Confessions of a Car Salesman.. (USA)

[Hydrocarbon]

Edmunds.com hired a writer to go undercover, to find two jobs at two different dealerships to learn about what the dealers do to close the sale, and make huge profits from unsuspecting buyers.

 

What really goes on in the back rooms of car dealerships across America?

 

What does the car salesman do when he leaves you sitting in a sales office and goes to talk with his boss?

 

What are the tricks salespeople use to increase their profit and how can consumers protect themselves from overpaying?

 

These were the questions we, the editors at Edmunds.com, wanted to answer for our readers. But how could they really know that our information was accurate and up-to-date? Finally, we came up with the idea of hiring an investigative reporter to work in the industry and experience, firsthand, the life of a car salesman.

 

We hired Chandler Phillips, a veteran journalist, to go undercover by working at two new car dealerships in the Los Angeles area. First, he would work at a high-volume, high-pressure dealership selling Japanese cars. Then, he'd change over to a smaller car lot that sold domestic cars at "no haggle" prices.

 

We invite you to read the following account of Phillips' day-to-day experience on the car lots. Doing so will broaden your understanding of the dealership sales process. It will also cast a new light on the role of the car salesman. And, finally, it will help you get a better deal

[Vhtfhwlego]

$4k over $25k = +10%.

 

I think quite ok as if you compare medicine, the profits is 6000%.

[Mockngbrd]

12 year old article u also dig up

[Watwheels]

Heng I never go read.

 

If you look at Sgcarmart, under "pricing" of any car there's a break down on basic costs and the premium% the dealers is earning. Mainstream small Japanese will be 10+%, luxury conti big car 45+% of the basic cost. Go see for yourself.

 

 

[Felipe]

its business so of course must have profit. same goes for any other company.

[RadX]

12 year old article u also dig up

 

 

i think that time u puberty oni...cannot pee strt yet...muahahahaha

[Joseph22]

$4k over $25k = +10%.

 

I think quite ok as if you compare medicine, the profits is 6000%.

factoring in other stuff like rental, servcing and risk. 10% of paper value pretty reasonable.

Edited August 19, 2013 by Joseph22

[Lightbringer]

$4k over $25k = +10%.

 

I think quite ok as if you compare medicine, the profits is 6000%.

 

Did you factor in R&D costs and infra costs before deriving that 6000% figure?

[2BDriver]

That's why our LKY speaks in length about Integrity and stopped short with his word claimed "He is not car salesman"

[Mysportwish]

more than a decade old publishing..... should be at national archive by now

[Vhtfhwlego]

factoring in other stuff like rental, servcing and risk. 10% of paper value pretty reasonable.

That's what I feel but it seems many can't stomach the "overcharge".

[Hydrocarbon]

12 year old article u also dig up

 

Haha, I wanted to search for a comprehensive article. There were other "interview" type of articles, but quite shallow one. Or reporters posing as buyers to do an "expose". Just wanted to share with MCF bros lor, hope didn't annoy anyone.. Haha..

[Sosaria]

Haha, I wanted to search for a comprehensive article. There were other "interview" type of articles, but quite shallow one. Or reporters posing as buyers to do an "expose". Just wanted to share with MCF bros lor, hope didn't annoy anyone.. Haha..

 

It's a nice read, and puts a human face on the car salesperson. Anyway, the article was updated in 2009 to take into account the changes since the earlier days when, without online facilities, customers could not easily compare prices and deals.

 

I love this kind of undercover investigative journalism... too bad we don't get much of this type here. It'd be fun to have journalists go undercover taking up jobs at various places and tell the truth.

 

[Tarzan666]

Most prob if we sgreans were to go to such dealership...we would buy w/o bargaining because its so cheap...

 

haha

[Kb27]

Thanks. This is a good article.

 

But it tells the story of every business as well, not just car salesman.

You could tell some juicy stories about workshops as well.

 

Every business is out to make money, the more the merrier.

If you're "too honest" a business, you may simply go out of business.

 

People always complain about being overcharged. And what is overcharging ?

To some buyer, every extra $1 can be considered overcharging. To others, what's an extra $1 (ERP), if I can drive faster?

 

Where you draw the line is up to you to decide and it changes by the hour, the place of transaction, etc.

 

On the other hand, if you're an employee, are you "overpaid" ?

Companies do not like to overpay as well.

But if they don't "overcharged", how can they "overpay" their employees ?

 

Look at both sides of the coin and come to an understanding.