Fi Guy says that his District Manager told him to submit the rebate without the Gap and he will find a way to work it out. No problem from what I see everyones happy. Unfortunately the car arrived (really nice Nissan SLR Black on Black) with a paint defect. My wife spotted it while looking over the car. Sales Manager says he doesn't like the looks of it because it appears to be under the clearcoat. He may be ordering us a new car this morning. The defect looks like white specs or tiny bubbles (god rest Don Ho's soul).
And if he did, he might SELL the tape, thereby giving him a Sales Story to tell. hint, hint
MODERATOR /ADMINISTRATOR Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name. 2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h) Review your vehicle
I love reading these stories. I buy a new car every 2-3 years or so (I just like new cars) and I'm probably the most boring buyer ever. I'm probably middle of the road - I always go to the trailer in the back to buy from the internet guy who I've been chatting prices with already, never walk on to a lot without an appt with said 'internet guy', never buy on payment and always stick near 'invoice'.
Plus I generally bring my own financing with an 800+ credit score and never buy a single addon (warranty, pinstriping, whatever). On my last car the F&I person was really grumpy and didn't even interrupt her lunch while helping me since I was just writing a check and didn't want any of the goodies.
On the other side I don't bother haggling over doc fees, holdback, etc - so I am sure they make a profit on me and are happy. I haggle a bit if I've got a trade (never upside down) but I get somewhere between 'my' number and theirs so there's another profit. My deal is 'eh' compared to others but when it's just a few hundred dollars it's not worth sitting there doing the manager dance IMO.
I could never sell cars. I still remember a car I bought with my dad where the world's most stereotypical salesguy walked out with a purple tie, gold rings and a silk shirt and with a dramatic flourish RIPPED the sticker off the car and said 'we are SLASHING PRICES if you buy today!!'. He dragged out the old four square and did the manager dance for about two hours. I'd laugh and walk out if someone did that to me today but I was just a kid then.
Jay, Jay, the money wasn't for me. If it were that easy I'd be writing these stories on a lap top somewhere in a Caribbean island sipping a tall iced tea.
The three hundred or six hundred total is what we ended up giving the customer for their trade in. That was in addition to what we had showed them at first. So we showed $1800.00 trade allowance and ACV was only raised $300 to $1100.00 The customer gets $1800.00 for the trade which is only worth $1100.00 and they are happy. The deal is done. The over allowance comes out of the new car gross which in this case was a negative gross, -$981.00. We got $150.00 back end gross which was a flat fee for the dealership since they elected the 0% vice the rebate. Mrs. J. bought the mop and glo which I don't know what she paid for. So that got back a little money. Since I'm a senior salesperson the manager staff will take a loser deal from me more often than they will for a greenpea or someone less experienced since they know I will get repeat business and referrals from my customers.
If you're still confused let me know. :shades: Mackabee
Here's another one for you. You may remember the couple I put out riding on a Prius and they came back and bought the next day?
Their deal was that I had to beat a competitors price. Hey, when I have a customer in front of me that tells me that they are not leaving without a car. They also had all these pamphlets on Auto Armor, Diamond fusion, undercoating etc. My competitor was selling the package for $1099.00 I told them we'd match it. So the only thing left was the price of the car. So I took a shot. "What price do I have to beat? I asked them. "I think it was $26xxx.00 something like that." said Charley. "I need to know the exact amount so I can come back with a figure for you." I reply. He pulls out the business card from the competitor and I know the person. This won't be the first time I've sold someone she'd worked with and I'm sure she sold some of mine. It happens.
So he gets on his cell phone and call her. He comes back and tells me the price: $26,300.00 out the door including the mop and glo and rust and dust. "Ok. Let me see what I can do." So I go to Jason and tell him. "What! are they on crack?" he exclaims. "who gave them that price?" he asks. I tell him and he plugs the numbers in his computer. "Are they going to be financing with us?" he asks. "Not yet, they have a pre-approval from an online bank. But I'll try to convert them." I tell them. "So how much do I have to beat this price by?" he asks. "I don't know. Let's try $100.00 and see what happens." I reply. So he gives me the worksheet with th figures and I go back to the table. I sit down and turn the sheet over and go over the figures. Charly looks at them and says "Ok, you did what I asked you to do." I reach out and say "We got a deal." I see their shoulders drop and that tells me they are now relaxed. I start getting my paperwork ready, copy of driver's licenses, insurance info, etc. Then I ask them non-chalantly: "What kind of rate did you get through your bank?", Charly looks at me and says "8.9%, I think with our credit that's pretty good." I pause and say "That's a good rate. Our business manager will go over that with you and will probably save you some money. Would you like me to do a credit app?" I ask. "No, that's ok. We'll stay with what we got." he responds. "Ok, no problem. I'm just about ready with the rest of the paper work." I excuse myself, take the deal to the sales manager where he loads it up in the computer and then I take it to finance. I always give my finance guys a short sypnosis of what I'm working with so they don't go in there cold.
The customers go to finance and buy an extended warranty and finance with us. So to make a long story longer we lose $115.00 in the front but make $2400.00 in the back. The customer gets a lower rate, they save some money and they are happy So goes another day in the car business. :shades: Mackabee
Mack, are you on Virginia Beach Blvd with Colonial Chevy, Checkered Flag, RK Chevy, etc or are you on Military Highway with Kline (new name now) and the late model dealers? I really miss all the variety of that place. Not to mention the service folks keeping the business current with inventory. Here we have maybe 1 or 2 Corvettes a year in the entire county.
I saw one post on Craigslist today, and got an almost identical lead at work. Here is the Craigslist post: buying a used car from a dealer < RHZ1 > 07/17 00:16:18
Hi,
We are having a hard time finding a good late model civic or accord to buy as a used car. We are looking for something well maintained by someone who owns the car outright (no lien) and has receipts for all the maintenance. I'm quite surprised that this has been so challenging. We've been dealing with private parties only and are now considering dealers. The problem is that it seems that dealers never have receipts for any of the work and instead offer some 30 day limited warranty (is this what they mean by "certified used"? ) or they'll sell you an extended warranty at a highly inflated price.
Can anyone offer some advice, insight, strategies?
Thanks And here is the email I gotat work: Hi - I am looking for a used 2007 Passat 3.6L FWD Automatic. Here's exactly what I'm looking for. I am looking to do something in the next 10 days. Car: 2007 (Updated Model) Passat Wagon 3.6L FWD Automatic Transmission Options / Pkgs: desired: 4X4 -- Rear Side Airbags, but would consider without optional: "P3L" Luxury package (not looking for it but I might accept it if priced well) Exterior Color: - will consider any exterior color except Red - prefer Deep Black, Shadow Blue or Mocha Brown Interior Color: - will consider any interior color Miles: - less than 18,000 ODO Disposition: - Ideally a trade-in from a customer at the same dealership - Would be nice if service records are available - Should still be under manufacturer warranty
So this is the general idea: These people expect someone else to buy a new car, preferably cash, pay sales tax, service the car, keep the records, and then trade in within a year losing between 10K to 20K, and then they will come and swoop it up, demanding "good price". if you want a late model car with good service records - buy a new car, and service it, don't expect someone else will pay the depreciation for you.
The over allowance comes out of the new car gross which in this case was a negative gross, -$981.00. We got $150.00 back end gross which was a flat fee for the dealership since they elected the 0% vice the rebate. Mrs. J. bought the mop and glo which I don't know what she paid for. So that got back a little money.
Since I'm a senior salesperson the manager staff will take a loser deal from me more often than they will for a greenpea or someone less experienced since they know I will get repeat business and referrals from my customers.
If you're still confused let me know.
Hey, you changed the subject but that’s OK it happens all the time here. My original question was what do you guys in the biz consider a mini?
Now, to stay with your subject, I pay attention, I have to with you guys in the biz. Well maybe I’m just a little confused but I think I’m getting there.
What I hear you saying is that you still lost some money but not as bad as the whole $981 but you’ll make this up on volume (referrals from a satisfied customer). What happens when the referrals are looking for the same type of deal you gave the Johnson’s and they’ll walk unless they get it. So, to get more referrals from satisfied customers you give more cars away. How many losers will the store go along with before they tell their “senior salesperson” to start bringing in some money?
As a major leaguer you can only stand at the plate and watch strikes go by for so long, pretty soon you’ll be in the minors or worse!! :surprise:
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Darn, too bad they want a Honda. I have a 2006 Solara 15,550 miles, all reciepts, garage kept and title (paid cash) cost $28,541 and they can have it for $20k cash. I'm trading in and dealer is offering $18,700. No dice at that price. I don't see their request as being out of line at all. Reality checks out just fine.
J, a mini, flat, hunny, whatever you want to call it is a minimum commission established by a particular dealership. Here it's $100.00, at other stores it's $125.00 and I hear some have retro's up to $200.00 per mini once a certain volume level is reached. Now don't get me wrong. I like to sell new cars at sticker just like the rest of my fellow salespersons. Like I said before, if they don't ask, they don't get. I do have more doubles, triples, and home runs, than strikes. The scouts keep calling me. I'm looking for a management position so when the right store calls I'm gone. :shades: Mackabee
Every dealership has established the minimum a salesperson will be paid on a deal. It may vary from about $100 to $250. It may be more for a unit over 90 days, etc. The salesman is paid on gross profit - pack (payable gross). Say his commission is 25%, and a mini deal at his store is $250. If the payable gross on a deal is less than $1000, he will be paid $250 - or a mini deal. Does that help?
We get a pair of customers in one day and one of my salesman puts them on a 2003 Toyota Matrix. List is 7995 so he marks it up to 8995. They go on a demo and come back, after about 30 minutes or so we agree on a price. 8700.00 OTD Cash. With a new set of tires included. Well they have things that they must do for the rest of the day, so they schedule to pick up the car the next day. Not that great of a deal $750 front end gross after the tires expense.
The next day they come in and they are mad! :mad: Over the last night they look at our website and see the price for the car at 7995. So now that is the price for the car that they want. My salesman comes up to me about what to do. I walk up to the customer and tell them that I will honor the special internet price but that I will not be able to give them the tires too. So they are happy with that. The total new price OTD is, get this, 8946.00 and NO tires. The customer is delighted!
End result: 750 front end - to - 1600 front end. And the customer is happier at the higher price. Weird.
This guy didn't know the difference between $8,700 OTD(with new tires) and $8,946 OTD (with old tires)??? May not be to happy if he ever figures that one out.
According to my fuzzy math it would work out to $604 for the new set of tires. Seems reasonable if they were a decent set.
, a mini, flat, hunny, whatever you want to call it is a minimum commission established by a particular dealership. Here it's $100.00, at other stores it's $125.00 and I hear some have retro's up to $200.00 per mini once a certain volume level is reached. Now don't get me wrong. I like to
Any deal that has over $500 front end profit. I get paid 20% of the front end. So if the front end is $1000 profit for the store I would commision $200. If the store profit is $5000 front end I would earn $1000 commsion.
Does that answer your question?
You have to remember every store has different pay plans.
From what I read here, it apears that when go below certain level on gross, it's a mini regardless whether it's zero profit or say some. I was just curious where it is that cutoff point.
From what I read here, it apears that when go below certain level on gross, it's a mini regardless whether it's zero profit or say some. I was just curious where it is that cutoff point.
If you are wondering if it matters when the deal is aready below a certain point, below our mini commision does it matter? I would say yes! Even though we still get paid a certain amount, let's say a negative $800 deal. In other words the store looses $800.
That bothers me cause I am also in race for the month to get most gross each month.
That's exactly what I was wondering. I thought sales person may stop fighting once it's a mini, but from what you say they make you keep fighting, so you contain losses, if you will.
It makes perfect sense, but of course may hurt sometimes, as your account will get charged for that loser that nobody wanted to touch for months.
I rather give the car away than spend 2-3 hours "negotiating" to end up with no sale. At the end of the month things tend to even out, the bottom line is all that matters. As greenpea68 said, some stores pay you on the back end gross, some don't. Some may have a requirement that you sell a certain number of units before participating on that money others may not. Same with warranty penetration, salesperson may get a bonus for that too. Old units usually get spiffed too. Right now we have a $1000.00 flat on an 06 NEW Highlander. Yep 2006 NEW Highlander. :confuse: Somehow this vehicle was dx'd in from a store up north and ended up getting lost in the shuffle. It has about 280 miles on her and it's a Limited. Whoever sells it gets the prize! :shades: Mackabee
Right now we have a $1000.00 flat on an 06 NEW Highlander. Yep 2006 NEW Highlander. Somehow this vehicle was dx'd in from a store up north and ended up getting lost in the shuffle. It has about 280 miles on her and it's a Limited. Whoever sells it gets the prize!
Now that's a car I wouldn't mind loosing money on!!! :shades:
We have gross bonuses and unit bonuses. So sometimes you want to lose the money to sell a car to get the unit bonus and sometimes you want the gross bonus. ussually who ever sells the most cars won't get the gross bonus and who ever gets the gross bonus doesn't ussually get the unit bonus. When you get both... that is a really good month.
So sometimes when you make a mini at the end of the month it just might help the salesperson make a $1000 or more in bonuses. And then sometimes not if their CSI is tied into it.
I drive a LOT. I generally pass my car down to my husband, then we sell his now very high mileage car. Leasing not good for me. Sides, I keep thinking THIS car will be the one. . For reference, the car we are getting rid of this time has almost 120K on it and is a 2003. /sigh.
I bought a new 4Runner at (I think it is) Macs store in Dec 2002 when the V8 was first put in them and before the 2003 full store remodel. The funny part was during the deal my salesman went to the back for something and I was getting hungry. I went to the manager and asked for my Mustang keys. He thought I was leaving then started the "big close" with me not knowing the salesman and I were both good with the deal and just waiting for F&I. Funny. The old "hide the key trick". So I said then give me keys to that Limited with the tags on it. It's time for food. The guy turned red and gave me keys to the Limited. Good move.
Every dealership has established the minimum a salesperson will be paid on a deal. It may vary from about $100 to $250. It may be more...
Thanks 'lrguy'. That's the kind of answer I was looking for. A while back, on one of these boards, I asked the same question and didn't get a single response.
I was beginning to think my english was bad, but really, how could that be? Like everything else perseverance pays off (almost like grinding).
Thanks again and thanks to all the other guys in the biz who jumped in on this.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
BUT, what do you have to sell it at? original invoice? that could be tough. Would the store allow a salesperson to dip into that $1k to get the deal done?
What the heck happened to the Johnsons?? Did I miss it??? Sell them the Highlander!
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
The guy turned red and gave me keys to the Limited.
A really savvy buyer would have used that to their advantage and gotten a free lunch out of the deal. We all know there ain't too many of them anymore. But like you said that was back in 2003 before you started to hang out here.
I'll bet you won't make that mistake again. Especially if you deal with Mack. Heck, he'd send out for both of you on top of his mini.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
...what happens to his list of repeat customers, referrals, etc? Do they go to the highest bidder, to his friends, or do they belong to the dealership and they can do whatever they want with them?
A salesman at my local Chevy, Cadillac, Hyundai, Mazda dealership retired after about a gazillion years of selling cars - very successfully.
I wondered what happened to his former customer base?
Customers belong to a dealership. Although, nothing prevents a salesman who changes jobs from trying to take them with him. The customers of a departing salesman are called orphans, and for follow up may be split up among the remaining salesman, given to a new salesman, or left to chance if they return. It usually winds up as a mix. A customer may have been assigned to someone, but if they come in and do not ask for the new guy, whoever helps them inherits them.
Every month our local paper includes ads placed by local dealers congratulating their "Salesperson of the Month". For as long as I have been following them (about 12 years) one guy at a particular dealership has been consistently their number one, as far as I am aware he has not missed in that time period.
Recently I visited that dealership and was greeted by the man himself. After he had established why I was there he handed me off to one of his two assistants who arranged (but did not accompany me on) a test drive. That in itself is a little unusual, most dealerships around here tend to want to send a body with you. On my return I was again met by the "salesperson of the month" who enquired as to how I had liked the car and then handed me off to his other assistant who appeared to be a closer/finance guy. All in all a different experience for me. It was like they were acting as a separate business unit within the dealership. As far as I could tell other sales people in the showroom were operating in a more conventional fashion. Has anybody else come across an arrangement like this?
During my 4-month stint in the business, our top sales guy (by far... he just knew everyone in town) could have used a system like that, but he always told everyone he wanted to do it all himself. He wouldn't pass off any deals.
On Saturday morning, he might have 4 potential buyers show up asking for him. He would put one of them riding in a vehicle using his dealer tag, borrow a tag for the second prospect, and start numbers or credit apps on the other two. At some points, he would look like a waiter in a restaurant, deftly moving between parties who are at different stages of their visit (we didn't have cubicles or offices, just a big room with lots of tables like on "King of Cars").
He would get up from a table to meet prospect B at the door upon returning from his/her test drive. "How did you like it? Great, why don't you come have a seat over here at this table and I'll be right with you."
Then he would head over to prospect C to pick up a completed credit app. "Let me take this to the desk and I'll be right back."
After going to the desk, he would check in with prospect D who was still reviewing his paperwork, drop off the first pencil at prospect B's table, and return to prospect C.
Prospect A? Already in finance by this time. It was a sight to behold. The guy sold nearly cars per month, every month.
The customers of a departing salesman are called orphans, and for follow up may be split up among the remaining salesman, given to a new salesman, or left to chance if they return.
Who splits them up, etc.? The dealership, Sales Manager, Owner?
Oops! He was always up near 30 cars. The next closest guy was about 20 cars, and the rest of us were always around 10 (or less...). We didn't have enough walk-in traffic to come close to justifying the number of salespeople they kept on hand.
That's why I eventually quit when another job was offered to me... the management would hold meetings with every salesperson individually to talk about how to improve, etc. They'd tell me that my closing ratio was fine, I just needed to take more ups and then I'd always hit 10 units every month, their "goal" for each salesperson. They wanted the dealership to hit 300 cars, and I was always in trouble for not having enough write ups.
There were just two problems.
First, we were only selling about 200 cars per month, and the top guy had up to 30 of those, but we had 25 total salespeople. That meant the average for the rest of us was only 7.
Second, we just didn't have enough ups coming onto the lot. For the dealership to sell the 300 cars a month, we'd need to either have a much greater than 30% closing ratio with our current level of ups, or at least 10 more ups per day.
A really big day for us was anything over 10 cars... with over 20 salespeople...
We were a satellite store of one of the larger dealerships in the state, located about 120 miles away in a smaller city. That main dealership routinely came close to 1,000 cars a month with 75 salespeople and many of our management staff had come down from the big store. They wanted to run our store the same way but it just wasn't working well for them.
Comments
Unfortunately the car arrived (really nice Nissan SLR Black on Black) with a paint defect. My wife spotted it while looking over the car. Sales Manager says he doesn't like the looks of it because it appears to be under the clearcoat. He may be ordering us a new car this morning.
The defect looks like white specs or tiny bubbles (god rest Don Ho's soul).
That's only because Tidester hasn't driven drunk, got thrown in jail and made a sex tape...yet.
2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible
And if he did, he might SELL the tape, thereby giving him a Sales Story to tell. hint, hint
MODERATOR /ADMINISTRATOR
Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
Review your vehicle
Plus I generally bring my own financing with an 800+ credit score and never buy a single addon (warranty, pinstriping, whatever). On my last car the F&I person was really grumpy and didn't even interrupt her lunch while helping me since I was just writing a check and didn't want any of the goodies.
On the other side I don't bother haggling over doc fees, holdback, etc - so I am sure they make a profit on me and are happy. I haggle a bit if I've got a trade (never upside down) but I get somewhere between 'my' number and theirs so there's another profit. My deal is 'eh' compared to others but when it's just a few hundred dollars it's not worth sitting there doing the manager dance IMO.
I could never sell cars. I still remember a car I bought with my dad where the world's most stereotypical salesguy walked out with a purple tie, gold rings and a silk shirt and with a dramatic flourish RIPPED the sticker off the car and said 'we are SLASHING PRICES if you buy today!!'. He dragged out the old four square and did the manager dance for about two hours. I'd laugh and walk out if someone did that to me today but I was just a kid then.
The three hundred or six hundred total is what we ended up giving the customer for their trade in. That was in addition to what we had showed them at first. So we showed $1800.00 trade allowance and ACV was only raised $300 to $1100.00
The customer gets $1800.00 for the trade which is only worth $1100.00 and they are happy. The deal is done. The over allowance comes out of the new car gross which in this case was a negative gross, -$981.00. We got $150.00 back end gross which was a flat fee for the dealership since they elected the 0% vice the rebate. Mrs. J. bought the mop and glo which I don't know what she paid for. So that got back a little money.
Since I'm a senior salesperson the manager staff will take a loser deal from me more often than they will for a greenpea or someone less experienced since they know I will get repeat business and referrals from my customers.
If you're still confused let me know.
:shades:
Mackabee
Mackabee
Their deal was that I had to beat a competitors price. Hey, when I have a customer in front of me that tells me that they are not leaving without a car. They also had all these pamphlets on Auto Armor, Diamond fusion, undercoating etc. My competitor was selling the package for $1099.00 I told them we'd match it. So the only thing left was the price of the car. So I took a shot. "What price do I have to beat? I asked them. "I think it was $26xxx.00 something like that." said Charley. "I need to know the exact amount so I can come back with a figure for you." I reply. He pulls out the business card from the competitor and I know the person. This won't be the first time I've sold someone she'd worked with and I'm sure she sold some of mine. It happens.
So he gets on his cell phone and call her. He comes back and tells me the price: $26,300.00 out the door including the mop and glo and rust and dust. "Ok. Let me see what I can do." So I go to Jason and tell him. "What! are they on crack?" he exclaims. "who gave them that price?" he asks. I tell him and he plugs the numbers in his computer. "Are they going to be financing with us?" he asks. "Not yet, they have a pre-approval from an online bank. But I'll try to convert them." I tell them. "So how much do I have to beat this price by?" he asks. "I don't know. Let's try $100.00 and see what happens." I reply. So he gives me the worksheet with th figures and I go back to the table. I sit down and turn the sheet over and go over the figures. Charly looks at them and says "Ok, you did what I asked you to do." I reach out and say "We got a deal."
I see their shoulders drop and that tells me they are now relaxed. I start getting my paperwork ready, copy of driver's licenses, insurance info, etc. Then I ask them non-chalantly: "What kind of rate did you get through your bank?", Charly looks at me and says "8.9%, I think with our credit that's pretty good." I pause and say "That's a good rate. Our business manager will go over that with you and will probably save you some money. Would you like me to do a credit app?" I ask. "No, that's ok. We'll stay with what we got." he responds. "Ok, no problem. I'm just about ready with the rest of the paper work." I excuse myself, take the deal to the sales manager where he loads it up in the computer and then I take it to finance. I always give my finance guys a short sypnosis of what I'm working with so they don't go in there cold.
The customers go to finance and buy an extended warranty and finance with us. So to make a long story longer
:shades:
Mackabee
2013 Mustang GT, 2001 GMC Yukon Denali
buying a used car from a dealer < RHZ1 > 07/17 00:16:18
Hi,
We are having a hard time finding a good late model civic or accord to buy as a used car. We are looking for something well maintained by someone who owns the car outright (no lien) and has receipts for all the maintenance. I'm quite surprised that this has been so challenging. We've been dealing with private parties only and are now considering dealers. The problem is that it seems that dealers never have receipts for any of the work and instead offer some 30 day limited warranty (is this what they mean by "certified used"? ) or they'll sell you an extended warranty at a highly inflated price.
Can anyone offer some advice, insight, strategies?
Thanks
And here is the email I gotat work:
Hi - I am looking for a used 2007 Passat 3.6L FWD Automatic. Here's exactly what I'm looking for. I am looking to do something in the next 10 days. Car: 2007 (Updated Model) Passat Wagon 3.6L FWD Automatic Transmission Options / Pkgs: desired: 4X4 -- Rear Side Airbags, but would consider without optional: "P3L" Luxury package (not looking for it but I might accept it if priced well) Exterior Color: - will consider any exterior color except Red - prefer Deep Black, Shadow Blue or Mocha Brown Interior Color: - will consider any interior color Miles: - less than 18,000 ODO Disposition: - Ideally a trade-in from a customer at the same dealership - Would be nice if service records are available - Should still be under manufacturer warranty
So this is the general idea:
These people expect someone else to buy a new car, preferably cash, pay sales tax, service the car, keep the records, and then trade in within a year losing between 10K to 20K, and then they will come and swoop it up, demanding "good price".
if you want a late model car with good service records - buy a new car, and service it, don't expect someone else will pay the depreciation for you.
Since I'm a senior salesperson the manager staff will take a loser deal from me more often than they will for a greenpea or someone less experienced since they know I will get repeat business and referrals from my customers.
If you're still confused let me know.
Hey, you changed the subject but that’s OK it happens all the time here.
Now, to stay with your subject, I pay attention, I have to with you guys in the biz.
What I hear you saying is that you still lost some money but not as bad as the whole $981 but you’ll make this up on volume (referrals from a satisfied customer). What happens when the referrals are looking for the same type of deal you gave the Johnson’s and they’ll walk unless they get it. So, to get more referrals from satisfied customers you give more cars away. How many losers will the store go along with before they tell their “senior salesperson” to start bringing in some money?
As a major leaguer you can only stand at the plate and watch strikes go by for so long, pretty soon you’ll be in the minors or worse!! :surprise:
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
2013 Mustang GT, 2001 GMC Yukon Denali
I do have more doubles, triples, and home runs, than strikes. The scouts keep calling me. I'm looking for a management position so when the right store calls I'm gone.
:shades:
Mackabee
Mackabee
Mackabee
Mack
The next day they come in and they are mad! :mad: Over the last night they look at our website and see the price for the car at 7995. So now that is the price for the car that they want. My salesman comes up to me about what to do. I walk up to the customer and tell them that I will honor the special internet price but that I will not be able to give them the tires too. So they are happy with that. The total new price OTD is, get this, 8946.00 and NO tires. The customer is delighted!
End result: 750 front end - to - 1600 front end. And the customer is happier at the higher price. Weird.
According to my fuzzy math it would work out to $604 for the new set of tires. Seems reasonable if they were a decent set.
Some stores are $50.00... :sick:
Sometimes there will be extra money tacked onto older used cars but not that often.
It's been so hot that composing a picture of something cold was really quite helpful.
tidester, host
SUVs and Smart Shopper
2018 430i Gran Coupe
That was the idea! See my previous post. :shades:
tidester, host
SUVs and Smart Shopper
Does that answer your question?
You have to remember every store has different pay plans.
2018 430i Gran Coupe
From what I read here, it apears that when go below certain level on gross, it's a mini regardless whether it's zero profit or say some. I was just curious where it is that cutoff point.
2018 430i Gran Coupe
At least one of us knows for sure. Let's just say that there will be more truth in stories related to the car sales frontlines.
tidester, host
SUVs and Smart Shopper
Something that comes between alog and clog?
tidester, host
SUVs and Smart Shopper
If you are wondering if it matters when the deal is aready below a certain point, below our mini commision does it matter? I would say yes! Even though we still get paid a certain amount, let's say a negative $800 deal. In other words the store looses $800.
That bothers me cause I am also in race for the month to get most gross each month.
It makes perfect sense, but of course may hurt sometimes, as your account will get charged for that loser that nobody wanted to touch for months.
2018 430i Gran Coupe
Mackabee
Now that's a car I wouldn't mind loosing money on!!! :shades:
We have gross bonuses and unit bonuses. So sometimes you want to lose the money to sell a car to get the unit bonus and sometimes you want the gross bonus. ussually who ever sells the most cars won't get the gross bonus and who ever gets the gross bonus doesn't ussually get the unit bonus. When you get both... that is a really good month.
So sometimes when you make a mini at the end of the month it just might help the salesperson make a $1000 or more in bonuses. And then sometimes not if their CSI is tied into it.
Does that make any sense to you?
2013 Mustang GT, 2001 GMC Yukon Denali
Thanks 'lrguy'. That's the kind of answer I was looking for. A while back, on one of these boards, I asked the same question and didn't get a single response.
I was beginning to think my english was bad, but really, how could that be? Like everything else perseverance pays off (almost like grinding).
Thanks again and thanks to all the other guys in the biz who jumped in on this.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
BUT, what do you have to sell it at? original invoice? that could be tough. Would the store allow a salesperson to dip into that $1k to get the deal done?
What the heck happened to the Johnsons?? Did I miss it??? Sell them the Highlander!
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
A really savvy buyer would have used that to their advantage and gotten a free lunch out of the deal. We all know there ain't too many of them anymore. But like you said that was back in 2003 before you started to hang out here.
I'll bet you won't make that mistake again. Especially if you deal with Mack. Heck, he'd send out for both of you on top of his mini.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
A salesman at my local Chevy, Cadillac, Hyundai, Mazda dealership retired after about a gazillion years of selling cars - very successfully.
I wondered what happened to his former customer base?
2025 Forester Limited, 2024 Subaru Legacy Sport
that's an interesting question you pose though.
another interesting question might be, do salespeople train and mentor one another, and if so, what is the typical arrangement?
Recently I visited that dealership and was greeted by the man himself. After he had established why I was there he handed me off to one of his two assistants who arranged (but did not accompany me on) a test drive. That in itself is a little unusual, most dealerships around here tend to want to send a body with you. On my return I was again met by the "salesperson of the month" who enquired as to how I had liked the car and then handed me off to his other assistant who appeared to be a closer/finance guy. All in all a different experience for me. It was like they were acting as a separate business unit within the dealership. As far as I could tell other sales people in the showroom were operating in a more conventional fashion. Has anybody else come across an arrangement like this?
On Saturday morning, he might have 4 potential buyers show up asking for him. He would put one of them riding in a vehicle using his dealer tag, borrow a tag for the second prospect, and start numbers or credit apps on the other two. At some points, he would look like a waiter in a restaurant, deftly moving between parties who are at different stages of their visit (we didn't have cubicles or offices, just a big room with lots of tables like on "King of Cars").
He would get up from a table to meet prospect B at the door upon returning from his/her test drive. "How did you like it? Great, why don't you come have a seat over here at this table and I'll be right with you."
Then he would head over to prospect C to pick up a completed credit app. "Let me take this to the desk and I'll be right back."
After going to the desk, he would check in with prospect D who was still reviewing his paperwork, drop off the first pencil at prospect B's table, and return to prospect C.
Prospect A? Already in finance by this time. It was a sight to behold. The guy sold nearly cars per month, every month.
-Moo
Who splits them up, etc.? The dealership, Sales Manager, Owner?
2025 Forester Limited, 2024 Subaru Legacy Sport
That's why I eventually quit when another job was offered to me... the management would hold meetings with every salesperson individually to talk about how to improve, etc. They'd tell me that my closing ratio was fine, I just needed to take more ups and then I'd always hit 10 units every month, their "goal" for each salesperson. They wanted the dealership to hit 300 cars, and I was always in trouble for not having enough write ups.
There were just two problems.
First, we were only selling about 200 cars per month, and the top guy had up to 30 of those, but we had 25 total salespeople. That meant the average for the rest of us was only 7.
Second, we just didn't have enough ups coming onto the lot. For the dealership to sell the 300 cars a month, we'd need to either have a much greater than 30% closing ratio with our current level of ups, or at least 10 more ups per day.
A really big day for us was anything over 10 cars... with over 20 salespeople...
We were a satellite store of one of the larger dealerships in the state, located about 120 miles away in a smaller city. That main dealership routinely came close to 1,000 cars a month with 75 salespeople and many of our management staff had come down from the big store. They wanted to run our store the same way but it just wasn't working well for them.