[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

  • elgrande on 22/03/2019 - 05:48

    I once purchased a new car (not demo), and when I went to collect it had 70km on it. Was this excessive in your opinion?

    • spackbace on 22/03/2019 - 10:48

      Nope

      • lovepub on 22/03/2019 - 14:19

        Would you buy it when it has 70km already on it ?

        Why the 70km?
        Going up down the truck and between factory and dealership, I guess 5km is more than enough on Odo

        Wmi wouldn't be happy if it was me ….you accept it?

        • spackbace on 22/03/2019 - 14:21

          Cars can come from all sorts of places, and transported around.

          Some of ours get driven from the port, not on the back of a truck.

          And new cars get demoed if we don't have a demo in that configuration.

          Part of the PD process on any new car is a road-test, around the area of the dealership.

          Under 100km is fine. Under 10km is rare, and used to only be seen on locally made cars. Have a LC200 getting picked up tomorrow which has 6km on it, which is rare.

          • lovepub on 22/03/2019 - 14:22
            +1

            @spackbace: But it wouldn't count as new if dealers used someone's new car as a demo coz you guys dont have that config in a demo

            Isn't that right?

            • spackbace on 22/03/2019 - 14:23
              -1

              @lovepub: Still an unregistered, new vehicle

              • lovepub on 22/03/2019 - 14:25

                @spackbace: Can a buyer refuse to take ownership if ODO is high in km?

                Does dealers contract put these figures in fine print ?

                • spackbace on 22/03/2019 - 14:25

                  @lovepub: No

                  No

                  • lovepub on 22/03/2019 - 14:26

                    @spackbace: Wow….that to me feels a bit unfair to the buyer.

                  • lovepub on 22/03/2019 - 14:27

                    @spackbace: So are there any buyersisting this in the contract that
                    "I want my car to be under 10km on odo at pick up"

                    • spackbace on 22/03/2019 - 14:33

                      @lovepub: Again, under 10km isn't doable. Under 50km should be.

                      Buy a car off the floor, visually look at the car, check the odo.
                      Order a car from factory, or on it's way into the country. Brand new will mean it's only transport kms

                  • cloudy on 23/03/2019 - 12:30

                    @spackbace: Can you give as a industry veteran, an average km on a new car odo, or a medium?

        • elgrande on 22/03/2019 - 17:28

          @lovepub Negotiated an extra discount

        • HardlyCharly on 24/03/2019 - 15:46

          70km is literally nothing, can rack that up on a single day's commute or a single shift delivering pizzas. What's the big deal? That's 0.035% of it's lifetime assuming a 200k life which is certainly possible. Do you consider a 10 day old baby not new and unacceptable?

  • lonepine on 22/03/2019 - 08:07

    Hi, do your Salespeople get a commission for each new car they sell? If so, how much? And is there a bonus system, and how does it work?

    • spackbace on 22/03/2019 - 10:48
      -1

      Yes and no
      Varies per pay package
      Yes there is, varies per pay package

      • katz on 22/03/2019 - 16:20
        +2

        Nice detailed answers. Love it.

        • spackbace on 22/03/2019 - 16:22

          Good to know

        • Circly on 03/04/2019 - 22:25

          Theres a thread on whirlpool with a salesman who actually wants to answer questions properly. Check that one out.

  • GangGang on 22/03/2019 - 08:12

    I purchased a brand new car 10 years ago. I went to a several dealerships to find the cheapest price. I received calls from the salesmen weeks after visiting for lowering the price.

    I noticed this didn't happen to me last year when I purchased a 2nd hand car. Not even being asked for my number. Have the days of being called finished?

    • spackbace on 22/03/2019 - 10:49

      Nope, I will call you often. Simply answer and tell me you bought elsewhere and the calls stop

  • mousie on 22/03/2019 - 08:23

    Have you ever been mystery shopped? What was your experience.. and could you tell?

    • spackbace on 22/03/2019 - 10:50

      Always. Couldn't tell. Guy was odd and comparing $50k cars against a Corolla and asking how sporty the Ascent Sport was :/

      • mousie on 22/03/2019 - 12:18
        +1

        Cool - that wasn't me then.
        I can tell you, that I've gotten some great deals when I haven't even really been in the market for a car.

        • Skramit on 22/03/2019 - 19:54

          What is mystery shopping?

          • mousie on 23/03/2019 - 16:53

            @Skramit: Checking for compliance with sales and service standards in terms of sales rep product knowledge, offering a test drive, a refreshment and monitoring the follow up process.

  • McWillisac on 22/03/2019 - 08:23

    Hi Spackbace, thanks for your time.

    When negotiating on a demo vehicle i see most (depending on Ks etc) are listed 5-10% off, would it be reasonable to be expecting to negotiate a further 5-10% off considering the RRP markup and the depreciation? Or more simply, is it reasonable to expect further discounts on demo vehicle prices, generally speaking?

    Also, regarding the hybrid battery used in the Prius (and presumably the same one used in the Lexus Ct200H), I was once told they have a 8 year shelf-life and then are very expensvie >8k to replace? Is this the case?

    Thanks!

    • spackbace on 22/03/2019 - 11:24
      +1

      Demo bonuses can be small sometimes, so around $500-750. Plus we'll only put 6 months rego on, not 12.

      It depends how long the demo has been around to know how sharp it is. Could be marked at a break even point, could have a profit.

      Also, regarding the hybrid battery used in the Prius (and presumably the same one used in the Lexus Ct200H), I was once told they have a 8 year shelf-life and then are very expensvie >8k to replace? Is this the case?

      New hybrid batteries have a 10yr/unlimited km warranty (just get them checked yearly). $2500-$3000 to replace.

  • kickling on 22/03/2019 - 08:38

    How come a new Forester requires 6 monthly services and Impreza only yearly?

    Foresters didn't used to require 6m… Sounds like a new thing. To make more money?

    • pegaxs on 22/03/2019 - 09:31

      Spac is a salesmanperson, you are better off ringing the Subaru PR department for that question.

      Basically, once the car is sold, Subaru don't really care, as they are not making the money off the service side, only the dealer is. So, if Subaru told you these figures, they would have their reasons. If the dealer told you this, then it's about making money.

      • Dachi on 22/03/2019 - 09:44

        Fully agreed. The dealership is out there making profit on servicing.

    • spackbace on 22/03/2019 - 11:25

      Probably like our new models, they've revised the structure. Forester is new, Impreza isn't

  • milfey on 22/03/2019 - 09:29
    +16

    How often do you slap the roof with a customer?

  • Dachi on 22/03/2019 - 09:42

    There were a lot of new unregistered car damaged in recent hail storms. I understand the dealership sell them as new (undamaged) with disclosure to the customer. Is this legal? And how can a buyer check on this?

    • spackbace on 22/03/2019 - 11:26

      Well they've never been registered, so can still be sold as new, provided they tell you of course

      Ask them? Check for signs of damage

    • HardlyCharly on 24/03/2019 - 15:48

      With their eyeballs.

  • GadgetGirl on 22/03/2019 - 09:55

    Do you think purchasing a second hand Audi TT (1999 model) manual with 155km in good nick for around $8000 is a fair price to pay. I know the car is practically 20 years old. Its in A1 condition. Had a new clutch, starter motor, timing belt in 2017, and has not missed 1 service.

    • spackbace on 22/03/2019 - 11:27
      +1

      Check Carsales, compare prices around the country for age/kms. You'll know if it's a fair price

    • DiscoJango on 22/03/2019 - 13:58

      What is this a1 you speak of. Please define.

  • ironpaw101 on 22/03/2019 - 10:07

    Hi Spackbace - what are car dealers opinions of car brokers??

    • spackbace on 22/03/2019 - 11:27

      The phrase "if you don't have anything nice to say, don't say anything at all" comes to mind!

      They charge us a fee, and they generally charge the customer a fee. Learn to negotiate and you won't need a broker

      • HardlyCharly on 24/03/2019 - 15:51

        The entire point is that negotiation is completely unnecessary, uncomfortable and outdated. Nobody should have to learn how to negotiate just to buy a product, it's literally hell for introverts and people with anxiety, or people who just have sense etc. I understand why brokers are necessary and how they help a lot of people. Can't wait for fixed price and online ordering.

  • funnysht on 22/03/2019 - 10:10

    What do you think of places like manheim and pickles? What do you think of auction vs instant buy.

    I heard they do not produce roadworthy certificates and never to buy from these places. My friend bought two cars and both times had paid a few thousand to fix it.

    • spackbace on 22/03/2019 - 11:28
      +1

      It's a mine-field. If the dealers are avoiding a car, or it seems to go for 'too cheap', there's likely a good reason

    • DiscoJango on 22/03/2019 - 13:59

      Your friend ey, im sure.

    • Kill Joy on 26/03/2019 - 16:00

      It's risky, but if you do your homework and check out the car, you can get a good price. I bought my 6 month old car 30% off RRP with a minor bumper scuff ($300 to fix) and missing gear knob ($70 from Toyota). Watch a few auctions to get a feel for the price. Usually if a use car dealer is pushing hard, it's a good deal. I had to battle off 2 dealers who would have easily sold it for $7k more than I paid for it.

  • 91rs on 22/03/2019 - 10:11
    +2

    Which sells more cars?

    a)Straight lines
    b)balloons

  • sim777 on 22/03/2019 - 10:13

    Hi Spackbace, I recently bought a demo with 1000km that was being driven by a "manager". If the car had been registered approximately 2 months prior to purchase does this mean technically it's not a dealer demo but a dealer used car? Would the manager be listed as the first owner or would it be under the dealership?

    • funnysht on 22/03/2019 - 10:15

      Sounds like the latter. Dealer used car. Literally…

    • spackbace on 22/03/2019 - 11:29

      It's just a standard run-of-the-mill demo. Simple

  • Noblejoker on 22/03/2019 - 10:28

    You do Toyota right?
    New model Rav4 due now-ish
    Buy it Yes or No?
    If you have seen one how roomy are they compared to current model

    • spackbace on 22/03/2019 - 11:30

      Yes
      In May, yes
      Yes
      Haven't seen one in person, we have training in mid-April. All reports say more room in back seat, more room in the boot area. Looks to be a popular car when it's released, based on early interest. Particularly hybrid

      • Noblejoker on 25/03/2019 - 12:33
        +1

        Thank you :)

        Most popular AMA ever!

  • sydneybargainer on 22/03/2019 - 10:29

    what will happen if customer had an accident/scratch on to bollard or wall while on test drive?

    • spackbace on 22/03/2019 - 11:30

      Already have a copy of their driver's license, they'd pay for it. Excess can be about $1,000

  • Proud2Bcheap on 22/03/2019 - 10:49

    Thanks for doing a great AMA.
    I have 2 questions hoping to get insight on:
    1) Can I add safety extras to a demo car e.g. (maybe not Toyota specifically) I want to add additional safety package which would include AEB, blindspot monitoring etc to a demo car.
    2) If I was to sell/trade-in my car with a small dent and scratch to a dealership, is it worth getting the dent repaired first (~$800) or trade-in as is and knock off $500 knowing that dealership can repair it at a much lower price than done privately.

    • spackbace on 22/03/2019 - 11:42

      Can I add safety extras to a demo car

      Not if it's a factory fit, which AEB etc is. BSM can sometimes be added to cars. Check accessory lists.

      If I was to sell/trade-in my car with a small dent and scratch to a dealership

      Nah don't bother, not unless it was a 1yo, premium car

  • EnALup on 22/03/2019 - 11:41

    Thanks OP for starting this topic. Few questions to you, if you can answer:
    1. How to get best price from a sales person if you are buying a car and what homework we need to do as a customer.
    2. Suggestion for Petrol vs Diesel vs Hybrid. I know you like Hybrids over Petrol, but how about diesel as diesel is more economical or similar compared to Hybrids.
    3. I know you work for Toyota, but want to know your pick for a Luxury SUV and model in terms of Value for money, reliability, looks, features and reason.
    Examples:
    * Merc GLC 350
    * BMW X3
    * Rangerover Evoque
    * Audi Q5
    * Jaguar F Pace

    • spackbace on 22/03/2019 - 11:44
      +1

      How to get best price from a sales person if you are buying a car and what homework we need to do as a customer.

      Has been mentioned before. Be ready to buy, put offer in writing.

      Suggestion for Petrol vs Diesel vs Hybrid. I know you like Hybrids over Petrol, but how about diesel as diesel is more economical or similar compared to Hybrids.

      Diesel only for commercial vehicles. Avoid it for passenger/small/small SUV. It's a dying technology because of emissions laws. That will reflect on resale in the coming years.

      I know you work for Toyota, but want to know your pick for a Luxury SUV and model in terms of Value for money, reliability, looks, features and reason.

      Sorry, don't have one, haven't researched them

      • EnALup on 22/03/2019 - 17:57

        Thanks.

    • Ti-au on 22/03/2019 - 12:38

      buy a tesla they are cheaper now. You will become way c00ler, and can talk about space exploration to hot chicks.

      • EnALup on 22/03/2019 - 13:02

        Cant do long distances with tesla and wait for it to charge in stations. They are still quite pricey though.

  • funnysht on 22/03/2019 - 11:48

    Might be a bit too much but do you have certain impressions based on a customer's age, sex, clothing or ethnicity when they come in the door? Do you try to go easy if it is a pensioner?

    • spackbace on 22/03/2019 - 11:51

      Difficult not to, but you do your best to not pre-judge.

      Do you try to go easy if it is a pensioner?

      At the end of the day, whatever a customer is happy to buy a car for, that's what we'll try to achieve.

      I've had the owner of a real estate agency happy to pay RRP, as he said "I'm happy with the car, I'm happy with the price, I know you have a family to feed" (paraphrasing but that was about it).

  • vietbargain on 22/03/2019 - 12:03

    I recently bought a brand new VW and found a paint defect (there was a chip in the door, someone had tried touch it up but we found it anyways). Whilst I said I wanted a replacement, the sales guy pushed me to take delivery of the car, insisting it would be fixed at the 2000km check-in. In the end I caved-in and regrettably took delivery, but is there anything I could have done better to get a better outcome?

    I re-read my consumer rights and unless it was a "major" defect, it didn't seem like I had much to stand on, the dealer could fix the car and I'd end up with a "brand new, but non-factory" car.

    • spackbace on 22/03/2019 - 12:09
      +1

      Tough battle because they'd have to de-license the car, etc etc, and if you had any accessories on the car.

  • Wampus on 22/03/2019 - 12:09

    I've been castigated recently on OzBargain for buying a brand new car a couple of years ago. I don't regret my decision but I was stunned at the amount of hate about it.

    More pros than cons by buying a near-new car over a brand new one?

    • spackbace on 22/03/2019 - 12:11
      +1

      Some cars depreciate quickly over a year or 2, some don't.

      Case example, someone was looking at a 2017 LC200 VX. They sell for around $90k. Add stamp duty and you're at about $96,500. They bought a brand new 2019 one for $106k. 5yr warranty, brand new car.

      Some people like to generalise with the whole "it loses X amount as soon as you drive out". Yeah it loses stamp duty and on-road costs.

      Plus new cars will generally have better safety features, and could be a better drive.

  • moo on 22/03/2019 - 12:36
    -1

    How would you rate your integrity and ethics…say out of 10? :)

    • spackbace on 22/03/2019 - 12:38
      +2

      If I had a camera and/or microphone on me to record my dealings with the public, I wouldn't care if that footage was made public.

      • [Deactivated] on 22/03/2019 - 13:46

        Are you happy to tell customers the price you bought the car for vs how much you are selling it for?

        • spackbace on 22/03/2019 - 13:49

          I don't work used cars, so what we pay for the car is totally different.

  • Jimmycfc on 22/03/2019 - 12:58

    So i'm in a predicament currently, there's a car for sale at a very good price & low km's privately but i dont have the money right now. Do i get a 15k loan for 2 years and pay out early (Yes i know there are early pay out fee's)
    Or do i wait 6 months until i have the money and buy another car that will be more money and end up costing the same by the end of the loan anyway??

    • spackbace on 22/03/2019 - 12:59
      +4

      Unless it's a unicorn, I'm sure something else will come up over the next 6 months

  • Tsuska on 22/03/2019 - 13:29

    Can I get a new Toyota Corolla ZR Hybrid for $32k drive away? (what are my chances)

    or if you can spill the secrets:

    If the world is (almost) ending what is the minimum price they'll let me have the above care for D.A.?

    • spackbace on 22/03/2019 - 13:40

      List price on that car is around $36k+metallic

      You'd be around $34k, if a dealer wanted to negotiate. That car is a 3 month wait from factory currently.

  • John Kimble on 22/03/2019 - 13:31

    What staff perks/discounts do you get?

    • spackbace on 22/03/2019 - 13:47

      Drive car incorporated into the package
      After you've been with the company long enough you get fleet pricing

  • THICKnSLOW on 22/03/2019 - 13:31

    What is the judging criteria for accepting the women whose role is to sell accessories like window tinting, paint and interior protection, towbars etc. ?

    Does the manager bring in a pants tent machine?

    • spackbace on 22/03/2019 - 13:48
      +4

      They're always bat-shit crazy, so I think that must be in the criteria lol

  • DiscoJango on 22/03/2019 - 14:08

    Why the new supra doesnt look as good as the concept

    • spackbace on 22/03/2019 - 14:09

      Concepts always get watered down

      Still looks good imo

  • panorama on 22/03/2019 - 14:31

    All i have to say is LOL

    • spackbace on 22/03/2019 - 14:34

      Good to know :)

  • Stimps on 22/03/2019 - 14:39

    What’s your thoughts on buying ex-rentals?

    • spackbace on 22/03/2019 - 14:47

      Can offer great value for money, can be beaten up a bit, both exterior and interior

  • Make it so on 22/03/2019 - 14:40

    Great you're doing this Spackbace!

    I have a question: what is the best way to get to the lowest price for a new car quickly? So far, I have to negotiate, act (not lie), and pricebeat with other dealers. It's painful, protracted, and I feel like a crook for doing it (even though I am not sure I can trust them when they say 'we are losing money on it').

    Is there a way you can basically say "Give me the rockbottom price and we both save time"?

    • spackbace on 22/03/2019 - 14:49
      +2

      Hit them up with an offer of where you want it to be. Put it in writing with a signature. It's up to them to make it happen. If they let you walk, it was likely too low, so consider taking them up on their last offer before you walked out.

      If they do the deal, well just be happy that it's at the price you wanted to buy the car for in the first place. Like an eBay auction, when you set the max price you'll pay when you put a bid in. That's the price you'd happily buy the car for

      • Make it so on 22/03/2019 - 14:51

        Thanks, that's good advice.

  • yeowie on 22/03/2019 - 14:53

    I still take my 2014 corolla to the dealership for a service as the price is reasonable, but they recommend one to be done every 6 months which is IMO crazy when Toyotas are meant to be bulletproof. I have been taking mine in yearly 'skipping' the 6 month one. realistically, is a 6 month service really necessary?

    thankyou.

    • JimB on 22/03/2019 - 14:57

      No it's not.

      12 months or 10,000kms is fine.

    • apptrack on 23/03/2019 - 09:40

      Stick to whatever the manual says. I'd personally not go to the dealership to service your car if you don't have capped price servicing.

      Better off getting logbook/new car service from Kmart etc

  • JimB on 22/03/2019 - 14:57

    As a customer, how do you know I got a good deal?

    Bought a car last month.

    Drive away price was about the retail price (ex-on road costs) plus got 3 years free servicing.

    I probably paid too much as now there's a new deal! Doh! But we needed a new car asap so didn't have the luxury of time.

    • spackbace on 22/03/2019 - 15:03
      +3

      Like any purchase, especially major ones, don't look at prices after purchasing!

      • JimB on 22/03/2019 - 15:22

        I read somewhere about car buyers.

        The happy you are with the purchase, the more likely that you overpaid! lol

        Does that ring true?

        • spackbace on 22/03/2019 - 15:24
          +1

          Not necessarily. It's possible to screw us on price, but be nice in the process. People think they need to treat us like shit to get the best deal, when it just means we don't want to give that to you!

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