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The game is to keep you as long as possible until they wear you down.
In this day and age there is no reason to even set a foot inside a dealership. I once spent 2 weeks negotiating a price on a lightly used truck via e-mail. ;)
I'm making one offer,no haggling, to a dealership or private owner.
Take it or leave it. If I look around I might find another vehicle for sale.
ROFLMAO! DUMBFUCKS!
Used car sales is no match for the astronomical wickedness of a realtor.
Used car sales is no match for the astronomical wickedness of a realtor.
A used car salesman is just a Realtor with low self esteem.
Hey Robber Scum,
Please let us know when you go through the class on turning back the mileage on cars.
Also, are there any good cars that were NOT owned by the little old lady driving to church on Sundays?
When you are done, write a book. Here is a suggestion for the title.
"How to screw a used car salesman without him knowing it."
DieBankOfAmericaPhukkingDie says
I bought a Subaru for cash
When cannibal anarchy comes, your Subaru will need a new head gasket, like all Subaru's do. Either ditch it for a better built car or learn how to fix that yourself.
Used car sales is no match for the astronomical wickedness of a realtor.
Would be interesting to read a post about a realtor's new car buying experience and a car salesperson's home buying experience.
Think of it this way...
If you bought the car for $25,000.
And the car now has 100,000 miles left.
Why would you accept $8,000? (assuming you can even get that).
If you accept $8,000 - you lost $17,000 dollars.
Instead of spending $17,000 just to drive a car to 100,000 miles...
You could have bought a used-car from the get go at 100,000 miles for $5,000 and drive to 200,000 miles with the car mileage at 300,000.
Repair costs - trust me you don't need worry about as long as you bought a mechanically sound used car and you use it sensibly.You could have saved $20,000 dollars by spending only $5,000 instead of spending $25,000 and only ending up with $8,000 saved (if that).
Why not spend $5,000 instead of $17,000 all to achieve the same result?
Only real issue I have with this is that given other people's poor taste in cars, it could easily take me 6 months to a year to find an acceptable used car. Most people don't have that kind of time to wait until something they like comes available. It's either that or if you need another car ASAP, just get anything and use that until you can get what you want.
When cannibal anarchy comes, your Subaru will need a new head gasket, like all Subaru's do. Either ditch it for a better built car or learn how to fix that yourself.
When cannibal anarchy comes, everyone will need a head gasket. Oh, you meant CYLINDER head gasket?
In fact, even when the dealer sells a car at a loss - the manufacturer covers their loss but also pays them an additional amount. Sometimes the amount is up to $4,000 dollars.
True... I did this gig when I was a kid. They don't have you running four squares do they haha? They make their cash on the used cars. New cars they have to make sure not too many people don't complain to the manufacturer resulting in getting their franchise pulled - which they use to make them *appear* more trustworthy than the just-a-used car dealership, when in fact they are perhaps worse than the small guy. If they get their franchise pulled they quickly try to franchise some other brand.
This site has been around for a while: https://www.carbuyingtips.com/
Read the new car buying guide, some of it's pretty funny. Edmunds.com has forums where people brag about the prices they pay. I beat the best price in the US on my last car by $500 vs. the forum. $3,500 under invoice and $7000 below MSRP. They certainly got kick backs. It was in August right before a new body style came out (which was uglier) and I got top-of-the-line everything.
Deal with the fleet manager. Do a fax attack. Get the fighting chance package. Take your time from home and then roll in to pick up your vehicle at a steal - beats the online prices too. Unless it's a super hot commodity; then all bets are off.
2 days of training. Just came back after a 12 hour shift today in training and cold calling. Didn't have time until now to post updates.
We have a special one day sale tmrw on Saturday. Did a lot of fucking cold calling for that shit. Found quite a few suckers who want to go.
Anyway...
Here is what I learned more in my training.
1) Do not ever bring numbers to a prospect and than tell them that these are your numbers nor should you ever imply you came up with the numbers. You should tell them your sales manager came up with these numbers. When actually - you went into the back office and just wrote them yourself. The trainer told the training recruits that they should take a black permanent marker and right down the number so it looks like you didn't write. He said to use a different pen so it truly looks like the Sales Manager used it.
2) The recruit trainer said that you MUST make sure the prospect thinks that you are fighting the manager during negotiation, When you actually are not and in fact in the majority of negotiations the sales manager doesn't even have any hand in it. The salesman is just lying that his sales manager came up with these numbers and he needs to get approval from his manager for any reduction or counter offer.
During my cold calls, a seasoned salesman told me to handle call with fake scarcity and to fake that I am talking to manager for extension on the sale.
Everything I tell you about my dealership may not be EXACTLY what they teach in every dealership but it is pretty much in the ball mark.
Also during negotiation, they tell you to not put the price figure of the car on the attention of the prospect. Only the trade-in value and the down payment and monthly payment. Almost forget that part.
Anyway.... I'll update what happens on Saturday Sale.
Updates...
Think selling cars is easy? Think again.
Car salesman have huge pressure on their sales managers. You are supposed to steer the conversation away from price and towards "value"....
But price has everything to do with value. If something is sold for 10 dollar in all other stores but you are able to purchase at 8 dollars in Amazon... Guess who gets the business?
Amazon! And that is largely the reason why Walmart, Target and Amazon seem to do the bulk of retail business today.
"We don't sell on price..." Common advice given by training from dealership.
What a dealership does is pressure people into buying. As a salesman, you have to control the process as they put it. Don't let the customer dictate or tell you what to do. Tell the customer what to do.
Don't ask for their information - trick them into giving it to you - have them give it to you indirectly. You have to be devious.
If a customer is not willing to give you their information, THEY ARE NOT A FUCKING SERIOUS BUYER! They are tire kickers (yes, we do get them) or they not sure or the person in power to make the decision or they are merely just half-way thinking about or unsure yet - they want time....
You have to be hard selling. Urgency selling. NOW!
When Apple comes out with their own cars, I highly doubt they will ever sell the way cars are sold by dealerships today and in the past.
But guess what? I bet they will sell a shit load of them without any hard selling!
Check out Tesla. They sell directly themselves to the customers without any third-parties. Consumers get a much better price and less game-playing nonsense.
All car manufacturers will soon find it is much more efficient and profitable to sell directly rather than through third-party scumbags.
Of course they are laws put in place halting direct selling to consumers in the automobile business and I'm sure the big major car dealerships are hiring lobbyists to try to keep it that way....
But Tesla is still selling cars directly and trying to sell directly where they are prohibited. The FTC has sided with Tesla as well in being allowed to sell direct.
In fact, cars should be sold online. They should just have you verify your identity for any financing online and that's it. No need to walk into any fucking dealership operated by some third-party.
You can test drive the cars by going directly to the manufacturer's stores. Once car buying is completely online, the car dealership business will be toast...
Third-party operated dealerships will be a thing of the past along with the sleazy high-pressure salesman.
Updates...
Thanks Robber Scum. Your espionage services are well appreciated here. There must be some way to screw the dealers and give them a taste of their own medicine. Please discover and tell the world.
I endorse you for the Patnet Peace Prize.
You know guys, it might be a great idea to have insiders and customers in various businesses come out and state how to screw unpopular businesses.
Car Dealers
Real Estate Brokers.
Mortgage Loans.
Credit Cards.
Phone companies.
Cable companies.
Internet Service Providers.
Insurance Companies.
Building Contractors.
You know guys, it might be a great idea to have insiders and customers in various businesses come out and state how to screw unpopular businesses.
Car Dealers
...
I'd be delighted if that became patrick.net's contribution to the world. How can I recruit those insiders and promote their posts?
We need some more bitches like the one who infiltrated banking inspectors a while back.
http://www.propublica.org/article/ny-fed-fired-examiner-who-took-on-goldman
Now why the fuck can't you use that kind of creativity against the banking industry?
Would be interesting to read a post about a realtor's new car buying experience and a car salesperson's home buying experience.
That does bring up an interesting scenario!
This weenie is trying to sell me a new car.
Salesturd: "How much per month can you afford to spend on a new car?"
Me: "Nothing"
ST: "What?"
Me: "I pay cash in full"
They are almost as bad as Realtor's.
I'm surprised you didn't mention the back end of the finance deal. Dealerships send your financials to the bank who then offers a rate. Sometimes the finance guy bumps that rate a point or two and presents the altered deal to the customer. If said customer signs, then the finance guy/dealer splits the extra interest with the bank. It's called "holding points" and it's definitely something to watch out for. It can be worth $500-1500 to the dealer and $4000 to you over the life of the loan.
A favorite trick of San Antonio area dealerships is to load up the car with dealer add-ons. Window tint, protective film, aero kits ($$$). All those add to the dealer's bottom line.
Anybody have experience with Carlypso? They offer a car price that falls between attending an auction AF style and having to haggle with a used car salesmen. This was the traditional realm of brokers, but they seem to have added an overlay with more transparency.
How different is selling used vs new cars?
At a "new" car dealership you maybe get a better deal on a new car. Relatively speaking - the dealership itself makes more on the used cars. They'll also sell the experience better with the new car. Demonstrating all of the features right before you drive away like folding down back seats etc. This is because the MFG may call you soon after your purchase and ask how the experience was. When dealerships get too many (I heard it didn't take much) bad reviews the MFG pulls their franchise and they are then just a used car dealership or trying to switch to an alternate name.
Update: I worked for around 3 months until I finally was fired today for not pressuring customers into buying cars that were unaffordable for them. I sold a total of 7 cars.
Here is what I learned working at a dealership...
The workplace culture is very twisted. Sales managers are power-hungry assholes and psychopaths. The finance managers are also power-hungry and snakes.
A lot of the salesmen are also snakes although a few of them are genuinely taking the best interests of the customers in mind. The Finance managers and sales managers oftentimes steal the newbie salesman's commission and give them the crumbs.
One salesman was fired because he exposed that the finance manager was undercutting the commission of other salesmen. Managers try to take advantage of newbie salesmen.
2 of my coworkers were convicted felons. One for dealing cocaine and they other for a bank robbery. Apparently, the dealership actually prefers convicted felons as a veteran salesmen there told me since they are more likely to be willing to lie and be dishonest with customers.
The honest good salesmen get abused by both the customers and management. Customers think all the salesmen are scum.
While I agree that the majority are scumbags, a small minority of good honest salesmen are genuinely just trying to make a living but do not want to screw people over at the same time.
Some customers are real assholes. I had this one Indian guy who didn't get his unrealistic price, so he left. Calls me a day later but I was with other customers. I call him back, he gives his offer, I present it to my sales manager, it doesn't get approved and I tell him accordingly.
He than says "Why the hell are you calling me than? Don't call me unless you can get my price!" in a rude tone.
I tell him that I called him to return his phone call as a courtesy after which I just hanged up on the asshole once he get got on a boring rant about how he will buy elsewhere.
A car salesmen job is very stressful. Everyone of the salesmen there are stressed and workaholics. You must work 12 hours a day 6 days a week including weekends if you want to make any money. You will not have a enjoyable life with this kind of career. None of my coworkers had any work-life balance.
The salesman at my dealership were on commission only. So they have a lot of pressure to sell is why they do only commission as the dealership only cares about the bottom line - neither the salesmen nor the customer is important.
We are not allowed to tell a customer that buying the car we are selling to them will financially wreck them and it is not in their best interest to buy it. One salesmen was actually fired a week ago for doing just that.
I will reveal the dealership I worked for. It is called the "New York Auto Giant Group" & also has a name of "Atlantic dealership"
To provide a verifiable example of how fucked up the management there is and how fucked up the company culture is....
Below is a news article about a woman who donated a kidney of hers to her boss at the dealership and was shortly fired because she had to take a few days off after getting her kidney removed to be donated to her boss.
http://www.nydailynews.com/new-york/woman-fired-kidney-donation-sues-ex-employer-article-1.1384677
Cars at the dealership are also abused a lot. The lot attendants and the salesmen drive the piss out of the cars - redlining it regularly that is later sold to their suckers.
One of my sales managers even said "Well I don't think it's right that we give a very big price difference to certian customers who we think are clueless idiots but it is what it is..."
That should tell you enough.
My suggestion for getting a good deal? Be willing to buy a used car and get it from a private seller. Fuck the dealerships, unless you work there, they will not give you a good deal at all.
I worked for around 3 months until I finally was fired today for not pressuring customers into buying cars that were unaffordable for them.
***
2 of my coworkers were convicted felons.
Your next job should be selling subsidized medical insurance. It's mandatory so the customer can't say no, and it's always "affordable" because the legislation says so. Be sure to mention your experience working alongside convicted felons, because that will further prepare you for a new career as an Obamneycare Navigator.
Your next job should be selling subsidized medical insurance. It's mandatory so the customer can't say no, and it's always "affordable" because the legislation says so. Be sure to mention your experience working alongside convicted felons, because that will further prepare you for a new career as an Obamneycare Navigator
LOL....
+1
So what's the bad part?
The long hours, the sleazy tactics you must do and the asshole managers who undercut your commission and lie to you about how much commission you really should be getting. Along with many plentiful asshole "customers".
Update: I worked for around 3 months until I finally was fired today for not pressuring customers into buying cars that were unaffordable for them. I sold a total of 7 cars.
holy shit dude, you should write a book. really.
a good book on the details might sell well. you have to polish it and target it right, but it would be a public service and a money maker at the same time.
Update: I worked for around 3 months until I finally was fired today for not pressuring customers into buying cars that were unaffordable for them. I sold a total of 7 cars.
Here is what I learned working at a dealership...
Dear Robber scum,
You really are scum. We were hoping for a weekly update and examples of poor screwed buyers.
Congratulations for being fired by your kind. We look forward to your next adventure.
What will it be?
holy shit dude, you should write a book. really.
a good book on the details might sell well. you have to polish it and target it right, but it would be a public service and a money maker at the same time.
Thanks man for the inspiration! I think I will write a book actually...
I will post it on here once I am done writing it and it is published.
Cars at the dealership are also abused a lot. The lot attendants and the salesmen drive the piss out of the cars - redlining it regularly that is later sold to their suckers.
you should see what they do at carmax after hours... if you buy a sports car from them, just know that around a thousand miles have been recently added by the staff during the nightly street racing challenge.
car dealers are thieving bastards. did you meet the owner? if not, he was likely taking his ferrari from his mansion down to his yacht.
please post one excerpt at a time, with a link to your self-published sales page on amazon each time. i used https://www.createspace.com/ (owned by amazon) and still make about $50/month from that little book i wrote summarizing my views on the housing market:
http://www.amazon.com/Housing-Trap-Buyers-Captured-Yourself/dp/1479156213/?tag=patricknet-20
also, you get good feedback that way to improve the writing.
to really make money, you'll need an agent, a big name publisher, a publicity tour, etc, but createspace seems like a good way to get started if you're serious. agents and publishers are more likely to pick up a book which has shown some traction in the self-publishing market.
Hey Robber Scum....I have an idea.
Start an online service that guides car buyers while negotiating in real time.
Call it....Screw the car dealer at his own game.
If the car dealer knows a scum used car salesman like you is there to guide buyers, they will cut to the chase and go for the bottom line.
Some more observations from my experience...
If you don't get the customer to test drive, you get berated by the manager. If you don't get a credit card held hostage, you get shit from the manager. If you let the customer leave with your business card without telling manager coming to hold them hostage in the dealership, you get berated as well.
"We don't want to hear that the guy is a tirekicker or not buying, nobody walks into a dealership just for the heck of it." - Actually tons of people walk into a dealership just so they can drive the cars. One customer even told me he used to go into dealerships with just the intention of being able to ride the cars.
What the dealership doesn't realize is that people have their own free will. If someone defiantly doesn't want to do something, has made up their mind, finalized it in their head and has no intention of doing what you are asking - than no amount of your convincing will get them to do anything. You can't force people to do something, they have to want it as well.
Of course, you still need to be a salesman - but at a certian point no amount convincing can achieve what you want someone to do. By force? Sure!
If the customer refuses to give up their information, you get yelled at by the manager. So the next time you shop for a car, understand that the salesmen are under a lot of pressure so just give them information even if it is bogus and just do the fucking test drive. You don't have to give real information.
Of course, don't give your credit card - the salesman get shit for it but not as much as they other things. They try everyhing in their power not to give you the card back and try to get you to leave a deposit on the car to reserve the car even if the customers wants to think about it.
If you only give the numbers to the customer, you will also get shit for it despite the fact that the customers said no several times to a test drive, demonstration and giving out their information.
Another thing I learned is that the summer months are the busiest while the winter & fall months are the slowest except during the holidays. So a commission only pay is completely absurd. Once septemeber and october comes around, business gets really slow.
I don't understand how the assholes at the dealership's management think commission only is fair to salesmen and customers' interest.
Truth is that the typical high pressure car business is doomed and ready to die once Apple comes out with their cars. I strongly doubt Apple will pay a commission. Instead the will pay a salary only just like Tesla Motors and be more like information givers and consumer orienited rather than trying to forcefully get sales from customers.
I would suprised if they would pressure customers into buying, lie, withhold pricing, give different numbers to each person and hassle the customers.
The car business is already dieing thanks to Tesla Motors but the final nail in the coffin will be once Apple comes out with their car. You will find the Apple stores to be the busiest and the dealerships will literally die a rapid epic death.
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Got hired by a big new and used dealership. I only applied with the intention of learning how to get deals on cars and learn how they fuck you so I don't get ripped off.
So far 3 days of training. Total hours in the training: 24 hours.
Here is what I learned:
The job of the salesman is to avoid talking about price and not bring it up. The salesman is supposed to go over all the features you are getting on the car with the different packages.
The salesman should sneakily get the customer do a test drive without mentioning it directly... They are supposed to lure the customer into a test drive indirectly.
During a trade-in, you must mention to the customer all the flaws on their car if they fuss or disagree with the figure you will pay them.
"Cmon, with that scratch, dent on the rear bumper, cigarette buds, balding tires and that unpopular color, do you honestly think your vehicles is worth what you just said it is?"
If they mention Kelly blue books, Edmunds or any other reputable appraiser - you are supposed to say this "Would Kelly blue books buy your vehicle for that much or anyone else? If so, than please sell it for that figure and than come back to the dealership with that money for your new purchase. But if you are unable to sell it for that figure, than you can always come back with our offer. I am confident you will be back as we are the biggest dealership and we didn't get that way by short-changing our customers."
When you are doing either a trade-in or financing.... NEVER is the salesman to ask the customer how much they can put down and their monthly payment. Nor is the salesman EVER supposed to ask the customer how much they are looking to get for their car.
You are supposed to start with for example a $10,000 down payment on $20K car and with around you can say a $300/month payment. You are supposed to tell the customer these are the numbers you were able to work up with the sales manager.
Around 10-20% of people will accept these numbers and close a deal with them. If they (the 90-80%), fuss about it....
This is what you are supposed to say... "I'm sorry. Let me apologize to you. This is a financing program I do for my regular customers because it is better for most of my customers. You start with more equity from day 1 with the car, your financing term is much shorter, your payments are lower, your interest is very little and you are exposed much less to leverage. It is simply better for you. But the goods news is that it's not a requirement nor is it for everybody."
"What are you able to put down?...9k? 8K? 7K? What are you able to go up to?"
Customer offers...
"That's the best you can do? Because you may have to offer $6500... you just may have too"
The truth is the dealership will take no money down if really pressed by a customer.
But they much rather just have you give them a large down payment because they make more that way through the financing lenders they work with and they also would prefer to have their money faster.
No money down terms are just more riskier of default and the financing lenders do not offer as high of a backend kickback to the dealership.
Another thing: When a customer asks to talk numbers... You are supposed to say... "Well before I get to the numbers let me just check to see if the car is still available..."
That's a lie to instill scarcity. And than once back... "Goods news... the car you want is in stock and I also brought the numbers you asked for..."
During test drives, you are supposed to shut the fuck up and let the car drive do the selling.
Once done with the test drive, you say...
"So that V6 was very smooth and powerful, wasn't it?"
"That leather was very comfortable, wasn't it?"
"That sports package gave the car extreme handling, didn't it?"
Than you go inside and say...
"So you will do it with the leather, right?
"You will do it with the V6... right?"
"You will do it with the sports package... right?"
And than finally you have to say... Would like any coffee or anything cold to drink while I get the papers to wrap this up?
If they object to closing the deal... They make you divert them from the price and talk about the features... "Building value..."
You are not supposed to focus on the price for negotiation. But rather on the "value"... But that is a fallacy in my opinion because "value" is completely dependent on the price. It's basically just being devious, clever and putting high pressure on the customer.
Consumer advocate salesman make around $70,000 a year. While profit-driven salesman regardless of the consumer satisfaction, makes $200,000 a year with the same number of sales.
Regarding the total price... You are never supposed to go down more than $2500-$3000. The sticker price or MSRP is supposed to be called the "market value" by salesman.... Selling price the discounted price.
The warranties are dog shit. Do not buy them.
If you are doing financing, get your own financing! Tell them you are paying cash and than once the papers are signed show them your financing. Do not ever tell them the timeframe you will buy!
Tell them you will only buy if the price is right... and be aggressive!
Aggressive customers in my dealership are eventually cut the slack on all the games and given the numbers and more easily and quickly negotiated on the price.
In my dealership, a credit card is necessary to secure a commitment to buying the car. They do not run the credit card they say to the customer but they ask for it to prove to them that you are serious in the deal.
They tell you, we can only do the deal with current numbers if you are able to commit now with your credit card because we can't offer these kind of deals all the time. If they refuse, tell them I can maybe add-in an extra option - the sports package if you let me talk to my sales manager...
in most cases, they add some of it's features partially.
Some other things:
-Never tell a customer they are upside down on their current trade-in car's financing term. Even though they are and it makes no sense to trade-it-in for a newer car with another financing deal. In other words, don't mention what is good for the customer or because they might get very offended.
-Never ask about credit score or reports
-Talk to the wife and the kids... Get the man pressured by the wife and kids.
My dealership is all about hard selling...