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I'm real good for about two hours and then I just get weary. Others may have more patience than I do.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
.. oookay, I have this property just east of Miami ....
Terry.
Most of the people you talk about could care less about wasting your time.
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2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
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That was a lot more productive!
So you actually worked on Sunday selling cars. I am curious what kind of schedule you work? 7 days a week! if you don't think it's too personal.
2014 Malibu 2LT, 2015 Cruze 2LT,
I usually schedule Thursdays and Sundays off but depending on what I have going on and the seriousness of the customer, I'll come in. I only live four miles away.
I'm usually a pretty busy guy especially since after ten years I get a lot of repeat and referral business.
From all the comments you have made in the past, I would have thought that is the last place you would end up.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
We deal with them all the time.
Sometimes I just want to tell the customers how much the broker just made off them.
How do they get new cars to bring to you? How do they make their money? Do they do brokering in the purchasing negotiations?
Anybody heard of this?
2014 Malibu 2LT, 2015 Cruze 2LT,
Back when Al Gore had just invented the internet, there were a couple of us who put on the "Internet Manager" hat when we were asked to. This was probably nine years ago. At that time it seemed that 95% of the internet leads were pure garbage. I quickly tired of this and washed my hands of anything "Internet".
Since that time, things have changed for the better. A few months ago I was asked to assume this position and I accepted. Our store truly does have a dedicated Internet Department that does nothing but internet.
Still, a lot of the "leads" continue to be junk.
I wonder what would be your percentage estimation and how it would compare to percentage of "just looking" customers on the lot (like to drive, don't even think about buying now).
2018 430i Gran Coupe
Typically a store is open 9-9 six days a week and maybe one Sunday a month plus every Holiday weekend F-S-S-M. Certain stores require the sales people to be present 'bell to bell'; i.e. 8:30A to 9PM or whenever the last customer leaves ( 11:30 PM is the latest for me ).
A good-sized Toyota store will have 20-50 sales people, working in two overlapping shifts. Typical hours are 55 hrs/wk or 220 - 240 hrs a month.
Do other sales people have different situations?
Face to face anyone should sell 20-25% of the people they meet. I'm going to guess ( verification ? ) that i-leads are more like 5% or even less... isellhondas?
You work in a rough but typical store.
Is it Serra Toyota? The GM for Serra is on TV all the time talking about "volume," so just curious. I'm in Huntsville.
Anyway, we have 5 people on this showroom and typically try to move 40-50 new cars per month. Sales hours are 9 a.m. to 7 p.m. M-F and 9 a.m. to 6 p.m Saturdays.
Never open on Sunday and off on Tuesday's.
I've heard the "bell-to-bell" stories for salesmen who were behind the quota the SM or GM wanted. Sounded like a nightmare.
Terry.
My Mercedes guy, who is now retired (I bought two from him), never was on the floor because he had so much repeat business. I think he sold Mercedes for 30 years.
Also, do any dealers hire part-time salesman?
Thanks, Mark
If you ever get the opportunity, play The Judge in Prattville.
I've played better RTJ's than the one here in Huntsville, yet, it's still a very nice course.
Being in car sales is sort of like having your own business because you can go and prospect outside of the dealership and find your own clients of you like.
And I don't think any large franchise dealerships wouuld hire anyone part time because either you're selling x amount of cars or not. Used car dealers might have part time sales staff.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
I see some times people discussing about 3%-4% hold back but I can't believe it. Usually car dealers have so many salesman and huge showrooms, 3-4% certainly won't work I guess.
From what I have seen "car salesperson-wise", I think I could do it and make a decent living. But, I guess the proof would be in the pudding.
Mark
For Sales, especially Toyota's, the number of franchises is strictly limited so that existing stores can build volume in their respective markets which is Toyota's key sales goal. This being said Toyota rewards growing dealerships with more cars at the expense of stagnant ones. They also reward dealerships which invest in new facilities with bonus vehicles. Again volume, volume, volume. The holdback is what Toyota or Honda or Nissan pay to the dealer principal to open his doors and to pay his mortgage, lights, etc. It is between the owner and the manufacturer so the sales people in most places can't even discuss it.
The sales people are normally 100% commission... no sales - no eat - no clothes for the kids - no bills paid. It's pretty simple. The managers and clerical staff are usually on salary with bonuses if certain volumes are hit ( thus the rush during the last weekend of the month, for example ). It can also be tied to CSI scores and profits but volume is what the owner looks at because he needs volume to obtain more holdbacks in order to pay HIS bills.
Profit per vehicle is really a nebulous thing. The sales people are paid on profit above invoice. As you mention a Camry or Corolla sold at invoice has no profit so theoretically the salesperson didnt do his job and should get nothing. Obviously that's not fair for the time spent with a prospective buyer who might for any number of reasons not be able to pay anymore than the invoice amount. But the owner still wants to move that vehicle so the deal is done and the sales person is paid a 'mini' which is usually $50-100.
In the case of Toyota's it's pretty simple any car under $20K has little or no margin essentially so every deal is a mini for about $75 to the sales person. That goes true for any vehicle on sale in the paper ( 4Runners and Tundras now ) and any vehicle where the buyer has significant negative equity ( nearly everyone now ).
It's one of the reasons why you find such a high turnover each time you visit a dealership. Newbies start and soon find out that the 7-11 acorss the street pays more. When you begin you know nothing and suddenly you sell a $42K Sequoia to a family who must have the room for their six kids. But the family has $6K negative equity on their 2 yr old van and only $1200 down. The deal is made and the sales person is paid $75. At the end of the month he/she has had a typical 12 car month and finds that the total income made for 220 hrs of work is $1475 before taxes. Two months of this and its sayonara.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
2018 430i Gran Coupe
Every store is run different ... what is common at the dealership next door might not be common at the dealership 3 miles away or the one 30 miles away .. just like any other business.
Terry.
Exactly! I know we sure don't operate that way.
We sell our cars for what they are worth and according to the marketplace. If someone is buried 6000.00, they better be prep[ared to write a check in most cases!
Take the Sequoia I mentioned in the post. Say the MSRP is ~ $42K with an invoice of ~ $38K. Most lenders have limits on how much N/E can be rolled over onto a new purchase..approx 10% ( You couldnt roll $10K N/E onto a base corolla @ $14K MSRP for example ). The N/E has to be accounted for in one way or another. The buyer still owes it to the previous finance company. Thus he can stroke a check and pay it off ( by far the smartest move ) or roll some or all of it onto the next vehicle loan ( much more common since most people dont have $6K laying around ). If you add $6K on to $42K MSRP the lender may balk and decline the loan because it exceed their limits. $6K is probably doable in the case cited but $10K is too much.
If the lender approved $6K being added to the $42K MSRP then the loan will be approved for ~ $48K + Taxes etc. say ~$50K. This is ~ $850-900/mo x 72, WAC.
But..
The buyers have to budget this payment into their lives.
Buyers with six children !! coming out of a van with a $398/mo payment now need seating for eight. Their options are: keep the van and buy a second veh or get an 8 pass veh. If they have good credit but limited cash which is the most common situation they might be only able to swing $700/mo Max.
On the one hand then there is the lender who has limits and on the other the buyer who also has limits and then seller who must decide if moving this $40K item of inventory is worth taking a zero deal. The seller, if he wants to sell this Sequoia, has to cut his margin to zero and sell the vehicle at invoice ~$38K then add on the buyers old N/E which has to be paid to the old lender plus Taxes, etc. The new financed amt is now ~$44K with payments in the high $700's. x 72 mo.
It's the buyers decision to determine if they can swing this now. The seller is 'all in' in that he has cut the Sequoia to the invoice with a margin of $0. For this the salesperson gets a $75 mini on a $$44K transacton.
This is how Negative Equity eats up a salesperson's paycheck. That is if the deal is done and the buyer agrees to a payment in the high $700's. If the family cannot swing the jump in payments then there is no deal and the vehicle is not sold and the salesperson gets nothing.
I don't know...maybe Sequoias aren't selling well and it doesn't matter?
Then it gets worse...maybe the buyer doesn't have six kids. Maybe he just has one child but he just had to have that cool new Sequoia a year ago. Let's make sure it's the top of the line, NAVI, upgraded wheels etc.
So, he rolled a bunch of negative equity into the Sequoia and agreed to make 800.00 payments for 72 months.
Then, something happpened...he got transferred to a different position which added 30 miles each way to his commute. Gas hit 3.00 per gallon, and suddenly the 12 MPG Sequoia isn't so cool anymore.
Now, he is REALLY stuck!
2018 430i Gran Coupe
The biggest Internet Toyota store in our region has every vehicle in its inventory, except the Prius, on sale online at invoice or less... 'turn and earn'.
2018 430i Gran Coupe
2018 430i Gran Coupe
More commonly its the vehicle buying urge that creates this scenario. Most vehicles are owned for only 3-4 yrs now.
If I do as you suggest though I'm not doing my job if I spin a prospective buyer off the lot and he moves across town to one of the other 6 Toyota stores and does actually get a Sequoia.
If a car salesman doesn't sell cars, he doesn't eat or pay his bills or care for his family. Gotta take care of you and yours before you can worry about other people's troubles. Brutal but true.
Here is the flip side to the 'mini' though and this might be characteristic only at Toyota stores. At a Toyota store you can make good money just doing mini, after mini, after mini. It's a tremendous amount of work but a non-stop hustler can deliver 50+ vehicles a month.
I understand not all of this is known when a guy/gall steps into a parking lot, so everybody deserves a respectful attention when they look at first. I am only saying within parameters given by you, i.e. it is already "known and decided" the vehicle goes for "invoice or less" and there is a negative equity, not so good credit, etc.
2018 430i Gran Coupe
At least in the commission business there is only one person to blame. Me, I am responsible for myself. Sell or get out. In the 'mini' game it's tough so you have to understand Toyota's greater scheme. If you want to make a good living then sell 50 Toyota's a month, that's all it's easy...volume, volume, volume.
Most people cant put this much effort into work though. They end up at 10-15 vehicles/mo.
2018 430i Gran Coupe
2018 430i Gran Coupe