Exactly, somehow, some way, they are making money. If they ever say “We are losing money on this deal”, they are lying.
When I bought a car recently, I offered one amount, and when they said they’d be losing money on that deal and refused it, I got up and left–and they let me leave.
I actually ended up coming back later, and bought the car for $250 more than I had offered before. Now they said they were still losing money on the deal, but they’d take it.
I have assumed that they didn’t actually lose money on the deal we ended up making, but that they really would have on my initial offer–even though the difference between the two offers was so small. I figured they wouldn’t actually let me leave the store unless it really was true they’d be losing money.
Does that sound like a fair set of assumptions and inferences to you?
I have since wondered if it wasn’t just that they felt sure they could sell the car to a different buyer for more money than I initially offered.
-FrL-
BTW, the car was a 2006 Hyundai Accent (automatic, w/ A/C, no power options). My initial “walk out” was over a $13,650 offer I made. I ended up buying the car later that day for $13,900 instead.
My brother-in-law used to work for Ford as a salesman. He wasn’t the talker that FMG seems to be, and wasn’t comfortable with the whole pushing and pushing back (read: he’s not that good of a salesman). I have no idea what kind of money he made, but he did work crazy busy hours. And he too would come in on his day off to deliver a car.
Since he’s not really cut out for sales, he washed out after a year or so. He hated the hours and the motivation pressure without the promise fulfillment from the management, which you’ve already heard about. If you are cut out for sales, however, it might be a good decision.
Just thought I’d present the other side of the coin.
(And please, I mean no disrespect to those who are cut out for sales. “Pushing and pushing back” isn’t the best choice of wording, I know, but I couldn’t think of a better way to describe selling someone on an idea that might not their own. If you are good at it, good for you. My brother-in-law just wasn’t. But he’s doing quite well for himself now at his current job, compliance in advertising. Different stokes, and all.)
Perhaps they were losing money on the first deal, so they let you walk, but I still doubt it. Perhaps they really did not need a sale that day (they had enough to please the boss). Or when you went back later on (probably a better or closer reason), they got some extra money from the factory (sometimes called stairstep) because they hit a certain amount of sales for the month. Meaning, they had an extra 1000 profit per car after they hit a percentage of the goal for the month. This happens a lot with certain models of cars (Ford Motor Company is big with this).
Sometimes it IS better to buy a car at the end of the month.
I sold RVs for three months and grossed about $20K. Not bad for a beginner. Those who had been at the dealership for several years, with lots of return customers, were making about $80-$100K a year. At some large RV dealerships in Florida or AZ or CA, salespeople can clear $150-200K a year selling the high-end buses.
You have to have energy, be persistent, have an easy manner with people and be seen as trustworthy, or it will be an uphill battle.
I should clarify: I went back later the very same day, just a couple of hours, after calling them up and asking if they’d take the slightly higher offer.
I was kind of suprised just $250 made the difference between letting me walk and approving the deal.
-FrL-
My brother sells cars, one of the traditional brands. He sold 21 cars last month, which I think is the most he ever sold (one was a high end sports model). He made 15K for the month. I’d guess “average” for him to be closer to 15 cars/trucks. He is probably one of their best salesfolks, although he’s not exactly the “salesman” type, although he probably is a good fit with the people who buy his products. He has been doing this for a couple of years and is just now getting a lot of second timers and referrals, so it looks like he’s in a fairly good position. Also, fwiw, he is also a Camp Lejeune graduate.
[quote=“FormerMarineGuy, post:2, topic:369666”]
As stated before, car salesman here.
Hello, my name is Zhanna and I’m 26, female. I have read your answer and I wanted to ask you to help me please with some information about this career… What kind of classes should I take prior to applying to be a car sales person. I really want to be successful and I know I can do it! But I just want to be prepared enough for the competition in selling… Thank you in advance.
Hope to hear from you!
At the far other end of the “car sales people a make a lot of money” spectrum (and some do) when I moved to this area (Eastern Shore of MD) almost 28 years ago I picked up a floor sales job at a Honda dealership. I had a very good track record in sales as a Radio Shack manager up to that point (won tons of regional sales awards etc) and thought it would be a natural fit. I was a young, naive idiot. As part of the backstory of why car sales when I was a Radio Shack manager in Northern Virginia a car sales customer told me how he was making 6 figures and encouraged me to get into car sales. It sounded like a good idea.
You were paid minimum wage and $50-$200 for each car sold. The owner reasoned the cars sold themselves and the sales people were effectively a pair of shoes. You were forbidden to talk price or deal. We were forbidden to have payment calculators. You were to gain their trust, show the car and turn them over to the finance officer. It was (to me) an absurd scenario.
The salespeople at the Toyota dealership next door had a different pay plan and made much more. I sold a bunch of cars and I made less than $ 18,000 that year. I had made more than that as a productive Radio Shack trainee on commission. There was almost no way to make money unless you had almost insane production levels that were unobtainable in that demographic. No salesperson in that dealership made any real money. Needless to say turnover was ferocious. That’s when I decided to get into real estate.
If you are going to make money in car sales be sure the real world demographic potential of the area supports your plan. In a low volume area or with an abusive commission pay structure you are going to be on the short end of the stick.
Sorry did not see the Zombiness until too late.
[quote=“Zhanette, post:28, topic:369666”]
Actually, FormerMarineGuy has not been active on the SDMB since April, 2007 but if you manage to track him down then you might have a very lucrative future as a zombie hunter.
Your best salesmen (and highest earners) are going to be selling late model, high-end used cars, since the profit margin (and commission) on used cars is higher than new cars, and highest on high-end late model cars.
So your used Mercedes / BMW / Lexus salesman is probably the best salesman out there and making the most money.
Yeah, but there are no factory incentives on used car sales.
I have 2 brothers who are presently sellling cars and my father and one other brothers did sell for many years. Everyone in my family has always been top salesmen in their stores and have made the $150,000 to $200,000 . My oldest brother who is close to 70 now has been hurting the past 5 years or so and is down around $50,000. They tell me the average in a decent store is somewhere between $60,000 and $80,000. This is So cal.
I was a cell phone sales rep for 2yrs and always exceeded goal, I had a disagreement with the vp and needless to say in jun I left the cellphone business and started selling cars, My 1st month I made $5,400 second month I made $3,000 and this month I still have 10 days left and I’ve already made about $6,200!! Keep in mind that at my last job I only made 22k and I was top 20 in the company!! So if you’re a go-getter, a hard worker, and good with people I say go for it!!! I’m loving it!!!
Interesting thread. What kind of hours do you have to put in, ABCG?
I work 48hrs one week 52 the next I have a set schedule and love my job:) However this is not a job the ends when you clock out you’ve got to always be prospecting
I do find one statement true though that they told me when I first got in the car business they said they don’t know what “it” is however whatever “it” is you either got “it” or you don’t. And usually you can tell pretty quick:)
Another question: Are you an employee, or an independent contractor, or somewhere in between? Just curious.
Employee. Never heard of a car salesman being an independent contractor.