[Vintage914Racer]

I run across threads like this here and elsewhere occasionally and don't always chime in. While this thread is a couple years old I figured I'd still add in my two cents. While it's not always the norm, I've had great experiences working in the industry.

First, a quick recap of my 15 years of experience in the industry and other time outside of the industry. Apologies for the length, but I think it helps create a little context.

My father instilled a good, honest work ethic in me and I began working at a Porsche/Audi dealership when I was 15. The dealership was privately owned (more on the bigger ownership trends to follow), fair to customers and treated it's employees well. I began as a runner/carwasher/lot guy. It was a dream job for a teenager and taught me a lot about how to treat a customer well. We all know that there are a lot of dealerships that don't focus on a great customer experience and this was one of the reasons I stuck around the dealership for 10 years. I continued in my role through high-school and through college. In college I moved up to a service advisor position part-time during the school year and full-time in summer and school breaks.

Come graduation I moved into sales. Admittedly I did not aspire to sell cars, but the product was great and as mentioned previously it was a great employer. I didn't fit a sales profile, however my knowledge of cars, passion for cars and understanding of the innerworkings of a dealership made my job fun. I spent four years in sales and eventually got bored. To quell the boredom I pursued my MBA, both as a way to stimulate my mind and solidify a strong exit strategy. I did not see myself selling cars my whole life nor did I want to move into management.

Eventually I left to pursue a marketing role with a local Fortune 100 company. MBA in hand I spent four years there seeing how well organized, strategic thinking companies operate. It was a great experience and a company I could've worked at all my life. I simply wasn't passionate about it.

I serendipitously met the CEO of one of the large local automotive groups. It was one that I recognized as being innovative, maintaining high-levels of integrity and treating the customer well. After much back and forth I eventually joined the corporate team and built an internal marketing organization that supports our ~13 business units. While I don't work direclty in sales, I'm constantly interacting with salespeople, all tiers of management and the customer side. I'm highly involved in the strategic direction of the company and follow industry trends closely.

All this being said, this is what I see in the marketplace...

As we all know the industry has a bad reputation. There are still dealerships, in fact more than I like to admit, that will lie, cheat and do anything to make a dime. There are, however, a lot of good dealerships --- ones that treat their customers well, their employees well and will continue to reap the associated benefits for years to come. These are the types of dealerships that look to hire, train and retain the right people. I'm proud to work for one of these.

The internet has forced the industry to change. Salespeople no longer hold all the information, rather the internet does. Whereas the dealer used to be the repository for info (factual and slanted), now the dealer serves simply as the place to test drive and consummate the deal. Edmunds, KBB, TrueCar, Yelp, Google, manufacturer sites, payment tools, etc., allow consumers to do their research where they're comfortable--at home. 95% of shopper do research online. They consult over 18 sources and spend north of 20 hours doing so. When the time comes to futher the purchase process they simply need to determine where they want to do so. This is confirmed by the stat that today's auto shopper only visits 1.3 dealerships. Reviews, selection, location and price (the biggest determining factor for most), make it easy for consumers to decide where to go.

The next big movement is towards streamlining the most hated part of buying a car --- the finance/lease/purchase process. New innovative startups like Beepi, CarVana and others now provide a way to purchase a car online and have it delivered to your door. We're not at a point where the majority public wants to shop this way, but adoption will increase. People simply aren't used to doing it this way yet nor do they trust it. Dealerships and industry vendors are working to streamline this process online, however, believing that it's one of the big shifts.

The industry is undergoing a lot of consolidation and owner changes right now. Smaller, independent dealers are getting older. Many don't have succession plans in place or future generations that want to get involved. Some have a hard time adjusting to the ways the industry has changed. Some continue to trudge along while the more attractive ones are getting absorbed by larger groups and increasingly by outsiders. Warren Buffet is now in the game and owns one of the largest dealer groups in the US. Private equity firms and family offices are investing in the industry. Top perfoming dealer groups are absorbing smaller stores. What all the changes? Long story short, the retail automotive industry has the capability to deliver healthy returns. One contributing factor is that there is significant opportnity to make things more efficient, customer centric and simply improve what's currently getting done.

So, back to the original quesiton. One can make a good career in car sales. Much like buying a car you'll want to do your research and fine a fair, honest dealer that treats people right. If you do so you can avoid a lot of the negatives listed above. Find a few local dealerships with glowing reviews. Talk to their salespeople and get their input. The industry has an annual salesperson turnover rate of ~70% --- this means that the bad stores turn-over 100% of the sales staff every year. Even the best dealers are in the 25-35% range. In talking to dealers ask them what their number is. It's a good indicator of employee sentiment and culture.

You'll have to embrace the internet and understand how people are shopping. You'll have to acknowledge that the shopping experience has changed. With the transfer of information (power?) from salesperson to internet there's less a salesperson does. The internet requires more transparency on the dealership front. Dealers that embrace this will succeed.

Expense has shifted to online tools and services and as a result the comp structure for sales has shifted. Fifteen years ago you could make a lot of money selling cars. Today you can make a reasonable living if you work at it. $50k to $75k as a salesperson is very doable. Stick around, build a base and deliver a great customer experience and you can shoot higher.

Find a brand that you like and moreover the public likes. Doing so makes the job so much easier. It always bugs me seeing salespeople who don't know/care about the product.