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.

 

[arrow]

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.

Exactly

 

[arrow]

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?

Because Hiltz there are so many angles to make money from. In short, if the dealership gets product for nothing or close to it (your high mileage trade for instance) that becomes their mantra and it starts from the top. Also, dealerships will always try for the "lay down" or that person that can have the rug swept up from under them. This type of customer is getting fewer but they are still out there but they will attempt these tactics on everyone. I could walk into a dealership today, tell them I have 19 years of vehicle sales experience, and they would still try their tactics on me. You can see the off the street guy has little chance. Some dealerships are always figuring for the "score" and as a result, you are just another fish in the ocean to them. Very rarely would a person such as myself be tolerated at most new car dealerships as it is just not in me to "connive". I just wouldn't be a good fit for them and would refuse to play their games. I'd be fired before noon. That is why they like the young "kid". They can mold them to their way of thinking.

 

[arrow]

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.

I'd be willing to bet the used car lot included "off lease" vehicles. I don't think I know of a single better way to profit from one car than from a leased vehicle.

 

[ultrarunner]

It seems the tone changes quickly once there is no trade or financing involved.

A cash sale sure does make it easier to follow.

I've only bought one new car for myself and helped dozens buy theirs and sold a number from my days at the family business.

My purchase was for European Delivery and even then 4 of the 5 Dealers were not listening...

All but one insisted on "Selling" me what was on their lot to the point of bad mouthing European Delivery... they simply didn't understand the ONLY reason I was looking to buy new was to pick up at the factory in Germany.

Had all but resolved to rent and went through the motions with the Dealer 5 and it was a done deal with two phone calls and a fax...

So there are straight shooters out there even if they are in the minority.

Still remember taking Mom to buy a new car... her one and only and unfortunately all the stereotypes were out in full force... really was an eye opener for her right down to outright lying.

Today... not a single one of those Dealers are still in business.

 

[bajabum]

I miss the days when I could buy a car /truck/tractor (Ford) on the X plan or A plan, set price, below invoice, no haggling and the dealer (not a salesman) got a kickback from the factory.
The X and A plans were thru my employers, Ford Aerospace and Lockheed and Raytheon.
Decent benefits too...
Now I work for a podunk outfit, one of the triple whammy minority contractors, woman ceo, native american, eskimo...:thumbdown:
Guaranteed to get a government contract, never mind that they don't know how to do anything!
Terrible benefits

 

[dnw64]

The trick is you tell the salesman your willing to pay say $20,000.00 for a vehicle. The salesmans eyes light up as he proceeds to sell you a vehicle worth $15,000.00 but he says he can put you in the car for $20,000.00 That is one of the oldest tricks salesman use on unsuspecting customers. Never tell a salesman what you as the customer are willing to pay. Its his vehicle he trying to sell. Dosent he know the price?

100 years ago (OK, 20-30 years ago even) that "trick" might have worked. But today, ain't nobody paying $20k for a $15k anything.

 

[dnw64]

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?

I would guess: If it ain't broke, don't "fix" it.

 

[MossRoad]

7 year old thread revival heading down memory lane.

 

[MinnesotaEric]

7 year old thread revival heading down memory lane.

A good rant will keep ranting and ranting. Smile.

 

[stevem5215]

new software = thread revival. Happening on all the forums these days.