[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

          • JimB on 22/03/2019 - 15:53

            @spackbace: Ok good to know.

            I thought it was a fairly reasonable deal and we were pretty happy with it at the time until a new Manufacturer promo came out!

  • Soluble on 22/03/2019 - 15:11
    +1

    No asking here, but the AMA has taught me a bit about new car buying, I just pay the ticket price. Very un ozbargainer of me, but probably the customer you'd love the most

  • El Grande on 22/03/2019 - 15:19

    Toyota Yaris or Suzuki Swift Automatic <= $10,000 what am I looking at in terms of Age + Kilometers + Model. Also can you hook me up in Melbourne with a deal?

    • spackbace on 22/03/2019 - 15:25

      what am I looking at in terms of Age + Kilometers + Model.

      Check Carsales

      Also can you hook me up in Melbourne with a deal?

      Nope!

      • El Grande on 22/03/2019 - 18:04

        Carsales numbers are way higher than Redbook for some reason. If redbook says private sale is $9,000 and Trade in is $7,300 they are asking for $11.5-13K private sale and $13-14K at the dealer.

        • spackbace on 22/03/2019 - 18:07
          +2

          Redbook don't buy and sell cars

        • yellowfever on 22/03/2019 - 18:19
          +1

          Redbook is a guide only.
          Carsales private sale is the real market place.
          Dealers is the marked up market place with a 3 month warranty.

          Pretty easy to follow that.

  • DarthAntz on 22/03/2019 - 15:24

    Congratulations on your achievement, and all of your contribution to Ozbargain. Knowledged shared is knowledge gained in this community.

    What is the best lesson you've learned from working in a snakepit dealership?

    • spackbace on 22/03/2019 - 15:25
      +2

      What is the best lesson you've learned from working in a snakepit dealership?

      To have a thick skin ;)

  • Archer12 on 22/03/2019 - 15:35

    Do you find that more and more clients are now more clued on what they want e.g. I want a 2018 Corolla XYZ with ABC options because of the internet?

    And do you not like these customers because they are armed and ready with knowledge as opposed to a clueless person who doesn't know what an engine is. Do you and your colleagues sting the clueless customer more?

    (Akin to a clueless person walking into a Telstra store and ask for an iPhone, because that's all they know)

    • spackbace on 22/03/2019 - 15:40
      +1

      Do you find that more and more clients are now more clued on what they want e.g. I want a 2018 Corolla XYZ with ABC options because of the internet?

      Yep, just about. Or they at least have it narrowed down to the exact car

      And do you not like these customers because they are armed and ready with knowledge as opposed to a clueless person who doesn't know what an engine is.

      Makes the process easier. It can mean we can focus on showing them the bits they didnt know about the car, without going over stuff the already know

      Do you and your colleagues sting the clueless customer more?

      No one is ever 'clueless', they have some idea. There's only so much we can charge, which is RRP.

  • compugrid on 22/03/2019 - 16:12

    I do not mind to pay on roads costs and the commission to the sales rep on the top of the cost price. However, it was always the question: what is the cost price? Where is the real cost price mentioned?

    • spackbace on 22/03/2019 - 16:21

      what is the cost price? Where is the real cost price mentioned?

      You'll never find out what the true cost of the car to the dealership is. It's not an amazing secret, it's just that you don't need to know. Your car won't just be delivered to you straight off the ship, with the dealership not incurring costs.

      • compugrid on 22/03/2019 - 16:30
        +1

        Thank you for the comments in the other car posts. I find very interesting the hybrid table calculation vs petrol one. I hope you will keep commenting with your knowledge and experience in other posts about cars and the industry in general.

    • spackbace on 22/03/2019 - 16:16
      +4

      Feel free to post one and do better :)

      • katz on 22/03/2019 - 16:17
        -1

        Wow you responded to this, but not other hard hitting questions.

        Relax your answers aren’t going to sink the automobile industry.

        • spackbace on 22/03/2019 - 16:20
          +7

          Hard hitting? Lol I didn't realise I'm getting interviewed by Tracey Grimshaw.

          Feel free to post up pics of your payslips, and we'll talk about that.

          Last I checked, I'm not obliged to answer every question that comes my way. No one is that honest in their AMA's and answer every meaningless question.

  • Wystri Warrick on 22/03/2019 - 16:32

    On a scale of 0 to 10 with 0 being not at all, how sexy do you think Scab is?

    • spackbace on 22/03/2019 - 16:38
      +3

      11

      • Wystri Warrick on 22/03/2019 - 19:28
        +1

        I've recommended you to Scotty for the position of vice president of Ozbargain, second only to Scotty.

  • Richeee on 22/03/2019 - 17:00

    Fleet price vs retail price, for the new Gen8 camry V6, what would be the price difference? Thanks in advance!

    • spackbace on 22/03/2019 - 17:22

      Depends on fleet level, not huge discounts

      • Richeee on 22/03/2019 - 17:32

        thanks. Do you know if TRD will come back to Aus next year? LOL

        • spackbace on 22/03/2019 - 17:35

          Nope, but talk of Gazoo Racing being the new sport badge. Look at the UK with the GRMN Yaris etc.

  • GordonR on 22/03/2019 - 17:16
    +2

    I have been wondering about starting a thread about car buying, so this has arrived at just the right time.

    I am in the market for a new (or demo) car.

    I would like to get a decent deal, and I would like to get this without sustained haggling, "I'll have to take this to the boss", and certainly don't want to be hassled for paint-protection etc. In exchange, I am not concerned with getting the absolute rock-bottom price - I'd just like a competitive price that leaves enough margin for the dealer, but doesn't leave me in a situation where I hear that a friend paid $3k less for the same car.

    You've mentioned in this and other threads the need for "negotiation skills", but I am pretty sure that I do not have many negotiation skills. The main problem for me is that the situation is asymmetric - I don't know what a reasonable price is, whereas the salesman does. You've mentioned how different cars have quite different amounts of margin to play with, so you can't even rely on a rule that says "offer 12% less than RRP" or "offer 8% less than RRP".

    Of course, one method for this "price discovery" is the method recommended by many internet blogs on "getting the best deal" - basically, you drive the dealer insane by repeatedly going in, putting in low-ball offers, walking out, and then repeating the process increasing your offer incrementally. I have no interest in doing this - I have no time, I don't want to screw every last cent out of the dealer, and I don't want to piss everybody off and end up with a bad-tempered deal.

    So given that I'm not willing to do the low-balling, grinding down method, then what can a normal customer do to discover a reasonable price? I think this is where the attraction of brokers comes in - certainly a broker will charge both the dealer and the customer, and maybe they will take $1000 out of the deal for themselves. But if this prevents me overpaying by $2500, then it is money well-spent. If a broker buys lots of cars, then they have the information that the customer is lacking - so I'm really paying $1000 for this information.

    There are websites like "pricemycar.com.au" that claim to provide this information, so that the customer can at least start the negotiation with some rough idea of what is reasonable and/or unreasonable, but of course I have no way of knowing whether it is total crap or not.

    Another level of complexity arises because I may end up getting the car via novated lease, in which case I am forced to use a specific fleet company for that purpose. I haven't worked out the interest/GST/tax consequences yet, but in the meantime I am unsure as to how to actually test drive any of my car choices. I don't want to go to the dealer, pretend to be a personal customer, consume 45 minutes of the salesperson's time on a test-drive unless there is at least a chance that I will buy the car from them.

    • spackbace on 22/03/2019 - 17:23

      Ok first question, how much is the car you're looking to buy? What sort of car, if you dont mind me asking?

      • GordonR on 22/03/2019 - 17:23

        Midrange SUV = CX-5, Sportage, Tucson

        • spackbace on 22/03/2019 - 17:29

          Discount level will depend on 18 vs 19, new model vs old etc (if there's a model change).

          Given they're pretty common cars, should be able to find some info on Whirlpool about prices people have been getting. Use this as your ballpark for pricing and negotiating to get an idea of what's reasonable.

          Now as to the lease stuff:
          By all means, test drive etc from the dealership you'd look to buy from. If the Novated Lease company gives you a better price for the car, go back to the dealer and give them the opportunity to match it. Simple as that. They write up the contract, you take that to the Novated Lease company.

          Had a customer do that for me recently, and we matched a Maxxia price. Nothing left in it, but we did the deal to move metal and put a number on the board.

          • endolphin on 22/03/2019 - 18:13

            @spackbace: Given your advice to check out whirlpool, what is your own response when you get comments like "I noticed a few people on whirlpool commenting that they have picked up this same model car for $x"?

            • spackbace on 22/03/2019 - 18:18
              +1

              @endolphin: No one has quoted a Whirlpool quote yet, either they just haven't come to me, or they've used the phrase "my friend was quoted". Ties in with the whole 'if we can do the deal, we'll do it' sorta mantra. If we can match it, we'll do it. If you're talkin out your bum about the price, we'll be upfront and say we cant do it.

              And yes, people lie, tell us they were quoted much cheaper down the road etc. When called on it ("well sorry I can't help you, but you should go run back there that's a good deal"), it turns into "oh but what you can you do?" Complete back-pedal

  • bryans on 22/03/2019 - 17:55

    It would be great to take away the negotiation aspect of buying cars and have standard pricing and standard promotions. Saves headache for everyone. The market will determine what an an acceptable standard price is.

    • El Grande on 22/03/2019 - 18:07

      In some countries RRP is the fixed price. You pick your dealer by proximity and you get a free pen or an air freshener as a thank you for choosing us present. Personally I like that better as you know everyone paid the same price.

  • t_c on 22/03/2019 - 18:12

    I understand toyota doesnt as yet have a pure ev.

    However how big a part does servicing play in the dealerships overall bottom line.

    Looking forward do you see pure ev as a significant threat to the service department with a albeit slow but progressive erosion in ongoing revenue.

    • spackbace on 22/03/2019 - 18:22

      Service will still be necessary, and will take ages before petrol cars are off the road. Decades away!

      Interesting reading when I went to research my answer :)

  • [Deactivated] on 22/03/2019 - 18:30

    How do you sleep at night?

    • spackbace on 22/03/2019 - 18:31
      +2

      Like a baby

      • [Deactivated] on 22/03/2019 - 18:33
        -6

        Criminals always do.

        • spackbace on 22/03/2019 - 18:41
          +6

          So do those with a clear conscience :)

      • ravonda on 23/03/2019 - 15:07
        +3

        So… you wake up every 3 hours? :/

  • Happy501 on 22/03/2019 - 19:24

    I plan to put my deposit down on a new car on Monday in Perth. I have spent time with the salesman and am happy with how it has all gone. He doesn't have the colour i want (ive saved 10 years for this) yet the dealer down the road does have it.

    Is it possible that I can still give my business to the dealer who has put the work in i.e can he get it from the other dealer?? No idea how it works so could you shed some light on this please?

    • spackbace on 22/03/2019 - 19:30

      Yes, he can source it from another deale

      10yrs wow what car?

  • Skramit on 22/03/2019 - 19:42
    +1

    Sometimes when I look at a new car I’ve spoken to various sales people at the same dealership over a few weeks. Does the commission get split if they all contribute or just the one who gets me to sign?

    Would your recommend buying demos as a good ozbargainer tip or avoid as they get flogged by test drivers and not run in properly?

    • spackbace on 22/03/2019 - 19:45
      +1

      Just the one who gets you to sign. Usually it's recommended to stick with one, as he'll know your story, you won't need to repeat stuff

      If the discount is enough, by all means by a demo. Find out how much a new car can be done for first, if it can get close to the price

      • Skramit on 22/03/2019 - 19:58

        Do you enjoy the car reveal on delivery from under the satin sheet or is it annoying?

        • spackbace on 22/03/2019 - 20:25

          It's good fun :) Not so much when they don't have the same level of enthusiasm lol

  • Blugok on 22/03/2019 - 19:42

    Backspace or Spaceback?

  • Skramit on 22/03/2019 - 20:02

    What happens when the dealership takes a trade in for their own used car stock and then struggles to resell it due to its high price. Does it get moved on to another yard at a loss?

    • spackbace on 22/03/2019 - 20:25

      Some get auctioned, some get wholesaled out. They usually try to sell it before then

  • John Kimble on 22/03/2019 - 20:14
    +9

    Is this you?

    https://youtu.be/5R4C0rM62u8

  • GordonR on 22/03/2019 - 20:17

    What is the “dealer delivery charge” on most quotes, and does it represent actual costs incurred by the dealer?

    • Skramit on 22/03/2019 - 20:23
      +1

      Pretty sure it’s meant to be the charge for the pre delivery service. Taking all the protective stuff off it from shipping like the films and let the tyres down and a test drive around the block etc. which is mosty just manual labour at the dealership. Oh and probably a quick wash too.

      • GordonR on 23/03/2019 - 16:01

        So how does this add up to $2000?

        What you’ve said seems like less than a morning’s work.

        But if that’s all that is involved, I’ll pull the film off and give the car a wash myself to save $2k.

        • Skramit on 23/03/2019 - 16:21

          I’m pretty sure they also change the oil, fill the wiper fluids blah blah. Yeah it’s all very simple stuff and the $2k is over inflated. So consider it a good bargaining chip in the negotiations.

          It’s a fair crock of sh…. yes.

          • spackbace on 23/03/2019 - 19:26

            @Skramit: The gross in it will come into play when negotiating the final price. It's all a matter of the bottom line.

            It is the charge that we can mess with if a price needs to be inflated. Ie when Holden released the last limited edition commodores (director, motorsport etc) some dealers were charging $10k dealer delivery

            • Skramit on 23/03/2019 - 19:50

              @spackbace: Yeah ive noticed a lot of EOFY sales on a various brands often waive dealer delivery to bring prices down to drive away “sale prices”.

              $10k delivery on a limited edition Holden doesn’t surprise me right at the death.

              • spackbace on 23/03/2019 - 19:58

                @Skramit: Each dealer only got 1 of each variant, and we had multiple people wanting them. Was understandable to make a quid out of them lol

    • spackbace on 22/03/2019 - 20:26

      As above

  • moo on 22/03/2019 - 20:37
    -1

    Have you come across many situations where the buyer has requested for the sale contract to be cancelled? If so, how typically approach it?

    • spackbace on 22/03/2019 - 20:39

      A few

      1 asked for it, had no reason to do so, he paid the 15% to get out of the contract.
      I've heard of 1 where the dad called as the son wasn't mentally fit to sign the contract.
      Usually it's just incapacity to obtain finance, but you have to show a letter from the bank showing you were declined.

  • peppered on 22/03/2019 - 21:00

    How popular is the Toyota 86 nowadays?

  • [Deactivated] on 22/03/2019 - 21:25

    How much longer do you reckon a 5 year old used Kluger would last before it became uneconomical to service and repair? I know there are a lot of variables, assume relatively low kms and full service history.

    I have a 3 year old Mazda 3 which I’m hoping to upgrade to a family car, but a new Kluger would be around $45-$50k compared to say $20-$25k for an older one which is a heck of a smaller gap.

    Everyone on OzB talks about new cars being a waste of money, but it only takes one major thing to go wrong for used cars to cost a lot of money, and their warranties usually aren’t worth the paper they’re printed on.

    • spackbace on 22/03/2019 - 21:40
      +1

      I'd say till it's about 15yo and 200,000km. But as you say, too many variables

  • lovepub on 22/03/2019 - 22:05

    If I am your girlfriend, family, relative, does that mean I dont even need to fo nothing and it would be rock bottom price I buy the car at?

    Do you give your good friends the best beat price without any negotiation?

    • spackbace on 22/03/2019 - 22:23

      Yep

      Yep

      • lovepub on 22/03/2019 - 22:28
        +4

        Can I be your friend? And where do you work?

        You must have lots of friends.

  • TightAssDude on 22/03/2019 - 22:06

    What's the catch with cap price servicing?

    • lovepub on 22/03/2019 - 22:08
      +1

      Mazda does the same.
      But I recon they milk you from the extra servicing they recommend you to do..

      Things like clean the aircon filter ..
      For most non car savvy people, we have no clue and just agree to do it since they say its filthy dirty

    • spackbace on 22/03/2019 - 22:22

      No catch, just manufacturer would rather see you instead of going elsewhere

  • livingroompc on 22/03/2019 - 22:10

    I want to buy a sedan car with around view camera. What options do i have and how much am i looking at (Brand New)?

  • bizarredeal on 22/03/2019 - 23:04

    What's next from being a car salesman?

    • spackbace on 23/03/2019 - 00:30

      Plans of management, or train to be a business manager and handle the finance side

  • greatlamp on 22/03/2019 - 23:06

    Hi spackbace

    I drove a Toyota Aygo in Europe, once I got over the odd looks, I was really impressed with the build quality

    I certainly would prefer it to a fiat 500.

    Do you think it would sell well here?

    • lovepub on 22/03/2019 - 23:26

      Odd? I looked it up, love that Guinea pig face look

      • greatlamp on 23/03/2019 - 07:03

        Odd isn't a negative, it is just … odd

    • spackbace on 23/03/2019 - 00:29

      Small cheap city cars struggle here.

      • lovepub on 23/03/2019 - 09:23

        Swift doesn't agree

        • spackbace on 23/03/2019 - 10:19

          Comparison would be Celerio. It agrees

      • netjock on 23/03/2019 - 19:54

        OzMoreMoneyThanSense have lot more members that OzBargains I have seen

        • spackbace on 23/03/2019 - 19:57

          Wut?

          • netjock on 23/03/2019 - 20:04

            @spackbace: Cheap small cars struggle here because people don't like cheap and don't like small therefore they like big and expensive. Therefore Oz More Money Than Sense.

            Hope they don't cut the government pension because a lot of people are counting on it :D

            • spackbace on 23/03/2019 - 20:29

              @netjock: No one said they like expensive?Many people just go the next size up but a year old

  • funnysht on 23/03/2019 - 00:20

    have you ever been asked by a customer he'll double your commission under the table if you give him cost price?

    when a salsperson says i need to check with my boss, are they always lying or do the younger saleppl have to speak to their manager before selling>

    • spackbace on 23/03/2019 - 00:27

      No

      Only the manager should sign off on the deal

      • lovepub on 23/03/2019 - 09:25
        +1

        Hi my friend,

        Funnyshit question is interesting.

        I would like to know too if you guys really check with the boss manager when you guys say you have to check with them on the price ?!

        Is it just a strategy?

  • Levathian on 23/03/2019 - 09:34

    Hey Spack given most mainstream manufacturers (Kia, Hyundai, Mazda, Subaru, Honda, VW) are compatible with Android auto or carplay but Toyota currently aren't, do you get many enquiries or comments from customers about that? Has anyone ever walked away purely because you don't have it?

    • spackbace on 23/03/2019 - 10:20

      Yeah it comes up, but I can show them on the Bluetooth that it does everything they want, without having to plug in.

      Only thing would be for Google maps

      • Levathian on 23/03/2019 - 10:34
        +3

        Google maps is a godsend when traffic is unpredictable tbh

      • smpantsonfire on 23/03/2019 - 12:56
        +1

        Only the second most valuable thing you want in a car after music.

      • jdr on 23/03/2019 - 16:26

        but I can show them on the Bluetooth that it does everything they want, without having to plug in.

        I think I understand what you mean but the difference there is that you can’t read/send messages, manipulate Spotify, chose which past Kennedy-Molloy show to listen to, etc. Not legally anyway unless the phone you have has amazing voice control features that are fully handsfree. I quite like Apple Carplay.

        • spackbace on 23/03/2019 - 19:24

          I like it to an extent. I hate that you have to be plugged in, with the right cable. When I was at Suzuki and we first got Android Auto and Carplay, we kept having to try different cables as it was kinda picky

  • nikey2k27 on 23/03/2019 - 09:42

    What cost price on Prius C base model? I payed 23,990 did i pay to much?

    • spackbace on 23/03/2019 - 10:21

      That's a good price but should've considered a hybrid Corolla

      • Levathian on 23/03/2019 - 10:35

        Is the Prius (and all its derivatives) a good seller? I don't see many these days compared to hybrid camrys and corollas.

        • spackbace on 23/03/2019 - 10:39

          Nope

          But then the new hybrid cars are so popular. Could be styling, could be the Prius name, not sure

        • Soluble on 23/03/2019 - 11:21

          I was tossing up between the Prius C and the Corolla Hybrid, looks and size alone sold the Corolla vs the C

  • cuy on 23/03/2019 - 10:52

    Out of all the customers that you sat with for a test drive, what was your most terrifying experience (or has there been any)?

    Are there any demographics scare you when you hop in for the test drive?

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