[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

            • This Guy on 23/03/2019 - 01:21

              @SnoozeAndLose: Spaceback isn't lying. Nor is sovereign01, they just have a different experience.

              Generally the manufacturers pays for backend dealership staff with quarterly bonuses for meeting KPI's (customer satisfaction/retention/metrics like sovereign01 talks about). I have not heard of them being as high as sovereign01 quotes, but I do not know any numbers for the largest dealers or for single brand luxury dealers.

              With three top ten franchises, quarterly bonuses should cover 80% to 120% of the backend staff wages. These are the big bonuses. These are normally have reasonable sales targets, with pass/fail KPI's to improve customer experience. Fail one KPI, lose the bonus and put your franchise agreement on notice.

              Most mainstream dealerships need ~$1000 margin per car (to cover the sales teams wages and the cost of stock). A dumb way to get it is to sell cars with very little margin and hope you reach your monthly manufacturer target to get a sales bonus. This is what pushes some dealers to do 'silly' deals that you talk about as these targets are aggressive.

              Selling 'at cost' or below is stupid unless all operating costs are attached to each car as a load. I have seen a former boss loose millions by often selling 'at cost' while missing monthly sales targets with out a high enough overheads load.

          • spackbace on 22/03/2019 - 11:17

            @sovereign01: Depends on the dealership

            I work for a high-volume one, who aims on turning a profit. Whatever happens in the back-end to boost profits, that's on them, but we pride ourselves on how we conduct business.

            A loss on a car means I make $100 before tax. Given the time spent with a customer, that's not great business. Very rarely do deals get done in the negative, we're talking less than 10% of all deals.

            So please don't generalise across all dealerships that we all have the same structure, we don't.

            • sovereign01 on 23/03/2019 - 10:06

              @spackbace: @This Guy - Sorry they were just made up examples, but I've seen similar or even more lucrative offers put to dealers in the past. I can't give real examples as it might give too much away.

          • compugrid on 22/03/2019 - 15:29
            +6

            @sovereign01: I'm backing up your story with my experience. The asking price for the new car was 34K. Sydney dealer could not sell me a demo for 29K including rego. I walked out from the dealer with a cash deposit in my hands instead of making the deal. But the other dealer sold me a brand new one for 26500 +rego just to compete with the other dealers. The manager said they sold me the car for $3000 in the loss. He explained the same what you, sovereign01, just said above It is the best deal I have been ever offered for a brand new car.

    • This Guy on 22/03/2019 - 04:51
      +4

      I have heard that car dealership can sell a car at their cost price

      Cost price includes loads (mark ups to cover rent, power, wages, etc.)

      or minimum profit

      Depends on options, fianance, aftermarket….

      in order hit the sale target for a reward from the head quarter.

      Depends on brands. Many brands have monthly, quarterly and annual sales targets with bonuses attached to each target

      It this true?

      Yes.

      Is there is a time/date visiting a dealship for biggest bargaining power?

      Depends. If you need service, between 9:30 and 10am most weekdays is good. Be prepared to stay to late afternoon if you want a really good deal.

      If you know what you want, just show commitment. Most managers make further targets for days, weeks, first 10 days and otherways.

      Brands do their annual run outs at different times. Ford is February, but Isuzu can be as late as June (not that it changed their prices).

      Top 10 Feb (by sales/VFACT):

      Toyota - Year leading to facelift. - Ask Spaceback for more feed back
      Mazda - After facelift is announced
      Mitsubishi - Not much change month to month. Look for a dealership with excessive demo's in the model/trim you want
      Hyundai - Once model hype has died down, usually a year after face lift.
      Ford - February.
      KIA - During a 4 or 7 day sale (they always last to the end of the month). Three months after a facelift if you want the old one. A demo six months after facelift.
      Voltswagen - Voltsfest. March and October from memory.
      Nissan - The month after 1% finance. October for last years discontinued trim levels (often undriven too)
      Honda - Every three months, end of the month, when they are offering their 7 year warranty (it is a promotion).
      Holden - Now. But expect euro level depreciation for non VF2 commodores.

      ^ might be errors. From memory.

      end of month

      If you like a rushed deal.

      before the dealship close.

      If you feel like keeping a small team away from their family that evening.

  • sydneybargainer on 21/03/2019 - 15:48
    +2

    I have read somewhere… when it comes to customer trust… car salesman has worst reputation… your thought?

    • spackbace on 21/03/2019 - 15:50
      +2

      Probably.

      I think we're behind lawyers and politicians though last I heard

      • sydneybargainer on 21/03/2019 - 16:01
        +1

        How does it feel when general impression about your job title is not so good? does it hurt your confidence? Do you do any extra effort to make your personal reputation better or is it all about sales and number?

        • spackbace on 21/03/2019 - 16:04
          +12

          It's something you get used to. If you see my comments on here, on any post regarding car sales, I don't hide anything about it and I don't care about the trolls or the neg votes.

          We know ourselves on how we act. The endless customer surveys, facebook/google reviews etc. Our service has to be top notch, and if we'd lied it would quickly become an issue. Bonuses are attached to customer survey results, which obviously affect our interactions with our customers.

          I've come from a previous hospitality background, so I know how to interact, which is essential.

          We're not order-takers, we're not liars out to get you or screw you over. We're here to put you in the car you like, for the right price.

      • BOGOF on 23/03/2019 - 17:20

        And real estate agents, plumbers & orthopaedic surgeons!

    • Typical16-bitEnjoyer on 21/03/2019 - 16:01
      +6

      Mainly because people can't, don't, won't bargain or haggle. We don't have a "barter" economy here compared to other countries and people don't trust anyone regarding money. Tho they'll trust a plumber who'll do a 20 minute job for $350 cash, but hey go figure.

      • Ti-au on 22/03/2019 - 11:58

        in some ways i like it better there is no haggling.
        Just wished there was a no rip off clause as well.

        • Typical16-bitEnjoyer on 22/03/2019 - 17:27
          +1

          Jump on carsales. You can buy with no haggling. Won't get the best price tho.

    • This Guy on 23/03/2019 - 01:29
      +1

      A good sales person overcomes that in 30 seconds of conversation.

      A sales person should keep your trust as long as they are upfront and honest about their solutions to your pain points and any hick ups that affect you.

      They also need to make sure their messaging is identical to their coworkers. If three different staff members explain the same thing three different ways most customers loose focus of the deal and either start trying to reconcile the different approaches or just lose trust.

      Sales is making a client feel like family but keeping them distant enough that they don't expect a 30 minute call each week (unless they are buying a new car each week).

  • Typical16-bitEnjoyer on 21/03/2019 - 15:53
    +1

    Everyone I know who worked car sales 5-10 years ago lasted 2-5 years max and bailed\got the boot from extremely hard to impossible targets. Exception was 1 mate who is a gun and still sells today. Do you notice a lot of staff turnover? Or have things changed?

    • spackbace on 21/03/2019 - 15:56
      +2

      Yep huge turnover. 60hr work weeks over 6.5 days. KPIs which reset every month. Some old-school managerial processes.

      Can be a long grind.

      The industry was booming 5-15yrs ago, especially here with the mining boom. Many made their money then, then bailed out recently.

      • Typical16-bitEnjoyer on 21/03/2019 - 15:58
        +3

        Hope you're doing well at your current dealership. Cheers.

    • This Guy on 23/03/2019 - 01:52

      Most salespeople quit or leave the industry when management forces them out. Either management can't or doesn't want to train them to the manufacturers/dealerships changing process or the golden salesperson creates a stink and management won't chance loosing their golden sales person. After three years car sales becomes extremely easy as you have repeat business. You don't leave after 3 years.

      Good sales people might change department to get weekends off or sell something different to make more money.

  • TheMindsetTraveller on 21/03/2019 - 15:55
    +5

    Are you guys still selling Taragos? A friend of mine is asking ha ha ha ha

    That same friend, wants to know if you can replace the Toyota badge with a Lexus one - for his Tarago.

    • spackbace on 21/03/2019 - 15:57
      +4

      Yes we do

      Anything is possible with super glue!

    • twww on 21/03/2019 - 16:02

      I've actually seen a Toyota HiAce JDM import with a Lexus badge.

      • MrBear on 22/03/2019 - 10:52

        Although imports are never Lexus brands as it doesn't exist in Japan's domestic market.

  • TheMindsetTraveller on 21/03/2019 - 16:03

    OK - enough about Taragos … serious question now,

    I know you work with Toyota, but do you have much experience (real world) with Lexus?

    Why I ask is often (misguided) people think Lexus' are just fancy Toyotas.

    So if I was in the market for a medium-large car, is it worth paying $20k or $30k more for a Lexus ES OR should I just buy a Camry…….

    • spackbace on 21/03/2019 - 16:05
      +1

      Why I ask is often (misguided) people think Lexus' are just fancy Toyotas.

      Well, they are ;)

      So if I was in the market for a medium-large car, is it worth paying $20k or $30k more for a Lexus ES OR should I just buy a Camry…….

      That's entirely going to come down to which you prefer to drive, which gives you best value for money, what image you want to portray.

      • Sozin on 21/03/2019 - 20:09

        What would you do?

        • spackbace on 21/03/2019 - 20:10
          +2

          I'm pretty happy with the new Camry

    • skywards on 21/03/2019 - 21:50
      +4

      Just buy the Camry, because we all know that’s the Ozbargin way.

  • geoffs87 on 21/03/2019 - 16:06

    I assume you aren't a very busy car salesman if you are a top 10 deals poster on "the barg"?

    Sorry, this is an AMA

    Are you a busy care salesman, considering you are a top 10 deals poster on "the barg"?

    Regards,
    Geoffs87

    • spackbace on 21/03/2019 - 16:07
      +1

      That was when I was working for Suzuki/Holden, got very quiet in the job unfortunately.

      • geoffs87 on 21/03/2019 - 16:11

        Not surprising… Well glad your current dealership is keeping you busy!

        On that note, i was asking myself the other night, if all you could afford was a new Suzuki, why wouldn't you just buy a 2 year old, still in warranty Toyota or something…

        • spackbace on 21/03/2019 - 16:33
          +2

          There's always new car buyers, and used car buyers :) Depends where people see value.

        • brad1-8tsi on 22/03/2019 - 12:58
          +1

          I would buy a new Suzuki over a used Toyota.

          Why?
          1) I had a Suzuki Swift once and it was reliable and fun and cheap to own.

          2) I used to work for Toyota and they weren't as reliable as their reputation suggests.

          3) I've used a lot of base model Toyota fleet cars. I think it's scarred me for life. :-)

          4) I think Toyotas a generally under-specced at their price point compared to their peers.

          Having said that, I do tell my non-car friends to consider a Toyota over the entry level VW Golf with crap engine / gearbox they are wanting if they don't enjoy visiting the dealer service department and intend to own it beyond the warranty period.

          I also quite like driving the Camry Hybrid when fitted with Michelin tyres inflated to 38psi.

          • devnull73 on 22/03/2019 - 15:58
            +1

            @brad1-8tsi: Swift is one of the most reliable cars Ive ever seen.

            Toyota are good too though.

  • rompastompa on 21/03/2019 - 16:18

    Do you prefer to be anonymous, or would you want to make sales via OzBargain?

    Have you thought about approaching your dealership, or even Toyota directly to be a certified OzBargain rep?

    • spackbace on 21/03/2019 - 16:44

      Have tried previously, way too difficult, and too hard with current advertising rules

  • moo on 21/03/2019 - 16:31
    +3

    What was your commission last FY?

    • aedeau on 22/03/2019 - 09:28

      not so keen on answering that one is he? AMAs are a bit lame in general. Ask me anything (as long as I feel like answering it…). Probably should be renamed to AMAA (ask me almost anything)

      • John Kimble on 22/03/2019 - 10:21
        +1

        If you walked up to 10 random people on the street and asked them how much they earned, how many people do you think would answer you?

        • spackbace on 22/03/2019 - 11:19
          +1

          how many people do you think would answer you?

          And honestly

      • spackbace on 22/03/2019 - 11:19
        +1

        Feel free to post one :)

      • moo on 22/03/2019 - 12:34

        Guess not. With AMA, it may also help people to understand if its an industry they potentially would like to get into. Hence getting a sense of the commission structure, kickbacks etc would be helped to provide some insights.

    • This Guy on 23/03/2019 - 03:09
      +1

      Base wage is $41k
      A new or poor sales person should earn around $15,000 in comms per year

      A better sales person should have a base of $62k
      Public figures I have seen printed suggest car sales tops out at $90k in the best markets In Australia. That gives a maximum comms of $28k.

      These people should quit.

      Good sales people pull in $40-50k in comms with a month or two off each year on top of a $62k package.

      I know a used car guy who's minimum annual comms alone would be $70k+. This is being paid only $200 per car selling 30 each month (I know he often averages less per car and can sell around 50 in a good month).

      The very best new car sales people earn (wage + comms) from $120k (mainstream brands) to early $200k (performance and prestige). Performance and prestige cars can pay sales people better as they sell fewer so the highest earners will specialise in selling relatively large numbers of them.

      Comms are usually just $100 per car + a percentage of margin + bonuses for hitting KPI's

      Bonuses come from hitting various sales targets or selling old, selected stock. An average of $170 per car with high sales or $280 per car with just good sales will earn $50,000 in comms each year.

      Every good sales person chases the volume bonuses, not the percentage. I know a guy who regularly earnt ~$280 per car just in volume bonuses at a prestige dealership.

  • sim777 on 21/03/2019 - 16:32

    If a used car (>10 years old and almost 200,000km) is traded in as part of a car sale what happens to it? I was informed that the dealership would not be able to sell it due to the trade in car being >10 years old. Do they get a certain amount of $ when they sell to wreckers?

    • spackbace on 21/03/2019 - 17:16
      +3

      Sell to wholesalers, or sell to wreckers, depending on condition etc etc

    • sovereign01 on 22/03/2019 - 11:00
      +1

      They sell it to a wholesaler who then sells to to one of 10 or so different places depending on what it is. Could go to an auction house, could go to a low end used car dealer etc etc

      99% of the time, anything with 200,000 is worth approximately $0 to a dealer, and they're just offering you money on it to make you feel better, taking that money off any potential discount on the new car.

  • loropy9 on 21/03/2019 - 16:35

    Hi OP,

    I was wondering why the huge price difference between the last Australian made Camry and the new generation? They were going for about $26K some two-three years ago and now the cheapest is $44K? Is'n that much more than Mazda 6, which is Camry's direct threat?

    • spackbace on 21/03/2019 - 17:17
      +1

      Cheapest new one is $31,620. Old one was on run-out for ages at around $26,990, but had an RRP very similar to the current one. Not sure where you got your $44k figure from

      • loropy9 on 21/03/2019 - 19:10
        +1

        Yes, you are right. I must have accessed a cached link from some ad that was taking me straight to the SL version every time.

    • JimB on 22/03/2019 - 14:26
      +2

      The new Camry's are much better cars, built quality and how it drives.

      I couldn't believe how good the new Camry's are.

  • theHMASfriendship on 21/03/2019 - 16:39
    +1

    What's your favourite pizza topping?

  • Topdog on 21/03/2019 - 16:42

    Hi Spackbace, I have always bought "Australian" made Toyota, and have always bought them because other then the scheduled services and tyres and fuel. I have not spent a cent on repairs. I have never had a breakdown nor have they ever missed a beat. Maybe im lucky. But have always thought the "Australia" made Toyota have been unbreakable.

    I generally upgrade every 4-5 years, meaning my 2015 Aurion might be getting an upgrade soon. Are the new fleet of imports just as unbreakable, and if so, cause I cannot get a Aurion anymore, whats the equivalent, or am I just looking at Camery's etc, or should i just hold on to my Aurion for few more years.

    Thanks

    • spackbace on 21/03/2019 - 17:20
      +1

      New Camry has gone to the old 90s way, where it's just Camry, in 2.5, 2.5 hybrid or 3.5 V6 options.

      Trust me, new Camry is a joy to drive, it's my drive car of choice. V6 gets the engine/gearbox out of the current Kluger, very well proven. 12m/15,000km servicing - $195 for the first 5 services. 5yr unlim warranty

      • Sozin on 21/03/2019 - 20:14

        V6 or hybdrid.

        I like the smooth quiteness of hybrid personally. Haven't been in a new v6 but used to like the old ones.

      • Topdog on 22/03/2019 - 10:40

        Thanks! Ill investigate the V6 option.

  • Stimps on 21/03/2019 - 16:44
    +2

    The last car I traded in had tints in perfect condition. I can see it on carsales now without the tints, I’m guessing so they can up sell whoever buys it. Is this common practice?

    • spackbace on 21/03/2019 - 17:20
      +11

      Yep

      • endolphin on 22/03/2019 - 09:26
        -1

        And you are morally fine with that?

        I had to search far and wide before I found an occupation I despise more than real estate agents, but having recently bought a car, car dealers take the award.

        • Ti-au on 22/03/2019 - 12:07
          +3

          is he the dealer? No hes a sales person.

          I always find it funny that people think those who occupation require them to deal with large sums of $ seem more shady.. however if you deal with smaller sums you have a better reputation, but can actually rip off the client even more.

          For example a builder doing a renovation could say we needed to remove a beam and it will costs $1200, and people will be like "ok".
          Takes 2 hours to remove said beam = $600 per hour.

          Sell a car at cost (or below) and make $100 = "you scammers!"

          The biggest scammers are actually surgeons. You just don't pay them directly so you conveniently ignore them while making posts about used car salespersons.

          This is why I like my username.

          • endolphin on 22/03/2019 - 13:31

            @Ti-au: Has nothing to do with the amount of money these occupations deal with (although I'm sure it drives the rampant unethical behaviour). I also similarly despise almost all JB hi fi floor staff, and they are dealing with much less money.

          • sim777 on 22/03/2019 - 14:22

            @Ti-au: Lol you think surgeons are scammers? After going through roughly 10-12 years of study whilst earning piss all during their internships, residencies ect…

            • Ti-au on 22/03/2019 - 16:47

              @sim777: If you earning $450k per year as an Average = yes.
              And thats before we get into the tax dodges they can do.
              Also residents earn around $70k+ - not a bad wage for a yr1 trainee and go look up the unemployment stats for even new Doctors….

              Everybody knows that Royal College of Surgeons purposely do not pass that many grads into their programs to Cough ensure the quality of the graduate Cough (or really keep the earnings of surgeons high (reduce supply)).
              This was acknowledge by a Doctor in a previous medical AMA.

              I know of a surgeon who had a child and while working part time (under 20hrs per week), was earning $200k. I didn't realise working an extra 6 years entitles you to Extra $9,000,000 over a lifetime compared to your average dolt (and thats a high paid dolt, you don't want to compare it to a low paid dolt… don't want to encourage class envy, because if you do you find out they might earn about $12,000,000 more).

              So yes. Yes I do. Yes.

              • brad1-8tsi on 25/03/2019 - 09:22

                @Ti-au: For me, a surgeon meant the difference between only being able to limp 100m before feeling pain to being able to ride, walk, play tennis, run and continue in a job that required a lot of physical activity. In 2001 that cost me ~$6k direct to the surgeon for a 3-4 hour operation and I thought it good value for the outcome.

                About 4 years back I had a 50mm x 25mm x 25mm benign tumour in my face wrapped around my main salivary gland and various nerves. There was a significant chance of complications such as facial palsy (dropping of the face/mouth & eye socket and loss of any feeling in the face. The operation was supposed to take 4 hours. I was on the table for 8 hours as they patiently stretched the nerve to gain access to the tumour.
                I came out of the process with two minor side effects. (1) I now salivate outwards through my cheek (we knew this would probably happen). (2) Loss of feeling in my ear (we knew this would happen).

                It cost me $8k direct to the surgeon. I even bought him an expensive gift. Again, good value IMO.

    • Happy501 on 21/03/2019 - 18:12
      +1

      Wow, thats a surprise to me!

  • SydStrand on 21/03/2019 - 16:49

    According to John Cadogan, you can walk in end of month and do a lowball offer on an in-stock model, and that they'd sell below base price to meet a quota. Is that a legitimate buying strategy?

    • jelko on 21/03/2019 - 17:12

      Related question - According to Cadogan car salesman are the scum of the earth who want to bend you over. Obviously this is an exaggeration and not all salespeople are like that but in your opinion what percentage would meet that criteria?

    • spackbace on 21/03/2019 - 17:21
      +1

      According to John Cadogan

      Ugh, please don't quote him

      and that they'd sell below base price to meet a quota

      Not many dealers want to go below cost unless they really had to. Slow selling models, or older demo. Being at the end of the month doesn't mean much, as they could be miles from any targets.

    • This Guy on 22/03/2019 - 04:58
      +1

      Please remember Cadogan sells cars. All of his advice is about getting you to use his car buying service.

  • Aerith-Waifu on 21/03/2019 - 17:02

    I am looking to purchase an new Mitsubishi Outlander before the end of the month. Car is currently at $32500 Looking to see if I can get 8% off RRP, do you think:

    I am asking too much discount or am I not asking enough discount?

    • ledifni on 21/03/2019 - 18:08

      From what I've read somewhere, great bargains are at 15-20% off RRP. YMMV

    • This Guy on 22/03/2019 - 05:09

      Walk in and say you want to buy a brand new MY19 Outlander for under $30,000 (build and compliance will still be 2018)

      Refuse the test drive (sounds like you have already driven it). Do the quote. Talk price, stay firm and stay focused on price. Walk out. If they don't call you after you leave, try a different dealership.

      There is a red secondhand one for $26,990 in the NT. All other demos are $31,250+

  • cybapete on 21/03/2019 - 17:03

    when do the EOFY sales normally start?

    • spackbace on 21/03/2019 - 17:22

      May 1st, but depends on the manufacturer

      • kiwimex on 21/03/2019 - 22:29

        which sale is generally better EOFY or Plate run out? or do they both offer similar discounting?

        Cheers

        Steve

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

          Can offer similar, all depends on what a manufacturer has to move

        • This Guy on 23/03/2019 - 03:22

          EOFY and plate run is usually the regularly offered drive away price. If a manufacturer will do better, they will do so in a quite month during their main brand sales event. Even then, it's only often 100's better. From memory, only Nissan, Honda and VW will offer very steep discounts on select trim levels during their brand sales.

          This excluded Holden which from memory becomes very competitive at EOFY and run out and equally so at their main branded sales event.

  • angusngon9 on 21/03/2019 - 17:13

    Do you pretty much instantly identify mystery shopping customers? How can you tell? What do you think about them? I am on a mystery shopping database and all I see in my emails are car sales mystery shopping trips all year round in all locations.

    • spackbace on 21/03/2019 - 17:23
      +3

      Sometimes, sometimes we get surprised.

      Some salespeople see through them too much, don't see any urgency to buy so they don't push, and the results reflect that. They won't offer a test drive etc because you don't show you're that keen.
      They can be decent, and prompt for things (I'd like to take it for a drive etc).

      It's a pita really, we give up 1-2hrs of our time to look after someone who is never going to buy, and possible lose the chance to get the actual buyer.

    • This Guy on 23/03/2019 - 03:28

      Mystery shoppers stand out like a sore thumb and are hated industry wide. I know a bloke who deliberately picked one up on a slow day, sold him and took an excessively large deposit. Mystery shoppers wife was not happy and wanted the deposit back… but a contract of sale has no previsions for mystery shoppers.

      • Hithere on 23/03/2019 - 13:47

        Mystery shoppers stand out like a sore thumb

        Either they weren't a good Mystery Shopper, and won't last long, or possibly they were a new shopper as Mystery Shoppers never put deposits down on cars while shopping a dealership.

        took an excessively large deposit

        If the Mystery Shopper did pay a deposit under undue pressure from the salesperson (and it's only happened once that I am aware of in 10+ years of car Mystery Shopping) the Mystery Shopping company contacts the brand HQ who will contact the dealership, and the contract is cancelled.

        and are hated industry wide.

        From my experience they are only hated by the salespeople who are bad at their jobs and therefore deserve to receive bad reports. A good salesperson will get a good report and will be rewarded for it.

        • This Guy on 24/03/2019 - 03:18

          Stand out

          Mystery shoppers stand out because they ask stupid things that marketing genius' think of to justify their job. In car sales their profile never matches that car's actual customer profile (might match target profile). The only one's that blend are actual paying customers, which you only get in retail.

          Many mystery shopping companies pass on a pittance of what they receive so they attract bored, casual contractors who honestly do not care. Mystery shopping companies are known to change the profile of their staff to match the profile asked for as mystery shoppers can't be verified due to the nature of mystery shopping.

          The report on the staff member is often factual, but most casuals are locals so they often fudge it when they like or know the staff member (you have to be pretty dumb to drive out of area for a mystery shop when they pay so little).

          CSI is as big of waste as it is just as easy to game.

          Deposit

          The manufacturer sorted that one out. The DP refused to refund as the mystery shopper wasted 2 hours of multiple staff members time in the initial visit plus multiple visits and calls behind their company's back (They were also having problems with being overly shopped). That dealership was left alone after that.

          Hate

          Sales people hate any time waster as they are stopping the sales person from making sales. Missing a comms bracket by one car costs thousands. Missing the monthly sales target costs 10's of thousands and often jobs.

          Poor sales people care about what the manufacturer thinks. Good sales people listen skeptically with a poop eating grin and just do what makes sales and gets 100% CSI.

          Good report

          The guy on his first day who knows nothing about the brand will get a good report (Mystery shoppers are often handed to them for practise). You need to be insanely bad to fail a mystery shop (Five word greeting with name. Ask theirs. Qualify. Fake interest as they don't pass qualify. Give manufacturers current spiel or use their toy. Answer dumb marketing question with manufacturer's answer. Offer test drive [work only as much of road to a sale as required by manufacturer]. Follow up call). Then apologise and tell them you work for a different brand and are only covering because a co-worker is "sick"/"already selling a car"/having a smoke. Mystery shop void as shopper failed to find the right sales person (they will not be given a chance).

          Reward

          I have never heard of a dealership paying on mystery shops. It would have to pay thousands to be worth the time of a salesperson as many comms brackets jump by thousands after selling a certain number of cars.

  • Therage on 21/03/2019 - 17:19

    Was in at my local Toyota Dealer today looking at the Corolla and salesman got talking about Toyota Access and how amazing it was. Is this really just a glorified Balloon payment?

    • spackbace on 21/03/2019 - 17:24

      Yeah it is, but it's a guarantee at least. If anything happens to the Corolla badge to really affect resale, you know you're covered with the GFV.

      Can help people to get lower repayments, helps affordability

  • shaybisc on 21/03/2019 - 17:57

    I can remember one of the first industries they were saying was going to be disrupted was the auto industry, with online ordering and buying direct from the manufacturers. Jeez this was back when Amazon had just started. But it never happened.

    • spackbace on 21/03/2019 - 18:22

      Could happen, but it's an expensive process for a manufacturer to take over dealerships, buy them out etc.

      Would be a long expensive road, which I doubt they wanna go down too soon

      • tight-a55 on 22/03/2019 - 09:44

        Elon Musk: "Hold my beer!"

        • spackbace on 22/03/2019 - 10:44

          He didn't take over dealerships tho

          These buildings are worth millions, and the land worth even more

    • This Guy on 23/03/2019 - 03:46

      Manufacturers are trying.

      Subaru, Mercedes, Genesis and Tesla sell direct, with Subaru and Mercedes using retail stores, Genesis and Tesla via the internet. If Genesis's sales model works, Hyundai and KIA will sell direct too.

      Ford is building a fleet of cars for their car hire project. Stage one has the dealer network look after the fleet, but I doubt that will continue once they include more automated cars.

      Most manufacturers don't have the sales know how or talent to successfully run their own direct to consumer programs. Others are not dumb enough to risk the brand damage when they fail (look at the service Tesla gives. It is rubbish. People put up with it for the cars).

      Online ordering and buying has disrupted the market, but via Carsales. Most manufacturers who care about their dealer network have taken notice and reacted, reducing it's effect going forward.

  • EVA-01 on 21/03/2019 - 18:03

    When haggling, does it make any difference whether I intend to pay cash or finance?

    • spackbace on 21/03/2019 - 18:23
      +2

      Finance = commission, cash doesn't

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