Whats a fair dealer profit margin ??

So a salesman selling one vehicle every 2 days should make $6 to $18 / hr ?

 

Rab89, I agree.

Sales is a very stressful job. Especially if your in a straight commission position. Lots of sales people will struggle financially when the economy is in rough shape.

 

Look; no offense. I would have walked if you were my sales guy.

I bought my truck from Toyota. Not some salesman. Toyota makes enough money to let cars go at invoice. You might not; but Toyota does. That's why I hate buying commission based sales. I also hate old school sales tactics most car salesmen use. That's generally why I use the Internet sales team, no hassle negotiations.

With that said. It might be time to look into a new profession if your not getting paid enough.

I paid 200 over invoice. And my salesman treated me very good, had my rock protect, running boards installed same day.

At the end of the day, Toyota salesman care more about the customer survey then the profit.

I have read your posts, where you treat customers different based off how much they gave you. In the end if you do that you will get bad surveys or feedback. Something that Toyota values a lot. You really want the customer back for another car sale. Regardless of profit you should treat every customer the same.

 

Not to be a dick at all bro but, when I was in college I sold cars. Do what I did, if you don't like it leave...really think about it. It's a thankless career and while the top performers do well, it's hard and takes time to reach good or great pay unless you just happen to be the salesman type.

 

It's not my fault the car company can't pay the employees more.

But when I called the Toyota Internet salesperson they informed me it was 100 over invoice over the phone when I asked for how much over invoice. I think the idea is to sell cars at volume for Toyota.

 

So you think the salesman should suffer in commission because the car companies price?

 

Who said I don't like it? I love my job, and there is potential to make great money!
I enjoy working hard for my money, and deserve to be rewarded for my hard work.

I also don't treat customers differently based on what I make, I don't even know what we make until the sales is closed by my manager, but I do treat people differently if they are unpleasant to deal with, and treat me unfairly.

You find out what you're worth real quick in a commission based profession, if you've never had to perform at a high level to bring home a paycheck, then you wont understand that I guess.

 

Cars are expensive. Most people have a hard time affording them. Also most consumers have no idea who makes what, so it's not their fault.

You can't blame the consumer for trying to get the lowest price on a car.

 

Seemed that you were taking issue with working xxx number of hours, working on days off, no lunch etc. Could be just my take. I didn't like car sales or real estate sales. I've also spent years self employed I do understand, having to perform at a "high" level to bring home a paycheck. Was not trying to slam you at all.

 

I did the same thing, I bailed and will never go back.

In all reality I don't care how much the salesperson makes, the dealer is going to take most if it anyways. Advertising pack etc etc etc.

Please remember the dealer will screw you faster than any customer. The reason they don't pay the sales people more is because they can hire 10 new people to do the job at any given moment.

With that being said, there is no reason to be a dick to the sales people. I have bought a lot of vehicles and the customer will always get a better deal by being nice then being a dick. More with honey than vinegar is a pretty standard rule in life.

The key to a good deal is to get the sales person on your side when he goes to the tower.

 

False. Retailers generally don't make dick on TV sales alone.

 

What do you do for a living if you don't mind me asking ?

 

Dealerships will screw you in a heartbeat. I bought my first brand new 2000 tacoma 4x4 v6 5spd trd offroad for $23,800 plus ttl etc which was about $800 below msrp at Roseville Toyota. 4 years later on a raining Thursday night my brother and I bought his 2004 v6 5spd 4x4 trd offroad for $22,500 which was $100 below invoice at Folsom Lake Toyota. The finance manager told me it's not the price of the vehicle it's the volume. Folsom Lake Toyota only sold 4 vehicles that day which did not meet their sales quota and that's why they sold us the tacoma at that price. What i know is that 9 out of 10 customers will pay msrp. That is why some dealers (especially high volume dealerships) can some tacomas below or at invoice. My local Toyota dealer will never go below invoice that is why all my Toyota purchases have been in the Sacramento area. They guy that comes into the dealership and in 5 minutes is already heading in finance is the 9 out 10 who paid msrp. Guy that sits and have the sales manager running back and forth in trying to get in his mind a fair price.

 

Answer me this....if someone offered to pay $3,000 over msrp, would decline the deal?

So why should we decline a deal in which we can find a dealer to sell for $3000 below msrp?

The answer to this question will say everything.

 

DING DING, We have a winner!

I had a few deals that went exactly this way. Two, off the top of my head, even paid over MSRP due to dealer add on then got screwed in F & I. Were they buying some hot new product in limited supply? No, one was a Corolla the other a Camry...not even a fresh new design or year..boy talk about feeling like I needed a shower. The sales manager congratulated me and would have cut my balls off had I done anything to actually "help" the naive buyers.

 

Exactly- left you positive rep!

 

Software engineer at XBOX live.

 

Here is a good example:

If MSRP is $32,000
and Invoice is $30,000

You can pay less than invoice and the dealership can still make a profit.. Say they have a manufacturers incentive of $3,000 on the truck. You could buy it for $28,000 and the dealership can still make $1,000.

I can tell you in western Canada most import brands want to make $1,500 to $2,500 gross profit on a vehicle that is priced like a Tacoma. And then there is a chance to make money on warranties ect.

Again most salespeople in this area make 25% of the gross profit and have a bonus plan in place when they hit 10 or 11 or 12+ cars. Every store has a different payplan for its salespeople because there are so many factors. I work for an Auto group that has 7 stores and the pay plans are completely different from store to store.

 

Im sorry but if that was the average profit on a vehicle we made at the store I work at we would all be fired. Margins in cars nowadays are slim everybody has the internet to goto so manufacturers have to be sharp. When I worked for Hyundai our entry level car had $600 markup up to a Limited Santa Fe for $40,000 that had $2,900.

A deal in todays market comes from incentives such as interest rates, Manufacturer discounts, Model year sales ect.

 

Do you get commission on the factory to dealer incentives? Or just the the gross profit over invoice?