A Candid Look Inside a Car Dealership — See Exactly How They Operate
January 11, 2009 by admin
Profiling a Used Car Salesperson
It’s interesting how people stereotype certain people, places and businesses without even a hint as to the people and families involved. I know. I’m a car dealer. Let me explain.
What is the first thing that runs through you mind when you hear the term “Car Dealer”? Did you know that 7 out of 10 people will answer “used car salesperson”? That’s ridiculous. At least I think so.
When the Cliche was Born
This “used car salesperson” cliche was born in the late 1940’s and the early 1950’s. This is how it happened. After WWII there was a flood of GI’s returning from the war with money to spend on homes and cars. During the war, car sales were tough. Our national economy was focused on winning the war and not buying cars.
Gold Oil Baby Boom
Then came the “baby boomers” and with the boomers came the Interstate Highway System. This and a few other factors created a tidal wave of strong car sales all through the 1950’s.
This car sales “boom” was similar in scope to the “gold rush” in California a century before and the oil “boom” at the turn of the century. Everyone of these “booms” creates opportunity seekers, snake-oil practitioners, con men, cheats, chisels, and of course the infamous “used car salesperson”. It was during this time, in the early 1950’s, that the stereotype was born and with good cause.
Where Was The Window Sticker?
In the 50’s, when new cars arrived from the factory to the car dealers lot, they did not have window price stickers or what we call today the Monroney Sticker or MSRP; Manufactures Suggested Retail Price. Also at this time, the demand for cars was greater than the supply.
It was the perfect opportunity for unscrupulous salespeople to tarnish the image of almost anyone working in any position at a car dealership. It was a wild west show. The automotive industry was largely unregulated. It was a free for all.
Not Everyone… Not Every Dealer, Not Every Car Salesperson…. Participated in This Shell Game
It only takes a few bad apples to spoil the lot. What is true today was true 50-60 years ago. About 10% of the people, or in this case , 10 percent of the car salespeople cause 90% of the problems.
The 50’s Car Game
In 1952 The Price of the Vehicle was Determined by Which Way the Wind was Blowing.
This is what happened. A new car would come in to the dealer. The dealer bought it from the factory for $1,000.00. A fair markup then would be $400.00. (It was really a lot less than that but I’m adjusting for inflation) So if that vehicle had a window sticker (it didn’t in the early 50’s) the price or MSRP would be $1,400.00. Now the following dialogue is what took place and forever ruined the reputation of automobile professional for years to come. 58 years later for crying out loud!….anyways…
You walk into a dealership on a Monday in January of 1952 and ask the salesperson:
You: “How much is that new 1952 Zorch”
Salesperson: “Do you have a trade”"
You: “Yes”
Salesperson:What kinda of trade is it?”
You: “Its a 1949 Zorch”
Salesperson: Thinks to himself while he is rubbing his chin with his thumb and forefinger and silently
says to himself:”Hmmm that ‘49 Zorch is worth tops $300.00″…so now he goes on to
answer your question and says “Well that new 1952 Zorch is priced at $1,700.00″ and
figures if he sells it he would get $1,400 or FULL sticker price for the new 52 Zorch, if they make a deal.
This is where it gets Ugly
On Tuesday your next door neighbor comes in and meets the same salesperson and wants to know the price on the 1952 Zorch, the same one you looked at yesterday.
Here is the dialogue.
Your Neighbor :“How much is that new 1952 Zorch”
Salesperson: “Do you have a trade”"
Your Neighbor: “Nope”
Salesperson: Well the price on that 1952 Zorch is $1,500.00
As you can see, the car dealer and the salesperson made up the price of the vehicle depending on how gullible the buyer was, or whatever they thought they could get away with. There was no rhyme, no reason to pricing. This type of pricing from over a half-century ago is still occurring TODAY in the hotel, motel, resort, oil, gasoline and airline businesses. BTW…the our public utilities are not far behind. Problem is… car guys are stuck with this stigma!!! Not fair at all.
Word Gets Around…News Travels Fast..Particularly when it is Bad News or Negative
Well before long word got around that ALL CAR-Salespeople where Flim-Flam, con men. It was not true then and it certainly is not true today.
Along Came an Oklahoma Senator by the Name of Mike Moroney to Clean up the +Sticker-Price-Corruption
Every time time you look at a window sticker on a new car, crossover, SUV or truck I want you to remember this story and the great Senator from Oklahoma, Mike Monroney. With the introduction of his bill in 1958 he was able to level the playing field for consumers as well as the honest car dealer. (How many honest, straight up dealers go out of business?)
This is a quote form the Senator when he introduced the bill as I read in the New York Times, “The dealer who is honest about the so-called” list price” cannot compete with the less than ethical dealer who “packs” several hundred dollars extra into the “sticker price” so he can pretend to give you more for his his trade-in.
For more information please contact Brad Doenges of Doenges Ford Lincoln Mercury Toyota in Bartlesville Oklahoma at (918) 333-0900.
Popularity: 6% [?]
Have you stayed at any good budget places that you can recommend Piero? Like beach huts that cost only a few Euros per night, but were still pretty good.