I am just curious since now they are talking incentives of up to $10K. This really has to be getting into their pockets even if it may be a manufacturers incentive.
How much $$ do car salesmen and dealerships make?
by Quirky1 18 Replies latest jw friends
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snowbird
I'm gonna have to get a car, but I'm seeing how low can they go!
Sylvia
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NewYork44M
Back in the good ol' days car dealerships were a money making machine. I can remember in the small town I lived the biggest house in town was owned by one of the car (Ford or Buick, I forget) dealers.
Now there are really struggling. An interesting article appeared in the NYTs last week:
http://www.nytimes.com/2008/11/30/business/30dealer.html?_r=1&scp=1&sq=auto%20dealers&st=cse
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purplesofa
I really don't know,
I worked at a car dealership once, I know that the sales people have some negotiating they can do, as do the dealers.
At this lot, if the sales person could not negotiate something where he made commission, he would get paid $200 for the sale.
Also, I have been in the sales managers office many times, when the salesperson would come in and "act" like they were negotiating.
They would tell jokes, make plans, get a coke, blah blah blah, sometimes for an hour!!!! act like they were really fighting for a better price for the customer.
The customer thinks this is the best they can get and accepts it!!!
purps
ps, I used the same tactic when I sold furniture!
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snowbird
This is what I'm waiting for.
Sylvia
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hillbilly
I knew a couple of good car salesmen (small town... too) who were making 35-50K back in the early 80's. They had been at it for years...sold repeat customers and did some commercial/fleet and farm work in addition to retail passenger cars. I have not bought much from a mega dealer over the years because of the high pressure crap... "lose" my key and I raise hell. Need to talk to the boss?... 5 minutes and I am knocking on the door you went in.
the rebates work back from the manufacture... commisions are paid on purchase price the best I understand things...plus a bigger cut on "add-ons" like rustproofing and floor mats etc.
Used to be the service department was the salesmans best freind in the repeat sales end of things...And a good salesman would send a Christmas card, etc to keep you 'connected'...
Dealers will be closing...especially Big 3 lots... lots of car salesmen come and go... and I see a lot "going" this next year or so. GM lots will be closing in droves if NPR was to be belived this morning... Pontiac division may be going closed too
So much for the old days..
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John Doe
Also, I have been in the sales managers office many times, when the salesperson would come in and "act" like they were negotiating.
They would tell jokes, make plans, get a coke, blah blah blah, sometimes for an hour!!!! act like they were really fighting for a better price for the customer.
The customer thinks this is the best they can get and accepts it!!!
Any salesman that has to go in and "talk" to their manager has already lost a sale to me. I smell bs from a long ways. I tell them "look, here's my offer. Are you allowed to sell this car or not?" If they say they have to take the offer to the boss, I walk. I know as well as they know that they're full of crap. They know exactly what they can take for the car.
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purplesofa
Any salesman that has to go in and "talk" to their manager has already lost a sale to me. I smell bs from a long ways. I tell them "look, here's my offer. Are you allowed to sell this car or not?" If they say they have to take the offer to the boss, I walk. I know as well as they know that they're full of crap. They know exactly what they can take for the car.
Not all customers know that. So many people want the manager, they want to go straight to the top, before they will believe a sales person. Happens all the time.
purps
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cameo-d
Now there are really struggling. An interesting article appeared in the NYTs last week:
http://www.nytimes.com/2008/11/30/business/30dealer.html?_r=1&scp=1&sq=auto%20dealers&st=cse
Iread this article. I am seeing lay-offs and job losses all around.
What I don't understand is how you all can see this too and not believe this great tribulation is at hand. I don't quite understand how some people call it armageddon, because it's not armageddon! Media says now we are going into something like the great depression.
I don't believe it is going to go down like the WT says. But I do believe we are going to have some very seriously lean years shortly. There will have to be some kind of major renovation in lifestyles through this.
So how much do car salemen and dealerships make? A few have already closed here. My friend who owns a couple of car lots is taking side jobs....like bushhogging.
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beksbks
Buy American Sylvia!!
