Auto News, Careers

CSC will provide the value of a junk car right over the phone. Same-day junk vehicle removal is available 6 days a week. Are you wondering who buys old cars in Berea, Geauga County & Pepper Pike? Are you looking for a provider who scraps cars in Aurora, Shaker Hts. or North Randall? Cleveland Scrap Cars is who buys old cars with cash in Richmond Heights, Solon &Walton Hills. Our next topic is not one of our usual, such as junk vehicle removal or the value of a junk car. It involves the having a career in the automobile industry, specifically, working in dealership sales. The profession seems to get a lot of knocks for some reason and today we want to explore whether or not this is justified.

In an October 23, 2015 article composed by Jamie LaReau on autonews.com titled ‘Why hiring car salespeople is going to the dogs’ with the following story: “Given the choice to sell cars or scoop dog poop to pay the bills, my friend armed herself with a roll of plastic bags & a leash. Despite my encouragement that she could earn a lucrative living, enjoy benefits, build a career and scarf down free doughnuts in the service area by working at a car dealership. She will walk dogs until she finds a gig more acceptable to work. I‘ve heard others echo similar sentiments, stating it would be easier to tell my parents I work at Starbucks than that I sell cars. This begs the question: Is the industry’s image that tarnished?

A Gallup Poll from 2014 looked at honesty and ethics in various fields of work. Auto salespeople landed next to last on the list, topping only members of Congress. Even lawyers, who are often the butt of jokes about behavior, trumped them in terms of people’s perception of honesty & ethics. I’ve written about dealers changing how they sell to eliminate customer hassles of haggling and offer technology that allows for more price transparency and improve customer satisfaction. Many dealers are involved in the community contributing hours and dollars to charities. Many strive to enrich the workplace culture, compensation & benefits for employees. I met some of these at the Auto News Best Dealerships in Chicago. Many dealers provide generous benefits, are offering more flexible hours and pay that minimizes employee turnover. Changing public perception of car dealers is going take time and consistent positive customer experiences.” The complete article is available here.

Next we turn to carsalescareer.com for a piece headlined ‘Confessions of a Car Salesman’ with the following: “Most dealers pay a salary for the 1st 60-90 days. It’s usually about $2K a month. After, that it turns into a $200 – $300 weekly draw vs commissions. If the salesman makes more, then they typically keep the extra money. Most new car salespeople don’t make more than the guaranteed amount. A new salesman is generally paired with a veteran to help learn.  This mentor will help you make money. If they help you with a customer, they will get ½ the commission. How much is half?

  • Tier 1 –You sell 1-7 cars a month = 20% of the gross profit of the sale.
  • Tier 2 – You sell 8-15 cars a month = 25% of the gross profit, plus a $500 bonus.
  • Tier 3 – You sell 16-25 cars a month = 30% of the gross profit, plus a $1,000 bonus.

On used cars it gets a better, the salesman has a better chance of making money by holding onto more gross profit. Let’s say that the dealership owns a car for $12,350. That includes their costs to get the car certified and ready for the lot. They may list the car for $15,999. After negotiations, the car gets sold for $14,350 equals’ gross profit of $2,000. If in Tier 1, you made $400. Here is an average scenario for 12 cars sold in a month:

  • 8 new sold @ $100 each = $800.
  • 4 used sold @ $400 each = $1,600
  • Tier 2 bonus for selling more than 8 cars = $500.
  • Total month = $2,900 — Total year = $2,900 x 12 = $34,800

The more you work at it, the better you get. Some of the attributes of good salespeople are: passion and inclination to earn & to learn, ability to take rejection and excellent verbal & written communication skills. You’ll have fun and customers may send you referrals. The complete story is available at this link.

In reviewing these two sources, the bottom line is that it is challenging to make it in this profession. You must sell some vehicles in order to earn. Many people lack the interpersonal skills or motivation to perform successfully. Buying a car probably ranks close to visiting a dentist as it relates to most people’s perception of the process.

Wondering Who Scraps Cars?

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