Straight from a Car Salesman (tips on buying, etc.) (Q/A)

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 5 years ago '07        #21
Optimus Crime 5 heat pts
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 Bman409 said:
Yeah I kinda of figured that much cause it's the same thing with the folks at Best Buy, CompUSA, etc. I always do my homework when buying new products and getting other folks opinions, etc. Doesn't matter what it is from small to big, I gotta research.

The thing that k!lls me though is that the salesman put on a act.

I ain't gonna lie though I'm not all too good with the whole insurance stuff, interest rates, credit scores, etc since I'm use to just buying stuff outright. But this is a good thread for folks that don't know.
A lot of people aren't... And this is where car dealerships make a k!llING. When I was selling cars.... I would make around $3000-$5000 a month. In the October, November and December I worked there one of our finance guys make $12k, 11k, and 15k and October and November were slow months for us. People hit the salesmen hard, and get the good deal... Then get r*peD on the backend. Salesman makes a little bit of pocket change... Finance guy makes a k!llING. In fact I had deals where I was making a good deal of money and the finance guy cut into the money I was making on the deal (I went from making $650 on the deal to $225) so he could reach the number to get financed and make his money. I was HOT...

And to answer your question about salesmen frontin... Car salesmen (Generally) see themselves like the DJs used to. They feel like sales is the game.. and the product doesn't matter because they can sell anything. In my area the salesmen when from dealership to dealership. Selling Fords, then switching to Nissan, Honda, then end up at a Chevy dealership. They honestly have no time to actually learn the product... and they see taking the time to learn it as cutting into their pockets because that's time they could be spending making money. I took it upon myself to learn as much as I can about everything i had on the lot, but honestly a majority of customers prefer the show.

And honestly.. You can do all of the research about cars you want... But in the end it doesn't matter... Fact of the matter is... No matter how much you know.. How tough you are to deal with etc. A car dealership is not going to make a deal with you.. unless they receive a benefit from it. They'll cut the salesman's money with the quickness (So when a salesman tells you "Man I'm not making ANY money on this" They could be telling you the truth) and hide the money in ultra creative ways so it seems like the deal is nice (and it may be overall) but they're still making SOME money on you. Fact of the matter is... Making big money off of single car deals these days is a rarity up front... But the car business finds ways to survive and make money regardless...

Sorry for being long winded as I realize that's a lot to read... But hopefully it helps someone out
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 03-01-2012, 06:41 PM         #22
KrayzieCMB  OP
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 Optimus Crime said:
A lot of people aren't... And this is where car dealerships make a k!llING. When I was selling cars.... I would make around $3000-$5000 a month. In the October, November and December I worked there one of our finance guys make $12k, 11k, and 15k and October and November were slow months for us. People hit the salesmen hard, and get the good deal... Then get r*peD on the backend. Salesman makes a little bit of pocket change... Finance guy makes a k!llING. In fact I had deals where I was making a good deal of money and the finance guy cut into the money I was making on the deal (I went from making $650 on the deal to $225) so he could reach the number to get financed and make his money. I was HOT...

And to answer your question about salesmen frontin... Car salesmen (Generally) see themselves like the DJs used to. They feel like sales is the game.. and the product doesn't matter because they can sell anything. In my area the salesmen when from dealership to dealership. Selling Fords, then switching to Nissan, Honda, then end up at a Chevy dealership. They honestly have no time to actually learn the product... and they see taking the time to learn it as cutting into their pockets because that's time they could be spending making money. I took it upon myself to learn as much as I can about everything i had on the lot, but honestly a majority of customers prefer the show.

And honestly.. You can do all of the research about cars you want... But in the end it doesn't matter... Fact of the matter is... No matter how much you know.. How tough you are to deal with etc. A car dealership is not going to make a deal with you.. unless they receive a benefit from it. They'll cut the salesman's money with the quickness (So when a salesman tells you "Man I'm not making ANY money on this" They could be telling you the truth) and hide the money in ultra creative ways so it seems like the deal is nice (and it may be overall) but they're still making SOME money on you. Fact of the matter is... Making big money off of single car deals these days is a rarity up front... But the car business finds ways to survive and make money regardless...

Sorry for being long winded as I realize that's a lot to read... But hopefully it helps someone out
Nice post man. I love hearing real responses on the matter. As a salesman with no finance department I get the benefits of selling backend as well. As in my previous posts, I won't lie, it makes me the most money. My dealership is a lot different than the other guys though. We have been a straight family business for 4 generations. 90% of the time all of the sales staff are immediate family members. We give a damn about the product we sell and actually take the time to learn them inside and out.

We all have an investment in the business and we want to make sure we stay open for another 4 generations. The average buyer knows a lot more than 10-20 years ago. You can't bullsh*t people and try to oversell them. Okay, sometimes you do get that laydown which you take advantage of ... but most customers know exactly what they want.
 5 years ago '06        #23
Bman409 20 heat pts20
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 Optimus Crime said:
A lot of people aren't... And this is where car dealerships make a k!llING. When I was selling cars.... I would make around $3000-$5000 a month. In the October, November and December I worked there one of our finance guys make $12k, 11k, and 15k and October and November were slow months for us. People hit the salesmen hard, and get the good deal... Then get r*peD on the backend. Salesman makes a little bit of pocket change... Finance guy makes a k!llING. In fact I had deals where I was making a good deal of money and the finance guy cut into the money I was making on the deal (I went from making $650 on the deal to $225) so he could reach the number to get financed and make his money. I was HOT...

And to answer your question about salesmen frontin... Car salesmen (Generally) see themselves like the DJs used to. They feel like sales is the game.. and the product doesn't matter because they can sell anything. In my area the salesmen when from dealership to dealership. Selling Fords, then switching to Nissan, Honda, then end up at a Chevy dealership. They honestly have no time to actually learn the product... and they see taking the time to learn it as cutting into their pockets because that's time they could be spending making money. I took it upon myself to learn as much as I can about everything i had on the lot, but honestly a majority of customers prefer the show.

And honestly.. You can do all of the research about cars you want... But in the end it doesn't matter... Fact of the matter is... No matter how much you know.. How tough you are to deal with etc. A car dealership is not going to make a deal with you.. unless they receive a benefit from it. They'll cut the salesman's money with the quickness (So when a salesman tells you "Man I'm not making ANY money on this" They could be telling you the truth) and hide the money in ultra creative ways so it seems like the deal is nice (and it may be overall) but they're still making SOME money on you. Fact of the matter is... Making big money off of single car deals these days is a rarity up front... But the car business finds ways to survive and make money regardless...

Sorry for being long winded as I realize that's a lot to read... But hopefully it helps someone out
@ the finance guy making more money than the salesman, why is that though? I mean as far as I know all the finance guy is doing is making the customer sign a little piece of paper and just explaining about payment, insurance, warranty information, etc pretty much going sitting in the A/C and banking money.

Yeah I agree with you about salesman thinking it's a game but I think it's harder when they can't play their game when the customer is on point on what they want. But what I'm saying is that the salesman could at least learn about the product before trying to spit game. There's time where I go to the lot and just act like I don't know sh*t about cars and just want to see if the salesman knows about it, that at least makes me feel comfortable with the product and salesman if they know something about it. I know salesman be having a field day with folks that are gullible.

I know the dealer won't make a deal with the customer, there's no debate on that, but I'm just saying for the salesman to at least do some sort of homework on cars he's trying to sell. Knowing about the product you're trying to sell boost up some kind of confidence in themselves and the buyer, would it not? Like build some sort of trust, even if it's a game or not. I hate talking to folks that think they know everything about nothing and swear up and down they're right, irritates the fu*k outta me. How you gonna sell me something that you know nothing about?

I've found out that a lot of people don't realize that once you sign your name on the title and drive it off the lot the value of the vehicle decreases instantly.
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 5 years ago '04        #24
EscoNore 67 heat pts67
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 Bman409 said:
@ the finance guy making more money than the salesman, why is that though? I mean as far as I know all the finance guy is doing is making the customer sign a little piece of paper and just explaining about payment, insurance, warranty information, etc pretty much going sitting in the A/C and banking money.
The finance guy has to deal with the banks, get approvals, buy down rates, sell warranties, etc.

It may not sound like much, but it is.
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 5 years ago '06        #25
trey2cool 
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 EscoNore said:
The finance guy has to deal with the banks, get approvals, buy down rates, sell warranties, etc.

It may not sound like much, but it is.
yeah they have alot of state/federal guidelines to follow to make sure paperwork is done correctly, i seen a book someone had to study to move from sales to F&I, thicker than the bible
 5 years ago '06        #26
Bman409 20 heat pts20
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 EscoNore said:
The finance guy has to deal with the banks, get approvals, buy down rates, sell warranties, etc.

It may not sound like much, but it is.
 trey2cool said:
yeah they have alot of state/federal guidelines to follow to make sure paperwork is done correctly, i seen a book someone had to study to move from sales to F&I, thicker than the bible
Really? So how would one become a finance person?
 5 years ago '06        #27
trey2cool 
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 Bman409 said:
Really? So how would one become a finance person?
when i was at a dealership, they are gonna make u a salesman and say that you have to earn your way up by selling cars and they will approach you if u are making good numbers after a few years.

because of the high turnover in the business, it shouldnt be hard if you stick around and move units.

now if u got prior experience, you might be able to jump right into it.

there was a guy i worked with recently that has been a salesman for 15 years, was making serious bank, and he was asked numerous times to move up to manager or finance, and he declined everytime cuz of how much he can make in sales.
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 03-12-2012, 07:53 AM         #28
KrayzieCMB  OP
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I guess I have it good being both the salesman and finance officer. No one else is in the way taking part of my commission :) It does take a lot longer to deal with individual deals but is worth it in the long run.
 5 years ago '06        #29
Bman409 20 heat pts20
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Ok.. so do y'all have to take a class on being a salesman or something?
 5 years ago '06        #30
trey2cool 
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 Bman409 said:
Ok.. so do y'all have to take a class on being a salesman or something?
a large dealership will train you for a week or 2, mainly on how to deal with customers and their objections, going thru the entire process from the greeting to having them drive off the lot in a new car.

using call scripts

show you how to use the various documents.

training videos from a sales guru.

and product knowledge training.
 5 years ago '07        #31
Optimus Crime 5 heat pts
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 EscoNore said:
The finance guy has to deal with the banks, get approvals, buy down rates, sell warranties, etc.

It may not sound like much, but it is.
Not to mention they can directly make money off of bumping interest rates...

They get a approval from a credit Union for 4.5%... and then when they tell you what you got... "He good news! We were able to get you an approval at a 6.7% interest rate...

A $30k loan at 4.5 interest rate [@ 60 months] will have you paying roughly $33.5k (total)

Adding that 6.7% interest rate will have you paying total roughly $35.4. They just straight up made the dealership $2k... and most people wouldn't even realize they got jerked...
 5 years ago '09        #32
Jacc Blacc 55 heat pts55
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 Optimus Crime said:
Not to mention they can directly make money off of bumping interest rates...

They get a approval from a credit Union for 4.5%... and then when they tell you what you got... "He good news! We were able to get you an approval at a 6.7% interest rate...

A $30k loan at 4.5 interest rate [@ 60 months] will have you paying roughly $33.5k (total)

Adding that 6.7% interest rate will have you paying total roughly $35.4. They just straight up made the dealership $2k... and most people wouldn't even realize they got jerked...
wouldnt that be illegal to lie about the interest rate from a bank.......
 03-16-2012, 10:27 PM         #33
tregan2149  OP
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 Krayziecmb said:
Big city dealers do bait-and-switch very often. Don't be suckered in by the price u see in the paper. There is always 2 blocks of fine print that u can barely see.
This is a good tip. There is a psychological theory called the lowball technique which car dealers use often, it involves advertising the car at a discounted, too good to be true price. After the customers come in for the deal, the dealer then removes the original discount and presents the actual price (several thousand higher). The dealer does this at the last minute because, by this point, the customer has basically verbally and publicly committed to buying the car, like coming in to the showroom, signing stuff, handshakes, etc. They create their own reasons in their head why the car is good, and end up buying it at the higher price.

So if a dealer does the bait and switch, remind yourself that you only came in for the advertised deal and haggle to get that deal.
 5 years ago '07        #34
Optimus Crime 5 heat pts
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 Jacc Blacc said:
wouldnt that be illegal to lie about the interest rate from a bank.......
Lol no... Because it's not lying about an interest rate because that's not how interest rates work. In fact there are laws and whatnot regulating how much they can bump an interest rate from what got approved (I think it's 3 percent or something like that... I been out the game a minute). It's not lying per se. It's not like they're telling you you got 6 and actually charged uou 9.

They really get away with it because a lot of people have a note in mind.. And as long as that number gets hit... They're good
 5 years ago '04        #35
franchise 59 heat pts59
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lease new, buy used
 5 years ago '08        #36
Calamari Pasta 
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im feelin all of this. im workin on this certified pre owned sonata at rick case in atl...
 04-12-2012, 10:57 PM         #37
KrayzieCMB  OP
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We just did a 2 day sale and it worked out awesome for everyone but me lol. Every customer I got had bad enough credit I couldn't do anything. We only have 4 people in the sales department including the sales manager and dealer principle/owner. We sold 15 units in 2 days... that is really damn good for us. If anyone else is in the industry and wants a sales boost I have a personal contact that can give you a huge boost.
 04-12-2012, 11:09 PM         #38
KrayzieCMB  OP
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 tregan2149 said:
This is a good tip. There is a psychological theory called the lowball technique which car dealers use often, it involves advertising the car at a discounted, too good to be true price. After the customers come in for the deal, the dealer then removes the original discount and presents the actual price (several thousand higher). The dealer does this at the last minute because, by this point, the customer has basically verbally and publicly committed to buying the car, like coming in to the showroom, signing stuff, handshakes, etc. They create their own reasons in their head why the car is good, and end up buying it at the higher price.

So if a dealer does the bait and switch, remind yourself that you only came in for the advertised deal and haggle to get that deal.
My place works completely different than this. We are in a small town and compete with city dealers that low ball us for volume bonuses.

We have been in business for 80+ years because we are honest from the start in my opinion. If a customer comes in with an national advertised price I won't even show them the vehicle until they have the ad explained to them.

No point in hyping someone up just to come at them with a much higher number.
 04-14-2012, 05:42 PM         #39
KrayzieCMB  OP
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I am still fairly new at it but my best month so far is 12. I will do more this month by the looks of it though. 12 for me is good because I have to handle the F+I part as well so each sale takes considerably longer. My older brother on the other hand usually averages 15-20 a month.
 5 years ago '04        #40
cold_young_thug 40 heat pts40
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 stargod said:


Couple of years ago I test drove and the salesman just handed me the keys.I was like wtf You guys do that?


That made me real comfortable dealing with him

what u didnt know is they had already tagged the vehicle. Yo a.ss wasnt going nowhere.
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