I have come to learn that there are a lot of misconceptions in the world about car salesmen, so I’m here to fill you in a little bit.
#1: Salesmen usually only make a commission, which means no sales, no income. Which leads to #2.
#2: When you go in without an intention to buy, you are wasting their time to have a chance of making money for their families.
#3: You may think that every salesman is ripping you off, but here’s the deal. They only make 25% of the profit the dealership makes, which means, if you refuse to pay much over the wholesale price, that salesman is only taking home $250 or less. And when you calculate how many hours they spend with each customer explaining everything, taking test drives, dealing with you, taking you through the finance process, they really are not becoming “rich” off of those deals.
#4: Sales do not happen everyday. So put together the profits from above, mix with days that people don’t show up for the appointments they said they would, plus a dead day at the dealership. Sorry, food is not produced from love alone. Most salesmen have kids at home just like you do.
#5: If you ever wonder why salesmen can get upset, it’s because people do crazy things. In my husband’s short time in sales, he’s had people come in and ask to go for a test drive just to get dropped off somewhere so they didn’t have to pay for a taxi. He’s had countless people CONFIRM their appointments with him, and never show up. He’s had a ton of people even put deposits on vehicles, and then go out of contact for weeks, often before saying they are no longer taking the vehicle or fighting for a lower price than was agreed on. He’s had people yell at him for giving him their name before going on a test drive, although it is typical for the dealership to know who you are before they let you drive tens of thousands of dollars down the road. He’s had people come back and yell at him for not noticing things (including a ripped seat…) when they drove it off the lot. He’s had people yell at him for not being approved for financing because they haven’t paid their bills in six months. I mean, seriously people… you can’t be a jerk to people and expect them to be happy all the time. It doesn’t work that way.
#6: There are times that dealerships will let vehicles go for less than what they paid for it. Now, before you go jumping for joy, remember the profit we talked about above? How much do you think the salesmen are bringing home for their families if the dealership isn’t even profiting off the vehicle? Yeah… think about it.
I know there is probably a ton of things I’m missing, but this is a good start. Car sales is not the typical way I’ve thought of it before. I’m that wife at home with our three dog-children. There is not even a chance I could be a stay-at-home person for the very facts I mentioned above. It’s so easy to think that you’re the one being wronged all the time, but unless you truly understand how it all works, you’ll never realize what you’re doing to the people behind the scenes.
Are there rich car salesmen? Of course there are. Some people have enough money that they never bat an eye at the sticker price and will pay whatever the dealership originally asked for the vehicle. And depending on the vehicle, that can be a decent profit. But that’s not how most customers are, and that’s where the problem lies.
So next time you buy a vehicle, sure, ask for a lower price, but don’t beat them over the head until your salesman has to go home and tell his kids he’s made almost no profit again, and he’s upset because someone gave him a hard time for doing his job yet again. Please think of the people you interact with. Your purchase is their bread and butter on the table. Remember, no sales mean no money. Love is important, but it doesn’t pay the bills.
Calm in Christ and Fitness 