Rejoining workforce and Car Sales

[LeeH]

Got to know the GM of my local Ford dealership through a committee at my daughter's school. Seemed like a nice guy. I made an appointment with him and sat down to discuss the car business. My main question was, "Is there a way to sell cars without working 60+ hours per week including weekends. Basically, he said, "No."

While car shopping recently, I spent quite a bit of time just chatting with the internet sales manager of a Mazda dealer. We went out into the shop to look at a car that wasn't on line yet and ended up talking cars for over an hour. His take was that the car business has changed dramatically in the last couple of years. Used to be all about lot traffic - getting people to come to the lot. He said now, by the time folks hit the lot, they're already experts on the cars and have usually narrowed down their purchase to 2 or 3 cars they want to see in person. He told me that he has a friend with a little dirt lot in a bad part of Phoenix who's making huge money because he has a great web site. Get's people interested in the cars through the web site and can sell cars cheap because of his low overhead.

[asphaltgambler]

Originally Posted by Aragorn

Auto sales can be a hard job...............I would only apply to dealerships that you know have a good reputation and you trust.

...Well......... after being in the business for decades.............let me know when you actually find that. Because I would have to see that in person.


Anyway, if you wanted to do this and have at least somewhat of a fair shot, Carmax is prolly your best bet. Their pay system is pretty straight forward and as far I know they do not hold back any pay like everyone else does. Are there any near you?

[PorscheGAL]

What do you mean when you say hold back pay?

[sammyg2]

Truecar.com

[asphaltgambler]

At any dealership new OR used / sales OR service it goes like this: Your pay is pure commission no matter how they explain it or break it down. In sales you'll get some base pay weekly / 2-weeks then your BIG check is figured after the end of the month. Which is then paid typically on the 15th of the next month. Now what you don't know..............yet............ is when you've calculated what your gross should be (and counting on it) wait till you open your envelope.

Then as you stare in disbelief you see both the gross and the net is substantially lower than what it's supposed to be. So you run over to accounting and ask WTF? they intern direct you to your sales manager. He smiles as you walk in, "Yes?" You ask...he then explains why...........

You see all 'new' sales people have to pay back the 'training' cost. The experienced sales people have helped you including the manager and all that costs time. Time = money. Then you see where service has charged sales for washing the same car 73 times......................in 2 months.

Since your commission is figured on the net, not the gross sales there is all kinds on nonsense like this. Holding back pay? Of course they do! They'll say 12% (or fill in some other %) of all sales for the previous month results where customers financing doesn't go through, even though they have the car or the customer returns it for some other reason. Then you incur a 'charge back'. They can't have charge backs (you owing them) so they deduct in advance for possible charge backs.

THIS is a good one: because you're new we've decided to hold back half your commission check for the first 90 days because you need to improve. Your sales skills are not in line with our expectations so this is 'insurance' for us. If you continue botching or fail to close customers it is a potential loss for us.

Or or host of any other made up ***** that can be withheld while you're green. Imagine you're at the end of a communal dinner table. The cook hands your bowl of soup to the head of the table to pass it on down to you. He takes a spoon full, then passes it the general manager - he takes one too. Now it's in the hands of your sales manager. Instead of taking a spoon, he just puts his lips on it and takes a big gulp..............with a little backwash after. Finally it gets to you looking a little less savory and less than half full when the cook first handed it off.

Then as you stare in disbelief...........................just then cook yells that you would have gotten more but he needed to make up the the deficit last meal time.


Think this is all too severe and doesn't happen everywhere in the car business? Think again. See another thread here where the term 'Objectivism' is discussed

[intakexhaust]

It was terrific back in the day selling only high line new and used euro auto's. Long days and Saturdays so if one has a young family, other hobbies, that might be a problem. Being it was a 100% commission income, it was great and allowing one to build your own cliental largely based on reputation. You'd risk that if sold some POS car(s).

The key is being a car enthusiast, respect every customer, be open with them, shared everything I could or knowledge of the vehicle including financial end, of what not to buy on the lot and explaining how not to buy into the dealer BS, pressure. I often disregarded management tactics and their attempts at closing deals but yet I was usually tops in volume, every month, including nationally. Even in the downturned economy swings, somehow I had enough customer base and stayed steady.

BTW: I worked for a few different dealers and brand names, same results. Eventually I burned out of the hours, a constant high turnover of managers, dictating and trying to turn me into a robot salesman. There were some too jealous of my income far more than them and I was 100% commission. They'd always be chiseling and attempting to taking away, changing pay plans, bonuses, etc.. A few times I refused to be a manager.

Funny though, some years ago at a party, met a dealer principal I once worked for. He asked if I would come back and work for him after he'd cleaned out his sales managers. No doubt today much has changed, the interwebs, blah, blah but not a chance today would I want to be in the business.

[aigel]

This is a fun read. "Confessions of a Car Salesman". It is dated from 2001, but it is still applicable, IMHO.

Confessions of a Car Salesman

G

[KNS]

Originally Posted by PorscheGAL

Does it make you feel better that I fixed that little misspelling? Would it also help that my 14 year old took the ACT and scored in the top 7% in the nation? Didn't mess him up too bad, did I?

Now, back on topic.

I've surely made plenty of grammatical errors here over the years, it was a playful jab at your opening post. I'd have simply responded with a "Oops, that was embarrassing".

I understand homeschooling can be a controversial topic (I've got two IB students in high school), I guess I touched a nerve...

Back on topic.

[scottmandue]

Thanks for posting this, I'm retiring in a few years and looking for something to keep busy (wife thinks I'm going to sit in the yard with a cooler full of beer) being a car guy I was toying with the idea doing automobile sales... I was also in construction a million years ago so real estate might be a better option.

[PorscheGAL]

Originally Posted by aigel

This is a fun read. "Confessions of a Car Salesman". It is dated from 2001, but it is still applicable, IMHO.

Confessions of a Car Salesman

G

Thanks for this. Very informative.

[asphaltgambler]

^^^^^not only a very different economy back then but obviously prior 'information age'. I do believe John Q Public is not only more informed these days but really more savvy consumer overall.^^^

[scottmandue]

Are you an assassin? Cuz that could make all the difference

[sc_rufctr]

Not all car salesmen are sleazy. Most but not all

It really is fun industry to work in because you get to see the whole process from a different perspective.
IME people need to be "managed" into a new car. Cars are expensive and present an on going financial commitment. Is it any wonder people hate buying them?

"All Buyers are liars"... This is actually true because all buyers are worried that by going to a dealership they will inevitably get done.
A good salesman understands this and treats his clients accordingly.

I never used underhanded tactics to sell cars. Mainly because I didn't have to.
That's one of the benefits of working in major dealerships. The cars are generally better and have a known history.

Working in what I would call a "Bomb Yard" is entirely different. There you will well and truly get "jammed" or as we used to say "head mashed".

"Heads", Slang term for customer. It came from looking into a yard and only being able to see the head of the customer as they walk around the yard looking at the cars.
"Burn", Often you manager will tell you to "burn" someone. What it means is that you have a particularly difficult customer who can't make a decision.
"Burning" them means pushing them to buy. They will either buy or never ever come back to your yard.

I did it for 18 months and earned really good money. (better than most doctors)
I left because of the people I working with. Basically a lot of them are crooks or shady.

Even the finance manager used deceptive tactics.
For instance, if a client asked him what interest rate they were being charged he simply wouldn't answer and the app he used to work out the payments didn't show the interest rate.

[strupgolf]

Originally Posted by Aragorn

Auto sales can be a hard job. Know a few people who have tried it and didn't like it. To be successful, you have to find a way to get someone to outlay a substantial sum but still go home with your soul. I would only apply to dealerships that you know have a good reputation and you trust.

One of the local Ford dealers has a very successful salesperson who is a woman. She has a "veneer" or "shine" that attracts certain male customers, but when you speak with her, she understands the product and how it fits the consumer. She doesn't use hard sales tactics like "hiding the keys" or "quota bashing." She just shows how the person fits the car. I like her because she seems real. She gets the person the car they want for the best price.

There you go. I think that/this kind of person is who you are/could be. Car sales can't be that hard. Sell the person the car they want. If you are a people person, you can sell ice to alaskans.

[onewhippedpuppy]

I'll share my experience, I started a small specialty dealership earlier last year. I buy specialty cars, mainly Porsches. I drive them for a bit to compile my to-do list, get them caught up on maintenance, fix the little stuff, detail the heck out of them, and then sell. The cars sell themselves because they are absolutely top notch, I wouldn't say that I really do any selling in the conventional sense. I honestly present the cars (very important), educate the buyers on options, and leave it up to them. Because my cars are market leading they really don't require any salesmanship. I'm low overhead, and the process of getting a dealer's license really isn't that hard. If you deal in late model used cars you can easily find nice inventory on the auctions, even Porsches.

The biggest issue I have with selling average cars is that it's all about price, the Walmart mentality. I have a Jeep Wrangler Unlimited right now that followed the same process as my Porsches. Super clean, caught up on book maintenance, a few tasteful upgrades. All anybody cares about is that there's one on Craigslist with twice the miles for a few thousand less. That seems to be the case with all of the more normal cars. It's not about condition, it's not about maintenance, it's not about clean, it's all about price. Probably why the shady lots manage to do well, they push crap at a low price and people buy them all day long. That's not something that I can sign up for.

[PorscheGAL]

I appreciate everyone's input.

Car salespeople have changed their titles to be "sales advisors" or "sales consultants". I think that they should live up to that title and if I was selling, that would be my goal.

I don't think the idea of sleazy salespeople is only in car sales. There is sleaze in any profession. There are also companies, outside of dealers, that will cheat their employees financially. I think that is why you ask lots of questions when you interview in any profession.

I have been reading everything I can about car sales. I am a hyper researcher. You, guys, are part of my research. Keep the comments coming. It just gives me more ideas of what to look for.

Thanks guys.

[Shaun @ Tru6]

Start small by yourself, buy a car, sell a car, let it grow organically, make mistakes and learn over the next two years while you build your own brand, somewhat like MW, making it about buying from a woman who understands your needs. Make it about this hardly unique customer that no one catering to seriously, mostly, I'm guessing, condescendingly.

You may want to pose as a buyer and make the rounds at some dealerships to see how you are treated. You can also enlist friends (spa day gift card) to do the same and report back how they were treated, how they would want to be treated.

[onewhippedpuppy]

To expand on Shawn's point, all you need in KS to become a dealer is a dedicated location, dedicated phone number, a bond, insurance, and pay a few hundred in fees. I could probably break even selling one car every two months, not because I make so much money but because I am very low overhead. If you buy late model cars with excellent condition reports they will need very little to be top notch. Auction access also allows you to do vehicle locating for a fee, saving customers money and getting them exactly what they want. You could provide a very personal and professional experience, with the added difference of being a woman in a man's game.

[Scuba Steve]

I'm assuming you're in the Columbia area because I can't think of too many other cities in the area with a wide selection of dealerships to choose from?

Honestly Shaun and Matt's ideas and methods sound like they make the most sense to me. What they describe sounds like a great sort of small market that you won't run into a lot of competition from regular dealers with, and something that would work if you happen to be in a larger city or somewhere in between with decent access to I-20/26/95 since regional buyers would be better able to visit.

[sand_man]

Some good "training" videos (laughs) for you!

Terrible quality with the Fargo clip. The HD clip, that I found loses its sound, so this will have to do: