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re: Any car salesman?
Posted on 12/29/17 at 3:53 pm to Ramblin Wreck
Posted on 12/29/17 at 3:53 pm to Ramblin Wreck
I'm a finance guy, yes, we have lost money on some deals. Older units that need to be moved or if we're close to a factory bonus. It is true that we make money on the back end in financing, but none of that is guaranteed. If someone defaults on a loan, that's mostly gone. If someone cancels a warranty, that's gone.
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Posted on 12/29/17 at 3:56 pm to Ramblin Wreck
Only go to a dealership for repairs if it is under warranty. You can take it to a shop. If you tell them you want oe parts, it will cost a little bit more, but you will still save on labor. Mechanics may be a little more trained on that make of vehicle, but it still doesn't make them better techs.
Posted on 12/29/17 at 3:57 pm to Ramblin Wreck
I have said this on several posts if the same topic.
My dad owned 2 dealerships and no matter how much you haggle the salesman or sales manager, the only person that you are actually screwing is the salesman.
The salesman does get numbers bonuses so they make it up in the end but some deals they may literally only make $100 which is like a minimum deal.
The dealership never loses money unless a car has been there for over 90 days and then the floor plan starts to suck.
So every time you thought you were awesome at negotiating, and bragged about how much you got them to drop the price, the dealership made a very good dollar amount on you. You just screwed a working man from earning a little money, aka the salesman.
Also, the service department makes so much freaking money, it’s silly.
My dad owned 2 dealerships and no matter how much you haggle the salesman or sales manager, the only person that you are actually screwing is the salesman.
The salesman does get numbers bonuses so they make it up in the end but some deals they may literally only make $100 which is like a minimum deal.
The dealership never loses money unless a car has been there for over 90 days and then the floor plan starts to suck.
So every time you thought you were awesome at negotiating, and bragged about how much you got them to drop the price, the dealership made a very good dollar amount on you. You just screwed a working man from earning a little money, aka the salesman.
Also, the service department makes so much freaking money, it’s silly.
Posted on 12/29/17 at 4:12 pm to Fat and Happy
quote:
So every time you thought you were awesome at negotiating, and bragged about how much you got them to drop the price, the dealership made a very good dollar amount on you.
If I'm buying new, the salesman is told up front he's getting a spiff and nothing else. Every single aspect will be negotiated. And at the end, I might just put the whole purchase on a card. And if they try to charge a percentage, I walk.
Sorry, I'm not there to be a friend.
The salesmanager should be happy to see me leave. The finance guy should feel beat the frick up.
It is what it is.
Eta: I'm actually not an a-hole, and these guys greet me like a buddy when I go to get parts.
This post was edited on 12/29/17 at 4:16 pm
Posted on 12/29/17 at 4:15 pm to BossierTigerFan24
The answer is yes. Our dealership avg 500 total sales a month. If the avg per car profit was $2K AVG then our end of month gross profit was $1MM - who cares if we lost $5K on one sale.
Remember this - each dept New Sales, Used Sales, Finance, Parts & Service work independently of one another.
Remember this - each dept New Sales, Used Sales, Finance, Parts & Service work independently of one another.
Posted on 12/29/17 at 4:19 pm to AncientTiger
quote:
If I'm buying new, the salesman is told up front he's getting a spiff and nothing else. Every single aspect will be negotiated. And at the end, I might just put the whole purchase on a card. And if they try to charge a percentage, I walk. Sorry, I'm not there to be a friend. The salesmanager should be happy to see me leave. The finance guy should feel beat the frick up. It is what it is. Eta: I'm actually not an a-hole, and these guys greet me like a buddy when I go to get parts.
This is me besides putting it on card part.
Posted on 12/29/17 at 4:21 pm to BossierTigerFan24
The card is an amazing closer. Wait until you're done with paperwork then pull it.
Ol baw's eyes will get big as a fat girl's nipples.
Ol baw's eyes will get big as a fat girl's nipples.
Posted on 12/29/17 at 4:25 pm to X123F45
quote:
I'm actually not an a-hole, and these guys greet me like a buddy when I go to get parts.
Yeah because it’s their job to be nice to you.
Posted on 12/29/17 at 4:27 pm to BossierTigerFan24
Most manufacturer's incentivize dealers on a volume basis. So they will pay a dealer $XXX per new vehicle sold if the volume objective is obtained. So, dealers will lose money on some deals to hit their objective.
Posted on 12/29/17 at 4:37 pm to Dire Wolf
quote:
Yeah because it’s their job to be nice to you.
Ever worked in sales?
Your favorite customers are the pushovers and the ones who work you.
It's been five years and they still come find me and greet me by name.
Posted on 12/29/17 at 4:44 pm to TheSHU
quote:
TheSHU
Are you going to let me know when you get close to your volume objective? I might be able to afford one of those new 4x4's then
Posted on 12/29/17 at 4:44 pm to X123F45
I bought a !3 jeep wrangler new in late 2013. As people know dealerships usually don't come much off sticker on these things.
Sticker on mine was 36k. I bought it for 29500.00 I am sure the dealership lost on the deal.
Sticker on mine was 36k. I bought it for 29500.00 I am sure the dealership lost on the deal.
Posted on 12/29/17 at 4:47 pm to Polycarp
quote:
They can lose money on a deal, but they will make it up on financing.
That is your fault, because you have shitty credit.
Posted on 12/29/17 at 4:49 pm to LSUgolf
quote:
I bought a !3 jeep wrangler new in late 2013. As people know dealerships usually don't come much off sticker on these things.
Sticker on mine was 36k. I bought it for 29500.00 I am sure the dealership lost on the deal.
Wierdly enough I eas shopping a dealer in baton rouge against mac haik on a pro4x Nissan. I mentioned the Nissan was 34k, without blinking, the sales guy says, I'll do 34 all day.
Posted on 12/29/17 at 5:04 pm to BossierTigerFan24
I'm sitting in a dealership right now. Worked the deal by email.... Tradein and purchase. They got within 700 of what I wanted to finance. I had pre-qualified for 3.2% so they offered me 0% which more than offset the 700. The hiccup came when the black truck they said they had came with a 6"lift....no good for me. So they brought a black one in from another dealer.... It had black wheels so I had them change them to silver. Then I looked inside and it had red accent door and dash panels.... No thanks. Looking at other colors now.
Posted on 12/29/17 at 6:05 pm to BossierTigerFan24
quote:
I've had several people swear up and down to me that they really can lose money on some purchases. I don't believe it.Confirm to me this is false please.
With the auto industry's funky definitions of cost and profit, they probably "lose money" in the front on a lot of deals.
You can't let a trash dick salesman get a true 15-35% of a true profit.
Trust me, they ALMOST NEVER lose money on a deal. Their "costs" just: include a number pulled out of their arse, called pack, that is included as costs on every unit; includes money that has been shifted to the service department; doesn't include the manufacturing bonuses that the dealer gets for hitting quotas, etc; etc; etc.
I've always had an issue with how dealers calculate profit, since they have so many employees that are working for a commission based off that number.
Eta: It'd be like me hustling cars on the side, and you being my cousin. I run up on a Jeep Wrangler that you want. I gave $5,000 for the cj wrangler.
So, if I didn't make money on family, you'd get it for $5,000. Not in dealership land.
$5,000 - cost of vehicle
$400 - that I add to every car to cover insurances, detail supplies, phone, etc.
$500 - to my brother for driving the car from where I got it
$300 - to my son for inspecting it for damages
$100 - to my son for detailing it
$300 - for replacing a bad tire
So, give me $6400...and Im not making shite off of you cause you're family.
This post was edited on 12/29/17 at 6:16 pm
Posted on 12/29/17 at 6:22 pm to TSLG
You sir have no clue about the car business- thanks for playing.
Posted on 12/29/17 at 6:28 pm to TSLG
Service dept probably makes a ton more profit than the sales dept. $500-1000 jobs on multiple cars all day long.
Just look at a starter job on a Tundra at he dealership. $1200. Labor for the mechanic $25x3hrs=$75 + $200 for the starter. So let's round up more and say total cost $400. Thats $800 profit.
Just look at a starter job on a Tundra at he dealership. $1200. Labor for the mechanic $25x3hrs=$75 + $200 for the starter. So let's round up more and say total cost $400. Thats $800 profit.
Posted on 12/29/17 at 6:37 pm to BHS78
quote:
I've look at Carvana, still trying to figure out how it works. I'm not a trusting guy in general and don't know if I trust buying a car that I haven't test driven.
I bought my wife’s car on carvana. Will use them next time too. The website is spectacular, shows you 360 of the car and any imperfections. I went to a local dealership so she could test drive a matching model we were looking at and I gave the dealership a chance to beat Carvana’s price. They wouldn’t, made up BS about “well who will you take it to if there are problems?!”. I said see ya later.
Bought it from Carvana, and got it inspected the first day from a reputable mechanic. They said it was a great clean car and didn’t have any issues.
Also, Carvana has a 7-day money back garuantee. By far the easiest car buying experience I’ve had, and they delivered the car to my house.
Posted on 12/29/17 at 7:30 pm to SulphursFinest
quote:
Get me the deal of a lifetime on a 4x4 truck, I’m looking to buy
tomorrow when it is cold would be the time to buy. end of the month, end of the year, with bad weather where people dont feel like car shopping. I think you can get at least 15k off if you dont give in.
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