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 the industry and experience, firsthand, the life of a car salesman.
We hired Chandler Phillips, a veteran journalist, to go undercover by working at two new car dealerships in the Los Angeles area. First, he would work at a high-volume, high-pressure dealership selling Japanese cars. Then, he'd change over to a smaller car lot that sold domestic cars at "no haggle" prices.
We invite you to read the following account of Phillips' day-to-day experience on the car lots. Doing so will broaden your understanding of the dealership sales process. It will also cast a new light on the role of the car salesman. And, finally, it will help you get a better deal — and avoid hidden charges — the next time you go to buy or lease a new car.
Read, learn and enjoy.
— The editors at Edmunds.com
"Confessions of a Car Salesman" Updated for 2009
Read more articles in the Edmunds' Confessions Series.
Most Recommended Comments
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 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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