Straightline

The car enthusiasts news blog from Inside Line

Not the best time to be a car salesman



I'm sure many here have little sympathy for car salesmen , and for those folks, this article will likely bring them great satisfaction.

Between the hordes of highly educated customers (thanks to sites like Edmunds), way too many (mostly domestic) dealers resulting in intense competition, and local laws that favor small mom-and-pop car dealers, the life of your typical car salesman ain't like what it used to be. Today, unlike say 20 or more years ago, the average car salesman can barely eke out a living.

It's merely "just deserts," or "'bout time" in the minds of many customers for the many previous wrongs they've suffered in the hands of car sales people...
Do you agree?

In somewhat related news:
In searching for an image to go with this blog entry, I found the old, rusty Pontiac Chieftain dealer sign on this site. This turned out to be a real "fun find," in that I've always had an interest in old car dealers and showrooms. If you share a similar interest, you might find this site as fascinating as I did. Like most of the famous Rt. 66, it's a part of Americana that's long gone.

There are actually two dealers on this site that I'm familiar with and have been in (Chevy Chase Chevrolet in Bethesda, MD and Lustine Chevrolet in Hyattsville, MD). They're both still in use as Chevy dealers.

I remember when we moved out here in western Howard County Maryland 20 years ago, there was a tiny little farm community not far from us called Daisy (what a great name for a little hamlet in the country!) that was little more than intersection of two narrow country roads. Right at that corner was an old Ford dealer which probably dated back to the 1920s or so. It was really nothing more than a garage with a 1-car showroom—but it was still being operated as a Ford dealer! Sadly that building is now an antique store...

There was also another similar old Chevy dealer being operated up until about 10 years ago not too far from here. It didn't even have a shoroom, just a garage and an open field. I know there still is an old GMC dealer (again, no showroom) that also sells farm equipment maybe 20 miles from here. I hope they can keep it going forever...

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7 Comments

moparbad says:

11:58 AM, 11/18/06

The consumers are much more knowledgeable and the salespeople much less.
The percentage of salespeople that are honest, knowledgeable, courteous and professional in their manner of conducting business is very small IMO.
Buying a car is now a miserable experience instead of an enjoyable one.
Yes, I do agree that any suffering is well earned from past transgressions. If the industry will not police itself from bad behavoir, it deserves to suffer the results.
 
With dealers earning more profit than ever before, change is unlikely.

harvey44 says:

02:41 PM, 11/18/06

Seems like the guys at our honda dealer are doing ok.
 
I agree buying a car is no fun.

rsholland says:

03:44 PM, 11/18/06

The article is focused mostly on the domestic auto industry.
 
I happened to be at GMC dealer yesterday window-shopping the all-new Sierra. The sales guy was your typical snake oil salesman, filling me with all sorts of false info, thinking I was buying his story. Yeah, right...

kurtamaxxxguy says:

06:08 PM, 11/18/06

Are dealers actually making less and thus paying their sales reps less?
Or are dealers creating more of a caste system such that the people at the top of the sales pile make a bundle while the lowly floor rep gets stiffed? 

estreka says:

12:02 PM, 11/19/06

I have friends that used to work at the Lithia dealership here. The way they operate is you get a wage with a small percentage of commission for the first 6 months. The pay is livable for those 6 months, even if you don't have decent sales. After the 6 months are up, you're paid soley on commission (a slightly higher rate than before). It's no suprise that turnover there is typically 7 months. All my friends now work at other dealerships.
 
Oh yes, and no, the teaching process is quite bogus. It's obvious that the sales techniques they teach are intended for unassuming buyers (read: women). I'm not sexist, but it's honestly true. I talked with some salespersons and they all agreed that the majority of "good" sales were to women.

ateixeira says:

09:48 AM, 11/20/06

I go to a no-haggle dealership and my salesman is paid a salary, not on commission. It's much better that way. He gets a bonus based on customer satisfaction surveys.
 
So he focuses on getting me a car that will make me happy, not on profit margins. In return he gets my loyalty.
 
It works for me.

davidc4 says:

11:17 PM, 03/ 2/08

I'm a salesperson with Bob Baker Toyota in Lemon Grove, Ca (San Diego)619-517-4227, and I know by experience that some of our clients get better deals on cars that they would have if they went to a "no-haggle" store. Just because we aren't a "no-haggle" store doesn't mean that the customer doesn't get the car that makes them happy. In fact, I bend over backwards to make the car buying experience, and very exciting one. Many of my customers give me hugs, and thank me over, and over for getting them the exact car that they are looking for. I never once hear a complaint from them that I earn a commission, because I was such a wonderfull experience in their day. David Chavez

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