I typed up a long detailed response, because…
The key points are (yes, this is the short list)
- I sold Acura's for four years in the 90s at two different Acura dealers. If you could only see what transpired at Prestige Level Dealerships, Excellence Circle, blah, blah.
- Depending on the dealership’s compensation structure and the individual’s sales volume, the salesperson can receive 20%-30% or more of gross profit. $5k over invoice? You do the math. I once "earned" $565 per hour on a deal that took a total of three hours. Not the norm, but not rare - think new model launch.
- “Minimum deals” - our flats were $100
- “Dealership support” comes in many forms - not just on a per vehicle basis like rebates, holdbacks, etc. There is fuzzy accounting that obscures the “true cost” the dealer pays for the car.
There is no way I’ll ever trust "car guys". My experience has taught me that the car business is full of wolves in sheep's clothing. Too many wolves to be trusting in nature. Sure there are some good ones, even great ones. But the bad far outweigh the good.
Has anyone commenting on this thread actually sold cars for a living?
