[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

    • spackbace on 25/03/2019 - 10:33

      I think that if you're spending $20k+ on a new car, get the colour you want. $500 is a minor percentage to make sure you're happy with the car

      Depends how hard you negotiate, but yes I'll normally include mats

      • Hotpotcorn on 25/03/2019 - 11:03

        what about a premium black/white rego plate?

        • spackbace on 25/03/2019 - 11:06

          Don't do those in WA (well not in the same way)

          • lovepub on 25/03/2019 - 17:18
            +1

            @spackbace: Well…no offence.. but we ain't friends anymore since u r based in WA.
            When u move to the sunny state, let me know

  • kelkel108 on 25/03/2019 - 10:30

    I'm looking to buy a Hybrid car, would you recommend Prius or Camry Hybrid? Or wait for the rav 4 Hybrid?

    What would be the price for a rav 4 hybrid?

    • spackbace on 25/03/2019 - 10:32
      +1

      Maybe wait for the new RAV4 and then see what you like. I'd suggest either the Camry or RAV4

  • [Deactivated] on 25/03/2019 - 10:38

    Noob question, are all prices negotiable even for drive away prices, and can you negotiate addons eg leather seats? Thanks.

    • spackbace on 25/03/2019 - 11:07

      Yes but margins differ

      We'll either negotiate price or accessories/add-ons, either way they cost money

  • IMadeYouReadThis on 25/03/2019 - 10:53

    Since you are salesman you might not have an answer to this but - is there any value in servicing the car from the dealership? My Toyota is 7 year old and have always been serviced at the dealership. I don't drive more than 7k each year so I am wondering now whether its worth looking elsewhere. I don't have any knowledge of good local repair shop so would either go with Kmart or Midas which seems to have good review in the area where I live.

    Your input would be appreciated :)

    • spackbace on 25/03/2019 - 11:08
      +1

      Such low mileage and 7yo, I'd shop around. Just compare prices with other mechanics, and see how negotiable the dealer is on price

  • Noblejoker on 25/03/2019 - 12:58
    +1

    COLOUR
    What is the most popular colour you sell?
    Does colour influence the value/depreciation?
    I am not a fan of black/dark cars
    Surely they are less safe and show all the dirt/scratches right?

    • spackbace on 25/03/2019 - 13:10

      Most popular - White/Pearl White/Silver/Dark Grey

      Does colour influence the value/depreciation?

      Only if it's a very 'out there' colour

      Surely they are less safe and show all the dirt/scratches right?

      Eh, each to their own. I've had a black car before, came up a treat when it was polished

    • brad1-8tsi on 25/03/2019 - 14:02

      From personal experience, yellow and orange are niche colours.

      If I buy new again I'm getting white and having it vinyl wrapped and removing it when I sell. extra bonus - less stone chips and marks.

  • Imhereforcomments on 25/03/2019 - 13:29

    What has the biggest stuff up to a customer your dealership has made to a customer?

    • spackbace on 25/03/2019 - 13:32
      +1

      Not current dealership, but I know of a past dealership where they ordered the wrong car for a customer, and then had to factory order the proper one (3 month wait)

      • Imhereforcomments on 25/03/2019 - 15:21

        In that type of case, does that customer get compensated? If so, what type of compensation?

        Or does that customer just need to suck it up and wait?

  • Zuba on 25/03/2019 - 14:15

    Which small car do you personally consider to be the most reliable ?

    • spackbace on 25/03/2019 - 14:16

      Swift, Corolla

      • scrimshaw on 25/03/2019 - 16:32

        Would you have any recommendations for 7 seater cars under $50k? I'm starting a poll and I'm not much of a car person. Just need maybe 4~5 recommendations on what you think are the most popular or the best in a list.

        • spackbace on 25/03/2019 - 16:38
          +1

          Probably the best source is how the cars are selling:

          VFACTS Large <$70k (in order of YTD sales):

          Prado (Over $50k)
          Kluger
          Outback (5-Seater)
          MU-X
          Santa Fe
          Pajero Sport
          Tiguan
          Everest

        • Trojan on 28/03/2019 - 17:34

          Kia Carnival should be on that list

  • psyren89 on 25/03/2019 - 16:19

    When purchasing a car, does the customer pay stamp duty on only the car, or on the accessories/extras as well?

    • spackbace on 25/03/2019 - 16:22

      Stamp duty on the car, LCT on everything

  • AlienC on 25/03/2019 - 16:32
    +2

    You make me look like a good person on this website for that I thank you Backspace.

  • tik tok on 25/03/2019 - 16:33

    What do you think is the most pointless feature in cars ?

    • spackbace on 25/03/2019 - 16:39

      Lane departure/lane trace assist

      Just learn how to stay in your lane, and indicate when changing lanes lol

      • Levathian on 25/03/2019 - 20:36

        My subaru has that. I keep it turned on, I'm kinda used to it gently turning itself at every corner.

        More technology designed for bad drivers.

        • spackbace on 26/03/2019 - 11:01
          +1

          More technology designed for bad drivers.

          Bingo

  • cvas on 25/03/2019 - 16:36

    Is paint protection worth buying from the dealer?

    • spackbace on 25/03/2019 - 16:39
      +3

      Head says no, my bank account says yes lol

      • tik tok on 25/03/2019 - 17:39

        Why no ?

        • spackbace on 25/03/2019 - 17:41

          All depends on how much you care about your car. If you're out there polishing it every month, you won't need paint protection. If you're lazy and put it through the (brushless) car wash every now and then, it might be handy for you to have a layer of paint protection on your car.

          At the end of the day though it's not bulletproof, you still need to wash off anything (bird shit etc)

      • John Kimble on 26/03/2019 - 23:15

        Why do you get a cut? I thought that was ming mole territory?

        • spackbace on 26/03/2019 - 23:17

          Coz we still get a cut 😀

  • ProjectZero on 25/03/2019 - 19:15

    Whats the biggest discount you had to sell a car for? Any tips on getting the salesmen on side for a better deal?

    • spackbace on 25/03/2019 - 19:17

      Whats the biggest discount you had to sell a car for?

      About $13k

      Any tips on getting the salesmen on side for a better deal?

      Getting us onside won't get a better deal, but being a dick to us won't get you a better deal either!

      Just be firm but fair with a reasonable offer, and it'll get over the line. More-so about an hour before we close, coz we'll just wanna get out of there lol

      • ProjectZero on 25/03/2019 - 19:19

        Sorry just trying to get some tips as I'm thinking of getting a new car myself, what was the % of that 13k discount or are you not able to say?

        • spackbace on 25/03/2019 - 19:22

          That was a 10% discount. But in terms of $$s, would be the biggest.

  • khelddar on 25/03/2019 - 21:29

    Are all new cars out by a certain amount of km's per hour?

    The old if your speddo reads 107 your only going 100? if so why (myth is to stop people from speeding)?
    And are you allow to tell customers if they ask?

    Lots of questions

    • spackbace on 25/03/2019 - 23:29

      Not a certain amount, no. Varies per car

      Why? Not sure it's not something I'm privvy too. Probably because it's better than under reading.

      And it's not some conspiracy or something, there's nothing to tell

    • brad1-8tsi on 27/03/2019 - 08:48

      It's part of the Australian Design Rule 18. It's not a myth or secret. Just check your speedometer against a GPS
      http://rvcs-prodweb.dot.gov.au/files/ADR%201803.pdf

  • Aerith-Waifu on 25/03/2019 - 23:00
    +1

    Went to the dealer and this car they cant do any discount, not even $500.

    https://www.mitsubishi-motors.com.au/shopping-tools/special-…

    How much you think I can get this one at the drive away price?

    $29.5k is possible?

    • spackbace on 25/03/2019 - 23:27

      So a dealer wouldn't negotiate, and you're asking if you can get another $3k off?

      Riiiight

      • Aerith-Waifu on 26/03/2019 - 01:29

        Hi, what would be an acceptable offer? $31k? Thanks

        • spackbace on 26/03/2019 - 01:32

          If you're serious on the car then yes that's closer to the mark. If they don't budge then there might not be room to move

          • Aerith-Waifu on 26/03/2019 - 01:37

            @spackbace: Thank you very much for your help.

            Does the $31k offer including the $1000 free accessories? Or does the $31k doesn't including the $1000 accessories?

            • spackbace on 26/03/2019 - 01:44

              @Aerith-Waifu: It's an offer, it could mean whatever you want it to be.

              You could start negotiations at $1, doesn't mean it's going to be accepted.

  • CI on 25/03/2019 - 23:43

    @spackbace what do you think of the new BMW x7

    • spackbace on 25/03/2019 - 23:45

      Haven't driven it, want to loan me one? 😉

  • Frozensage on 26/03/2019 - 00:05

    If I went in test drove but didn't like the salesman, went back in next day and bought it off a different salesman, who would get the commission?

    • spackbace on 26/03/2019 - 00:15

      The one you bought it off. But be very clear in why you're dogging the first guy. Ask for the manager if need be

      • netjock on 26/03/2019 - 01:33
        +1

        "Dogging" :D

  • fus3 on 26/03/2019 - 08:32

    Hi Spackbace,

    Great AMA thread and congrats for reaching 22k comments!

    I am in the market for a new Subaru at the moment and coincidentally a few friends of mine are also looking at Subarus.

    Therefore, we most likely be getting 3-4 new/demo Subarus within the next few weeks.

    So I'm thinking of hitting up a dealer with a group buy situation.

    I've read some of your other responses and think I'll put it in writing and send it to a few dealers. We know what we want and I've checked Whirlpool forums and got an indication of what others have paid.

    Besides putting it in writing, what would be your best advice/tips/strategies on getting the best deal given our situation?

    Thanks in advance.

    • spackbace on 26/03/2019 - 11:00
      +1

      That's a tough one

      A few people try the whole "how much for 2 or 3, my friend might be interested" and then they're only seriously looking at 1, but they use that to try to negotiate them down. Reading through a few of the comments on Subaru it seems like it some states they don't negotiate a lot.

      I'd pick 2 or 3 dealers and walk in there, make yourselves known, find out exactly what you're looking for (not every dealer will have the 3 demos you want, maybe you want 3 new cars) and go from there.

      • fus3 on 26/03/2019 - 12:27

        Thanks appreciate the feedback.

  • kenzstar on 26/03/2019 - 10:38

    Hi SB,
    Are the 2019 corolla hatchbacks still selling well compared to last generation?

    I was going to buy the 2019 version, but the small boot size put me off it and i instead bought a 2017 corolla.

    • spackbace on 26/03/2019 - 10:58

      Not really, but that's more of a price thing

  • RolandWaites on 26/03/2019 - 15:10

    Purely electric, non-premium cars like the Nissan Leaf - are they worth it?

    • spackbace on 26/03/2019 - 15:19

      If they aren't asking drug money to purchase, if you're not charging with standard electricity (ie if you have solar), and if you only drive relatively short commutes - sure.

      • ur2dads on 27/03/2019 - 10:18

        Hi Spacebace, and thanks for doing this AMA.

        I, like a few others, are interested in the likes of Nissan Leaf and the Hyundai Ioniq. I read that wonderful table you did on Fuel Engine vs Hybrid Engine.

        However, my car is aging and very fuel costly (2004 RAV4, on what is probably a fuel efficiency of ~9+). For me, going to work on a roundtrip is 30KM, however most of my mileage goes picking up the GF (80km round trip from my workplace -> her place -> my place). Roughly speaking, I do approximately 300-400km per week, depending on how many times i see her.

        I read that it only close to $1 to charge the car per day, whereas a full tank can probably cost me between 50-70 bucks depending on the price (bloody 40c/L fuel excise + GST is so expensive!)

        I'm curious whether you think this is a valid reason for me to upgrade to a EV? Probably in the next year or so.

        Thank you in advance!

  • Zuba on 26/03/2019 - 15:44

    If you had a budget of $6000 to purchase your first car …. What would you buy ?

    • spackbace on 26/03/2019 - 19:17

      Heart

      Brain or brain

      • Zuba on 26/03/2019 - 20:54

        Thanks !!

        • Mentallysick on 27/03/2019 - 08:41

          why would you pay $6000 for 25 years ols car. Rubbish.
          Donot get anything older than 10 years.

          • brad1-8tsi on 27/03/2019 - 08:53
            +1

            @Mentallysick: You obviously don't understand heart/head buys do you.

          • spackbace on 01/04/2019 - 00:48

            @Mentallysick: Last I checked 1997 was 22yrs ago 😉

            And under $6k, from 2009 onwards reveals some absolute lemons:
            Link
            Cruze, Barina, Astra, Great Wall, Tata etc

            Keeping the kms reasonable and engine size realistic, it's a stupid restriction to say a first car buyer should be within 10yrs old

      • dazeet on 04/04/2019 - 07:04

        Glad to see my car on your list :)

        • spackbace on 04/04/2019 - 11:05

          I'm an old mits boy at heart lol what's your car?

          • dazeet on 04/04/2019 - 12:15

            @spackbace: 2 actually lol. I couldn't resist because they are honest, and better value used buys IMHO than Toyotas and Mazdas :)

            • 2005 380. Paid $8.4k for it back in mid-2013. The rare LX with the factory approved Impco Sequent 56 system. Probably the last one with this combo in Australia! Almost 200,000km now, but still goes very well if and when needed. Took it to Tassie and back last winter - car was happy as. Demolishes freeway hills on CC as if they aren't there! Cheaper to run this 3.8 on LPG than the Grandis' 2.4 on 91, with far more low rev torque than Holden's SIDI V6. To this date, it is still not consuming or leaking any oil. Just got this SRS warning light that I need to find somewhere trustworthy and reliable to fix. Not sure why it came on as it has never been crashed. Apparently something to do with the squib for the front passenger airbag.

            • 2004 Grandis Luxury. For those times when we need more space. Took 6 adults and 2 weeks of overseas luggage recently! Paid $10k for it around 2014 as it was the second best example at the time in terms of condition (and the best one was 40% more expensive…true to OzB form, I walked away from that one!). Just ticked over 170,000km. An old nail of a drivetrain now (first gen MIVEC yo! Lol) that needs a lot more encouragement to accelerate than the 380, and costs more to run, but it just won't quit, the gearbox never fumbles a shift, and the brakes on mine are phenomenal for a people mover (AFAIK, still on original rotors and Bendix 4WD/SUV pads). Once it gets up to the speed limit, it corners in ways no people mover should! As long as one is gradual with the weight transfer + well-timed braking and accelerating, it will maintain some amazing roll angles and keep up with most modern SUVs - with just RE003s and without traction control/ESC! Just got a mildly leaking front engine seal that will be replaced at the next major service.

            What Mitsis did/do you own?

            • spackbace on 04/04/2019 - 12:20

              @dazeet: First car - 1989 Galant SE, just a 2.0L i4
              2nd car - 1993 Galant HJ-V6 - 2.0L V6, nice rev happy engine

              3rd car - 2003 KJ Verada S2 Ei, in black, lowered on black rims. Was a good looking car, shame the auto gearbox started to flare at about 160,000kms. Had the 5 speed box.
              Was part of a Mits club, went to Adelaide years ago to meet up with them. Prototype supercharged ralliart magnas, all sorts. We had a dinner with the last CEO of Mits (the guy on the 380 ads).

              Nearly imported a VR4 Galant before I bought the Verada, would've been one of the first, but had a shit experience with the importer so bailed out.

  • markmac1 on 26/03/2019 - 17:39

    I'm with Cba and there is a staff deal with Hyundai for fleet pricing available to staff via dealers. Is fleet pricing discount something you can bring up at end of negotiations and should be available because it is a manufacturer discount and won't impact dealer profit ? Thanks

    • spackbace on 26/03/2019 - 19:11

      No, you mention it first

  • Imhereforcomments on 26/03/2019 - 18:25

    Would you accept 100k cash when settling vehicles?

    • spackbace on 26/03/2019 - 19:11

      Sure, but like any cash payment over $10k, you'll need to fill out a form declaring it

      A bank cheque would be far easier…

      Would you walk around with $100k on you?

      • cybapete on 26/03/2019 - 20:47

        i imagine 100k would weigh a fair bit

        • djmm on 27/03/2019 - 08:13
          +1

          Only if it's in 2 dollar coins.

        • TheMindsetTraveller on 27/03/2019 - 11:55

          Not really ;)

          10 bundles (one bundle has 100) of $100 notes and you are there.

  • Mentallysick on 27/03/2019 - 08:39

    How much do you get paid annually and what is the bonus like at the EOY.

  • Kurt1 on 27/03/2019 - 09:43

    Hi Spacbace,
    Great AMA!
    Whats your thoughts on novated lease? Do you really save some $ from that?
    The company/organisation I for work has tie-up with Toyota novated lease. The GST is waive (I think) and we can salary sacrifice part of the lease.

    I'm eyeing on the new Toyota RAV4 hybrid. Do you have idea when prices and specs will be release?

    • John Kimble on 27/03/2019 - 10:22
      +2

      Your intro indicates you have read the AMA, your questions indicate you haven't.

  • roundnumbersonly on 27/03/2019 - 15:58

    What happens to my GFV if I go over 80,000kms? If I try and buy it out, will I end up paying less because my vehicle has travelled more than the kms they allowed?

    • spackbace on 27/03/2019 - 16:03

      Each additional km over the amount affects gfv by a small amount, from memory about $0.06/km. Double check your paperwork or check with TFS

      • roundnumbersonly on 27/03/2019 - 16:14

        Ok, further to that - if I wanted to ask for a buyout price, is there any way to negotiate a lower price?

        • spackbace on 27/03/2019 - 16:25

          No, the finance owing is what it's owing, we can't change how much money is owed on the car!

  • [Deactivated] on 27/03/2019 - 21:03

    Out of curiousity , what is your marital status? Divorced?

    • [Deactivated] on 27/03/2019 - 21:26

      That was a serious question. With stats like that and a full-time job, how do balance family life and everything else?

    • spackbace on 27/03/2019 - 21:41
      +1

      Separated from my daughters' mum about 18 months ago, have been dating someone for the last 6 weeks or so

      Need a very understanding partner

      • [Deactivated] on 27/03/2019 - 21:50

        Separated from my daughters' mum about 18 months ago

        So sorry to hear . I remember you being kind to me when my wife and I separated after she had the miscarriage.

  • El Grande on 29/03/2019 - 00:04

    I don't know if this is the right question for you but here it goes.

    How would someone go about starting a car dealership? Would you recommend it? What kind of investment are we looking at? Does the stock cost vary between the dealerships say 1 guy owns 5 Toyota dealerships selling 100 corollas vs the other guy who owns one dealership and sells 8 a month.

    • spackbace on 29/03/2019 - 00:09

      You'd need to be a millionaire or have serious backing. There's a reason many dealerships are owned by groups, either local or overseas investors

      • El Grande on 29/03/2019 - 13:56

        I have family overseas that have a bunch of Suzuki dealerships (7-8). They said there is $2-3 Mil in Stock at one time per dealership that once you factor in the interest payments means very little return on new car sales. Also you are allocated certain amount of new car stock so if its not selling well you have to find a way to sell it. Service is the money maker. I asked them if that is the case why would you open so many? They simply said we are trying to corner the market as all their dealerships cover a certain part of the city and there are no other Suzuki dealerships in that part of the city. So if there were more licences available they would be offered first and they would take it to stop other people from getting in.

        I always wondered how large a investment it is and what kind of money is required to make a go of it. If you have $2-3 Million is it a good good place to invest? Or are the numbers closer to $6-7 Million or $10 Mil+

        • spackbace on 29/03/2019 - 13:58

          Depends on the setup of the dealership. Some own the land, some rent it. Some own the used car stock, some finance it. Those 2 factors alone would be a huge difference.

          • El Grande on 29/03/2019 - 14:03

            @spackbace: If you had $5Mil would you invest that in a dealership? Does having a lone dealership make you less competitive than a group which owns 5+ as their purchase price is lower? Or is it the same price for all dealers irrespective of their volume.

    • [Deactivated] on 29/03/2019 - 12:46

      If you're in Melbourne, there's one selling in the Eastern Suburb. Only asking $350k for the goodwill + you would need to account for stock and operating expenses. $850k to $1 mil as a starting capital sounds about right.

      • El Grande on 29/03/2019 - 13:58

        It's probably a Tata, Great Wall or an Isuzu dealership. I know businesses that are available for a few thousand but the owners are trying to get out. Doesn't make them a good investment.

        • cheapjunkie on 29/03/2019 - 14:03

          Nah looks more to be one of those dealerships that imports cars from japan and sells used JDM imports as well the odd used car here and there

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