Theres the dope game, the rap game and the car game.
No business is dirtier than the car game except maybe real estate.
for customers:
*customer gets approved for 12% interest rate*
manager tells you go out and tell them they approved for 18%
, because that way if they want a lower payment, you can negotiate the interest rate, and it will bring down the payment, without lowering the actual price of the car. This is how they rape people with bad credit or think they have bad credit.
if you got good credit... Dealerships get paid on 2 points(or 2% however you want to say it). This is how they make a majority of their money So whatever interest rate they are telling you, you can more than likely subtract 2% from it and thats what you actually got approved for. So if they tell you 10%, you really got approved for 8%. 2% is huge for them, it could be the difference between no money at all from the bank and thousands depending how big the loan is and how long the loan is for.
They WANT you to buy used cars. Newer used cars though(as in they havnt been for sale long on the lot). New cars believe it or not, do not have that much mark up, but we gonna cover that a little later for the employee section. Used cars have all the mark up. And they aint doing you any favors by buying your used car.. they dont go buy Kelly blue book unless YOU bring it up. They go by what is called the black book (what the cars are going for at auctions and the market on the car).
*dealership convinces customer their honda accord is worth $8,000. The kelly blue book value of the car is $12,000, the dealership gonna sell that car on the lot for $14,000 and go down from there*
But believe it or not, banks are in your favor for this. Banks wont let the dealerships really fukk you that bad if you have bad credit. If you have good credit the banks will allow you to get fukked on this
but if you got fukked up credit, the banks want the loan, but dont the risk of a bad credit person with a $14,000 loan so the banks gonna hit the dealership with whats called a bank fee and bring the car down to around kelly blue book price range. Banks really looking out for themselves, but really it is in your favor if you have bad credit and the dealership tryna fukk you
for employees..... I cant wish working at a car dealership on anyone honestly. If my kids try and work at a dealership id rather just support them for longer.
The hours are the worst hours in any industry, I am not sure how they arent illegal honestly. I did that shyt for a year, and the least amount of hours I worked in a month was around 220 hours
every saturday was 8:30 am to 9 pm
you are SCHEDULED for 50+ hour work weeks. How can they schedule you for over time and that shyt not be illegal
and its based on whats called a "draw" so its not hourly. So lets say your draw is $2000(depends on dealership). For you to get paid commission on cars, your commission has to pass your draw.
Then you got whats called a "mini" a mini is the minimum amount of commission you will get per car you sell. My dealership mini was $100 for new cars and $125 for used cars. That is right, you could sell 10 cars (the average car salesman in the US sells 7 cars per month) and make $1000.
One month I sold 10 cars, made $7500. Next month I sold 10 cars, didnt hit the $2000 draw
couldnt stand the inconsistency, cant raise a family on that shyt not knowing what you gonna be making month to month regardless of how good of a sales person you.
Lets use that honda accord from above as an example on how you get paid
Keep in mind, you stole that car from the customer for $8,000. Kelly Blue Book value is $12,000. You sold it for $14,000. $6,000 profit right?
Wrong. The dealership gonna pay you the difference between the profit and
the value of the car. So $2000, and pocket the other $4,000. Depending on your dealership your commission is 20-30%. The dealership has something called "pact" where every deal so much is given back to the dealership/owner. Our pact was $500. So now that $2000 is now $1500. I was always in the 30% tier, so now you get 30% of 1500. So you get $450 commission off that 1 car.
Keep in mind, you absolutely robbed those customers from the car, and sold it at full "sticker" price and got $450. Not bad right? This is the perfect sale, and you would have to do 10 of these to even get $4500... 10! The perfect car sale can net you $450, imagine when customers negotiate.
90% of the customers coming in have quotes from kelly blue book and shyt and just buy cars at invoice (you will get a mini for this, so collect your $100 or $125 per car) or wanna negotiate which usually ends up in a mini as well.
So while you aint caking, the dealership is