Car salesmen are quitting in droves... here's why!
- Being a car salesmen doesn’t earn much respect because it doesn’t require any credentials.
- Car salesmen are just like real estate agents
- The pandemic era gave a level of false confidence to lousy sales reps.
- Lazy salesmen and saleswomen were able to skirt by and make sales with minimal effort.
- Dealers burned so many bridges by deploying Market adjustments or markups… it drove people away.
- Many sales reps were so proud of their markups. Brought out an ugly level of arrogance.
- Lenders equally to blame for giving inflated loans… huge LTVs
- More often than not people view car salesmen in a negative light.
- People are more likely to have a negative experience versus a positive one with a sales rep.
- A dealership’s job is to maximize profit margins… we see it with the high specced high trims vehicles that plague dealer lots.
- Sell you on needless protection packages, windshield chip protection, door ding and dent protection, nitrogen filled tires, extended warranties…
- The supply constraints brought forth by the pandemic “forced” dealers to inflate the prices of their limited inventory.
- Used to focus on quantity… sell many many cars at smaller profits. This would earn return in customers and maximize the profits made in their Service Departments.
- Dealers were quick to show their true color during the pandemic… quick to treat you and I the customer as a number. Just another brick in the wall.
- If you don’t buy it, the next guy or gal will!
- Non-negotiable… talk about nasty attitudes.
- The word wide web spoiled the value of having a neighborhood car dealership. Suddenly Californians with more money than brains became your competition.
- I personally remember every dealership that charged markups regularly throughout the last few years and REFUSE to buy from them now. I’m not alone on this.
- Now, dealers need their loyal customers more than ever… but they pushed us away.
- Times were tough for everyone during the pandemic, but dealers loved playing the victim.
- Interest rates were low, so magically their vehicles were worth more? We saw the same with houses. Heck, if you were trying to pay cash, you were in a tight spot.
- Much like real estate agents, car salesmen are dropping like flies. Only the honest and talented sales reps are staying, the ones who have built rapport with their customers.
- Salesmen are failing to sell vehicles right now… and right now is supposed to be “easy sale season” for them. Tax return season.
- They were hoping the “pre-tariff” sales pitch would prove to be their saving grace… but boy were they wrong.
- People are failing to make their auto loan payments right now.
- This is largely because so many people overpaid for their vehicle over the last few years.
- We are seeing unprecedented repossession rates and overall auto loan delinquencies.
- Credit card debt is over $7500 per person and $9300 per household. Highest we’ve ever seen. People are living off their credit cards. You know, the things that have 20-25% APRs. Insane.
- With the cost of insurance, mortgage, rent, groceries shooting to the moon, people can’t keep up.
- Sales reps cannot make ends meet right now. If dealers paid them higher set salaries, and not base their pay off commissions, I think we’d see a shift in car selling culture. We’d see dealers become less pushy… and make it a smoother experience.
- Tesla’s direct to consumer sales model has been a huge success because it cuts out the WORST part of the car buying process. Going to the dealership and dealing with pushy salesmen.
- Inventory levels continue to grow… flooring costs are killing dealers, salesmen can’t justify their time with current sale rates.
- Price tags have increased 42% since start of pandemic... People are no longer trading in every 3-5 years… getting repo’d… inventory level continues to spike… Mortgage size monthly payments for an auto loan is insane.
- Negotiating a car deal has become hugely stressful. AFTER you’re done negotiating the vehicle, the finance rep will have another go at you.
- Tip culture… IF dealers paid their salesmen livable wages without commissions, the entire car sales stigma would begin to life.
- People are tired of the cash grabs and gimmicks. Nitrogen tires, ceramic coating, $1200 window tint, subscription fees for ordinary creature comforts.
Let me know your honest thoughts on the car market right now. Why are car salesmen leaving and looking for other types of employment? Thank you for watching as always, if you found ANY value in this video, please consider Liking and Subscribing, your support means a ton! Thank you!
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