Stories from the Sales Frontlines

jipster

...is to see young military folks get taken advantage of...

Agree. I hate to see anyone taken advantage of, especially myself. But, isn't that what "Buy Here Pay Here" lots do?
They charge 50% or more than what the car is worth, then throw that on top of a high interest rate. It's the only way a lot of people with poor credit can get a car. The high sale price and interest rate goes to cover the cost of repossessions and nonpayment. At least that's what you guys in the biz are always saying.

british_rover

I will second the USAA idea. You can't beat their rates on insurance or loans.

joel0622

I know we have had the great BHPH discussion before but I will say this. They are just like franchise dealers. Some are very fair in what they do and some prey on the less fortunate. The BHPH I refer folks to does not charge any interest on his accounts. He always jokes that he came up with 0% years before the manufactures did.

A person can make a very good living in any aspect of automotive sales without screwing people. Its all just a matter of if you are in it for the long run or not. Those who are treat each person as they are treated and strive to build a strong, loyal customer base. If you do that it is just like money in the bank.

When I trained sales people prior to going into F&I I always stressed that we are here to make a fair profit on every one and in turn sell there family and friends cars for a life time. We are not the United Way, we are a business for profit but, we are not here to sell you one at a extreme profit to never see you again.

Now if the consumer is a jerk I will rear back and shoot for them moon and have a sense of satisfaction when it is done. I am speaking of those who lable me because of my chosen proffession.

lemko

...is only one hazard of young enlisted folk. The other is those sleazy payday loan places.

madmanmoo

Erk, I don't know if I'm feeling good. But thanks for sharing!

-Moo

benderofbows

I heard that at our local Army base, all new recruits are instructed to go only to the largest franchise dealers in town and stay away from the small lots, especially BHPH.

kyfdx

If he owes $15K on a $7K car, no credit union will loan him that much money on it...

He is stuck..

stickguy

Might be a good chance for the base legal (or whover handles "problems" with the outside world) to visit the place, to work out a compromise.

Let the kids voluntarily give the Saturn back 9so it can be loaned to the next sucker), without reporting it as a repo (if they even bother). Then promise that they will be somewhat more fair in the future, in exchange for not being totally blackballed by every military base in the area. In in the VB area, that must be a lot of their business!

lrguy44

Not necessarily true - Show them an ex service loaner (discounted sat $3000), Discount the car $2000, and if you have $3000 in rebate or dealer cash they are even. No cash out of pocket.

kyfdx

Like I said... they can't refinance with a credit union.

Trading it... maybe.. but, they will still be $8000 under water... and, I wonder at what interest rate? Not sure they are going to be better off, taking on even more debt.

regards,
kyfdx

asafonov

Sad story... hopefully it will have a good ending a year or two down the road.

What I could not help but notice, was the almost 2x spread between the trade-in and KBB "asking" retail values on that Sentra - $6300.00 vs. $11,250.00. Is that typical? Or is it because it is a niche car (with a manual, I assume)?

lrguy44

Sorry, read yours wrong. We do have credit unions that will finance 125% of MSRP or NADA Retail with excellent credit. At least the new vehicle will last the term of a 5 year loan and they will have equity. Or, at the end of a lease term, the upside down is gone. If the car won't last until the loan is satisfied, there may be other solutions.

mazda6iguy

I said "Sure! Do you mind if I go with you?, I haven't sat in the back seat as a passenger on these yet."

Was that true, or was that a 'white lie'?

psorter

"What I could not help but notice, was the almost 2x spread between the trade-in and KBB "asking" retail values on that Sentra - $6300.00 vs. $11,250.00."

yea, after I read that I was thinking there was more then one dealer in this story clubbing the guy like a baby seal

wasn't there just a discussion that a 2x spread never ever happens, and a few hours later a real example shows up that proves otherwise

british_rover

Those are KBB numbers though they aren't REAL numbers.

joe131

Many used car departments at new car dealers will proudly post the Kelley Retail price on their used cars. They are real numbers at those dealerships. And there are lots of them.
But you are right in the other one. Almost no dealer will buy your car for Kelley Blue Book trade-in value. It is almost always less.

mackabee

That was true. The 08 xB is hotter than the pavement in the month of July! I sold one Friday evening but it was one we didn't even test drive. The customer came in last Saturday and I was tied up so I turned him over to my partner. I contacted the customer monday morning and he told me wanted to go ahead with the purchase. I had to dealer exchange his car as we did not have one in stock.
Mackabee

mackabee

I was in Uncle Sam's Canoe Club for 20 years and the CO used to print out a list of OFF LIMITS establishments for military personnel. Well guess where most young enlisteds went? Yep, the off limits places. Mind you this list included strip bars, disco's, and car dealers. I did suggest to my shipmate last night to go to legal and see what they can do for him. Also Navy Federal credit union might be able to refinance him for a lower rate. He is a member and I wonder why he didn't go there to begin with. As I told him last night, chalk it up to experience. Now you know.
Mackabee

mackabee

I agree, however they prey on young military types who are away from home for the first time and clueless. This young man had limited credit experience and believed that was the only way to buy a car. Someone on his base did not do their job. :sick:
Mackabee

british_rover

eheheh Uncle Sam's Canoe Club

That is a new one for me. I had only heard of Uncle Sam's Misguided Children before oh and Christians In Action.

lrguy44

In addition, were you a member (as I was) of the Tonkin Gulf Yacht Club?

jmonroe

wasn't there just a discussion that a 2x spread never ever happens, and a few hours later a real example shows up that proves otherwise

Yes there was but in the case Mack described, these kids were, to use the words of the used car manager, “beaten like baby seals”. When this happens all bets are off. There is no telling how much of a mark up there can be if a buyer isn’t informed.

I’m with the others who cringe when they hear about service guys being taken advantage of especially since I was one of them when I was younger. I don’t blame that kid for wanting to “hurt someone”, but he’d only be hurting himself in the end.

Like Mack said, take it as a lesson learned in life. It’s a damn tough lesson but it only has to be learned once and hopefully he can pass it on to others. :sick:

jmonroe

mackabee

Never heard of that one.
:shades:

lrguy44

viet Nam

british_rover

Gulf of Tonkin Resolution that started the war.

mackabee

This is not typical. This was a buy here pay here lot so who's going to know how much they mark up their cars but them? Highway robbery if you ask me.

Mack

mackabee

I joined as the Viet Nam war was coming to an end. You must be ancient.

Mack

lrguy44

I give a whole new neaning to the old. But if I ever grow up kick me hard

jmonroe

But if I ever grow up kick me hard

There are a few here who would do that to ya before ya get any older.

Couldn't resist. :shades:

jmonroe

lrguy44

:sick: You could not beat me up any more than grinders aleady have :P

mackabee

Sure they are. Why do you say they are not?

Mack

mackabee

yea, after I read that I was thinking there was more then one dealer in this story clubbing the guy like a baby seal

Why more than one dealer.?
Mack

jmonroe

You could not beat me up any more than grinders aleady have

I keep hearing you high end guys have civil buyers; the gloves almost never come off. Soooo, you must be talking about the used car side of the store. :surprise:

jmonroe

british_rover

Soooo, you must be talking about the used car side of the store.


Yeah you are generally correct.

I just took a 400 dollar deal on a used Tacoma we had.

Doesn't matter though as it looks like as Terry used to say, " This guy couldn't buy steam off a hot dog."

lrguy44

And we all did our time at low end stores to learn the biz before we got where we are

lrguy44

We ge some grinders on this end as well - had a fellow grind and grind last week - finally told him no mas - he left without a new car

british_rover

I didn't do my time at a Low End store I did at UPS.

Much, much worse environment.

lrguy44

Amen - did soneone make you an offer you could not refuse?

british_rover

Ehh sort of I will email you tonight.

Did I ever tell the story of how I ended up at Land Rover from a UPS hub manager?

lrguy44

You did, but it was at Jimmy's and my mind was cluttered with fine wine - tell it again

isellhondas

I'm not sure what you mean by "low end" but I know I would have trouble in a high line store.

In my former life, I wore a suit and spent my time in corporate boardrooms. I had a lot of responsiblity and the headaches that went with that.

At this stage in my life, I think I would have trouble dealing with the demanding high line customers and wearing a coat and tie everyday.

lrguy44

isell, had the same background for 23 years. Now I wear cargo pants and shorts. After all, Land Rover is an outdoor lifestyle vehicle.

[Deleted User]

At this stage in my life, I think I would have trouble dealing with the demanding high line customers and wearing a coat and tie everyday.

I've met one of the high line guys and been in another dealership closer to home that sells his brand, and never saw anyone in a suit and tie. My impression of both places was they were pretty laid back, casual, fun place to work My boys even got to play with one of the employee's dog while we visited!

isellhondas

I probably wouldn't be any good at selling Land Rovers. For one thing, I wouldn't look good in shorts and I wouldn't want to be called a "guide".

Also, I have to have confidence in the product.

lrguy44

There is more to life than a "Honda" reputation. Being involved with our product you develop a real passion for it. It is without a doubt the most unique vehicle produced today. Our customers love the driving experience. Repeat and referral is about half of my business - besides, it is a real kick to desk and finance my own deals.

jmonroe

I didn't do my time at a Low End store I did at UPS.

Yeah, I worked for that outfit (for a while) after I got out of the Navy while I was going to night school.

Someday when it's slow here and I'm allowed, I'll tell my tale. Since you were a Hub Manager you won't have a hard time believing this tale. However, as a driver it did pay pretty good.

FWIW, I didn't mean to start something between you high end and low everyday end guys.

jmonroe

jipster

Also, I have to have confidence in the product.

ohhh, that's hitting below the belt dawg. :sick:

But, if Honda is "low end"... at least you can say it is "upper low end".

jmonroe

ohhh, that's hitting below the belt dawg.

Yeah...I saw that too but since I'm not a trouble maker I let it slide.

jmonroe

jipster

...but since I'm not a trouble maker...

LOL. Are you making that comment "off the top of your head"?

I think if I had a chat with Mrs. jmonroe she would have some good stories about what a "real" trouble maker is.

jmonroe

I think if I had a chat with Mrs. jmonroe she would have some good stories about what a "real" trouble maker is.

Once again...BUSTED.

jmonroe