Stories from the Sales Frontlines

scottinky

why did I buy it? I don't know. the whole time I sat there, it was something I knew
I shouldn't be doing, knowing how fuel prices were. I got a great trade in price
on the vehicle I traded. I got money back on the deal, had the same payment,
even though I knew I should go cheaper. just one of those dumb things. my event
video business is starting to feel the effects of the economy, and bookings are
down in my market, so I decided to take the hit now and make it up.

joel0622

At what point will you guys tell SUV owners they're
SOL on trade ins unless they want to take a massive hit.

The current situation actually makes it easier to trade for a SUV because consumers understand that they are not a hot item right now. Allot of them just want to be rid of them and have the monkey off there back at what ever cost. if they were rational about it they would see in the long run that they come out ahead by riding out the gas prices because you can buy allot of gas for the $10K they are going in the hole.

On the same note the folks that puzzle me even more are the ones who are parking there SUV's and buying a new Focus and Fusion for the gas mileage. Even if they Lease it at $275 a month you can buy allot of gas for $275 not to mention insurance and maintenance.

But hey, who am I say? High gas prices are actually good for business some times, and as long as they keep buying I can continue to feed my F150

scottinky

if they are only saving on fuel, and not monthly payment, they are totally
screwing themselves. I am saving on both ends and i feel much better.
you could always sell them a $5K beater car

oldfarmer50

"...you could always sell them a $5K beater car..."

I've got 3 beaters in my driveway right now. I'll sell them ALL for 5K. Make me an offer.

gogiboy

"took in a 2007 GMC yukon with Nav and DVD with 22k on the clock. Original MSRP 52k... It was a battle to get the our whole saler to put $27,700 on it.... they felt the moon was $26500."

WOW! That's a 50% drop in value in one year (or less than a year, depending on when it was sold in 07). If that depreciation trend was to continue even with the cost of gas remaining constant--instead of escalating daily--the gas in the Tahoe's tank would be worth more than the Tahoe in 9 years. Maybe the customer traded it in because he had one of those 84 month loans and was going to be perpetually upside down.

Given this new reality, I wonder what percentage of car buyers, or more specifically, large SUV owners, are upside down in their vehicle after the 6, 7 or 8 year loan is paid off? Given what isell and others have said about wholesaling the big gas guzzlers coupled with the lack of home equity and credit burden limiting the choices of many Americans, I would think there would be a very limited pool of folks willing to shell out for the "privilege". Then again, plenty of my students drive them and full size trucks.

Gogiboy

mackabee

We first offered $4500.00 for it since we didn't want it. The next day when the customer came in we bumped it to $6000.00 but he was still stuck at $8000.00 number. When I told him we were being generous with the appraisal I suggested they sell it themselves. Then they made a stupid offer. Took the trade out but wanted to steal a Camry Hybrid for 2k below invoice. I let them walk. He said they would go to one of our competitors. I said "Great, if it doesn't work out I'll be here but I will not sell you the car at that price." So we parted company as friends. I'm sure he'll get an education at the other dealer too.
Mack

snakeweasel

Not necessarily. If you keep both cars and drive them both each car will last longer than if it was being driven for all your driving needs. Basically all you are doing is buying now and not later.

imidazol97

Middletown (Ohio) Car dealers prosecuted for illegal acts helping sell cars to illegals.

link title

link title

joel0622

I would be interested in reading that story but there is no link in your link title

imidazol97

I reentered the link. Try them both--two different papers. I think I deleted a space in the link markers and that caused the problem.

keg97

Agreed. We just bought a '08 QX56. Do we really "need" it for our needs? Absolutely not, but my wife wanted it. She works hard and we can easily swing it. Thankfully I drive a '04 TSX (paid for) so we've got an economical car in the garage. The only variance we'll likely make is driving the TSX a bit more for short around town errands when the whole family is not going. Before we always took our '01 Pathfinder, partly b.c we knew we were getting rid of it and partly b/c we it was the older vehicle so we put the miles on it. The TSX will take over that role since it has 65K on it now.

I just cannot imagine trading in the QX to get something more economical and losing 5-10K on that trade. That is just not seeing the forest through the trees.

greanpea68

I've got 3 beaters in my driveway right now.

Including a Mitsubishi Eclipse as one of the three :P

GP

greanpea68

Maybe the customer traded it in because he had one of those 84 month loans and was going to be perpetually upside down.

The customer was a perfect lease candidate. They lowered there monthly payment by $265.00 per month and are getting better gas milage

Win... Win for everyone :shades:

GP

greanpea68

We first offered $4500.00 for it since we didn't want it. The next day when the customer came in we bumped it to $6000.00 but he was still stuck at $8000.00 number.

Alright that makes more sense. For some reason I thought you said you offered $12500. :confuse:

GP

mackabee

"Alright that makes more sense. For some reason I thought you said you offered $12500."

You must have been hitting the sauce again GP.!

nyccarguy

Joel

So many people are extremely short sighted and don't see the big picture. They only see how much it costs them to fill up every week.

You made a great point about hybrids a few weeks ago (That it's be cheaper for people to buy a 4cyl 2WD Escape instead of the hybrid). I try to argue that point with people a lot and they don't listen.

m6vx

Are talking Windsor NH??

No, he was talking about Windsor, Ontario.
It's just south of Detroit, across the river.

mattandi

There is still a market for these big buggies. I mentioned earlier that there are some good deals to be had on them if someone has a need. If you have a big family, have something extra heavy to tow, or a business that justifies the need, these vehicles make sense. They never made sense as daily drivers, but tons of them got bought for that purpose. It was all about image, prestige, and a misguided perception of safety that drove the buying decisions. It was a good ride for manufacturers and dealers while it lasted, but that is most likely over for now.

The newer green technologies make sense from an ecological or environmental perspective to some extent. If someone buys them for those reasons, fine, even though there are still some big picture issues and unintended consequences that folks do not usually consider. They still don't make any sense from an economical or financial perspective. The premium paid for those technologies is a net loss for the buyer/owner.

scottinky

I thought I needed the Armada for my video business and having a second kid.
hahahaha, ultimately, a minivan was better suited to our family's needs. I said
screw the image, the van is easier to drive, park, get in/out of, it hauls more stuff,
gets better economy, etc. Would any of you try and steer a young family into
making the correct decision, or just sell them what they want and let them
realize the mistake on their own?

epiney

Including a Mitsubishi Eclipse as one of the three

LOL, plus a modded Dodge Stealth as number 2? :P

greanpea68

You must have been hitting the sauce again GP.!


I just went back and reread your " OP " again. I definately misread your post But I am human :shades:

Officialy I have been off the sauce for 6 weeks. Went down one neck size. Size 24 to a 22" neck. :surprise: So I am going in the right direction. Once I loose another 50 lbs. I plan on celebrating for a weekend and than going backon the program.

I am half Irish and half Italian. I am what I call a " Mic Whopper "...

This will be the first St. Patricks Day I have worked and not drank in 17 years. I am currently 34 in case anyone is doing the math.

Happy St. Patrick's Day to everyone. I hope everyone has the luck of the Irish today.

GP

greanpea68

No, he was talking about Windsor, Ontario.
It's just south of Detroit, across the river

Well I have never been there :surprise:

gP

oldfarmer50

"...I've got 3 beaters..."
"... Including a Mitsubishi Eclipse..."

LOL. They don't depreciate that fast. I'd have to keep it for another year or two.

Of course I keep my cars for 10 to 20 years with an average of 13 so depreciation isn't a factor to me. I wonder which is worth more, a 1995 Eclipse or a 1995 Altima?

And please keep me posted on any other cars you like to bash, I love to buy the "dogs".

madmanmoo

Good for you, GP!

I am also a "Mic Whoper"!

It's amazing how quickly you lose weight when not drinking. I hope it helps with your sales as well. I've found that not drinking has only helped with mine. I have to be sharp to stay 1 step ahead of my genius customers.

-moo

madmanmoo

I can't tell you the number of times I've tried to let people know this. It has NEVER worked. They say that they need 3 rows and plenty of storage because of the 3 children they have. I quietly suggest the minivan, but they all the customers get hung up on the image.

These folks need to go through a pain funnel just like you did. They won't realize it and accept it until they make the mistake.

So, as usual, the customer does what they think is best.

-moo

british_rover

hehe thanks Blank Thought is an old blank post/chat msg/IM thing from the dawn of the internet age.

greanpea68

It's amazing how quickly you lose weight when not drinking. I hope it helps with your sales as well. I've found that not drinking has only helped with mine. I have to be sharp to stay 1 step ahead of my genius customers

Thanks Moo...

Yeah I have a lot more energy which you guys know is a important asset in selling. Like I said or if I didn't I don't plan on doing it forever just till I reach my goals. Than I can celebrate

I would think having a clear head would definately be good when learning a new product and I would think your customers are a little sharper when purchasing 100k vehicle

Hey that's funny your a Mic Whopper also...So you keep up the good work also Moo

GP

greanpea68

Is anyone else having a problem getting to stories from the fron lines or any other forums. For some reason I have to go to " my recent posts " Click on my last post to get to the forum. This is happening at both my computers. Did I set this up with out knowing it or something. Did I click on anything to make it work this way? :confuse:

GP

imidazol97

Isn't it like people who trade a car because it starts using some oil? I can buy lots of oil quarts for the extra cost of trading early...

epiney

Have you guys had more potential customers come in with low ball offers thinking that they could "steal one" during a slow down?

greanpea68

Have you guys had more potential customers come in with low ball offers thinking that they could "steal one" during a slow down?

EP...

Have you forgotten what you have read here at Edmunds. Consumers have been trying to steal deals with "low ball offers" since the beginning. Just look at a few screen names here. Bobst, Oldfarmer, "Jip"ster, JMonroe, COTMC, Tbaxxon, the list goes on but I don't have enough time to write them all :surprise:

If I have left anyone out don't feel bad I will do a revised edition every year. All names mentioned above had no idea there screen names would be mentioned and did not sign a privacy notice

:P
GP

gogiboy

"No, he was talking about Windsor, Ontario.
It's just south of Detroit, across the river

Well I have never been there "

GP--

You're not missing a thing. Imagine a cheaper looking, smaller version of Detroit. There are likely fewer foreclosures since it is Canada. Detroit leads the nation in that category by percentage, but some of MI's misery may be spilling into Ontario since plenty of auto workers reside there. Fortunately at least Detroit gave up the lead in homicides to St. Louis and Philadelphia.

To keep this relevant to the thread, Detroit's mayor only seems to be firing on one cylinder--if you catch my drift.

Gogiboy

gogiboy

"These folks need to go through a pain funnel just like you did."

Moo--

I've heard of folks being put through the proverbial "meat grinder", but I've never heard of the "pain funnel". Same concept?

Gogiboy

epiney

You forgot amad1..2,3 etc. :surprise: Just wondering if was even more than normal as sometimes someone else's pain brings out more brazen behaviour and the vulture in some.

au1994

Starting with a lowball offer as a buyer is just a good negotiating tactic and not unlike the "hit 'em high on the 4 Square" tactic used by some sellers.

I can come up on price as the buyer and you can come down as the seller, but if I make the first move price wise, you can bet its going to be a low number.

oldfarmer50

"...Customers have been trying to steal deals...Just look at a few screen names..."

HEY! :mad: I'm the guy who overpaid by $178 just so your kiddies wouldn't starve, remember? For my trouble I get lumped in with all the cheapos, kooks and Hyundai owners. Thanks a lot.

I liked you better when you were still drinking

Happy St. Paddy's Day. (Now that you've quit, I'm drinking for two now)

nthe

so it starts with a sales story:

i sold 2 vehicles last week that usually die on our used car lot. the first was an 06 civic and the second was a 03 vw beetle. these 2 cars usually have just sat on our lot untill it was time for the auction, yet I sold them when they were less than 10 days old.

now for my personal sales story:
I decided to trade in my elantra for a 08 scion tC on wed last week. Took the car home and everything was great until mother nature decided to play a cruel prank on me. Friday night we had a bad storm come through and at the end of the storm close to golf ball size hail started raining on my less than 3 day old car with just a couple hundred miles on it.

nthe

i sold a hybrid camry a few weeks about below invoice. it was the end of a busy sat and i guess the SMs were feeling generous.

jmonroe

For my trouble I get lumped in with all the cheapos, kooks and Hyundai owners.

Happy St. Paddy's Day. (Now that you've quit, I'm drinking for two now)

Imagine how I feel now. I’m ordering up doubles myself; trying to forget what I own and what you just said about me. :mad:

I might not get through this until the wee hours of the morning.

jmonroe

greanpea68

HEY! I'm the guy who overpaid by $178 just so your kiddies wouldn't starve, remember? For my trouble I get lumped in with all the cheapos, kooks and Hyundai owners. Thanks a lot.

LOL....

GP

greanpea68

I might not get through this until the wee hours of the morning

LOL

GP

jkinzel

A middle aged customer comes to your dealership to purchase a new car. The customer is driving a 15 year old car he purchased new in 1993. He/she has no intentions of trading in the old car, just a new car purchase.
As a sales person, how do you view or perceive this customer compared to someone who drives in a 3 to 5 year old car to make the same type of transaction or may want to trade?

joel0622

Yau are a funny man mack.

I could expand on some of the standard features on the new "Model" but with the fear of being banned for life from here I think I will let it be

joel0622

No difference really, the only thing is that since there is no trade you know you don't have to worry about negative equity and trade negotiations

mackabee

Ouch, that hurts! The tC is a fine car. Mack jr. has one and it's been through 60k miles trouble free. Call the Dent Doctor or Dent Wizard and see if they can take the dings out.
On the Hybrid thing, we are running out of Camry and Prius hybrids. Looks like sticker price time on both, slow sales or not, gas is not getting any cheaper.
Mack

nthe

the prius' here are going for sticker, but the camry hybrid's are not as fuel efficient, and most are just buying the 4 cyl camry, so they have been coming off some. we have had a few used 08 prius, package 1 and they are 23495. we have sold all 4 at that price too.

i do like the tC, as I have been wanting one for the last 2 years, so i finally decided, why not, i deserve one.

i got the automatic with just the stereo upgrade, and since i work for a toyota dealership, i got it at invoice, plus got a 7 yr 100k mile B2B warranty for $600. i will say working for a dealership definitely has its advantages.

nthe

its a good time to sell used like i do. when the economy sucks like it does now, it seems more people go to used vehicles than new. I've sold 9 so far this month.

epiney

Did Eliot Spitzer order one?

epiney

Starting with a lowball offer as a buyer is just a good negotiating tactic and not unlike the "hit 'em high on the 4 Square" tactic used by some sellers.

I can come up on price as the buyer and you can come down as the seller, but if I make the first move price wise, you can bet its going to be a low number.

Yeah I know, but this is "Stories from the Sales Frontlines" There are plenty of how to buy threads.

I was looking for some more stories... c'mon mack!

jmonroe

Yeah I know, but this is "Stories from the Sales Frontlines"...

Then I guess I should give up the idea of trying to coax Joel out of his fear of being "banned for life" for posting with honesty. :confuse:

jmonroe