealership the Spiff was the only way we could make a respectable paycheck.
I do not recall Honda having Spiff, or "Spin" promotions on their product line
F&I- yes they do make a lot of income back there, and you can avoid that by obtaining your own financing through a credit union, or other third party vendor like eloan, or lending tree. I was just as happy to deal with your third party financing, or your check as I was to turn you over to the F&I dept-
As mentioned above, I truely hated being held accountable for their sins, and the only thing I hated more was when a deal was lost in that little room.
Holdback or "dealer cash" is primarily meant to support the floorplan loan- (in the millions) the site maintainence (in the millions) and the paychecks of support personel (receptionists, accountants, lot attendants ect)
again we are dealing with a problem of perception- from your post it appears that you believe holdback to be negotiable as part of a sale. It isn't.
Hold back is not for you, so if you are thinking you are entitled to it in order to have gotten "a good deal", you are kidding yourself.
A dealer might dip into holdback at the end of the month on a special to move volume, but that is usually on the cusp of breaking a volume percentage that will lead to an allocation, or floorplan bonus.
Once again the dealer deals to make a profit.
Really, when you think about it, the people getting "rich" on car deals are the owners of the dealerships, they are like "The House" in Vegas- they always win.
Salesman are just pawns in the game, occasionally they figure out a way to cut out a better than average living, and if they actually know their shit, maybe you should cut them a little slack.
Tom239 said:Talk about stereotyping. You suggest that the experiences I've had were my fault. Not so. I don't walk into a dealership with a chip on my shoulder.
I'll give you an example. When I was in the market for an Integra, I called an Acura dealer that had newspaper ads saying they gave price quotes over the phone. The first thing the dealer said to me is "who am I talking to" and when I told him my name, he laughed at me and said that sounded like a name one of his competitors would make up when calling him to find out what his pricing was. And it wasn't in a pleasant, lighthearted joking tone; you should have heard the voice he talked to me in, right off the bat. And this was Acura, supposedly Honda's class-act line.
In pretty much any other business, you don't treat customers who call on the phone that way. But this was car sales, so anything goes.
A little advice? Crank down the sensitivity meter. Your not dealing with rocket scientists here. Many car salesman are not professionals- this is in large part due to turn-over in the industry due to many of the reasons I have listed.
Many salespeople are crude, many are not well spoken, or educated, and many will not be in the industry for more than a few months (sometimes days, or even hours), so why not just understand that this is the sort of person you may have to deal with, and prepare accordingly?
no matter how crude, everyone responds to being offered a little respect.
They are attempting to adapt to you when they try to start the conversations being made fun of in this thread. Maybe it is their first week on the floor, and they are still learning to product. Maybe they aren't "sharks" and are just as nervous to approach you as you are to be approached- some people won't do, or say the right thing.
It is just as encumbent upon us as informed buyers, who are party to the negotiation to percieve the situation for what it is, and react accordingly. We should conduct ourselves with dignity, and afford these folks the benefit of a doubt before we judge them.
I expect the same from a "good" salesperson, but as stated many times above, those can be few and far between.
IMO we should take the high road if the salesman comes up short- an in all honesty, that attitude has served me well in all my automotive purchases.
Good luck to you in your future endevours at dealerships accross this nation.
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Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
I won't disagree with you that doing sales at a car dealership is a tuff way of making a living. The dealers make huge profits, and some make it by gouging. But this is where people's attitudes come from when the get a bad taste while trying to buy a car for a "fair deal". At least when times get tough your boss doesn't expect your commision to subsidize the biz.
I won't disagree with you that doing sales at a car dealership is a tuff way of making a living. The dealers make huge profits, and some make it by gouging. But this is where people's attitudes come from when the get a bad taste while trying to buy a car for a "fair deal". At least when times get tough your boss doesn't expect your commision to subsidize the biz.
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H-carWizKid said:
I have only had a few good buying experiences in my lifetime. Up until last week end I thought I knew every trick car salesman use.
So I have this friend Ray he is an little older than me 56. He worked hard his whole life in a gravel pit. The world pretty much rolls him every chance they get. His current vehicle a 2002 Toyota Tacoma completely stripped cost him $37,000 dollars by the time he will make all the payment for the 72 month period at 17%. I have seen this guys credit report in the past and then again last week. The current report is 70 points lower than the report I saw last year. As I looked through the report I saw a huge amount of inquires on the same date. I did some research and found that those inquires were done on the day he bought a new car for his wife. The phucking dealership ran his report enough times to get his score down to the sub-par level where they could sell the loan to a company who would allow them to mark the loan up. Why did they do that, because this guy didn't know any better. The report should have been sent by dealer-trac.
The reason I looked at his credit report last week is because he was buying another car. A $33,000 dollar sedan. So he goes to the dealership and works out a deal. They tell him it is a one day deal and he has to put down a deposit of 2k before he can drive the car. So he puts down the deposit and drives the car likes it but wants to wait before making the decision. They pressured him to the point his diabetes took his sugar down too low and they had to let him leave to get his shot.
Here is the deal they had for him... He traded in his Toyota truck they give him 10,000 for it he owes 4000. He puts down 2000 more and they sell him the extended warranty for 1700 plus the environmental package for 1000. then he has payments of 780 bucks for 72 months.
So his total...
6000 truck
2000 down payment
56,160 780x72
---------
64,160 total.
I called the dealership up. The guy says he won't talk to me unless Ray tells him it is ok. Ray tells him it is ok. I am going on about how much of a rip off this deal is. The guy is doing the same pitch most salespeople do asking what do I do for a living, how do I know it is not a good deal Blah, blah, blah. Then he tells me it is already a done deal that Ray signed the papers and there is nothing I can do about it, with a snicker in his voice. Right over the phone I got him to shave 80 bucks off the payment. After a 15 minute argument I hang up on the guy.
Next morning...
Ray and I go to a different dealership. Ray is nervous, he knows I have been thrown out of several dealerships because I speak my mind. He just wants to buy a car and not make any enemies.
So we sit down they have actually have the car he wants in an automatic the last place tried to sell him a standard, he is disabled,
. So the window sticker is 34,000 I get them down to 30,500. Then they ask about a trade. Ray says he has the truck and owes 4k and wants 10k for the truck if he has to trade it in but would rather keep it. The salesman asks where it is financed through. Ray says americredit. The guys eyes light right up. I told him to not get too excited as if he can't get Ray, with a 680 FICO at least 6.9% for 60 months there will be no deal. Ray realized at that moment to shut up and he did not say another word for the rest of the day to anyone but me. I got him 2.9% for 60 monthsHere's how the deal turned out.
1000 down payment
37,260 621x60
38,260
A savings of 25,900 bucks from the dealer where Ray went without me. And he gets to keep his truck. They never tried to sell me the enviormental package or the extended warranty. I asked them why and they said because it appears you know better than to buy it.
The first dealer stalled enough time before returning the deposit so the check would clear. On the fourth day I had my attorney call them and request the check back. They sent it that day.
What happened here I think would happen to anyone, who doesn't know what is going on, at any dealer in the country.
Another dealer story:
I ask how much a dealer-installed accessory (cassette deck) would cost.
Salesman says $450.
I say I'm not interested.
Salesman says $300.
I say I'm not interested.
Salesman says, talk to my manager, maybe he can do better.
Manager says $150.
In how many other businesses do you start out with a price that's 3x what
you're willing to sell it for, and then go through a transparent, stupid little
game of handing the customer off to someone else to get a reasonable price?
I ask how much a dealer-installed accessory (cassette deck) would cost.
Salesman says $450.
I say I'm not interested.
Salesman says $300.
I say I'm not interested.
Salesman says, talk to my manager, maybe he can do better.
Manager says $150.
In how many other businesses do you start out with a price that's 3x what
you're willing to sell it for, and then go through a transparent, stupid little
game of handing the customer off to someone else to get a reasonable price?
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
Steveny- I agree with you- That is an incredibly shady story.
This is the reason I prefer to deal with third party lenders- it takes that whole element out of the deal-
I was defending salesmen, not F&I
Tom239- thats negotiation chief. You can't get what you don't ask for. They asked for a profit, you negotiated. Congratulations!
To answer your question- How many other businesses start off by asking more than 3X what they are willing to sell it for?
A bunch. You just don't know it.
Would you like to know what the profit margin is on a bottle of Coors?
100%!
Thats right, they turned a profit by selling off their industrial waste as cattlefeed before they ever bottled the beer.
Why should you pay $2.00 for it at the bar? That is a 200% markup!
Because if you want something it will cost, and you will pay. Welcome to commerce.
Steveny- I agree with you- That is an incredibly shady story.
This is the reason I prefer to deal with third party lenders- it takes that whole element out of the deal-
I was defending salesmen, not F&I
Tom239- thats negotiation chief. You can't get what you don't ask for. They asked for a profit, you negotiated. Congratulations!
To answer your question- How many other businesses start off by asking more than 3X what they are willing to sell it for?
A bunch. You just don't know it.
Would you like to know what the profit margin is on a bottle of Coors?
100%!
Thats right, they turned a profit by selling off their industrial waste as cattlefeed before they ever bottled the beer.
Why should you pay $2.00 for it at the bar? That is a 200% markup!
Because if you want something it will cost, and you will pay. Welcome to commerce.
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Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
In my biz the price for the ticket is $900 today, but if you would have bought it last week it was $250. If you buy it on odd dated Tuesdays or the 3rd Fri of the month it's $312. An hour from now it might be $199, tomorrow it will be $1250. And btw, when you show up even though you paid for it you still might not get on.... but will give you $300 Delta dollars for screwing up your plans!
How's that for stupid pricing. :biggrin:
In my biz the price for the ticket is $900 today, but if you would have bought it last week it was $250. If you buy it on odd dated Tuesdays or the 3rd Fri of the month it's $312. An hour from now it might be $199, tomorrow it will be $1250. And btw, when you show up even though you paid for it you still might not get on.... but will give you $300 Delta dollars for screwing up your plans!
How's that for stupid pricing. :biggrin:
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
It is all about how much you need it. If you only want and not need you can pretty much pay whatever you want to. I fly commercial to Cali several times a year and have not paid over $250 round trip ever.
CL65 Captain said:
It is all about how much you need it. If you only want and not need you can pretty much pay whatever you want to. I fly commercial to Cali several times a year and have not paid over $250 round trip ever.
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
It is a human issue. This crap goes on in every industry. 99.999% of people will take advantage of others if the opportunity arises. If you believe this is not true than you are probably being taken advantage of. If you can't find the sucker at the poker table than the sucker is you!
Even with all I know, I am sure dealers still make a profit when they sell me a car. Why would they sell it to me if there weren't a profit.
As far as it being a salesman issue I think it is an industry issue. In all my life where I have seen corruption at low positions in any company it has trickled down from the top. Usually the whole company is corrupt. I see it a lot in RE. A corrupt agent=a corrupt broker.
H-carWizKid said:
It is a human issue. This crap goes on in every industry. 99.999% of people will take advantage of others if the opportunity arises. If you believe this is not true than you are probably being taken advantage of. If you can't find the sucker at the poker table than the sucker is you!
Even with all I know, I am sure dealers still make a profit when they sell me a car. Why would they sell it to me if there weren't a profit.
As far as it being a salesman issue I think it is an industry issue. In all my life where I have seen corruption at low positions in any company it has trickled down from the top. Usually the whole company is corrupt. I see it a lot in RE. A corrupt agent=a corrupt broker.
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Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
That's why half the airlines in this country are in BK. Thank God, Southwest's fuel hedges run out in 07!
steveny said:
That's why half the airlines in this country are in BK. Thank God, Southwest's fuel hedges run out in 07!
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
Unless of course the buyer wants a left over prior year vehicle. Then holdback comes into play.
Can you imagine how many cars a dealership would sell if they sold the cars 500-1000 dollars above real cost?
H-carWizKid said:
Unless of course the buyer wants a left over prior year vehicle. Then holdback comes into play.
Can you imagine how many cars a dealership would sell if they sold the cars 500-1000 dollars above real cost?
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
I am guessing that the average car sale has about a 4k profit in it and 6-8k with a trade-in. Does that sound about right H-carWizKid? I would really like to know what the numbers are.
I am guessing that the average car sale has about a 4k profit in it and 6-8k with a trade-in. Does that sound about right H-carWizKid? I would really like to know what the numbers are.
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
I believe they are only 30% hedged for 06 and the rest run out in 07. They are paying something like $26 barrel vs $61 now. That's why you saw a SW $10 fare bump last week. DL is shrinking domestic flights and moving them to International and Jetblue is going to have to bump fares as they are now burning through cash. Song competition up and down the East coast is gone. Independence liquidated. As well JB has to slow down their over aggressive roll out of the E-190 jets in JFK. So yea, 07 will most definately see considerable fare hikes accross the board even if fuel does come down. There will be less capacity in the system and with everyone on an even playing field costs wise I bet you will see a 20% or more bump accross the board with some routes alot more. The big question is when will the mergers begin?
steveny said:
I believe they are only 30% hedged for 06 and the rest run out in 07. They are paying something like $26 barrel vs $61 now. That's why you saw a SW $10 fare bump last week. DL is shrinking domestic flights and moving them to International and Jetblue is going to have to bump fares as they are now burning through cash. Song competition up and down the East coast is gone. Independence liquidated. As well JB has to slow down their over aggressive roll out of the E-190 jets in JFK. So yea, 07 will most definately see considerable fare hikes accross the board even if fuel does come down. There will be less capacity in the system and with everyone on an even playing field costs wise I bet you will see a 20% or more bump accross the board with some routes alot more. The big question is when will the mergers begin?
steveny said:
That's a good point. If dealerships sold cars for $500-$1000 above real cost (even above just the real invoice), and people knew that going in, the dealership would continue to make large profits due to the high volume. No need to haggle, no potential for a poor customer experience with a saleperson who's primary goal is to maximize potential (personal) profit (I know not all car salespeople are that way; just most of them) and the deal would be fair for both the buyer and the seller.
In addition, the dealership would reduce its overhead, salary, SGA expenses, etc related to the sales personnel and could run the show with far fewer salespeople.
Re: Let's hear your stories, what was the dumbest thing a salesperson has said to you?
I have a friend who's father gave up the Rolls Royce dealership in order to get Hyundai because the volume made huge profits.
I have a friend who's father gave up the Rolls Royce dealership in order to get Hyundai because the volume made huge profits.
mickeylex said:
Yep. I have a friend who has a small little dealership, used cars. He goes to the retail ready auction and buys them. He sells 3 cars a day does not take trade-ins. He sells for 500 bucks above the cost of the car plus the cost of an extended warranty that takes all the risk out for him. He also charges 100 to transport the car back to his dealership.
He sells 3 cars a day and makes over 300k a year in profit. It is a one man show. He only does straight deals and no financing is available through him.
I doubt this could be done with new cars.
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