Confessions Of A Car Salesman
Dealerships have come a long way over the past 20 years. They actually help you buy cars now…
Here's what happened, and why.
If you're shopping for a car, you need to read this. You need to know why dealers aren't the evil-doers most think they are, and how to use the two most important numbers when shopping for a new car, Invoice Price and MSRP.
Get connected to your local dealers and let them be of service to you and actually enjoy the process of getting a new car!
Hang up the plaid suit, grandpa
We're product specialists now...
Dealerships are no longer full of old guys with greasy hair wearing plaid suits. They don't want to pressure people into buying something.
Nowadays, dealerships are staffed with true product experts who are passionate about the manufacturer they are representing.
The sales profession has evolved from "selling you a car" to "helping you buy a car." The training that is received in a dealership focuses on product knowledge, rather than selling tactics.
Dealerships are helpful
When shopping for a vehicle, starting online is always a smart move. Once you have acquired invoice pricing, large dealerships or OEM-backed dealers should be your next logical step.
The convenience of a massive selection of inventory—all of which have been safety inspected, reconditioned, and detailed—allows for a simpler shopping experience.
Dealerships also have many finance options available to help you secure the funds and get a payment that you are comfortable with. And while dealers make a small commission from securing financing, it is the credit union that covers the fees, not the buyer.
Dealers Value Their Reputation
Dealerships place great value on their reputation and understand that a positive image can attract and retain customers for life. Dealerships want you as a buyer and want to keep that relationship for life!
By having a vast selection at fair prices, providing excellent customer service, valuing good ratings and reviews, and focusing on creating valuable customer relationships, dealerships are positioning themselves to earn a positive reputation and build trust with their customers.
AutoFinder vets all of our dealers, working only with retailers that pass the strict OEM requirements for certification.
AutoFinder will connect you with the participating dealerships in your area so you can shop from dealers with the best reputations.
Fair Prices
With an abundance of dealerships and over 40 new car manufacturers, dealers must remain competitive or they will quickly be overlooked.
Those who over-charge or utilize unethical business practices will quickly be ousted through public reviews, word of mouth, and lack of business.
Dealerships are for-profit companies and they must make a profit to survive – but they don't make nearly the amount you'd expect.
Take real estate, for example – on a home sale, there is typically a 6% sales commission. With the median home sale price of $350,000, that is a $21,000 commission for real estate agents! Seems INSANE to me.
Conversely, the average profit a dealership makes on a new car is $2,067, and with the average new car sales price being over $50,000, that isn't a huge margin.
Compared to your credit cards, real estate agents, or even grocery stores, dealerships don't make nearly as much as you'd expect.
Once you get your MSRP and Invoice Pricing from AutoFinder, you can be confident knowing that you're getting a great deal.
Perception
I started selling cars right out of college and wanted to make this profession my career. I always wanted to be proud of my work and do things the right way. I worked in the front end of a dealership for 10 years and helped thousands of shoppers buy a car.
Most people have a preconceived notion that dealerships are feared, untrustworthy entities that steal your money and sanity as soon as you walk in the door. Your perception will become your reality, so if you think that way, that's what a dealership will be to you.
Sure, salespeople want to sell you a car, but most pay plans are based on volume and customer satisfaction. And the only way to sell the most cars and get great reviews is to treat people very well, truly be of service, have a competitive product at a great price. Dealers have come to realize when you stand behind your products and continue to service the customer after the sale, they make more money.
Summary
Dealerships have transformed from the stereotypical places of the past, with pushy salespeople and unclear pricing, to transparent and helpful stores with product experts and fair practices.
Dealerships now focus on building customer trust and earning positive reputations by providing excellent customer service, handling issues promptly, and being receptive to feedback.
While dealerships must be profitable, they must remain competitive, and as a result, they offer vast selections of safety-inspected vehicles at fair prices, with financing options available to help customers secure funds at a payment they are comfortable with.
Ultimately, dealerships are focused on helping customers buy cars and earn a positive experience, rather than just selling them a car.
AutoFinder is focused on getting buyers accurate OEM pricing so that when you connect with the dealer, you know exactly what you're getting.
Click below to get connected with the best dealers in your area and receive MSRP and Invoice Pricing directly to your inbox and get connected with the best dealers in town.
Your local stores may have additional incentives
