Ask a car salesman anything... anything at all (Vol. 2)
Discussion
papa3 said:
That's a sweeping and baseless statement. It may be true in a given business or group but the industry has never done more to recruit and train young staff nor paid as much to retain those with experience.
The problem lies in the perceived value by the customer. We see posts on here regularly complaining about the cost of dealership servicing but in the same breath criticising the industry for poor staff retention and pay rates.
Our workshop rate has been unchanged since 2020 as we resist passing a certain £/h level. Since 2016 it has only risen 7% BUT remains nearly double the rate charged by the small, non franchised businesses local to us. This difference is cited on forums endlessly but is never considered in light of the massive costs associated with the franchised network.
When I joined the industry in 1997 the aftersales business was expected to absorb 110% of the business overhead. Today that figure averages at 55%. Today a great franchised operator will return 3% of turnover, most manage only 1%.
Despite this we train apprentices to internationally recognised standards, offer (now) normal working hours and provide premises of the highest standards. Our tools and equipment are audited to ensure we comply with the brand standards AND our CSI is monitored in near real time with failures often carrying significant financial penalties.
There are good and bad in any industry and the motor trade has itself to blame for much of the poor reputation it suffers, but, it has progressed as an industry, one which changes constantly, and provides a complex range of services which are cash and investment intensive for low returns.
Good post. I work for a global OEM (in a completely unrelated field) and much of what you say rings true for us as well, apart from the reluctance to increase prices. We don’t, however, deal with Joe publicThe problem lies in the perceived value by the customer. We see posts on here regularly complaining about the cost of dealership servicing but in the same breath criticising the industry for poor staff retention and pay rates.
Our workshop rate has been unchanged since 2020 as we resist passing a certain £/h level. Since 2016 it has only risen 7% BUT remains nearly double the rate charged by the small, non franchised businesses local to us. This difference is cited on forums endlessly but is never considered in light of the massive costs associated with the franchised network.
When I joined the industry in 1997 the aftersales business was expected to absorb 110% of the business overhead. Today that figure averages at 55%. Today a great franchised operator will return 3% of turnover, most manage only 1%.
Despite this we train apprentices to internationally recognised standards, offer (now) normal working hours and provide premises of the highest standards. Our tools and equipment are audited to ensure we comply with the brand standards AND our CSI is monitored in near real time with failures often carrying significant financial penalties.
There are good and bad in any industry and the motor trade has itself to blame for much of the poor reputation it suffers, but, it has progressed as an industry, one which changes constantly, and provides a complex range of services which are cash and investment intensive for low returns.
The Rotrex Kid said:
Sunday Drive said:
Do cars salesmen get the same commission if a car is reserved via the website (before any discussions with a sales person)?
Specifically VW.
I would imagine so.Specifically VW.
Our business pays the same regardless of enquiry source.
Fast Bug said:
I'm talking about BIK for drivers and incentives for a company to go green with their fleet.
Why have an E Class and pay £500 pcm company car tax when you can can go electric and pay £100 pcm? For that kind of saving you'll put up with some of the downsides of running an EV
as a paye i looked into an EV and my colleague jumped in paying £600 month for lease and road tax on an M2 now in a TEsla Y at £800 per month lease but with salary sacrifice paying about £350 per month. BUT insurance on the M2 was £550 year and Tesla £1060.00Why have an E Class and pay £500 pcm company car tax when you can can go electric and pay £100 pcm? For that kind of saving you'll put up with some of the downsides of running an EV
I staye with my 6 series
garypotter said:
Fast Bug said:
I'm talking about BIK for drivers and incentives for a company to go green with their fleet.
Why have an E Class and pay £500 pcm company car tax when you can can go electric and pay £100 pcm? For that kind of saving you'll put up with some of the downsides of running an EV
as a paye i looked into an EV and my colleague jumped in paying £600 month for lease and road tax on an M2 now in a TEsla Y at £800 per month lease but with salary sacrifice paying about £350 per month. BUT insurance on the M2 was £550 year and Tesla £1060.00Why have an E Class and pay £500 pcm company car tax when you can can go electric and pay £100 pcm? For that kind of saving you'll put up with some of the downsides of running an EV
I staye with my 6 series
Although many sal sac schemes include insurance, so the cost gets wrapped up in to the monthly payment. He's unlucky if he has to pay the insurance on top
I am increasingly staggered by how big the gap is between the WBAC/Motorway prices and the retail prices are for Range Rovers in particular - I can't think of another model where the margin is so wide - is it simply that the dealers have to have lots of profit in the average car as every now and again they will take a big loss on providing a warranty against one that goes very expensively wrong?
Looked at EVs yesterday and an older sales guy at a Hyundai (so must sell a lot of EVs) dealer insisted that anything with £0 VED now will stay free for ever. He said I was wrong that they have to pay from next year.
Am I being unreasonable thinking they should know this stuff, or do car salespeople consider that kind of thing irrelevant?
Am I being unreasonable thinking they should know this stuff, or do car salespeople consider that kind of thing irrelevant?
Sheepshanks said:
Looked at EVs yesterday and an older sales guy at a Hyundai (so must sell a lot of EVs) dealer insisted that anything with £0 VED now will stay free for ever. He said I was wrong that they have to pay from next year.
Am I being unreasonable thinking they should know this stuff, or do car salespeople consider that kind of thing irrelevant?
In all honesty nobody knows as we've just had a change of government so all bets are off on what might happen to VED costs next yearAm I being unreasonable thinking they should know this stuff, or do car salespeople consider that kind of thing irrelevant?
Sheepshanks said:
Looked at EVs yesterday and an older sales guy at a Hyundai (so must sell a lot of EVs) dealer insisted that anything with £0 VED now will stay free for ever. He said I was wrong that they have to pay from next year.
Am I being unreasonable thinking they should know this stuff, or do car salespeople consider that kind of thing irrelevant?
I'm sure my elder (retires next year) colleague will think exactly the same, it is amazing how much he is told and forgets or just doesn't take in, probably a combination of his age and his personality, it is sometimes quite frustrating listening to some of the stuff he comes out with to customers, we have a similar guy at our other branch, similar age too.Am I being unreasonable thinking they should know this stuff, or do car salespeople consider that kind of thing irrelevant?
Rooted said:
I am increasingly staggered by how big the gap is between the WBAC/Motorway prices and the retail prices are for Range Rovers in particular - I can't think of another model where the margin is so wide - is it simply that the dealers have to have lots of profit in the average car as every now and again they will take a big loss on providing a warranty against one that goes very expensively wrong?
What are are you seeing, also Motorway and WBAC aren't the definitive value for cars, Motorway is a bidding site and WBAC is just what they want to pay for the car at that moment in time, we have offered more for cars than WBAC.WBAC and motorway give you a feel for the price trade are paying for their inventory - if you add say £1000 onto this, there is still a £5k+ difference between for example what the platforms will offer you for a RR that is retailing for £15k
HTP99 said:
What are are you seeing, also Motorway and WBAC aren't the definitive value for cars, Motorway is a bidding site and WBAC is just what they want to pay for the car at that moment in time, we have offered more for cars than WBAC.
Rooted said:
WBAC and motorway give you a feel for the price trade are paying for their inventory - if you add say £1000 onto this, there is still a £5k+ difference between for example what the platforms will offer you for a RR that is retailing for £15k
What's the £1000 for? That probably won't even cover prep, warranty and VAT. Let alone allow for the fact its a JLR product that will more than likely cost you money after you've sold it.Sell a range Rover to someone but you have to warrant every fault on it for 6 months. There's your answer why the margins are so big. You would have to be crazy to retail one IMHO. I really don't understand how dealers manage with them it must be an utter nightmare. They are barely retail standard new!
My neighbour bought an 18 month old RR Sport a while back. For the first 4 or 5 weeks after picking it up they had a succession of loan cars sprinkled with periods of 3 or 4 days when they had their own car back.
It's a lovely looking thing, and wonderful place to sit. But there's no way on earth I'd ever buy one
It's a lovely looking thing, and wonderful place to sit. But there's no way on earth I'd ever buy one
Going back 10 odd years ago, the dealer group I worked for used to put £4,000 across a LR product, average prep costs were £1,000 and the warranty £1,000. Pretty much every customer will at least ask for a discount, factor in paying the salesman, keeping the lights on of the business and heaven forbid, making a profit, it doesn't leave much.
I've got an interview tomorrow to become a car salesman.
I've never done it before but am obviously a petrolhead and I've got lots of experience in retail and sales.
Is there anything I need to know that can give me an edge knowing that I haven't done it before?
Any questions that I definitely need to ask?
I've never done it before but am obviously a petrolhead and I've got lots of experience in retail and sales.
Is there anything I need to know that can give me an edge knowing that I haven't done it before?
Any questions that I definitely need to ask?
matherto said:
I've got an interview tomorrow to become a car salesman.
I've never done it before but am obviously a petrolhead and I've got lots of experience in retail and sales.
Is there anything I need to know that can give me an edge knowing that I haven't done it before?
Any questions that I definitely need to ask?
Many, many years ago, I tried to become a car salesman. I've never done it before but am obviously a petrolhead and I've got lots of experience in retail and sales.
Is there anything I need to know that can give me an edge knowing that I haven't done it before?
Any questions that I definitely need to ask?
The very last thing they want is a petrolhead, what they want is someone who will sell absolutely anything, to anyone who wants it. It's all about figures, quotas and shifting units.
LuS1fer said:
Many, many years ago, I tried to become a car salesman.
The very last thing they want is a petrolhead, what they want is someone who will sell absolutely anything, to anyone who wants it. It's all about figures, quotas and shifting units.
I was a salesman in another field.The very last thing they want is a petrolhead, what they want is someone who will sell absolutely anything, to anyone who wants it. It's all about figures, quotas and shifting units.
By "anything" the main focus is on finance, and other add-on products (paint protection, alloy wheel cover etc etc).
Car sales people don't know anything the cars they sell. In reality, they probably know something, but they pretend not to so as not to get into deep discussions about them.
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