MSNautos, have more than a few FALSE statements sprinkled among a couple Truths. This is the MYCARLADY car saleswoman confessions from someone who has worked almost all the sales, finance, leasing, internet, sales management and training positions along with service and body-shop.

The TRUTH about Car dealerships 20.11

The Truth is dealerships are struggling to make it in today’s economy, squeezed by lack of new inventory, rising used car costs, increased expenses for employee healthcare, OSHA and taxes.  Don’t think I am defending dealers, I am simply setting the record straight on where the money is, and is NOT. Dealers pay a finance fee on their inventory so the profit gets chopped up the longer the car sits on the lot. HOLDBACK, a common misnomer of dealer profit, is virtually washed out as the car sits on the lot.
  1. The average profit on a new car deal in most dealerships selling mid and low-end vehicles is $800.00a car. The salesmen or saleswomen make between $100-$200 a car commission only when they make a sale, yet they are required to spend off-shift hours getting trained and certified on the cars they sell, in addition to giving tire kickers, car shoppers and first time buyers the benefit of their best efforts and expertise.  Used cars may bring them an average $400.00, and the national average is 12 cars per salesperson work 50 hours a week.
  2. The actual dealership/business works on margins as slim as grocery stores, hoping volume between all divisions: sales, service, parts and finance come together to generate enough profit to keep people employed, many of whom are support staff handling the multitude of paperwork required by the various government and corporate entities.
  3. Auto manufacturers test the dealership experience by sending in mystery shoppers, silent callers and surveying pre-and post dealership guests to be sure the brand is properly represented.
  4. Meanwhile, car shoppers have access to alot of information to educate themselves on the various makes, models, ratings and dealership reputation before stepping foot on the lot.
  5. Women are great shoppers, lousy car buyers, or so they think… Many women do their car research but lose confidence when dealing with the male-dominated auto dealership. Find someone you are comfortable talking to or leave. Car saleswomen can be a great resource, but are less than 10% of the car sales professionals.*

The Biggest FALSE-hoods in the CAR DEALERSHIP.

  1. Dealers are always accused of being liars, cheaters and worse, some of this reputation earned from years of less than proper behavior and greed dating back to horse-traders and riders claiming the animal was lame when he bought her.  In today’s web-world, most dealers understand the microscope is on them and the tables have turned to the consumers favor, IF you know your car needs and limits.
  2. Dealers don’t control your credit, you do, and as such the banks will determine what the rate is, length of loan and how much down. Dealerships are limited to the amount of profit they can make on a car loan, but CASH IS NOT KING, good credit on a finaced auto contract is.
  3. NO two people pay the same price for the same car unless all the circumstances are identical. When you factor in a trade-in, credit, down payment, age of the new car and manufacturer incentives at a specific time of the yaer, day of the week and time of the month can vary a car deal by thousands.  If buying a car was as easy as buying groceries, you still have competition in the marketplace.
  4. Used cars are unique and every dealer pays a different price based on the condition and marketplace. CRAIG’S LIST may be a great place to buy or sell a car, but only a dealership has the responsibility of attesting to the condition of the vehicle and the burden of correcting a problem should one occur within a reasonable time, as governed by the local laws.
In my years working in, around and outside the dealer network, I always chose to do business with dealers and sale people I KNEW WELL AND TRUSTED.  in today’s car business, it is hard to almost impossible to find professionals who know their product and their clients.  I have found most people in the car business truly love cars, and enjoy people, they don’t wake-up in the morning saying “who can I screw today.” Those guys are gone or going out of business as we speak. —————- *Disclosure: In additon to offering car buying, selling and personal car concierge services as MYCARLADY*. Automotive Business Services Inc. of which MyCarlady is a div. also  works with dealerships around the country to implement best practices for social media and sale integration including selling to women, developing a pro-diversity vendor relationship and reputation management. —————- ———————————————————- Sarah Lee is an automotive writer, personal car concierge and commercial fleet manager. If you need free advice on your car problem, question, issue, contact her at sarahlee@mycarlady.com,mvides422@gmail.com,carlady@cox.net for a confidential conversation. She has over 22+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. MyCarlady offers private, auto-related services to help you maintain your personal or commercial vehicles. Call Sarah Lee for more information: 702-521-7546 ]]>