Lack of professionalism in Sales: a rant

[Hiltz]

For me Hiltz it was the opposite. If a person could spend say the 20K, I'd find them the 23K truck and try to get the price down to where they could be. The other factor is if the customer is going beyond their means after you discover their credit is in the 5 hundreds. I felt an obligation to relate to them not to sell their life for a vehicle. I'm not saying don't keep suspecting as you're suspecting because you may be more correct than not, I do hope however you can "hone in" or "sense" the guy or gal you feel is treating you straight up and be able to enjoy the entire process.

You seem like a pretty straight up guy. Could I make my next purchase from you?

 

[arrow]

You seem like a pretty straight up guy. Could I make my next purchase from you?

As I retired from the business in 2007, no you cannot. You do seem to have the ability to pick out the "straight up" individual however. Just go out there and do it again. I did find one weird paradox with sales people who wandered in from different dealerships throughout the years. If they were good fathers and husbands, they were straight up guys especially the ones with all girls. They seemed to always want to protect the lone woman who would be targeted as a "pigeon" in so many other places but if they came before the all girl father, they'd treat them with respect and dignity because they knew this was someone else's daughter. The age factor is another telltale. Young guys think they need to be like lions and "gouge and claw a sale prospect. They're just not "worldly" yet but unfortunately, they seem to be in the majority. There are so many things that serve as "signs" for people to avoid before one word is spoken, I could probably make a profession out of being a "salesguard".

 

[Hiltz]

Its too bad more salesman don't have your attitude and ethics. I think stereotypes are applied for a reason and car salesman certainly have earned theirs. One thing I have never understood is why the auto manufactures don't seem to care or why they don't do something to clean up "their" salesman who are selling their product. I don't get it. All a person has do do is go online and check the reviews of auto dealerships and read the comments. The comments are at least 90% negative of the buying experience. Why do dealerships act this way?

 

[ultrarunner]

I guess I had good examples... even the newspaper ran stories about my family about being the last of the honest dealers.

My Grandfather always had his home address and home phone number on his business cards and that is something you just don't see anymore!

So did my Father...

 

[MinnesotaEric]

Its too bad more salesman don't have your attitude and ethics. I think stereotypes are applied for a reason and car salesman certainly have earned theirs. One thing I have never understood is why the auto manufactures don't seem to care or why they don't do something to clean up "their" salesman who are selling their product. I don't get it. All a person has do do is go online and check the reviews of auto dealerships and read the comments. The comments are at least 90% negative of the buying experience. Why do dealerships act this way?

Step into a Mercedes or Lexus dealer. The experience is different.

Also, understand that most new car dealerships, the sale of new cars is used to legitimatize the sale of used cars from which most of the auto sales profits come from.

 

[k0ua]

Not all dealerships are the same. There are one or two in the area that have a sterling reputation, and 1 for sure (one of the largest ironically) that has a terrible reputation. But they keep on getting new customers.

 

[MinnesotaEric]

Not all dealerships are the same. There are one or two in the area that have a sterling reputation, and 1 for sure (one of the largest ironically) that has a terrible reputation. But they keep on getting new customers.

In 2007, I met an accountant though an investing group I was involved with who does accounting for many, many auto dealers. Among the thing that seemed counter-intuitive to me was that a dealer with a shiny, new build-out had no more business than the same lot-sized dealer whose build-out was old and had deferred maintenance. The single biggest different in profitability was how big their used car lot is.

 

[ultrarunner]

For years Used Cars were often wholesaled out the same day...

That all changed with the internet and thin profit margins on new vehicles available to those willing to put in the time.

All of a sudden, Used Cars were profit centers and Dealers that would not have bothered are in the Used Car Business.

 

[Carl_NH]

For cars especially high list cars - its CPO Certified Pre Owned where the car went out on lease 24/36 months so a list of $75k is now $40K and the new ones are much more Lexus and Mercedes and BMW are the best at this IMO Audi to a lesser degree.

The high end cars lose 40-50% value in the first 2-3 years but the manufacturer gets the initial cost covered via the lease, then the dealer gets $ on resale and warranty plans so CPO is definitely a big profit center.

 

[arrow]

Also, understand that most new car dealerships, the sale of new cars is used to legitimatize the sale of used cars from which most of the auto sales profits come from.

yes and no. Let's say a new truck tags out at 40K and has an invoice of 37K. Incentives amount to 6K in this example. So the purchaser buys the truck for 34K and is tickled pink. Actual cash made was 4K if they took 2K off the truck as a discount and rebates went to the dealer. So does anyone really think the dealer made $1000 profit on a $37,000 investment? The dealer gets an additional amount of money from the car company of anywhere from 5-15% . Now company rebates as they relate to kick backs can complicate the matter and I'm not referring to the kick back from floor planning. This is the additional "unspoken money" dealerships hold as sacrosanct profit.