ChickenWings

Tom Callahan's Son

Opinionated

Executive

I Used to Sell Cars - AMA

I had a short stint selling new and used cars throughout college and learned a few things.

I learned a hell of a lot of awful (and encouraging) things about car dealerships being an automotive vendor for years.

Did you try to buy a car in the last year or so?

Have you been victim of the reputation dealerships created for themselves?

Have you tried to make an educated purchase and still found a pile of BS in the process?

Throw it at me.

I don’t know all the answers, but I may know some.

😂 Sales Humor

🚗 Automotive

33 comments

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alonzoharris

Politicker

Partner Manager

What's the best kind of headlight fluid?

Sunbunny31

Politicker

Sr Sales Executive 🐰

I came here to ask about blinker fluid. The apparent shortage is leading to a lack of signaling on the road.

ChickenWings

Opinionated

Tom Callahan's Son

Generic for both. Gotta keep those topped off.

Save the money to go name brand for muffler bearings.

Kosta_Konfucius

Politicker

Sales Rep

What field are you in currently? If you are a hiring manager would you hire someone with solely car sales experience, given they are a bad ass?

Sunbunny31

Politicker

Sr Sales Executive 🐰

This is a great suggestion, by the way. We've seen a lot of reps ask how they transition from product sales into tech roles. If you've made that transition, your story would be of interest.

ChickenWings

Opinionated

Tom Callahan's Son

I struggled with making that move myself. Though, it was after car sales (automotive advertising rep).

It took two years of managing my expectations and getting rejected with "yea, but have you sold SaaS?" until I landed an AE position at the right company - a messaging platform that credited much of its growth to the Automotive vertical.

It turns out their sales org didn't have "car guys". They needed to know more about how to navigate/consult a dealership. I needed a SaaS company on my resume. The marriage was perfect. It set me in a life-changing direction.

If I did it again...

I would have been quicker to lower my sites to a lateral (at best) move. I missed out on the Zoom boom because I wanted to move straight to MM instead of continuing in SMB.

ChickenWings

Opinionated

Tom Callahan's Son

Great questions.

1. Communications API

2. Absolutely.

If Tommy Boy can sell half a million brake pads, a car salesperson can make the transition to SaaS.

The drive some of these reps can have to get their Saturdays back, solid benefits, and a decent pay plan is insane.

The key to hiring the right one would be..

1. Understanding their motivation for moving. Is it valid?
2. Are they willing to get out of their comfort zone in terms of knowledge? How fast can they learn?
3. How open would they be to criticism in learning a new sales process?

Kosta_Konfucius

Politicker

Sales Rep

4. They are a fat guy wearing a tiny coat.

Awesome good to know! Thanks for the insights!

ChickenWings

Opinionated

Tom Callahan's Son

HIRED!

But only if they do the dance.

Sunbunny31

Politicker

Sr Sales Executive 🐰

I have to be honest, the most recent buying experience was very positive. Why? The rep listened, did what she promised to do, and talked me out of an add-on I didn't need for one she recommended instead that was cheaper - and she was right. I did go in from a buying service (USAA) but she was awesome.

So - maybe your thoughts on what really happens with those buying services vs walking onto a lot and negotiating directly with a salesperson.

Diablo

Politicker

Sr. AE

At least in Canada, they are in no mood to negotiate due to imbalance in supply vs demand

Prospects have to follow up, reverse trend 😂

Sunbunny31

Politicker

Sr Sales Executive 🐰

I bought before the current shortage...thank goodness.

ChickenWings

Opinionated

Tom Callahan's Son

Very true.

In the current climate, you shouldn't be buying a car unless you truly need one.

I ran into that last September. Inventory sucked, but at least 0% financing was available.

At the time (probably still true) buying new vs used was the way to go.

Do yourself a favor and find a way to get an OEM code for employee pricing.

Example - Ford

Whether you give a shit about Mustangs or not, join Mustang Club of America for $50. With that, you get a code for "X-Plan" pricing. It shakes out to about 1-2% under invoice.

Many dealers were denying that code when I bought. Great reason to throw them the finger and go to the next. I told the first dealer that accepted the code to throw my name on the next f150 that came close to my build.

ChickenWings

Opinionated

Tom Callahan's Son

HOLD. You wont find a replacement for less.

Sunbunny31

Politicker

Sr Sales Executive 🐰

Now there's a great tip!

Sunbunny31

Politicker

Sr Sales Executive 🐰

That's the intention. I still have the 2007 I "replaced" with the 2018. The 2007 is with my daughter, and has over 200K miles on it. I tend to buy in order to keep. :)

ChickenWings

Opinionated

Tom Callahan's Son

That's great to hear.

The last 10 years or so has allowed many of the transparent, human dealers to rise to the top.

Buying services are perfect for saving time, effort, and headache. You'll get a "good" deal with little effort and allow yourself to focus on choosing the right vehicle.

If you are willing to understand the key levers to pull in a car deal, you can often fair a tad better on your own.

The choice is like many. What is your time worth? Do you want to steal the car or just get out fair and easy?

Fan of anything USAA offers.

Sunbunny31

Politicker

Sr Sales Executive 🐰

I wasn't in the mood to negotiate - and USAA is always good. Thanks for the advice on the codes, though. My husband ADORES negotiating and any tricks are going to be music to his ears.

ChickenWings

Opinionated

Tom Callahan's Son

Well, allow me.

As a general rule, never allow the conversation to cover two factors at once. Dealers are notorious for giving you what you want on a priority and screwing you in another part of the equation.

From the start, stay away from them trying to tie a decision to a monthly payment then proceed with the following.

Deny answers to any questions ahead of this schedule. Then hold strong on anything agreed upon throughout the schedule.

1. Purchase price on their car
2. Trade value of your car (know your shit here...KBB, NADA, CARFAX Value...then get a little more because, you know, you're worth it)
3. Financing (always come pre-approved. If they beat it, great. Big fan of Lightstream loans if you have good credit)
4. Eliminate BS fees (anything outside of Tax/Tag/Title, Doc Fee)...charging for "Transport" above and beyond "Destination" is grounds for walking.
5. Bail on most of what the Finance office offers (sometimes GAP insurance is worth it)...

Then GTFO.

Leasing is a completely different game for that first step. Happy to nerd out on that.

Also, adding accessories is a bit of a game.

CuriousFox

WR Officer

🦊

Did you feel like you were valuable to the clients or did you feel like an order taker?

ChickenWings

Opinionated

Tom Callahan's Son

It was rare that someone knew exactly what they wanted/needed in a car. Even if they did, they still may not have known the best way to buy it.

Depending on their openness, I could definitely be of value.

That’s changed a bit with stronger online resources. I imagine there is a fair amount of order taking now.

ChickenWings

Opinionated

Tom Callahan's Son

…other than that, I was just a kid hyped on cars. Emotionally driven order taker trying my best to not be corny.

DungeonsNDemos

Big Shot

Rolling 20's all day

What's the best month to buy a car typically? I hear December but I could be totally wrong.

ChickenWings

Opinionated

Tom Callahan's Son

The following applies before the shortage...everything is booty now.

Short Answer
End of month in August/September as they clear out last year's model year. December goes deep, but you may be stuck with discounts on a leftover build that no one wanted in the fall.

Long Answer

The game changed...making seasonality far less of a factor.

At a large dealer (that doesn't suck) any month, day, hour was a good time to buy if you knew your shit going in.

Digital transformation gave power to both sides (good thing). Margins drastically decreased. OEMs started rewarding volume heavily.

Dealers that were smart (or forced) started playing the volume game.

They would lose money to sell you a new vehicle in order to pace a unit count that gave them a fat check from the OEM at the end of the month.

Your key to success became saving the dealer time and effort.

Go in with a specific unit in mind. Give an aggressive but educated offer (2-3% under invoice). Have your money right. Leave.

Outside of that, keep an eye on the OEM incentives that are relevant to you. Do you want special financing? Do you want cash back? etc.

CadenceCombat

Tycoon

Account Executive

How are you making commission with the back order / limited inventory right now?

ChickenWings

Opinionated

Tom Callahan's Son

I honestly don't know where many of the floor reps stand with their commission checks as of late. I'm just too distant from it now.

You can be sure they aren't racking up small wins with high volume.

That said, many dealers are asking unforgivable prices for desirable units due to the shortage.

Commission is often paid to the floor rep on the gross profit made both on the vehicle and finance products sold.

With prices where they are, gross is probably fairly high ($5-6k, 5 figures for marked up vehicles)....in other words, a "whopper"...sometimes "with cheese".

TheIncarceration

Politicker

SDR Manager

Any recommendations on a Crossover? I plan on shopping for a new whip once the market eases up

ChickenWings

Opinionated

Tom Callahan's Son

I'm a big fan of Mazda, Toyota, Honda's midsize SUVs.

With any of those brands you can move up and down the food chain in terms of size and won't go wrong.

My wife and I are particularly in favor of the way Mazda's drive/look. Haven't had issues with both the CX-5 nor the CX-9 after years of ownership...they lease well, too.

Filth

Politicker

Live Filthy or Die Clean

Great thread, wasn't coming in here with questions but after reading the comments I have these 3 questions:

1. When do you recommend a person going for a lease versus buying a car outright?

2. What are your thoughts on new v. used on value of purchase?

3. What are you thoughts on long term value of the electric vehicles (my wife can't drive stick so my manual cars days are over so I'm actually looking at these bad boys now)?

Some Context:

I just bought a beater when my car died before my wedding in June as a stop gap (yay more spending before spending in the middle of a used car demand!) and I hope to be in a legitimate purchasing situation in the coming year or 2 for my next long term vehicle. I generally drive them into the ground, but I've only driven cars 8+ years old to date.

ChickenWings

Opinionated

Tom Callahan's Son

Glad to hear this is helpful!

1. This can be a matrix, but a few perquisites to make a lease a good idea...

- You drive about the average amount (12K miles/year)
- You anticipate buying a new vehicle in 3ish years
- You don't plan on stancin' that bitch

Past that, it's a numbers game. Some brands lease well, some don't. If the numbers work, you could be making a sound financial decision that doesn't tie up cash in a depreciating asset.

Three numbers to consider...Residual value, sale price, money factor (lease rate).

If these three numbers yield a monthly payment that makes sense versus a buy, you're golden.

Common Traps/Myths

- DO NOT put money down on a car you don't own. Sign and drive, always.
- You CAN negotiate the sale price of a lease
- OEM incentives are not dealer discounts on sale price
- You don't have to return the lease to the selling dealer...in fact, your trade will be just as valuable to any dealer as if you bought it (key)
- Mileage overages are bullshit...the market value of the car is the market value, fuck their fees..just don't torpedo the market value with too many miles

Pro Tip

Reply to the correct thread on edmunds lease forums ( https://forums.edmunds.com/discussions/tagged/x/leasing/p1) for the build you want and a good samaritan that has access to that info will give you the true OEM numbers. Arm yourself with these prior to going in so the dealer can't pump any numbers.

Extra Credit

If you do want accessories, roll them into the lease. Those accessories have a residual value, just like the vehicle. Basically discounting the cost of the accessory. Tint, roof racks, etc.

2. Fairly same mindset of the above.

If you're not an enthusiast that wants a specific year for a specific reason, its A to B transport that fits your needs. No emotion.

Use tools like KBB "cost to own" for certain builds to gauge maintenance, depreciation, insurance.

These days, buying new seems to pencil out.

3. I can't speak to the long-term value of electric cars, but they are coming a long way very fast in terms of making sense. I plan on having one in the next 5 years.

The decision around this would likely be less financial and more of a preference at this point.

Considerations
- Do you have a 240v hook up in your garage?
- Does your area have a good charging network?
- What would be the gas savings vs the premium you pay for that EV?

ChickenWings

Opinionated

Tom Callahan's Son

@Filth, just read that you typically drive em for a long time. Hopefully the above helps consider what options are available anyway.

Sometimes it makes sense to get a new car more often.

Filth

Politicker

Live Filthy or Die Clean

I appreciate the detail in your response and those are some good considerations to take into account when looking at the electric.

You didn't have to get as in depth as you did but I really appreciate it.

ChickenWings

Opinionated

Tom Callahan's Son

Haha, noted.

definitely went for the book, there.

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ChickenWings

I Used to Sell Cars - AMA

33 comments

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