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Is a Car Sales Job Right for Me

by John
(North Carolina)



Question: Is a car sales job right for me? I'm considering a career as a car salesman, but am looking for some advice.

I am 30 years old and have been in Law Enforcement for 10 years. I am at a point in my career where I am "burned out" with low pay and receiving the kind of treatment Law Enforcement Officers receive while on the job.

I do not make enough money where I work now to do anything with but pay bills. Nothing extra. No incentives at work, no advancement opportunities, more "jobs" to do while at work for the same low pay.

I have been interested in a car sales job for probably two or three years now. I have concerns that if I apply for a sales position and am hired by a dealership, I won't be making enough money to live, so essentially I wouldn't be gaining anything by changing careers.

I am interested in one auto maker in particular at this time, and feel confident that I could sell the product they make.

I currently drive one of this companies vehicles and have a high desire to see this company excel and succeed in the Automotive Industry.

I simply love this company and want everyone else to experience what I am experiencing, by owning one of their vehicles.

What do you think? Should I give it a shot? I've never sold cars nor worked in any type of sales, except as a sales associate at a local grocery store.

I just don't want to "Jump from the frying pan into the fire" per se. I have the high desire to succeed and the "want too" I feel you need to have to make selling cars a career.

Should I try it and if so, can you give me an idea of a possible salary range for a brand new car salesman?

I've read you Car Salesman Salary page but don't know if the salaries or procedures have changed from when that was posted up to now.

Thank you for taking the time to read and answer this long question.


Answer: Hi John,

The first few things that came to mind when I read your email had to do with what you might be giving up in your current career as opposed to what you might gain with a car sales job.

These however are things that you (as I'm sure you know) would have to weigh out for yourself.

My father was in Law Enforcement for 25 years, I have friends that are currently Sheriff's in Los Angeles and I work with a salesman that was an MP for 5 years and now is a successful car salesman.

In fact, the guy I work with brought up some of the points I'll mention below...

Retirement:
The things that come to mind are your retirement with the department you are with now. This will depend on when you qualify and how much you're paid, but if you qualify at 20 years, then you are already halfway there.

Other than offering 401k plans there is not a pension type of retirement plan with most car sales jobs (none that I know of). In addition, not all dealers will contribute to your 401k.

Benefits:
Next would be the benefits. I would bet that your current benefits package will be better in Law Enforcement than you'd find at most dealerships.

We have a really good benefits plan here at my dealership, but it is expensive ($7000+ per year/family) and needs to be accounted for when figuring how much you can make selling cars.

On top of that, you may have to wait as long as 6 months to a year before open enrollment. COBRA is expensive!

Guaranteed Salary:
Right now you say that your pay just gets you by every month, but it is getting you by every month.

Working on full commission especially in a field you have limited experience with and in a bad economy can be extremely stressful and costly. The bad economy is a big factor in deciding on a car sales job right now.

I've been on full commission now for 15 years and it still makes things a little difficult because I am never quite sure what next month will bring...Or not!

How You're Treated:
Some other things you mentioned that you were not happy with at your current job was how you were treated on the job.

I agree that Law Enforcement Officers can be treated like crap by many they would come into contact with on a daily basis, but you will also run into this often in a car sales job.


For whatever reason, some people think they are better than salesmen, salesmen are second class citizens and everything they say is some sort of a scam or lie!

So the way you're treated will improve in some ways, but stay the same in others. Of course it's rare that anyone is attacked or shot at as a car salesman, but I think you catch my drift here.

Income:
Regarding what type of income that you could expect in your first year, I'll give you a real boring answer and say that it depends!

Not only on you, but on the dealership. Both you and the dealership need to be doing things that get customers in front of you as often as possible.

Once they are in front of you:


  • They will have needed to have trained you well
  • You'll have needed to have learned well
  • You'll have to apply what you've learned
    and
  • They will need to give you good support throughout the deal (especially important early on in a sales career).


That being said, I'd still stick to what my car salesman salary page says, even in this economy, and think that the best most new car salesman are going to be is average and fall into the $30,000 to $45,000 a year.

Of course this can and will vary person to person.

Learning Curve:
Keep in mind, there is a big learning curve with a car sales job. Even people with successful sales experience in other fields don't always translate into good car salesmen.

It's really important to learn the basics and apply them day in and day out in a way that appears natural to customers.

I'm sure you've encountered pushy salesmen in your life and it's not always because they were pushy people, but they may simply know no other way to ask for the sale.

One positive is that the most successful people I've met in car sales are people with no prior sales experience (bonus for you).

I think people with past experience tend to think that they've got their new car sales job all figured out and it couldn't be much different than the retail sales or corporate sales job they switched over from.

To those people I say "Welcome to the Car Business!"

On the other hand, people with no prior experience tend to come in like sponges and absorb all they can and are honest with themselves.

This is what I did wrong on this deal, next time I'll do this, man I did a good job - I'll be sure to do it again, I should have recognized that I had no control over this customer and should have asked for help, etc.

To Sum This Up:
I'd say get one, some or all of Grant Cardone's sales books or audio courses (specifically for car sales), take a look at my Salesman page and click on the different links. Especially the how to sell cars link (that's the base of most all dealerships selling strategies).

You definitely have some positives that you'll bring to the table:


  • You'll be trusted more than others - Don't be afraid to tell people you were a 10 year Law Enforcement Officer. Use your judgment what customers to say that to.

  • You'll be good with paperwork.

  • You won't be scared to talk to customers (you might be surprised how many salesmen are)

  • You sound motivated to succeed,


I'd personally recommend studying up some more on car sales techniques and seeing if you can find a Mom & Pop dealer that might allow you to sell part time.

Or, you can use a week or two worth's of vacation time and actually get a full time car sales job.

This will help you see if a car sales job is right for you before you officially leave your current job. Larger dealers may even look for part time help when they have big "sales events."

If you like it and are making some money (key here in a bad economy), then go full speed ahead and make car sales a career. Eventually, find a dealer that sells the vehicles you like.

Hope this answers your questions, but please don't hesitate to contact me with any further.

Take care and good luck if you do decide to get a car sales job...
Justin

Comments for
Is a Car Sales Job Right for Me

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Prepare to become car salesman
by: Anonymous

Working at a car dealership is a real tough job. You'll have a lot of fun with all the kind people your meet, but you'll work long hours and you will miss your own family on the weekends.

Your income will be up and down, you get paid when you deliver the car, you need to prepare for
the good times and the bad times.

It's hard to find a good dealer to work with, salesmen are always moving to try to look for a better opportunity, especially now ...

The Internet tells customers how to buy and deal with car dealers - too much information given out to consumers - so auto sales will be harder to make extra income.

Dealers may cut pay plan commission and bonuses are hard to hit - especially with how bad the economy is now - it's more difficult selling cars to make a living.

In California most of the dealership are owned by corporation groups, they care less about salespeople and they can replace salespeople any time, any place.

Well if you can live with work pressure and with no burn out, then you can survive every day you come to work.

Pay plans - Oliver Twist
by: Anonymous

How's this?
Flats are $100 paid the week after delivery.
$250/mo demo allowance (no demo to drive).
Min sales of 12 cars a month are required to make any commission percentage at all.

1. 12-13 6% of net
2. 14-15 8% of net
3. 16-19 10% of net
4. 20-24 12% of net
5. 25+ 14% of net

% of net is really the key.
Net is impossible to figure out because you don't know the Cost of Goods Sold. Artificially inflated costs are applied to vehicles and brings down net profit. For example - all vehicles are charged $300 for "Wheel Locks" and "Glass Etch" whether the customer wants them or not or if even on the vehicle at all.

How about replacement of a battery on a new car before delivery, reducing net profit by $110 and thus commission by $6-$15. (Note: these are common occurrences).

Accessory sales are also charged at a grossly inflated cost. $85 for a "Car Wash"?
Two weeks into the next month - commissions are paid once all outstanding "charges" are applied and the total number of vehicles is known.
Negative deals (those where management chose to go below invoice into holdback) are then subtracted from positive deals ? thus reducing the total net profit even more. It is indeed possible to ?owe? money at the end of the month despite selling a number of vehicles and generating thousands of dollars of profit for the dealership.

The 2008 NADA figures reveal that New Car departments have gone from averaging a $175,000 profit on new cars in 1999 to losing $40,640 in 1988. When used cars are added in the number become $260,000 profit vs. $82,200 profit. The key question here is why?

Dealers have figured out (through 20 groups and various consultants) that by transferring profits from the new and used car departments to the service and parts departments they can avoid paying commissions and keep more money for themselves. This is all in addition to requiring 210 hrs work/mo for a $250/mo demo allowance.

I see nothing but a downward spiral in terms of customer service and satisfaction because what some short sighted dealers will be left with are:

  1. A few sales reps who will stay long term (often a ?house mouse? or two that are given most of the sales manager deals).
  2. A few sales reps who will quickly figure out that they are being taken advantage of and will move on.
  3. Some who stay around if they have a govt. pension and benefits they can rely on.
  4. A few who will work until they get the web design job they really want.
  5. Losers with nowhere else to go.


Illegal? Nope ? due to federal minimum wage laws and state laws that mirror them ? Car salesmen are exempted because NADA lobbies and argues that as commissioned salespeople they should not be subject to them. However, unlike waitresses, bartenders and real estate salespersons who are often part time and paid or tipped on ?gross sales,? car salesmen are full time + and are paid on net profit which can be manipulated in a number of ways by unscrupulous owners and managers.


Horrible Pay Plan
by: Justin
(Editor in Chief)


Wow! I just read through that post and that is a horrible pay plan. If you haven't already...You've got to get the heck out of there!

Those commission percentages and the 12 car minimum are terrible.

I would definitely agree with you that a lot of dealers will look for all kinds of ways to rip salesman off and move money so that they don't have to pay a commission, but it sounds like the dealership that you're describing are a bunch of heartless, greedy, pieces of garbage (for lack of a better word...Trying to stay PG here).

I've worked for roughly 10 different dealers and that is by far the worst pay plan I have ever heard of. If anyone is ever put in a position to work for a dealer like run far and fast...

There are definitely better dealerships available!

Take care,
Justin

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