I finally got my first “up” after several hours on a rainy day. An “Up” meaning my first customer and it was my turn to walk out and meet and greet. In essence, I was up. My turn to sell. I remember doing a sail around on a new vehicle the customer was looking at. In the automotive sales industry, that’s jargon for how the sales person demonstrates that particular car’s unique assets. You probably aren’t aware but folks in sales practice walk around 2-3 times a week or more. Most companies have contests where you can win prizes for giving the best “walk around”. My go around wasn’t very good. I wasn’t as knowledgable about cars as other salesmen. Especially since I had about 3 months or less of experience under my belt.
The walkaround seemed to go well. Bluffing my diagram through one of the dealerships many many vehicles. Body side molding, 5 year warranty. Change the oil just every 3000 miles. Etc., etc. But our dealership had a particular plan. Before you could hold the customer out on a drive you had to first figure the trade value out if they were indeed trading a car in. We were told by management to downplay the customers car. That map you could be able to explain to them why your dealership was offering below value of the car. We were told to kick the tires. Check under the hood. Even allow the customer to explain the vehicles faults. That could be used against them when it came to negotiation time. Sales manager can manipulate the numbers to where they “note you” sterling money for your trade but they may jack the price up of the vehicle you are purchasing. My advice is to perform sure you are there when a salesman does view at your trade and only give positive comments. As in, “I am really going to miss this car. I could probably drive it another 40 thousand miles and be fine.” Separation panic could help the salesman know that you aren’t going to piece with it for just anything.
So my walkaround was over and I didn’t try very hard to make this particular customer feel as if his trade was a fraction of junk. I played it very mild and tried to accomplish sure they were at ease. So now it was time to drive the new vehicle.
We were suppose to get the customers information right off the bat. Invite them in. Once they are, they are ours.
This guy didn’t want to allow that to happen. According to the procedure I was supposed to exhaust, I was backing into this tentative car deal.
I got his drivers license and we were recount to ride in the car with them. That scheme you can be there to help answer any questions the consumer might have. Have them drive it to their house so they can feel what it would be like to pull that particular vehicle into their own driveway. It seems in a way to be brainwashing for several minutes. We were told that consumers buy on emotions. And you were supposed to figure out there hot buttons and manipulate those emotions.
We were driving away from the complex now, and the customer looked over at me and said, “Don’t take this wrong, but I hate car sales people.” As a salesguy in training, I had nowhere to go with this customer. His mind way already made up regardless of who he dealt with. I am definite there’s an egotistical person out there who says that’s when you prove you are different. That’s when you sell yourself and not the car. Make them want to buy from you because you will give them their best deal.
We didn’t talk too terribly much on the rest of the trip. I was mad I was selling cars, I had accepted the job offer only because I was inbetween jobs. My resume was everywhere. I hated the crazy hours. I hate putting balloons on cars every morning. And I hated not knowing what kind of money I was going to design. In car sales, the most money a salesman makes is on used cars. The numbers can be changed. While the dealership can achieve $10,000 into a car. They can turn around and sell it for 4 grand more. Even if they effect 500 dollars here or there for cosmetic purposes they still come out way ahead. There is no such thing with unique cars. I think for each unique car I sold in my 3 months of the car business I made an average of $120 dollars a deal. Doesn’t sound too bad, does it? Well, that’s only making decent money if you sell a car every single day. And that doesn’t happen. Probably an average of 15 a month would be reasonable. So if you do the math, you aren’t making a whole lot. So it wasn’t worth taking a whole lot of abuse. But abuse you will take.
My dad told me once not to take that kind of job. He said they have ads all the time in the newspaper. And there’s a simple reason for that. Because they go through many many car sales people. Not many people stay for long. In the 3 months I worked in the business, I saw about 25 people get in the business and come by out. Wonder why you go to a dealership and the saleguy you dealt with last time is gone? Maybe it’s because the turnover is so high.
And each time someone original comes in, they come in with a corpulent head of steam. Stealing “ups” and even stealing car deals sometimes. It’s not even intentional for the most part. You are pushed to be aggressive. And maybe that’s why some car salespeople seem so pushy.
So we finally get back from this drive. I take the guy back to my office. Which is not really an office at all, it’s unbiased a cubicle share by about 3 salespeople. You have to hope when you get back from your test drive that your desk partner or partners aren’t sitting at your desk working with a customer. Because if that happens you have to move to someone elses spot. Then everything is a little out of whack.
I am not sure how it is at all dealerships but the at the one I worked at here is how things worked once you get assist.
The salesperson is a liason between the customer and the sales manager. You may not even meet the sales manager until you’ve bought the car. Sometimes not at all. The salesperson is continuously working to win the customers hot button. That’s whatever is the most important ingredient for that partiulcar customer to say “YES” to a particular car deal. Some folks hot button will be payment per month. Some will be comfort. Some a sense of luxury. It changes between each customer. Most people we are told come in to find their best deal. Not the best deal that the dealership can offer. But whatever makes sense to them. Dealerships seems to prefer that if a customer asks for a 300 dollar payment a month then they will start the negotiations a lot higher. Meaning the dealer assumes that he can get 300 a month so why not go for more. One of the managers told me that you should figure the car payments in your ahead approximately like this. For every thousand dollars you should count 20-25 dollars a month toward the payment. Meaning a $20,000 vehicle would be roughly 400-425 dollars a month for around 72 months. While that’s not always true, it’s a good rule of thumb to hold onto. And a decent gauge to take with you on your next car deal.
So, once you’ve found the hot button, you try to get some type of oral agreement.
“So, Bob, I know you hate car salespeople, and I appreciate you giving me the opportunity to regain your business, but if I can get you to 450 a month could we earn your business today? “
Bob just looks at you and says, “I said we could only pay about 300 dollars a month.”
The sales guy has to once again sell the vehicle.
“Bob, that’s a 2008 vehicle out in the parking lot, you’re trading in your 10 year old vehicle that doesn’t have a warranty. We’re going to give you a grand deal.”
Bob finally says, “Okay, witness what you can do.”
As a salesguy, you head to the sales manager and his office. It seems like an eternity. Waiting as he punches in numbers and asks you what the customer is leaning toward.
Finally they give you a piece of paper with some numbers scribbled on it as if you are back in the 50′s. It may say 480 X 72 Months. Then 520 X 60 months.
The dealer will start really really high. You don’t want to ever obtain a dealers first offer. If you do, you’ve been had. They can always do better. In fact, since that is widely known that dealers start extremely high, they seem to bump the numbers up to an unrealistic offer.
This is where the customer can sometimes lose his patience. There’s always a line next to the numbers where the customer can sign. But the blood pressure seems to rise instantly when the saleguy hands them that little piece of paper.
If I can give you any portion of advice it is “be prepared to walk away.” They usually have your number. Dealerships can be stubborn. They want to make money. They aren’t in the business to give cars away. Salesmen live off commission. And for every one who is making a great living, I would imagine there are 6 or 7 who are struggling. Especially during the colder months when sales are dreary.
I once waited on an older gentleman who had a credit score in the high 700′s. He could finance anything he wanted. But our sales managers yanked him around and tried to get him on a 7 percent interest rate. He could’ve probably financed the entire car lot with his credit. But they let him walk away and I remember my sales manager telling me “Go run after him.” Unfortunately for me, it was too unhurried and that just wasn’t my style. I didn’t blow the deal. The manager did. There is very exiguous power for the individual salesguy. They have to report back and forth to the manager.
That’s they guy making every decision. As for the guy who hated car salesman? He didn’t buy. Hope I didn’t change his belief too much. Afterall, now I am in a different business. Relieve to what I majored in during college. And every time I goto the dealership I had to deal with the same stuff. Even though the salesguy who is trying to find my hot button has no belief I know what he’s trying to do. And that his boss is the man I should be talking to instead of the middle man.
I guess unlike the guy who test drove with me that day, I have some empathy for what these guys go through. You are slow the 8 ball before you even meet a customer. The reputation definitely hurts your efforts before you even say the first word. People are naturally nervous because they want. And you have.
And you are the person who separates them from what they want.