Fancy a laugh? trying buying a car......

[Roo]

Sheepshanks said:

CarlT said:

You can't sell finance without selling a car. Car manufacturers make cars - not finance. The finance is to facilitate the purchase of the car, which in turn keeps the factory turning...

For the big dealer groups, it's very much the other way around. The car is a means to an end - the end is to sell F&I products.

The same as it is for big rental companies.

The rental business gives them access to cheap new cars they sell for a profit at auction as used cars.

[CarlT]

Roo said:

Sheepshanks said:

CarlT said:

You can't sell finance without selling a car. Car manufacturers make cars - not finance. The finance is to facilitate the purchase of the car, which in turn keeps the factory turning...

For the big dealer groups, it's very much the other way around. The car is a means to an end - the end is to sell F&I products.

The same as it is for big rental companies.

The rental business gives them access to cheap new cars they sell for a profit at auction as used cars.

The majority of the big Rental companies (excl. Enterprise) have buy-back deals with the manufacturer they get the car from. So, they do not sell them at auction themselves.

[My Evil Twin]

jimmyt1202 said:

Off topic but this bloke now does a 1-man hand car wash at a petrol station in Hitchin out of an old Sainsbury's trolley

Seems the BBC well and truly finishecd off his outfit!

Who the hell is he?

[jimmyt1202]

My Evil Twin said:

Who the hell is he?

https://www.youtube.com/watch?v=L8MgT9nZIX4

[kathyp]

oldnbold said:

Thats nearly true, when I was in car sales selling a new car would earn me between £35 and £100 per unit depending on model.

But I could earn another £250 + if I sold all the add on's

You don't earn a lot just selling cars.

I know the add ons are always pushed hard, but genuinely surprised the dealer can make more commission from them than the car itself.

[Pit Pony]

kathyp said:

oldnbold said:

Thats nearly true, when I was in car sales selling a new car would earn me between £35 and £100 per unit depending on model.

But I could earn another £250 + if I sold all the add on's

You don't earn a lot just selling cars.

I know the add ons are always pushed hard, but genuinely surprised the desperate salesman can make more commission from them than the car itself.

Edited, because we don't know what the dealer makes, only the salesman.

[HTP99]

kathyp said:

oldnbold said:

Thats nearly true, when I was in car sales selling a new car would earn me between £35 and £100 per unit depending on model.

But I could earn another £250 + if I sold all the add on's

You don't earn a lot just selling cars.

I know the add ons are always pushed hard, but genuinely surprised the dealer can make more commission from them than the car itself.

A lot depends on the dealer and in particular the salesman; I am very profitable "in the metal" new or used and retain decent profit margins as a rule, however I'm not so great with add ons, some of my colleagues are less profitable in the metal however are better with their add ons.

[oldnbold]

HTP99 said:

kathyp said:

oldnbold said:

Thats nearly true, when I was in car sales selling a new car would earn me between £35 and £100 per unit depending on model.

But I could earn another £250 + if I sold all the add on's

You don't earn a lot just selling cars.

I know the add ons are always pushed hard, but genuinely surprised the dealer can make more commission from them than the car itself.

A lot depends on the dealer and in particular the salesman; I am very profitable "in the metal" new or used and retain decent profit margins as a rule, however I'm not so great with add ons, some of my colleagues are less profitable in the metal however are better with their add ons.

Sorry to clarify the amounts I was quoting refered to new units, generally would make considerably more per car from used. F&I was the same on both.

As HTP99 says if you give loads of discount to shift the metal the businesses margin gets hit and so does your commission on used. On new it made no difference if a unit was sold at list or at max discount, my commission was the same. But I guess the Sales managers was effected.

Edited by oldnbold on Tuesday 8th July 21:05

[Sheepshanks]

kathyp said:

I know the add ons are always pushed hard, but genuinely surprised the dealer can make more commission from them than the car itself.

As someone else has already noted, you mean salesperson rather than dealer.

It can be even worse that you say - in some dealer groups the salespeople will often be targeted to make a certain % of sales that include finance etc. If you go in and are determined to buy "cash" it could actually cost the salesperson money, hence they can appear disinterested.