How much do they make?

Chrysler... $0/Qtr
New Lambo Sales... $0/Qtr

Your CPA is referring to owners of successful dealerships.

 

I was one for 21 years worth........called it quits last year, had my own store for 5 years.......the industry is f _ _ ked because the guys who now own the dealers are. They'd rather have 5 clowns making $30K a year than one guy making $150K..........

Where I live the norm is 25% of the profit on a deal, or a $500 flat commission for less than a $2K profit. Pretty common around the country.......I just turned down a job offer yesterday from a dealer......and I am not working.

A rookie will make $30-50K........if you last 90 days.......

If the rookie stays at the same store for 3 years expect $75K......

After 5 years at the same store $100K+........but then they'll find a way to fire you, or promote you, and pay you less on salary while making your life miserable.

6 days a week....10+ hours a day......it used to be a great industry to have a career in, but it's been taken over by f_ _ king accountants and controllers hired by dip****s who have never sold cars, let alone washed one.

 

Sell to the masses, eat with the classes.

If that's his definition of successful,... Might be time for a new CPA.

 

When I worked at a pretty large dealership, our most seasoned sales people made in the Relm of 100k. That's tough though. Starting out is more along the lines of fifty to fifty five.

In this economy I'd imagine that stat took a nose dive. And its relative to what you sell of course.

_J

 

There has to be an easier way to make a living.

 

That's manger at McDonald's money...

 

I made seriously good money as a sales person at a car dealer.

If you are serious and not a slick backed car salesman it is a seriously good income. We had several people who were making in excess of 300k at our auto group.

I decided not to go to law school after entering the car biz. I saw the credit apps and most of the lawyers that I saw made less than I did some far less. Of course there was 1 or 2 that I remember which were into the 7 figures... but I am not a product of yale or harvard which makes entry to the club a little more difficult.

The car biz is hard and there is a ton of money in it. Its not easy not in the slightest. And every new customer is a difficult one to win over. Most people now a days automatically don't trust a word you are saying, think you are going to take there head off, sell you something you don't want, play nonstop games with them and in general just treat them poorly. This of course, makes some clients interesting where they treat you like absolute garbage. I have had to have a few conversations with people over thousands of customers (read very small percentage of people) and I just asked them if they have ever treated someone so poorly or with so much distrust... do they interact with their real estate agent this way? their stock broker? because these are all sales people too, and they are getting a much larger portion of your pocket book than I am. Plus, I am trying help you. If you don't like me or my product there is no pressure and feel free to leave at any time. If you have any questions stop me and i will help you understand what is going on. I found that many of these people had been taken advantage of in the past and thats why they had an attitutude towards me. I found that educating people about the car and the way financing works etc... and allowing them to make the appropriate decision is what made me successful. The funny thing was many people thought that a 40k mercedes would have a different payment than a 40k BMW or a Cadillac etc would have a different payment. With some people I had to explain to them that its NOT magic... its just math. Thats all it is. It doesn't matter what car you drive, the payment all things being equal will be the same whether its a kia or a ferrari. Its just math. There is no mystical brand influence that changes it. You would be SHOCKED how many people thought this to be true and when they discovered this, they typically ended up buying the car they wanted and was the best product, not the car they thought they were getting the best deal on. I tried to encourage people to buy a car based on personal value not on "the deal." Hell, I was selling cars I wasnt allowed to discount... so I had no deal to offer. But my product was a tremendous value. Also, for those of you confused by personal value vs the deal... I used the example of you could open up the saturday paper and by a ford pick up for 17k off sticker... that appears to be a great deal! however, if all you needed was a little car to commute, the deal will quickly wear off once you realize the extra cost of driving too much car. Buy a car to suit you and your life style. Also, who cares how good of a deal you got if you are driving something you hate and spent more just to get a deal.

Ok I realized I just wrote a small novel and completely off topic... I can't bring myself to delete the above so... uhh... ya... sorry... or enjoy

Truly good sales people in any industry make a very very good living. Its unfortunate that some people and the past (think movie used cars) ruin it/make it difficult for the honest ones.

 

Please don't delete it, was a rather interesting read, thanks for that!

 

How long has it been since you were in the biz? Because...

While this is true for sales with cash, or customer arranged financing... It is not at all true for car sales over the last decade (at least).

1. Lease payments are hugely affected by residual value. This varies drastically by brand...

2. Special financing offers are the norm...

3. Rebates.

4. Service included (BMW for example)

Now if you are talking only used sales,...

 

I am still in the car biz.

So yes I am aware of the difference of lease payments etc... The brand(s) i worked for were in my opinion the lease leaders and 70% of BMW clients leased. BMW has the most attractive lease deals in my opinion and they are consistently the most attractive. Sure a competitor might beat them one month of the year but the rest... it was pretty hard to beat a BMW lease payment. Even more so in todays market when many manufacturers don't even offer it.

My point was intended to be just about the total amount financed. People think that financing 40k between different brands even at the same rate will yield a different payment. I know it sounds crazy to the educated and experienced on F-chat... but its true. I got it all the time.

So when speaking of total amount financed, that would already incorporate rebates. Rebates mean that your product is overpriced for the current market, and unfortunately the US consumer is used to rebates on american cars to the point to where people just "wait" for them... because it WILL happen. Same with 0% etc...

Regarding special terms while financing... most brands that are competitive to each other are often running the same rate. The only time you won't find it is when cadillac is offering 0%... BMW, Mercedes, Audi, do not do 0% (unless you buy down the rate) on new cars. But usually if someone is running 3.9% or something of that nature, it can typically be found across the board.

Concerning maintenance... this doesn't affect monthly payment. Which is what a majority of people are concerned with and was the point of my "story." I personally think BMW has consistently had the best thing going with maintenance etc... and how anyone could buy a Mercedes over a BMW is beyond me especially when considering Ownership costs as well as depreciation... the BMW wins no contest. However, its also the same reason why Baskin Robins offers 31 flavors as well as shakes, malts, topping etc...

By no means do I mean to turn this into a BMW vs MB thing. Its just from my experience and I wanted to used examples from my experience.


Also, comparing used cars is far more difficult than new. Every brand depreciates differently and personally a Jaguar is a TON of car for the money on the used market. A lexus or hell even a ratty old used toyota pick up is WAY TOO MUCH for me! Cars depreciate differently and then you have certified and non certified... what the certification covers... what standards they have... what market they are being sold in etc... Then you have did someone get whacked over the head on there trade? Did the dealer steal the car through the auction or other connections? Did they pay too much??? It happens. I've seen 2wds appraised as 4wds only to have the service department ask the sales department what happened to the 4wd... or a 4runner being appraised as a land cruiser... a 348 appraised as a 355... yup... it happens. Why? because like any business in the world... there are idiots who work there. Most of them uneducated... such as myself.