[AMA] I Am a Car Salesman, Ask Me Anything!

spackbace on 21/03/2019 - 15:12
Last edited 21/03/2019 - 20:06

To celebrate my 22,000th comment which will happen on this post, I figured it's about time I do something like this, especially after trying to dispel the hybrid myths on this post

Currently working Toyota new cars, have worked for Holden & Suzuki previously, as well as used car sales.

Former top 10 deal poster, current top 10 commenter and competition poster (Stats here)

Aaaaand go!

(FWIW I won't neg vote anyone on here, I know the discussion can get passionate at times but that does nothing to further the conversation. I use my words not my neg votes!)

Introduce Yourself

closed Comments

      • miicah on 22/03/2019 - 10:05

        So what about if you get finance and then just put your cash on the loan straight away?

        • spackbace on 22/03/2019 - 11:20
          +7

          Early pay-out fees

    • This Guy on 23/03/2019 - 03:55

      Legally no. In reality it depends on the dealership's business model.

      If they want you to sign on a price before working out an actual repayment then no.

      If they try to work out the repayment first then yes. You will only get a better price on the car if you are just short on capacity (ability to repay the loan).

      Still, many dealerships will significantly beat the big four on finance, even though most use one of the big four for finance.

  • kevkay on 21/03/2019 - 18:14

    What was the worst traded in car you've seen?

    Edit

    An extra question: What do you do on the days you don't get customers coming into the dealer?

    • spackbace on 21/03/2019 - 18:24
      +1

      What was the worst traded in car you've seen?

      Lol have seen some absolute crap-boxes, would get either "No commercial value" (we don't want it), or $1.

      An extra question: What do you do on the days you don't get customers coming into the dealer?

      Post AMA's ;)

      Try to get customers in, follow up customers

  • DBBROS on 21/03/2019 - 18:20

    If I was to ask for a discount for a newly released carand the salesperson tells me that they can't do any discount due to being a newer model,is it worth to continue haggling for a better price or should I go to another dealership ?

    • spackbace on 21/03/2019 - 18:24

      Depends on the car, push comes to shove they might move a bit

  • Happy501 on 21/03/2019 - 18:31

    Do dealers know early if there is a new unique manufacturer sale coming up or are they kept in the dark?

    • spackbace on 21/03/2019 - 18:35
      +1

      Can get hints in the days before, or told to order up certain cars. That's it really

      With Holden's 3 day sales, we'd know about a week or 2 in advance (from memory)

      • Happy501 on 21/03/2019 - 18:36
        +1

        Thanks very much

    • This Guy on 23/03/2019 - 04:00

      Most sales managers know at least a fortnight before so they can prepare.

      Competent senior management should find out months out to plan staff and their own events.

      Sales people might know a few days before the start or a few days after the start, depending on how much management has been drinking.

  • Wystri Warrick on 21/03/2019 - 18:31

    What was the inspiration behind your username?

    • spackbace on 21/03/2019 - 18:34
      +1

      Years back, saw it on Napster, someone else had it.

      Stole it and ran with it lol and it's unique, makes it very easy to get usernames :)

      • hymio on 21/03/2019 - 23:22
        +10

        It's been years and I've only just realised it's Spackbace and not Spaceback!

        • Hargain Bunter on 21/03/2019 - 23:51
          +4

          Me too! Mind blown!

        • daewoo on 22/03/2019 - 13:53
          +1

          Me three!

  • Mentem on 21/03/2019 - 18:55
    +2

    Hi Spackbace,

    Qudos, I have to say sales people in general get a bad wrap. Salespeople open to posting what you have here should be commended. Chances are they are going to be honest in the sales process.

    I bought a new car last year december, I do have to say I wish the process was a bit easier. I was ready to buy and I had done research but lots of dealerships want to say the can not sell it for that price but will then ring you back up and they could have beaten the price you paid.

    Why say we could have sold it cheaper, when they didnt want to when I'm in front of them?

    • spackbace on 21/03/2019 - 19:00
      +1

      but will then ring you back up and they could have beaten the price you paid.

      This all depends on the interaction with the customer. If you've said "I'll buy it for this price", and they let you walk out, that's their own fault.

      If you went to one dealer, and said you wouldn't buy from there, that you'd shop around, and walked out, then no doubt you rubbed the salesperson up the wrong way. If you said you bought elsewhere, and they said "oh I could've beaten that price", it's a statement meant with barbs attached. Yes I've used it before, only because the customer was openly shopping me and wouldn't commit.

      2 different types of customers, 2 different reactions :)

      • Mentem on 21/03/2019 - 19:53

        I was very ready to buy and said it need to be this price, I would have paid deposit there and then. The car was in stock and i would have picked up a week later.

        • spackbace on 21/03/2019 - 19:57

          Yeesh :/ sorry to hear. That's the right way to bargain, shame they couldn't do the deal at the time

          • Mentem on 21/03/2019 - 20:02

            @spackbace: I got the car at the price I wanted, but cant help but feel it could have been quicker and easier. The dealer where I purchased from even delivered, and included mats, plates and full tank

            • spackbace on 21/03/2019 - 20:03

              @Mentem: Yeah it just shows the difference between good and bad salespeople

      • Worf on 23/03/2019 - 09:49
        +1

        I had a similar situation. First dealer said the best price they could do was x.

        I went to a second dealer and their best price was a few grand lower than the first dealer so I went ahead with it, because I figured the first dealer’s best price meant that they couldn’t go much lower (maybe they could reduce their ‘best’ price in the hundreds range, but not in the thousands).

        A couple of follow up calls later, and then the first dealer says “I’m confident we could have beaten the price”

  • Sawtell on 21/03/2019 - 18:56

    A*hole customers aside, is it true that there is a high turn over of staff in dealerships due to the generally shitty work environment?

    I heard one anecdote of a young bloke starting out, first day/first job and actually sold a car. Got punted in the first week so the dealer didnt have to pay commission. Accurate?

    • spackbace on 21/03/2019 - 19:01

      Yeah I mentioned it before, it is a tough gig, with long hours and tough kpis

      Got punted in the first week so the dealer didnt have to pay commission. Accurate?

      Could be, if he wasn't the right fit. A week sounds a bit rough though, usually more like a couple of months

  • Illian on 21/03/2019 - 19:00

    Is this a long-term career for you?
    Do you aspire to move up to luxury dealerships such as Lexus or the germans?
    Has anyone literally kicked the tires in front of you?

    • spackbace on 21/03/2019 - 19:02

      At this stage I'm undecided, it was at one point in time. I actually considered going into a dealership finance role, as a more long-term thing, more mature occupation but still staying with what I know.

      Nah luxury = far quieter, less stability. I like Toyota. Good brand, good work ethics, good training

      Not that I can think of no lol

  • Ocker on 21/03/2019 - 19:07

    When you go to a party, do you admit to being a car sales person - sorta fits into the same category as a real estate salesperson and/or bank worker. Just inviting flak

    • spackbace on 21/03/2019 - 19:08

      Yeah I do, and don't try to flout the drive car as my own, though it's nice to rock up to things in a new car :)

      Generally people are pretty open to it and curious about the industry. Probably easier to say I'm a new car salesperson, than a used car.

  • astroboy38 on 21/03/2019 - 19:20

    SB, why isn't the Toyota Alphard sold in Australia? It's very popular in Asia and if it was available here, I'd be keen to get one!

    • spackbace on 21/03/2019 - 19:22

      Not many people buy people movers here. VFACTS shows about the same number sold as the Large vehicle class YTD (and Camry isn't in large vehicles btw)

    • berger on 22/03/2019 - 10:30

      plenty of importers sell these locally, some over $100k!

  • pegaxs on 21/03/2019 - 19:35
    +2

    How do you sleep at night? How do you live with yourself? :P

    Anyway, serious question… If you could work for any car brand, who would you like to work for and why that brand?

    Congrats on the 22,000 votes… unfortunately the best I can do is 19,500… would you accept 19.5?

    • spackbace on 21/03/2019 - 19:43
      +1

      22,000 comments ;)

      Honestly I couldn't think of a brand. I hate being quiet in a job, which the luxury brands would be. All well and good to drive an expensive car home for the night, which you don't own, but would be shit selling a car a week!

      • pegaxs on 21/03/2019 - 20:19

        Hahaha… *comments

      • Worf on 23/03/2019 - 09:53

        How many cars would you sell on an:

        average in a week?

        Slow/quiet week?

        busy week?

  • rhinosdinos on 21/03/2019 - 19:51

    Do you know an estimate in price for the new hybrid rav4? I've heard that it'll be releasing early May this year and i'm excited that they've updated the style of it.

    • spackbace on 21/03/2019 - 19:52

      I'd say close to RRP of the current one, and then a further $1500 for the hybrid. Should see a starting price of hybrid for around $37k, I hope!

      Should be a popular car, I've got a few customers waiting to know prices and spec.

  • UNO on 21/03/2019 - 19:55

    What car do you drive!

    • spackbace on 21/03/2019 - 19:57

      Work demo's :)

      Currently prefer the new Camry Ascent Sport. Comfy, roomy, easy to drive

  • bazzato on 21/03/2019 - 19:58
    +1

    Over the last few years we have bought a couple of new cars (or demos). Generally I find an in stock car at a dealer and have gone in and asked for their best price. Each time I haven't had a trade in and don't need finance. 9/10 times they give me the run around and make it difficult to purchase. Is this because they want to finance the car? I never want any extras (tinting, paint protection etc) is that what puts them off?

    For reference when I finally get a dealership that gives me a price, I'm in and out in 30mins after paying a deposit and pickup a week or so later.

    • spackbace on 21/03/2019 - 20:00
      +1

      Normally because "best price" equals "I'm going to 4 other dealers and asking the same thing". So while you might just want to see a discount, and be happy to buy at a good discount, you'll be lumped in with the other type of buyer.

      My advice is to have an idea of what you want to buy the car for, and just offer that. Put it in writing.

      • bazzato on 21/03/2019 - 20:12
        +1

        thanks for reply. one did say they wouldn't give me a price because I would just go elsewhere and "price beat". but I said that I would HAVE to go elsewhere if they couldn't give me a price as I couldn't purchase. 45 mins later and still no price so i left.

        They did call back at the end of the day but I had already purchased a car that I preferred less and would have been more expensive because of options (sunroof).

        Thanks again

        • Worf on 23/03/2019 - 09:54

          So true, what’s with the time wasting?

          • bazzato on 23/03/2019 - 13:36
            +1

            @Worf: yeah, they even tried to say if I left a deposit they would give me a price. I offered a 10% deposit and asked how much…..they soon stopped asking for a deposit. I also said I'll assume that the RRP is their best price and they assured me they would do better, but again just wouldn't tell me.

            surely they'd be better to give a price quickly and maybe get the sale, rather than spend all this time and get nothing?

  • epkh on 21/03/2019 - 20:03

    Hello friend,

    I am interested in getting a new car. Looking for a small SUV or medium sedan. I don't have a problem choosing the car, I'm just waiting for an interest free finance option (due to religious reasons cannot get loan with interest).

    My brother got a Toyota Camry with an interest free finance last year (I think 3 or 4 year term?). I think they were clearing old stock or some sort of promotion was happening.

    I have been waiting a couple of months now for an interest free deal (not only Toyota) but alas nothing so far (besides Kia stinger and carnival). When do you think deals like these come up?

    Also, if I was to go to a dealer and offer higher than rrp but want to pay interest free, do you think this is viable? I am in Victoria if that makes a difference.

    Would be very grateful for any input. I've actually been thinking of messaging you on ozb but luckily you posted this AMA.

    Congrats on 22k comments and many thanks friend.

    • spackbace on 21/03/2019 - 20:05
      +4

      What you're after is subvention, we can't do it any more, not to 0%.

      You won't see Toyota do 0%, this was only on locally made cars.

      Due to all the new financial regulations, we can't do 0%, there needs to be some interest rate shown.

  • Happy501 on 21/03/2019 - 20:20

    Hi again, a ford dealer told me this week that Ford don't allow advertising on carsales, any idea why?

    • spackbace on 21/03/2019 - 20:23
      +1

      No manufacturer does for new cars or demos. They found dealers were dutch-auctioning demo's on there, dropping prices left and right, so put in strict rules

      • cloudy on 23/03/2019 - 11:00

        So do dealers use Carsales at all?

        • spackbace on 23/03/2019 - 11:25

          Only when a demo is so old, it becomes a used car

          • cloudy on 23/03/2019 - 12:50

            @spackbace: Is Carsales the only website you advertise used cars? Just wondering on the popularity of Carsales vs the others (if you have an opinion)

            Also, do you work for one of the major franchise dealerships? (AHG, AP Eagers)

            • spackbace on 23/03/2019 - 12:53

              @cloudy: Carsales and Gumtree, who are owned by the same mob anyway lol
              Occasionally the newspaper

              Nope, have previously tho

  • jason101 on 21/03/2019 - 20:21

    How does the whole Gold, Silver fleet discount work with Toyota. We often buy cars and commercials at work and it seems entirely discretionary if we get fleet discount and the invoices seem to vary between silver and gold discount from one dealer to the next, one state to the next despite all being purchased for the same company.

    Who sets this discount amount?
    Who selects the discount tier?
    Does Toyota Australia rebate the dealers this discount?

    • spackbace on 21/03/2019 - 20:23

      Should be standard across the board, your company will be in the fleet system at a certain level. The level is based on how many cars you will have

  • Happy501 on 21/03/2019 - 20:27

    Do you happen to know what the fleet discount is for TPI veterans for Toyota?

    • spackbace on 21/03/2019 - 20:29
      +1

      TPI isn't fleet discount, they just don't pay GST or on-road costs

      • Happy501 on 21/03/2019 - 20:29

        Thanks again

  • tingleping on 21/03/2019 - 20:28

    If you were to buy a small car max $15k in the next couple/few months, would you:
    1. Trade in your current car for the purchase or sell it privately/elsewhere?
    2. Buy new/used?
    3. If used, buy privately or through a dealership?
    4. Wait until EOFY/Midyear sales or shop around now & buy now?
    5. Look at any particular model/brand or just ball park whatever is in the price range?
    Thankyou!

    • spackbace on 21/03/2019 - 20:31

      Jees!

      1. Don't have a current car. Sell privately if have enough time, trade-in if I don't, depending on car's value and condition
      2. $15k? Buy used. There is SFA in the new car market at that price-point.
      3. Depends on the price difference between both, and where I found best value for money
      4. It's used, therefore there is no set time to buy.
      5. I'd be looking at particular brands and models
      • tingleping on 21/03/2019 - 20:36

        Thanks OP, Also, does a cash offer give you more bargaining power or finance more persuasive because of the commission/fees off the interest?
        Also, any particular models you would recommend as good value? Budget is not fixed, we just have a Ute so would prefer a smaller (not getz or jazz sized) car.

        • spackbace on 21/03/2019 - 20:37
          +1

          Finance is better as it means commission.

          I've always been a fan of the Swift, and you don't hear about the breaking

  • [Deactivated] on 21/03/2019 - 20:29

    How many cars would you sell on average in a month?

  • 00 on 21/03/2019 - 20:34

    Is Tesla seen as a threat within the industry?

    • spackbace on 21/03/2019 - 20:36
      +1

      No, but in a way I believe they're seen as a good sign.

      Many countries setting emissions targets, hence the prevalence of EV and hybrid.

      How difficult it would've been years back to combat the fuel companies and come up the alternate fuel sources, and making them mainstream.

      Tesla can't mass-produce like someone like Toyota. What Toyota can do is use their r&d money towards the next stage, which they're doing. Not just cars, but mobility in general

  • JetBombat on 21/03/2019 - 20:57

    What kind of KPIs do you get? Is there a more pressure for a sale towards end of the month?

    • spackbace on 21/03/2019 - 21:15

      Sales targets, aftercare/finance targets, customer survey targets, training targets

      There's always pressure

      • Other on 22/03/2019 - 12:18

        There's always pressure

        Why?
        If your selling 10-15 cars per month, its more likely the general economy that will affect the number of sales rather than the amount of pressure that is applied - I mean how do you force someone to walk into a car dealership? Now if you aren't hitting the conversions - fine… but just generally?

        • spackbace on 22/03/2019 - 12:22

          Yeah you've still gotta hit around a 25% closing rate.

          We can hit that but still be short of KPIs, but you need understanding management to accept that.

  • p1 ama on 21/03/2019 - 21:24

    What do you think is the future of car sales? It seems to me that dealerships as they are now are on the way out and Tesla model for car sales will eventually take over. In other words, I go to the website, the website shows me a price. Perhaps I can shop around, then I go with the deal I like, click some buttons and it eventually gets delivered to my door.

    Why do dealerships still follow the old "negotiation" business?

    • spackbace on 21/03/2019 - 22:30

      We're more than happy for you to pay sticker price, but you want to see a discount, so you negotiate.

      The Tesla model will require the consumer to change their mindset as well, which isn't gonna happen overnight

      • p1 ama on 21/03/2019 - 23:52
        +6

        We're more than happy for you to pay sticker price, but you want to see a discount, so you negotiate.

        Not really, people negotiate because they know that the sticker price is inflated and you're willing to sell below that sticker price. Most people don't go to McDonald's and negotiate when they're buying a Big Mac. There's generally an understanding that the price listed is the "best" price and if you don't like it, you can buy a burger elsewhere or make your own.

        • spackbace on 21/03/2019 - 23:59
          +1

          But once the price is fixed, how will you know if it's inflated or not? How will you perceive value if you have nothing to compare it to?

          People thought they were buying Tesla's for a good price, then they dropped the RRP… See the number of complaints?

          There is no perfect method to it. If a manufacturer puts a car on sale 1 month, then lifts the price the next, no one will buy it. If they fix the price but then have to put it in sale to clear excess stock, those that paid the higher price will lose out, destroying consumer confidence.

          • p1 ama on 22/03/2019 - 00:12
            +5

            @spackbace:

            But once the price is fixed, how will you know if it's inflated or not? How will you perceive value if you have nothing to compare it to?

            Competition. If McDonald's charges me too much, I'll go to Hungry Jacks', just like if dealership A is charging more than dealership B, I'll go to dealership B.

            People thought they were buying Tesla's for a good price, then they dropped the RRP… See the number of complaints?

            That's a completely different story. If Toyota dropped the RRP of their Camry by that much, people would complain too.

            There is no perfect method to it. If a manufacturer puts a car on sale 1 month, then lifts the price the next, no one will buy it. If they fix the price but then have to put it in sale to clear excess stock, those that paid the higher price will lose out, destroying consumer confidence.

            This is literally how sales work in any other industry though.

      • arkie0 on 22/03/2019 - 09:50

        Agreed it's actually how most industries work, look at all the deals on OzB.

        Example: Headphones will have a sticker price, sometimes it will go on sale and go back up. People will still buy at the higher price point.

        The problem with the new cars sales industry is they price jack the sticker price / RRP. I rarely hear people buy at RRP, its always negotiated lower.

  • 0FoxGiven on 21/03/2019 - 21:40

    What mid small SUV (used) would you recommend to purchase for under $25k? I'm trying to decide between the Suzuki Vitara and the Toyota CH-R(if I can find one in that price barrier).

    I like the look of the CH-R but the Window seat viewing in the back is just weird
    The Vitara looks like good value for money and Suzuki cars seem well made after my experience driving a swift and not having to spend a single buck on maintenance or repairs in almost 2 years.

    Please feel free to suggest any other options.

    • spackbace on 21/03/2019 - 22:30
      +2

      Find a 1yo Vitara turbo

      • 0FoxGiven on 21/03/2019 - 23:31

        Do I need the turbo though if I use my car just to from point A-B and without any real need to go off-road?
        What would you say would be a good price to settle on for the 1 yr old turbo vitara and a non-turbo one?

        • spackbace on 22/03/2019 - 00:00
          +1

          I preferred the drive and extra features of the turbo

          Check Carsales for selling prices

  • swilsonau on 21/03/2019 - 21:44
    +1

    Any news on the Toyota grapevine in regards to Carplay in Australia? Almost grabbed a Corolla ZR but no Carplay was a deal-breaker…

    • spackbace on 21/03/2019 - 22:31

      Nope no news

      Besides Apple/google maps, the system does the same stuff as Carplay (and we even have built in gps)

      • Nalar on 25/03/2019 - 15:36

        Is there a Waze equivalent? Fixed AND random speed traps as well as up to date traffic alerts are a godsend.

  • ravengray on 21/03/2019 - 21:56

    What is free on the saying "5 years FREE scheduled service"?

    • spackbace on 21/03/2019 - 22:31
      +1

      Your scheduled servicing? 😂

  • ozricoy on 21/03/2019 - 21:58

    What’s the most annoying experience you had being a carsales person?

    • spackbace on 21/03/2019 - 22:32

      Too many to list 😂

  • tzd116 on 21/03/2019 - 22:06
    +1

    Have you sold many C-HR? What’s the best deal you have done for a top of the range CHR?

    Also, the few times I dealt with Toyota finance, the interest rates have always been around 9%-10% mark. Where as, bmw finance or alphera are always happy to do between 3.99% and 4.99%? Is this because of margin? Or should I have haggled a bit more?

    • spackbace on 21/03/2019 - 22:33
      +1

      Yeah sold a few

      Low margins on them, lucky to get $1500-1800 off RRP

      Finance is an individual thing, depends on your history. Yes it can be negotiated on to a small extent

      • Desertsyd on 22/03/2019 - 10:08

        doing a quick price on Toyota website
        $37,636 koba 2wd yellow/black

        $36k is pretty much best a dealer could do. Sydney

        Can dealerships give better prices for employees no matter the department?

        • spackbace on 22/03/2019 - 10:45

          Depends how long they've been with the company

  • yjun355 on 21/03/2019 - 22:07

    What do you think about online buying platforms like motome and other similar ones where they gather bids from various car dealers?
    Can you ever see some massive single platform that could essentially get all car dealers on board and make buying process simpler and transparent?

    Also just curious how much would 2018 automatic corrolla or Camrey cost?
    What's next time to buy the car?

    • spackbace on 21/03/2019 - 22:35

      Single platform? Nope.

      As I said before, if you want it simple then pay sticker price. It's all that will happen years down the track anyway.

  • Peel on 21/03/2019 - 22:08

    Hi Spackbace, I totally get how it's annoying to get customers who pretend to be really interested but are just shopping you around and wasting your time. But reading some of your answers it appears that you don't like it when people come in and simply ask what is your best price because they are shopping around. Personally as someone who has never worked in an industry where this happens I don't see a problem with this so it would be interesting to understand why this is the wrong thing to do?

    • spackbace on 21/03/2019 - 22:36

      Because we won't give our best price.

      It's a weak negotiating move because you won't buy even if we give you a great deal. In your mind, you'll still need to go elsewhere to know if we were honest in our price.

      Hence it's annoying. We do the work to earn your business, only to go to the competition who of course can match our price.

      • Peel on 21/03/2019 - 22:51

        I see, what would you suggest to someone who is looking for the best price on a new car then without being rude and was happy to shop around? Like for example if I already knew I just wanted to buy a new Hilux with the basic trim to and don't need to be sold on it.

        • spackbace on 21/03/2019 - 22:55
          +2

          Work out a reasonable price you'd be happy to buy it at, and put the offer in at the dealership you got good service at

      • p1 ama on 21/03/2019 - 23:59
        +7

        It's a weak negotiating move because you won't buy even if we give you a great deal. In your mind, you'll still need to go elsewhere to know if we were honest in our price.

        You're making it sound like dealerships competing with each other so that the customer gets the lowest price is a bad thing.

        One of the things I really hate about buying cars is that dealerships just waste my time. When I just want to buy a car, I shouldn't have to be driving out to 5 dealerships to talk to different sales guys and try to get the best price. What I should be able to do is go to each dealer's website, see the prices, choose the best dealer and go pick up my damn car.

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