Stories from the Sales Frontlines

cotmc

In the other extreme, there was a song in a Simpsons episode several years ago that was fairly humorous. I think this was the episode where Marge learned to drive a big SUV.

--------------------
Can you name the truck with four wheel drive,
Smells like a steak, and seats thirty five?
Canyonero! Canyonero!
Well, it goes real slow with the hammer down
It's the country-fried truck endorsed by a clown
Canyonero! Canyonero!
Twelve yards long, two lanes wide,
Sixty five tons of American pride!
Canyonero! Canyonero!
Top of the line in utility sports,
Unexplained fires are a matter for the courts!
Canyonero! Canyonero!
She blinds everybody with her super high beams
She's a squirrel-squashin', deer-smackin' drivin' machine
Canyonero! Canyonero! Canyonero!
Whoa, Canyonero! Whoa!

british_rover

http://www.youtube.com/watch?v=pgV9Kp8QzOA

rworrell

We once had what I called the "Axis garage." Through happenstance, we at the same time owned a BMW, a Mitsubishi and an Alfa Romeo (i.e. Germany, Japan, Italy). It certainly wasn't planned and I actually felt kind of bad about it...

geffen

Are those all new car trade ins? Would some of the rebates being offered take up some of their negative equity in their trades?

jack47

If people would in this world would spend more time taking responsibility for there own actions and quit trying to find a way to blame it on some one else we would all be allot better off.

Right...like Reid, Schummer, Pelosi, Kennedy and the rest blaming Bush for every evil.

joel0622

geffen, yes rebates will help some but for what they help you on the front they hurt you on the back. Whenever we get ready yo trade for a current or late model car the UCM always ask "What kind of rebates/programs are on the new ones?" The reason being is that lets say you are looking at a 2008 Zorch, one of the new models with several upgrades from your 2007. Right now with all the programs you can buy a new 2007 for $20K minus the $2500 rebate and there is a 1.9% rate for 60 on top of that. In order to be able to show a used one at a value you have to be in it awful cheap.

That is one place that allot of the imports have done a much better job then us in the domestic product. They have always understood that you sell product not price. We have gotten into this vicious cycle of selling price and rebate that we can't get out of it. If you can't get a $5000 rebate or 0% the average consumer knows that hey if we just wait it will come along eventually.

I always get a kick out of people that tell me "3.9%!!! Are you crazy I ain't paying that.

jipster

Don't forget the disclaimer at the end. "The Federal Highway Commission has declared the Canyonero unsafe for highway or city driving." :P

graphicguy

The Little League team I played on in my youth (many, many moons ago) in my home town is in the Little League World Series. I've got nothing to do with them, but still am proud.

british_rover

If you can't get a $5000 rebate or 0% the average consumer knows that hey if we just wait it will come along eventually.

I always get a kick out of people that tell me "3.9%!!! Are you crazy I ain't paying that.

Yup people have gotten addicted to rebates, incentives and special financing. It is the perception of a deal that is more important then the actual deal. If they can't get 10,000 dollars off a car then they just won't buy one cause anything less is not a good deal. :confuse:

jipster

Hope they go all the way gg. Our Little League team from Louisville (Valley Sports) won the Little League World Series about 4 years ago. Very exciting time.

lemko

Is that $1,900 a month net or gross?

If it's gross, even with the $700 a month child support, she really can't even pay her mortgage. They say a person's mortgage should be no more than 28% of their gross income. Her mortgage payment is $950, which is quite cheap this day in age. Did she buy her home before the RE market went psycho or does she live in a really depressed area?

Anyway:

$1,900 + $700 = $2,600 gross monthly income.
$2,600 x 12 = $31,200 gross annual income.
$31,200 x .28 = $8,736 / 12 = $728.

Her mortgage alone is 30.5% higher than it should be or 36.5% of her income. The very ceiling for anybody's debt-to-income percentage is 36%. She is already over that limit by .5% and I haven't even included stuff like credit card debt or student loans, etc.

isellhondas

Yes, a monster has been created.

People expect ro buy new cars for nothing AND get 1.9% financing at the same time.

It's called mortaging tomorrow for today's sales and the car companies have created a nightmare for themselves.

xrunner2

Little girl tonight, she is the related to an employee here, she makes $1900 a month and $700 child support, her mortgage is $950. She signed up for a $266 payment and was an auto approval at the bank.

IMO can she afford that car? Hell no she can't.

Was that for a used car?

Wonder how many people buy cars (for personal use), new or used, for cash. What happened to the "very old" practice/mindset of only buying what you can afford to pay with cash, only exception being a mortgage for house (with good down payment).

Understanding need for life's essentials (housing, food, utilities, transportation to job, re taxes, medical, etc) all other items (new furniture, big screen tvs, ipods, cable tv, vacations, fancy wheels, etc) should only be bought when enough funds accumulated to pay in cash. Realize this would put a crimp in sales of new cars through financing and would especially cut into sales of cars with frills (sunroof, leather, navi, dvd rear tv, etc).

dino001

Yes - we all live in a lie, but it's no different that in every other retail. How about clothes with "every day" low price shown 30% off listed retail (who would buy them at retail price beats me), 50% off bloated furniture price, phoney discount coupons for repair garages, or other stuff. It's all the same pattern - auto companies are just cathing on.

It really hurts companies with bad or trully overpriced product. The ones with more desirable one would be smart to simply adjust their nominal pricing and then adjust it with incentives to claim you get a discount. I would say lower interest APR (say 3% on 2 years or 5% on five) or some 500-1000 customer cash is not really a big deal and in today's market may be seen as sign of health. It's only those 10 grand off MSRP offers plus 0% financing that I would say are signs of real trouble.

I remember BR complaining about people telling him they could get a Cadillac with thousands off and low interest. The good line to respond would be if you believe that Caddy was worth its MSRP at the first place, you really are getting a good deal. However, if not then it's not a good deal - just a market value adjustment to what that car is really worth.

roadburner

I took a digital meat thermometer I had in my desk out on the lot today and stuck the point of it down in the asphalt. It read 116.2
It is hurting our business and my yard

I don't want to see businesses or farmers suffer, but I don't care if my yard doesn't see a drop of rain for another month or so. I haven't started either ZTR for a couple of weeks and the grass is turning brown and crispy- just the way I like it!
Did I mention that I despise yard work? :P

roadburner

If people would in this world would spend more time taking responsibility for there own actions and quit trying to find a way to blame it on some one else we would all be a lot better off.

Amen!

fighter1

People want to buy new car for invoice +$100.00. I see no reason to pay MSRP value because somebody want to get new plasma TV:-) Internet helps me to find and negotiate best deal. Last week my friend bought new accord for invoice -$300. Some dealers want MSRP for it:-)

Kirstie_H

Is the Auto Sales Profession for Me?

joel0622

Wow you are quick

british_rover

She is using those Precogs again.

madmanmoo

Don't you just love that visual? :P

-Moo

user777

That's a really interesting topic. Probably worthy of it's own forum: "What the future holds for car sales".

kiawah

Fighter, great deal on that Accord.

cotmc

Not necessarily... Check the Accord Prices Paid discussion topic. When the new designs show up for MY08, MSRP might be typical, but not for the remaining '07 models.

mackabee

Take the car back!!! Your friend paid too much! Our Honda store is selling all remaining Accordions for $1500.00 below invoice plus the 2.9% financing!!
Mackabee

oldfarmer50

"...If they can't get $10,000 off a car..."

The only car I have seen recently with that kind of deal is Mercedes Benz. They have dealer cash of 10K on some models according to Edmunds.

british_rover

Funny back in 1999 there was a Land Rover magazine add about that study.

I think I have a copy of it some where I will scan it if I can find it.

geffen

Must be a slow day this friday? or is everyone waiting until closing time to come in to make a deal?

british_rover

We had a pretty busy friday all things considered.

lrguy44

How did the audit go? We have yet to have ours yet. Was it totally a different experience than in the past?

british_rover

They are starting to phase in the 2008 changes now so it was some what different but not completely. I aced it of course cause I can remember almost anything as long as I organize it the right way.

Starting next quarter you will have to do all of the new requirements but they won't count against your score. The first quarter of 2008 they will deduct for missing the new elements.

They probably will make you take them on the off-road course and might want an on road demo too.

rlatham

She was approved through her own institution. The thing I was just dumbfounded over was how did she still have that car?

tidester

If you can read this you know the hosts are not amused.

tidester, host
SUVs and Smart Shopper

mackabee

Oh come on tidester! Just a little fun to brighten up the day.

Mckaebe

british_rover

I missed something.

jmonroe

Wow. I echo the comment of a previous poster - good luck to that 4-year old daughter they have, at this rate her family's going to be a financial wreck by the time she's college age.

Yeah I feel for that little girl too. With the genes she had passed onto her by her nitwit parents that girl will have a lot more to worry about than going to college.

Believe me, she ain't goin to no college no way.

jmonroe

mackabee

I hope you guys don't fall in the 45%
Mackabee

lemko

Yeah, on that ugly R-Class minivan thingy! Yuck!

british_rover

The R-Class is probably the biggest Flop Mercedes has had well ever maybe.

I can't think of anything they have built that has done so poorly.

They are reducing the price of the next model year car by several thousand dollars to try and make them move. People that bought the loaded R500 models brand new instead of leasing suffered 30,000 dollars of depreciation instantly.

lemko

Was her institution Bellevue, Ancora, Atascadero, Byberry, Norristown, or Friend's Hospital?

mackabee

It doesn't happen very often but I had to do it today. A repeat customer of mine came in with his wife who is five months pregnant with twins. They were looking for a Sienna XLE Limited with everything plus the kitchen sink.
Now I've sold them, their family, and friends five or six cars and it's always and ordeal with them. They are of a certain culture that feels they must negotiate every single penny and then some, and don't stop until they feel they've won. Plus after the negotiating is done they want something "thrown in" for good measure.
The 07 Siennas are just about gone as the 08's are already being built and getting ready to ship in the next few weeks. So finding exactly what they want is next to impossible. They want an XLE LTD with nav, DVD system, laser cruise, HID's, power third row seat, etc. The only things they didn't ask for was running boards or satellite radio. The wife wants a Salsa red pearl with the above features. I asked her what her second color choice would be in the event I couldn't find a red one. "In the event I can't find a red one, what's your second color choice.?" I asked. "Could I see the color samples?" she answered with a question. I brought the sample s over and she is looking at them and chooses the Nautical blue. I leave to the SM's office and the GM just happens to be working deals today. I ask him to locate me such vehicle in all colors so we don't have to do one by one. We find a Nautical Blue at a dealer close by with all the options we're looking for. We also find a red one about 450 miles away without the laser cruise control and HID's. I go back to the table and tell them about the vehicles. "I found a blue one nearby which I can get today if necessary or first thing monday morning. They are already holding it for us." "Ok, so what's the price?" he asks.......TO BE CONTINUED.
:shades:
Mackabee

geffen

Whew glad this story isn't about me LOL :shades:

mackabee

I was going to write more but it was a trying day at work. If it weren't for repeat customers I would be so far behind that I would think I was first! My middle son was away for a week in Vegas so I got to drive his Prelude SH :shades: for the whole week! Now, I'm a true blue Toyota loyalist so I wore my shades all the time hoping nobody would recognize me at stop lights It is a fine driving car, I'd put it up against the bimmers and eat their lunch for breakfast. I have to watch my speed as the legislators here in VA have passed some ludicrous fines for speeding Not that I would ever do that but I do enjoy rowing gears once in a while on a nice handling ride. Did someone say earlier Preludes were "girly" cars? :mad:

Mackabee

epiney

Did someone say earlier Preludes were "girly" cars?


Who said that? That was my first new car (over 20 years ago ) Cost me a relative fortune. Loved that smooth stick. How can a girly car come with no power steering? :mad:

nj2pa2nc

love to read about your experiences-you should write a book-it would be a best seller. keep them coming- what part of VA are you? I drive thru VA alot I guess it is good not to have a Va driver's license especially if you have a lead foot- I try not to speed by using cruise control but on 95 it is hard to use at certain times

kiawah

You missed my double wink, I was being slightly sarcastic. Poster was claiming what a good deal they got, instead of 100 over invoice, they got 300 under invoice. What else can you say after the deal is done, when the going rate for end of year accords is 1500 or more under invoice.

mako1a

I have been seeing a lot of news lately about floods and they show many cars from partially in water to completely submerged. What actually happens to them? Are certain states more prone to receiving these because of titles not showing flood/salvage? Do reputable dealers sometimes get them? What do they do with them?

mackabee

I'm in Va Beach. Are your license plates the same as your user name? I've seen some plates similar to that.
Mackabee

cotmc

You missed my double wink, I was being slightly sarcastic.

Sorry, Dave! A double wink implies sarcasm? As Johnny Carson used to say, "I did not know that!" Thanks for schoolin' me.

joel0622

Some of them end up on note lots, some have the title washed and end up on used car lots, and allot of them end up at the junk yard sold for parts.

Washing a title is the process of getting a title for a car in one state and then going to another state and applying for a lost title. The end result is a washed title. It was a common practice back in the day when you could not track a cars history and still takes place I hear in Mississippi and Alabama.