Kapowee! God I Wish it Were That Damn Easy

It’s been a little over a week since I went to work at a car dealership in Carlsbad, CA selling new vehicles. An interesting week.

First, the schedule can be a little bit brutal. Today from 2 to 8:30 I’ll be on my 6th consecutive scheduled day. A 6 ½ hour shift is easy. Tomorrow is what’s known as a “bell day”—from opening bell to closing bell, 12 hours. It’ll mostly be spent hanging out, on my feet. I’ll spend time working on certification for the new car line—product knowledge so I know what I’m talking about. I’ll spend more time working on product presentation skills. Still more time on follow-up of prospects and very little time actually talking to customers out on the lot or demo-ing or doing write-ups.

After a week and a half, I have yet to sell a car. That means that so far my income is a big fat goose-egg.

I haven’t worked in car sales in nearly 7 years. I spent 6 of those years training people how to sell cars and consulting with managers and dealers on how to optimize their operations. It ain’t easy putting the “skills” back into practice.

There’s product knowledge but more fundamental is the technique by which the product knowledge becomes useful to a customer—especially since many customers come to a dealership with a tremendous amount of information. The sales guy’s job is to make it relevant and valuable. Plus, customers know a lot about pricing—too much, in fact, to the extent that often they’re dangerous in their misinformation and perception. A new $25,000 car might have $1500-2000 in available profit which the customer wants to have discounted. And, the salesperson might make $200 on it if he or she is lucky. It ain’t no picnic.

And then there’s the Neanderthal way most sales floors are managed. We use a software system called “Advent”. Advent does not provide any sort of tutorial so you’re on your own. This is what is used to input a customer’s information on which follow-up is based or on which a credit report will be generated. So you fumble through it.

It’s kind of interesting when you have a customer in front of you and you’re trying to be professional all while you’re mucking through an unfamiliar piece of software. It doesn’t inspire any confidence that you know what you’re doing and are trying to work together with a customer.

So you do your best, port it to the “desk” (the manager) who tells you that you’ve done it wrong and that you’re a nincompoop. The “desk” generates a “proposal” (that’s my term because I hate using terms like “first pencil”) and then sends in someone else to work the customer and try to close her. Without knowing what her “agenda” is and without really caring. This proposal is “packed”. “Full pop” on price. “Back packed” with a warranty. Reserve on the interest rate and a term that’s longer than standard. But all structured so that the payment the customer wants is achieved.

And she walked. Why? Because she was smarter than that and we didn’t spend the time to work with her, justify the value of our product and create a situation where we were making money but she was also getting a reasonable deal.

So, I’ve got to adjust my style. I have to figure out how to “work the desk” and get proposals I can work with. It’s like gathering intelligence. I’ve done it hundreds of times and just need to get into the right patterns of questions to the customer and how I present the information to the desk (my manager only wants the briefest of bullet points—anything more and you get chewed).

This management style of providing only cursory guidance and then ripping into you when you don’t get it right is both “old school” and incredibly inefficient. I spent years trying to work with dealerships to embrace different approaches—and was paid quite well to do it. But that’s no longer my role.

It’s nearly 11. I have to be at work at 2. My legs feel OK today but my hips are still a bit achy. The good news is that I’ve got Friday, Saturday and Sunday off. That’s an every other week thing. But I’ll probably work Saturday to get more prospects and have something to work on the following week for follow-up. The way the retail side of this business is structured, you really don’t get every other weekend off. You need to work at least one day on either Saturday or Sunday. Especially since, as the new guy, I won’t really be seeing any “spoonies” (easy deals given by the manager) for a while.

I’m a grown-up. The older I get the more I resent when management treats anybody with condescension or disrespect. Especially when you have to approach customers with confidence and just the right amount of enthusiasm to be successful. But those are things you have to do by yourself with some occasional help from your co-workers who are also suffering from the same insecurities and frustrations.

But, I'm working. Doing something productive. It's something honorable if done with integrity. And that's what I bring to it. I can't do it any other way. It's not an easy job. Few jobs are.

(Now check out the Muppets doing a Jim Croce classic).

Car Buying 101: Rule 4 Contacting a Dealership

Note: See my posts for Rules 1-3 on May 27 and April 20. Rule 1: Start shopping from home. Rule 2: Shop for your money first. Rule 3: Be realistic about your trade.

You now have the preliminaries out of the way. You’ve done your homework by researching vehicles and have selected the model or models you’re interested in. You’ve contacted your bank or credit union and know what to expect financially (and you may even be “pre-approved which would be the best scenario). And if you’re thinking of trading a vehicle, you have a good idea of what it’s worth and how much you owe on it if anything.

So you’re ready to go buy a new car, right? I would suggest another step in the process before traipsing off to a dealership ready to do battle and drive off in a new vehicle. Contact some dealerships first—either by phone or e-mail, whichever you’re most comfortable doing.

The whys of doing this are fairly straight forward. First, you’ll get a pretty good idea of whether or not you want to do business with the specific dealer or salesperson. Second, it allows you to screen information prior to arriving at the dealership—like incentives such as rebates or interest rates. Third, you can determine whether the vehicle you’re interested in is in stock (the model, trim level, options and color).

All of this can make your actual visit to the dealership one which is more fruitful, productive and enjoyable. You have a right to expect that this information is provided to you upfront and willingly. And if it is, then your entire buying experience will be smoother, more satisfying and more professional.

You want to go to a dealership that knows that it's not about them. It's not about manipulating you into doing something you're not fully prepared to do yet. You want to go somewhere that knows that it's all about you and your needs and that if they fulfill that they'll be better positioned to make a profit.

That brings us to Rule 4: Contacting a Dealership

Be organized about it. Buying a vehicle isn’t a trip to an amusement park. It’s a major piece of business where you’re going to contract to spend upwards of $20,000 or more on a new vehicle. The e-mail contact is arguably the easiest in that you’ll be writing your questions and sending them off with every reasonable expectation that you’ll have a specific response within a couple of hours.

E-Mail contact: Virtually all dealerships now have internet departments. Look up the dealership online and then contact them via their contact portal. Do not include your phone number. Make them respond to your questions via e-mail. If they don’t, then you can move on. What you may wish to do is contact a couple of different dealerships selling the vehicle you’re interested in via e-mail. At this point you’re not trying to get them to compete for your business based on price, you’re trying to get the best response and develop a sense of where you’ll feel most comfortable. And, if a dealership isn’t willing to provide you with information, then you probably don’t want to do business with them. After the information is provided and you’re sure that you want to go that dealership is the right time to provide a phone number for confirmation of an appointment.

In your e-mail you want to specify that you’re interested in a vehicle and then state the make and model and trim level. From there mention any options and color(s). Then ask whether the vehicle is in stock, its MSRP, their advertised selling price and any incentives. And, be upfront and tell them your timeframe for having the purchase completed. If it’s 6 months you shouldn’t even be in touch. But it’s timely if you’re looking at buying a vehicle anytime in the next 4-6 weeks.

The timeliness, information and tone of the response is going to tell you a lot about whether you want to do business there or not. If a dealer immediately wants to get on the phone and discuss it with you, either resist of just “write them off”. They just want to as is the saying in the retail side of car sales “take control”. Buying and selling vehicles isn’t or shouldn’t be about “control”. It’s about business and satisfaction.

Phone contact: There’s a dealer term for incoming phone calls from customers—“phone-pops”. Sales people love to get them and yet have a hard time in converting them to appointments. Why? Because sales people are “trained” by their managers to “take control” and not let the caller “stroke” them. They’re also trained to not “give out any numbers” otherwise the customer will just use that as an excuse to “shop”. What managers still don’t realize is that these techniques are guaranteed to drive the majority of phone callers away.

Their job is to get your name and number and an appointment. Your job is to get information and, if you like the information you get and how it was provided, to set an appointment.

If the person at the dealership is unwilling or reluctant to provide information over the phone, that’s OK because there are dealers out there who will. You can even tell the person right up front that you’re looking for some specific information and that if they are unable or unwilling to provide the information that you would appreciate being connected to someone who will provide it or you can just call another dealership. You’re the customer and you have information needs. Make sure they are fulfilled upfront.

With that in mind, at this point you don’t need to provide your name or phone number—but be polite and let the salesperson know that you’ll be happy to provide that once you have the information you require and decide that you’d like to go to the next step with them. Here’s the thing, YOU’RE the one in control because you’re the customer.

Get all the information that you need—availability of model, trim level, options and color(s). Then ask whether the vehicle is in stock, its MSRP, their advertised selling price and any incentives. Get the information. This will also give you information as to whether or not you want to do business there.

A smart salesperson will provide you with the information happily and willingly. If you are constantly interrupted with questions and efforts to “close the appointment” either resist, be direct in telling the person that you want to receive information first or hang up. And one of the other things you can do is reassure the sales person that you are serious about buying a vehicle and that you require this information before deciding what to buy and from whom.

So now, you’ve gone through the basic first contact on the phone or internet. You’ve decided to go to that dealership and you’ve set an appointment. (Make sure when setting the appointment that you’re specific on day and time, you have the salesperson’s first and last name and cell number as well as his/her sales manager’s first and last name).

Remember it's all about you. The process of buying a vehicle shouldn't be aggravating. It shouldn't be a hassle or be frustrating. These steps can help assure that it's as pleasant as possible and that you get the vehicle you want, at a price and payment you're satisfied with.

The next couple of posts will deal with actually being at the dealership. I’ll try to walk you through the process so that you have a better idea of the dealership’s goals and processes as well as how to achieve the outcome that you’d most like to have. Good luck.

Car Buying 101: The First 2 Rules--Shop at Home 1st & Shop for Your Money

A story in the paper this morning suggested that this is a terrific time to buy a car and get a better price than at this time last year. And I agree with that. The person interviewed was from Edmonds.com and said that buyers can save anywhere from $350 to $2500 by smart shopping. Now $350 isn’t much on a purchase that in all likelihood will exceed $15000 but $2500 is real money.

I spent years selling new and used vehicles and additional years training and consulting with dealerships on how to do a better job of selling vehicles. Now, lest you think of me as a fast talking, “no-good-nik” car salesman let me assure me that I constantly the “e” word and the “t” word when it comes to vehicle sales—ethics and trust.

But, it’s always a terrific time to get a great deal on a vehicle. If you follow just a few really simple rules.

Rule 1—Start your shopping at home. Go online. Research the types of vehicles you’re interested in at sources like Edmonds.com or AutoTrader.com or Kelly Blue Book or even Triple A. Look at manufacturers’ websites to get specific information on the make and model you’re interested in.

Rule 2—Shop for money before you go to a dealership. OK, so now you’ve started shopping for a vehicle. Remember, money is a commodity. Find out from your bank or, better yet, your credit union how much the money is likely to cost you (interest rate) and the terms. Plus, secure a copy of your credit report. Before you ever go out and about to dealerships you really need to have a good idea of how much your money will cost (i.e. the interest rate and terms of the loan). This is known as pre-qualifying and it’s better if you do it yourself with the lenders you choose prior to going to a dealership and relying on them. This will let you manage the process and compare and ultimately make a better decision.

Take notes. Use your computer’s printer. Have as much information in writing as you can. Remember, this is a decision making process you’re engaged in. Especially since you’re probably looking to spend anywhere from $15,000 and up on a new or used vehicle.

So, also ask yourself, “How long am I going to drive this car?” If you’re like most people and only plan on keeping it 3 ½ years or so, then you typically don’t want to finance it for more than 60 months (in fact less is better). There are a lot of dealers who will try to get you to a longer term in order to get your payment lower. But, look at 72 or 84 months only if you’re certain that you’ll be driving that vehicle at least 90% of the term of the loan.

Many dealers take a mistaken approach that buyers are only interested in payment and so they will manipulate the term to fit what you tell them is your monthly payment budget. You are far better off “stepping down” in terms of the vehicle you’d like to something that is less expensive than to go for a 6 to 7 year payment contract. You’re generally not likely to get enough discount to reduce the payments to the amount you’ve budgeted. So be realistic.

Remember one thing—it’s a car. It’s not a lifestyle or a personal statement. It’s transportation. And, rather than let things get a bit terse at a dealer, go home. Think on it. Do a bit more homework. Come back another day. The dealer is typically going to try to get you “buy and drive today”. But, unless you just drove your car into the bay or it caught fire, you don’t have to do anything today.

That’s just a couple of thoughts for now. I’ll come back with a few more “rules” in a day or so. But, keep these in mind. They’ll help you do 2 things—pay less for a vehicle (price and payment) and keep the process from getting aggravating.

Bottom line. Yeah, now is a good time to buy a car. If you can afford it and if you go into it with your eyes open. Then it can be a good time to buy and you can have a good time buying a car.