I Went Undercover In The Car Business. This Is What I Learned

OK, I’m not a private detective, but I was always curious on what really goes on in the car business. I have been working on the internet since 1994 selling things like printing, live lobsters, clams and seafood. I

I Drive A Cab Now

wanted to experiment with some new software I helped create for the car industry. My first pitch to a car dealer in Central Florida ended up with them hiring me as an employee. I was excited about the opportunity because I always wanted to know what went on behind closed doors in the car industry. First I will tell you my observations, then I will tell you exactly how you should go about buying your next new or used vehicle. *Please note that not all car dealers are shady.

My Observations

1. The Professional Car Salesman is Gone. Yup, they bailed out and now work in other fields. There are no more perks! No more demos, no more commissions, etc… The car dealerships I worked for paid the salespeople $300.00 per week plus $100.00 per vehicle in commissions. The better salespeople averaged about 10 cars a month so that’s only $26,000 a year. Now, what kind of professional can support a family with that? Not to mention the fact that the hours are long.
2. The Sales Managers Run The Show: No matter how nice your salesperson is, he or she is just the sales managers puppet. The Sales Manager tells them where to start and exactly what to do. The Sales Manager is the person trying to screw you.
3. Once You Come To A Price: Now you go into finance for paperwork. As you site in this office the Sales Manager and Salesperson are probably high fiving each other in the back. Now it’s the Finance Guy Or Girl’s turn to screw you. At first they will try to get with a higher interest rate. The higher rate they get you at, the fatter next weeks check will be. Then they will try to sell you extended warranties and other add-ons. Just be careful here, or get your own financing.
4. Dealers Don’t Make Much Money On A Car: I had full access to exactly how much a dealer pays for each vehicle. The salespeople don’t even get this information, just management. One of the dealerships was Chevrolet. On small cars like Cobalts and Aveos the dealer will be lucky to make $300.00 total. With trucks they can make a few thousand, but nobody is buying trucks. That’s why they try to get you at the table!
5. Car Sales People & Sales Managers (most) Aren’t Very Intelligent: They’re great at the Car Sales Lingo, that’s about it. They barely know how to check their own email, let alone compose an email. If I was a car salesmen I would be aggressive on the internet posting wherever I can like on Craigslist. If I met a customer on the lot and they browsed, then left I would ask them for their email address and tell them I will email any picture to them they want.
6. Car Dealerships Spend Too Much Money On The Wrong Kind Of Advertising: You know the big full page dealer ads you see in the newspapers? That costs about $10,000.00! So they’d have to sell more than a few cars or trucks to profit. Every dealer has an Internet Department and most are behind the times. AutoTrader and Cars.com have the dealers by the gonads. AutoTrader charges the dealer between $1,200.00 and $8,500.oo a month! The first is the basic package, the last is all of the bells and whistles. I saved the company I used to work for alot of money by building them a new website for their used cars (From The Ground Up – No templates).

Now I Will Guide You On Buying Your Next Car or Truck

1. Negotiate Online, Not On The Lot: Every dealer has a “request a price quote” on their website. This will save you thousands! Dealers know that when a lead comes in through their website the odds are that person submitted price quotes to 3 or 4 other dealers. Bottom line is you will pay dealer invoice, not sticker! If you really want to test this submit a price quote, then drive to the lot to see the car or truck. Note the sticker price! See Your Local Dealer Websites Here:




2. Wait Until The Last Week Of The Month: Actually, the last day of the month is best. Every dealer has an end of the month sales goal and every vehicle counts.
3. Financing Options: If you have good or excellent credit go for the dealership financing specials. Some are 0 percent, 3.9% etc…  Otherwise, use your own bank or get pre-qualified online by clicking the banner at the bottom of this post. If you have bad credit, you may have to use the dealer but do your research first. They will try to sting you on a huge interest rate.
4. Ask About Their Promotions: We offered a $500.00 Gas Card for all purchases. The Catch? You had to pick one brand (like Shell) then for every $100.00 of your own money you spent on gas you would get a $25.00 gas card in the mail. That would happen 20 times costing you $2,000.00 in gas, then getting $500.00 more for free. Did I do the math right? You still saved 25% right?
5. Never Take Your First Trade In Offer: You will always be better off selling your car yourself, but if you choose to trade-in, don’t take the first offer. Demand more or walk! If you are trading in an SUV or Truck good luck to you because they are worthless now because nobody wants them.

It’s really that simple. With the US Economy the way it is, now is the time to buy. Car Dealers are treading water right now and they’ll do anything to sell you a car.