Introduction
What really goes on in the back rooms of car dealerships across America?
What does the car salesman do when he leaves you sitting in a sales office and goes to talk with his boss?
What are the tricks salespeople use to increase their profit and how can consumers protect themselves from overpaying?
These were the questions we, the editors at Edmunds.com, wanted to answer for our readers. But how could they really know that our information was accurate and up-to-date? Finally, we came up with the idea of hiring an investigative reporter to work in ... Back to article
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6 comments
By sgm1957
on 01/11/11
9:15 PM PST
All of these problems would be gone if dealerships were to work bankers hours
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By voldermort
on 02/10/11
9:28 AM PST
This needs to be updated Edmunds. Also, the salespersons are no longer know as sp, the key word now is client advisor which is the same thing. So, if you are looking to speak to an internet manager, the receptionist's are directed to transfer the call to the internet client advisor where they still work on commission. There you have it. If you are a savvy vehicle internet shopper Stick to you guns and insist on the General Manager or the Internet Manager. Client advisors are what they are SALESPEOPLE!
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By ivan_casiano
on 03/17/11
3:40 PM PST
I have taken the time to carefully read and then reread this article. Upon fully digesting the information provided, I was at first at a loss for words, then appalled, and now somewhat understanding of the author's point of view. I have been in the car business for a whopping two months now, and am currently waiting for the "up" bus as I write this. From a consumer's perspective, I understand the fear of not wanting to be ripped off and I have heard stories of dealerships that start negotiations at about five grand above sticker. That being said, what I don't understand is where people get this sense of entitlement that makes them feel like they deserve to get cars at prices up to $500 below invoice. I have yet in my short tenure at my dealership been the one to apply a window sticker onto one of our vehicles. If I assume correctly, it is referred to as MSRP because the MANUFACTURER has reccomended that price and has placed the sticker on the window prior to shipping the vehicle. I am a salesman everyday the same way that I am a consumer everyday. I don't negotiate the price of my cable bill as astronomical as it is, I express my disgust to public service for the cost of my energy bills to no avail, I don't haggle for a better price on my groceries, nor do I make a scene at red lobster over what I feel is fair market value for my lobster. When consumers negotiate themselves what this writer from edmunds calls a good deal, the only person that they hurt is their sales representative. The average "flat" for a new car in the state of New Jersey is $50. You meet and greet the customer, sit them down for a consultation to analyze their needs, land them on a vehicle, provide them with a spectacular demonstration, take them on a test drive, and then engage in negotiations that may last up to two hours, be hospitable towards them while your sales manager brutalizes you the whole way through, and entertain them while you wait for F&I. When it's all said and done, you have anywhere from 3 to 6 hours invested in every deal. When you tax those $50, you wound up making between $5 to $10 an hour per deal on top of your monstrous $125 per week salary. Ultimately, when I deal with a customer, I want them to leave happy and feel they got a good deal, but at the same token when I go home to my family, I don't want to feel ashamed at the fact that we have to have bologne sandwiches for dinner, again. The last time I went to the ER, I was there for 3 hours and incurred a $2200 bill. My labor lawyer that is handling a claim for me gets $750 per hour or 33 and 1/3 percent of my entire settlement. No one ever dares to question or negotiate these expenses. I guess all I really want to know is why it is determined that the guys in the car business can suffer and it is not a problem. If anyone has answers please let me know. Just a pitiful fool at the end of his rope, Ivan Casiano
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By internetguru
on 04/13/11
8:22 AM PST
@ Ivan, I would suggest moving to the Internet Dept. I work at a multichain dealership. I used to sell Honda's on the floor, making much better than 50 a pop. I transferred to the internet assistant manager, and make a lot more. I now handle all of the Internet leads for all 9 of our chains. It will definitely keep me busy. And as far as Edmunds.com readers are concerned, I not only enjoy it when my customers mention such sites, but I find it refreshing when our customers know that I cannot take 5k off my price. They know where we stand in respect to the invoice prices listed on this website, which are on par with the actual invoice prices. What I dislike is people wanting to spend 15k on a 30k car and get upset when that doesn't happen.
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By internetguru
on 04/13/11
8:33 AM PST
@ Voldemort: We have 6 people working in our internet department. Some work on a per-car pay plan, while others work on an hourly basis. Our dealership updates our iprices weekly, and all hands get the same info. No matter who you talk to in our department, you will get the same price.
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By latehippy
on 04/15/11
9:44 PM PST
Dear Ivan, I took the time to carefully read and understand your response to this Confession Series. You feel like the writer is saying salesguys are almost not allowed to go home with anything in their pockets. I disagree. More than one time in the article, the writer stated clearly that he had discovered some very good-hearted salespeople. He stated that he believes the dealership, including salespeople, deserve a profit. His point was that the profit should not have to be at the disabling expense to the customer. I know you say you read the article twice and took some time for thought, but I think you missed some things.
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