Stories from the Sales Frontlines

jmonroe · June 2009

(we use different stock number format and different colored key tags for new and used).

You Canadians think of everything. I'll bet you think you're kinda smart too. :shades:

jmonroe

cdn_tch · June 2009

You Canadians think of everything. I'll bet you think you're kinda smart too. :shades:

Not just kinda. :P :shades: :P

graphicguy · June 2009

I don't know that it costs GM nothing to support a dealer. There's the cost of having a Regional GM rep assigned to them. Then, there's the cost of keeping enough staff to train all the dealers (be it sales or service). Then, there's the administrative costs GM has to absorb to deal with all the rules/regs of the franchise. There are people who must administer that, which I'm sure GM wants to trim, too.

So, to say it costs GM nothing I think is a bit short sighted. I'm sure the axed dealers feel that way, though.

imidazol97 · June 2009

>there's the cost of keeping enough staff to train all the dealers (be it sales or service).

My guess is that dealers are charged for sending their workers to training sessions in sales or service? Some of the dealership people on here will let us know if they do pay?

houdini1 · June 2009

IMO the only way GM can figure out how much each dealer is "costing" them is to take their total annual losses and divide by the number of dealers. Sounds stupid, but hey, look at some of their other decisions over the years.

They would have been more on target if they had taken their annual losses and divided by their total number of executives and then started cutting those guys.

fezo · June 2009

I know this is all tossed aside with the current situation but a guy at our church sells Buick-Pontiac-GMC and I was utterly stunned with all the stuff he got, trips he took and bonuses all paid for by GM for hitting this or that target. All that certainly cost GM directly. So did trips to see new product and all sorts of things. I can't imagine they want to do that anymore for places that don't produce.

This dealership got a notice that they were staying right were they are and had promises of all sorts of future support.

jmonroe · June 2009

BTW, a belated happy Mothers Day to all you mothers out there too.

I hope you guys will have a better Fathers Day than me. Guess who decided to invite about 25 people over for Fathers Day? Never mind you know who. So, guess who got to clean off the deck furniture? Never mind, you know that too. I was just about finished with my first assignment and I hear a voice, dont forget the coolers and you have to clean those with Comet and a scrubber sponge. COMET? I thought they quit making that stuff when whitewalls went away. :confuse:

Ill bet Im the one who will have to flip the burgers/wieners too. Just because she made her almost famous potato salad and not so famous baked beans she feels she did her part.

Maybe if things go right Ill have some time today to do something I like to do. Like waxing theOops, I just heard that voice again so that may be out. I think I missed a spot.

Yep, I hope yours is better than mine.

jmonroe

joel0622 · June 2009

Yep, I hope yours is better than mine

Trade ya. I would much rather be sipping a few Coronas getting ready for a party then sitting at work

But on the bright side I just sold a 1994 F350 over the phone for a sales guy who is not here today so he will be happy.

jmonroe · June 2009

...who is not here today...

He must have seniority, huh?

...so he will be happy.

Who says you have to tell him? I'd keep the whole deal for myself if I had to work on a Sunday and a holiday at that. :mad:

jmonroe

joel0622 · June 2009

I am the Finance Guy so I don't sell any more. I cover deals for good sales people all the time.

oldfarmer50 · June 2009

"...I cover deals for good sales people all the time..."

Thursday when the Mrs. and I wanted to test drive the PT I called to make an appointment for about 11:00. I got the sales manager who told me that the salesman who we had been working with was not due in until 12:00. He then added that we should come in at the time we wanted and he would take care of us himself.

When we arrived at 11:00 I was surprised to see our salesman already there. It seems the sales manager was too lazy to work a deal himself and made the poor guy come in early. That's how they do it in New York.

snakeweasel · June 2009

Oh how I wish I could stay home and grill something. I know that I will be dragged to a restaurant I really don't care for (a national chain) only because everyone else likes it and sit in their lobby for an hour and a half because they never take reservations.

Oh and happy pops day to you too.

lrguy44 · June 2009

Maybe it is a control issue, but I would much rather come in early and work my deal personally than trust someone else to do it. Joel, sorry you have to work today. Now I will really rub it in - we are closed on the 4th.

jmonroe · June 2009

When we arrived at 11:00 I was surprised to see our salesman already there.

How about a little follow-up here. Are you or are you not, going to buy this "cute" PT Cruiser for your wife? In case you haven't noticed its been deafeningly quiet here, so, if you don't know, make up something like the sales guys would. :confuse:

jmonroe

greanpea68 · June 2009

I must say I have never seen anything like that happen beofre either. We have billed out the wrong car before but never delivered the wrong one.

I have seen wrong stock numbers billed out on new vehicles.... They were the exact same cars ..... but different VINS.....

One time I saw two new vehicles same in every way except different owners. They were both in the sold line and the sales guys put the wrong plates on the wrong vehicles

Just a little mix up..... That is why a sales person should always double check VINs when attaching plates to a vehicle..... What it really comes down to is laziness!!!!!

GP

greanpea68 · June 2009

When we arrived at 11:00 I was surprised to see our salesman already there. It seems the sales manager was too lazy to work a deal himself and made the poor guy come in early. That's how they do it in New York.

Nope that is how it is done everywhere.... The customer always comes first, than the delaership, than the personal life of a salesman comes after all vehicles are delivered

It is just the nature of the business.... win some loose some :shades:

GP

greanpea68 · June 2009

we are closed on the 4th

For the first time in 4 years we are open on the fourth.... Only 12pm - 5pm.... I bet you can guess what kind of customers we will have that day

:surprise: :P

But the good news for is I have that Sunday off and yes I will take it! I have only had one day off this month.... But now is the time to work everyday!

GP

greanpea68 · June 2009

Any one here having folks cancel deals to wait until next month? I am a little skeptical about this whole program that is supposed to start in 10 days.... You would think we as a dealership would have all things ready to go and set up in place. Such as where are we as a dealership supposed to get these vehicles destroyed? Guess what that isn't set up yet... When are the dealerships going to get their money? If you sell a 100 cars with a $3500 voucher (using the low number for refrence) that would be $350,000 a month that a dealer is waiting to get paid on.... that is a lot of money to be floating around hoping it will come in.

GP

driver100 · June 2009

I am on Vancouver Island this week. We have 4 grandchildren that like to live in the middle of nowhere...population 300, drive for 2 hours on a logging road to get here, kids go to school on a school boat, no cars on their side of the river...we get our suitcases out of the trunk and put them in a boat when we arrive. I would rather be grilling burgers or going to a chain restaurant thean be in the middle of nowhere.

My rental is an 09 Taurus. Good news it is very smooth and quiet, and solid. Comfort is ok with big huge seats and lots of room inside.

Bad news, I miss my 3 Series. Lots of winding roads and fast limits and though this big Ford is much better than older Fords, it doesn't corner like the 3. Controls are awkward too, windshield is massive - looks like bus windshield wipers - even though your only looking out the bottom 1/3 of the windshield. Turn signal/windshield wiper stalk is awkward, it is huge and seems stuck on as an afterthought.

Few cars are bad, and I am sure there are people who are looking for a big comfortable living room to drive in.....but, I think there will be fewer of them around in the next few years.

oldfarmer50 · June 2009

"...going to buy this cute PT...if you don't know make something up..."

OK. Since no one offered an opinion on my idea of offering $16.5 K for it I went in and offered half price--and they accepted it! Now all I have to do is wait for the salesman to deliver it, paint my house and cook dinner for me. Boy, they REALLY will do anything to move cars these days.

Is that what you had in mind? :P

oldfarmer50 · June 2009

"...Any one here having folks cancel deals to wait until next month?..."

What? I can get $4500 more on my PT deal? I'm canceling it right now.

Seriously though, you say this starts in 10 days? I thought the earliest the clunkers program would start is August.

boomchek · June 2009

Actually a lot of stuff that's found at a dealership and that makes a dealership run is in fact paid for by the dealer. From my limited knoweldge on this here are some things:

-manufacturer madated building upgrades and renos
-brochures (as much as $0.50-$1.00 per copy)
-some training sessions and programs
-showroom and lot advertising material
-certain manufacturer madated sales (ie tent sale, dealer pays for his own tents)
-specialized computer software
-access to some functions on manufacturer's delaer support websites
-franchise fees if any

cadillacmike · June 2009

I'm most likely going to have to travel to get my replacement 1995 or 1996 Fleetwood when i get home. It's ok, I could a nice drive across part of the good ole USA when i get home anyway. :shades:

cadillacmike · June 2009

I think I paid $30.00 the day I drove off with my ElDorado convertible. Credit card payment. Of course I had a trade, and it was my 2nd car from that dealer. 5 months later was a different story, i had to pay $2,000.00 down, but that was also a credit card payment and i was able to bet $$$ back from citibank on the purchase. I haven't paid any real initial money out of pocket on delivery since the early nineties.

jmonroe · June 2009

Boy, they REALLY will do anything to move cars these days.

Is that what you had in mind?

Yeah, thats exactly what I had in mind. So, what is you favorite house color and make sure the salesman washes up after the painting so he doesnt contaminate your supper.

jmonroe

cadillacmike · June 2009

I've used USAA for my last 3 or 4 purchases (probably 4) last two were 4.4 and 4.9% - but that was a few years ago (the loans are paid up this year). They are hard to beat, and offer a .25% rate decrease for automatic payments, which makes it even tougher to beat. Plus their web site allows me to see and make additional principal payments if desired, but on 4.4% why bother?? Actually if the loans weren't so close to termination, it would make sense, since other than my home mortgage (5.375%) the car loans are acttually higher than any credit card debt i have.

My last dealer financed car was a problem - over 10 years ago, and the finance company every year without fail tried to slam me for insurance verification - they couldn't be bothered to make a call to an 800 number to verify coverage which i had had at the time with the same ins company (USAA) for a dozen (now 25) years. That more than anything else made me mad about dealer financing. :mad:

cadillacmike · June 2009

Yet another reason I've never driven off the same day. There's always something that I want done on the car and I'm happy to wait the next day (or week in one case) for everything to be complete. My only stipulation is that the date on the stuff had better match with the actual day I'm there signing everything, and NO numbers change - that hasn't happend in over 13 years though.

cadillacmike · June 2009

That's why my last two cars ( and next two) are going to be Cadillacs, no dickering over roadside assistance.

And also why i always insist on a NEW battery installed (and I check) if the car is over 6 months on the lot.

cadillacmike · June 2009

Keep your shorts on - they can email me all thay want - I'm in afghanistan. :sick:

cadillacmike · June 2009

That's why I refer to it as the PS crusier :P

I had a few as rentals - and i stand by the nickname

and I'm over 45, but i won't buy one.

greanpea68 · June 2009

Seriously though, you say this starts in 10 days? I thought the earliest the clunkers program would start is August.

Well that is the thing.... the information I am getting is that it is supposed to start July 1st..... But there is way to much involved.... My understanding is that dealers have to be approved for it, or be signed up for it.... What ever it is, this will be interesting to watch and participate in.

GP

explorerx4 · June 2009

good thing i didn't read your post until today, i'd be ready to blow up!
turns out tv is covered under an extended service plan, so was my mom's car (about a month left).
my wife brought the computer to some of the great computer geeks she works with.
they think it is fixable and are thinking the heat sink got disconnected from the cpu, so it overheated easily. we hope that is what it is.

jmonroe · June 2009

they think it is fixable and are thinking the heat sink got disconnected from the cpu, so it overheated easily. we hope that is what it is.

For your sake I hope it is fixable. However, I never heard of a heat sink that became disconnected. It's not an electrical component that is electrically connected to anything. It's a passive mechanical thingy that absorbs heat from electrical/electronic components so they don't burn themselves up. They are finned something like a like a radiator so they have more surface area for the space they consume. When the right size is used for components that generate heat they are usually quite effective.

I think something got lost in the translation but like I said, I hope it is fixable and without great expense or loss of memory (computer memory that is).

jmonroe

mako1a · June 2009

jmonroe , Hyundai just got a good review on CNBC. John Krafcik (pres of Hyundai NA) is there with a 4 door Genesis. Also stated Hyundai sells more cars than Honda or Nissan. Wow I didn't know that. No wonder isell is so up in arms about them, they're about to eat his lunch. The car he brought to the CNBC studio was a 4 door V6 and cost $36,000. According to him (Hyundai President) Didn't you get a V8 for somewhere near that price?

jwilliams2 · June 2009

Also stated Hyundai sells more cars than Honda or Nissan.

Not sure what he's talking about. Honda outsells Hyundai by about a 4 to 1 margin in the US, and builds a million more cars worldwide. Wouldn't exactly call that "eating" their lunch.

Kirstie_H · June 2009

A reporter from a large newspaper is looking to speak to consumers who is considering purchasing a Hyundai or Kia or have purchased one this year. Please send your daytime phone number and the vehicle you own to ctalati@edmunds.com by Tuesday, June 30, 2009.

Thanks,
Chintan
Corporate Communications
Edmunds.com

tomcatt630 · June 2009

I read that the carmakers closed some dealers to cut inventory down. Extra cars have to be sold for losses to cut the 'sales bank' #'s. Dealers make most of their $ on trade ins, but not automakers.

tidester · June 2009

Consider posting your message in Market in Chaos: When to Buy?. It would fit the topic well.

tidester, host
SUVs and Smart Shopper

jmonroe · June 2009

The car he brought to the CNBC studio was a 4 door V6 and cost $36,000. According to him (Hyundai President) Didn't you get a V8 for somewhere near that price?

That $36K is the window price for the V6 with the Premium Plus option package. That's very nice car and by no means would anyone consider it 'stripped'. The V8 loaded, windows for $42K. I got mine for $38K and change in March. Like I posted a little while back, the dealer I bought from in Ohio now has their internet price for the V8 at an even $1K more than I paid and Ive noticed that their price has gone steadily upward (each month on their internet page), since I bought. So, I think I bought at the right time. Even if I didnt, I got what I wanted when I wanted it and at a much better price than I found anywhere in the Burgh area.

However, its still a Hyundai so it aint on no competing level with a Honda.

jmonroe

speterson1 · June 2009

However, its still a Hyundai so it aint on no competing level with a Honda.

I agree. From the reviews I've read it's probably more accurately competing with an Acura...

deltheking · June 2009

A bit off topic but,

Honda might sell more than Hyundai in US,but worldwide Hyundai sells more than Honda or Nissan.
For the record the worldwide sales leaders are : 1.Toyota 2.GM 3.VW 4.Ford 5.Hyundai 6.Honda 7.Nissan 8.Peugeot 9.Chrysler
In 1999,Hyundai was # 11 in worldwide sales.Just shows the dramatic rate at which they have improved.

snakeweasel · June 2009

However, its still a Hyundai so it aint on no competing level with a Honda.

Ain't on no? Thats a double negative, so what you are saying is that they are on a competing level with Honda.

fezo · June 2009

Very good. richard would be proud of you.

Speaking of which, what has become of him? we need someone to split an infinitive or end a sentence with a preposition to lure him back in.

jmonroe · June 2009

Ain't on no? Thats a double negative, so what you are saying is that they are on a competing level with Honda.

I was wondering when someone was going to figure that out. I was thinking it would be the English Professor but I should have known it would be you. Just don't tell 'isell', OK? :surprise:

jmonroe

driver100 · June 2009

However, its still a Hyundai so it aint on no competing level with a Honda.

I agree. From the reviews I've read it's probably more accurately competing with an Acura...

I thought he meant it wasn't competing against a Honda, more like a Yugo :sick:

Ha ha, couldn't resist that one!

driver100 · June 2009

Very good. richard would be proud of you.

Yes, I have been wondering where Richard is, miss hearing from him. And, where is moo?

snakeweasel · June 2009

I was wondering when someone was going to figure that out.

Well no one found my little mistake from last week (or two weeks ago) when we were discussing "worsted".

stever · June 2009

Maybe you (or some others in the biz) can check out this sort of similar mix-up situation and give the buyer some other (better?) advice. Note that the truck the buyer thought they were getting was sold so they can't just do a swap.

Edmunds Answers

Thanks,

Steve, visiting host

boomchek · June 2009

I saw the question and the problem. Not sure why the dealer would put them in a different vehicle than on the contract either. They're basically driving without insurance and racking up miles on a truck that's bound to come back to the dealer.

stever · June 2009

Thanks Boomchek. I figured their existing insurance would cover a new car for a little while, but that's probably something good to mention over there.

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