Working at a car dealership is a real tough job. You'll have a lot of fun with all the kind people your meet, but you'll work long hours and you will miss your own family on the weekends.
Your income will be up and down, you get paid when you deliver the car, you need to prepare for the good times and the bad times.
It's hard to find a good dealer to work with, salesmen are always moving to try to look for a better opportunity, especially now ...
The Internet tells customers how to buy and deal with car dealers - too much information given out to consumers - so auto sales will be harder to make extra income.
Dealers may cut pay plan commission and bonuses are hard to hit - especially with how bad the economy is now - it's more difficult selling cars to make a living.
In California most of the dealership are owned by corporation groups, they care less about salespeople and they can replace salespeople any time, any place.
Well if you can live with work pressure and with no burn out, then you can survive every day you come to work.
Pay plans - Oliver Twist by: Anonymous
How's this? Flats are $100 paid the week after delivery. $250/mo demo allowance (no demo to drive). Min sales of 12 cars a month are required to make any commission percentage at all.
1. 12-13 6% of net 2. 14-15 8% of net 3. 16-19 10% of net 4. 20-24 12% of net 5. 25+ 14% of net
% of net is really the key. Net is impossible to figure out because you don't know the Cost of Goods Sold. Artificially inflated costs are applied to vehicles and brings down net profit. For example - all vehicles are charged $300 for "Wheel Locks" and "Glass Etch" whether the customer wants them or not or if even on the vehicle at all.
How about replacement of a battery on a new car before delivery, reducing net profit by $110 and thus commission by $6-$15. (Note: these are common occurrences).
Accessory sales are also charged at a grossly inflated cost. $85 for a "Car Wash"? Two weeks into the next month - commissions are paid once all outstanding "charges" are applied and the total number of vehicles is known. Negative deals (those where management chose to go below invoice into holdback) are then subtracted from positive deals ? thus reducing the total net profit even more. It is indeed possible to ?owe? money at the end of the month despite selling a number of vehicles and generating thousands of dollars of profit for the dealership.
The 2008 NADA figures reveal that New Car departments have gone from averaging a $175,000 profit on new cars in 1999 to losing $40,640 in 1988. When used cars are added in the number become $260,000 profit vs. $82,200 profit. The key question here is why?
Dealers have figured out (through 20 groups and various consultants) that by transferring profits from the new and used car departments to the service and parts departments they can avoid paying commissions and keep more money for themselves. This is all in addition to requiring 210 hrs work/mo for a $250/mo demo allowance.
I see nothing but a downward spiral in terms of customer service and satisfaction because what some short sighted dealers will be left with are:
A few sales reps who will stay long term (often a ?house mouse? or two that are given most of the sales manager deals).
A few sales reps who will quickly figure out that they are being taken advantage of and will move on.
Some who stay around if they have a govt. pension and benefits they can rely on.
A few who will work until they get the web design job they really want.
Losers with nowhere else to go.
Illegal? Nope ? due to federal minimum wage laws and state laws that mirror them ? Car salesmen are exempted because NADA lobbies and argues that as commissioned salespeople they should not be subject to them. However, unlike waitresses, bartenders and real estate salespersons who are often part time and paid or tipped on ?gross sales,? car salesmen are full time + and are paid on net profit which can be manipulated in a number of ways by unscrupulous owners and managers.
Horrible Pay Plan by: Justin (Editor in Chief)
Wow! I just read through that post and that is a horrible pay plan. If you haven't already...You've got to get the heck out of there!
Those commission percentages and the 12 car minimum are terrible.
I would definitely agree with you that a lot of dealers will look for all kinds of ways to rip salesman off and move money so that they don't have to pay a commission, but it sounds like the dealership that you're describing are a bunch of heartless, greedy, pieces of garbage (for lack of a better word...Trying to stay PG here).
I've worked for roughly 10 different dealers and that is by far the worst pay plan I have ever heard of. If anyone is ever put in a position to work for a dealer like run far and fast...
There are definitely better dealerships available!
Take care,
Justin
Car sales scam by: Anonymous
Stay away, you should consider a different career. Most dealers are constantaly hiring new people and there is a reason for that, rarely people stay longer than 1 year, those who stay are the most experienced and are doing realatively well or those who got nothing better to do and might as well make 35K year than nothing. The hours suck, the managers are dumb and treat you badly not to mention many customers who expect to get the car for almost for free. Think several times before you make this change.
BIG Companies like LandersMcLarty will screw you!! by: Anonymous from LandersMclarty
1. You will have a (trainer) come in and tell you how glorious the job is, and then tell you that you can make $100,000 plus annually.
ASK for PROOF of expected income ...... Only 1 or 2 salespersons will make this kind of income ... and only if they are a HOUSE MOUSE ..(BUTT KISSER .... well liked in the business)
2. AFTER TRAINING (Minimal)
*** Bust butt and meet-and greet as many people as you can on the lot ... (55-65 hrs per week) ... it is a ####s game.
Promises of promotion are B.S. unless you are a family member. OR an BUTT KISSER. OR are $crEw!ng somewone in MGMT.
HARD WORK will get you nowhere ... You may luck into a great commission every now and then (YEAAAAA) ... MGRs will have a sales meeting and tell every other salesperson how great you did and how great they were at helping you sell the car. (Sitting at the desk, manipulating the $$$ to screw you and make the company $$$) (packing the back-end of a deal (finance and warranty products, iterest rates, GAP insurance, ETC.)
3. You will take training test, after test, after test, *** KNOW YOUR PRODUCT and INVENTORY ... Your sales managers want you to know all of this so they don't have to. You do all of the work ... know everything .. take tests for them (YOU butt kisser) ... THEY are dumber than you on inventory etc. Most are Fat Butts that will not get away from the sales desk to interviene with the customers ... then you will be blamed for not T/O ing a customer ...(NO mgmt. intervention) .. Mgmt. doesn't have to know product ..... YOU are supposed to know ... They may buy you lunch at McDonalds for taking their test for them.
4. Corporate will screw you if you give them $$$ saving ideas ..... SELL CARS is the only answer ..... even if you can save them MILLIONS ... YOU will not even get a $1.00 taco from Taco Bell.
5. BUST YOUR TAIL (55+ hours a week to be called a dumba$$) ... STARVE YOUR FAMILY of $$$ and time watching the kids grow .....
6. TAKE THE RISK ... try it out .. great job if you can swing it ..... BUT BE WARNED if you work for a money grubbing dealership ... YOU WILL BARELY MAKE MINIMUM WAGE (WITH NO, NADA, ZERO, time and 1/2 overtime, no or little vacation etc.)
IMPORTANT:
*** Ask to see Pay Plan
*** Ask to see current employee $$$ (year to date for all salespersons) *** Ask how to advance with company
*** BENEFITS (can you buy cars cheaper on Craigslist than the company you work for?)
*** DON'T GET SCREWED
Car sale expeience by: Anonymous
Please stay with the police job. Car sales is now where near as good of a job. Very few benifits.
if you make this switch you will regret. You have it made with a Gov.job.Just try to get on these days.
The worse part about selling cars is the abuse you take form the owners and managers, these people are not nice!
I have expeience!Wish I had better news.
The customers can be fun,the cars are cool,the pay and the managers? Awful!!
how do I contact?NEW by: Anonymous
Justin, moderator/owner of website. I need to run a pay plan past him to see what he thinks before I commit.
Very important, been reading almost everything on this site and need input from someone who knows...
Thanks
Enjoy this page? Please pay it forward. Here's how...
Would you prefer to share this page with others by linking to it?
Click on the HTML link code below.
Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment,
your Facebook account, or anywhere that someone would find this page valuable.
