Skip to main content

Posts

Car Salesman makes $200,000 a year

In today's world the title of this post doesn't really happen anymore. The day's of car salesmen or women making big money are pretty much gone.

According to the Bureau of Labor the average car salesman makes $42,150 a year.

There is a trend in the car business to attempt to increase profit by lowering employee expenses (i.e. payroll). A lot of dealers are turning to a salary program. On this program sales people get paid a weekly salary and have to chase unit sales over profit. And, at the end of the month the salesperson will get paid a bonus on the number of units he/she sold.

Here is the good and bad of what we see in the industry at dealerships that utilize a salary program.

Good:
1) Dealer initially increases net profit

Bad:
1) After a few months the dealer's employee turn over rate goes up
2) Total profits go down
3) Unit sales go down (related to turn over)

That's right there is typically only 1 good factor for a dealer when utilizing a salary program for s…
Recent posts

Buyer's Remorse

Buyer's remorse is common feeling after we make a purchase, but is there anything we can do about it?

In the car business there are little to no protections regarding buyer's remorse. There are some dealerships that provide a return policy, but the rules are very restrictive. When a vehicle is sold there are state documents and finance documents that have to be filed. When someone is allowed to return a vehicle the dealer must unwind the fillings and fiance contracts.

So let's look at what rights you might have. Not including a dealership return policy the only real right you have is a 3-day right of rescission, if it is even applicable.

The 3-day right of rescission, that everyone says is their right, is not actually a general right.

According to the FTC's "Cooling Off Rule":

"gives you a 3-day right to cancel a sale made at your home, workplace or dormitory, or at a seller’s temporary location, like a hotel or motel room, convention center, fairgroun…

Understanding vehicle insurance

Do you know how to read your insurance coverage just by looking at the 100/300/100 numbers on your insurance car.

Knowing this information is vital to understanding coverage for yourself or when reviewing someone's coverage in an accident.

The first set of numbers represents the amount of coverage you have for each individual involved in an accident.

The second set of numbers represents the maximum amount of coverage you have for an accident.

And the third set of numbers represents the amount of coverage you have for property damage.

Learn more at CarRights.

Understanding typical insurance coverage's:
Liability coverage - This provides protection on claims against the insured when the insured vehicle causes property damage or bodily injury to someone else.Collision coverage - This provides coverage for losses the insured incurs as a result of damage to their insured vehicle from a collision.Comprehensive coverage - This p…

Do you hate going to buy a car?

When it comes time to purchase a new vehicle a lot of stress can come into your life.

Its hard to deal with the whole process. First you have to spend a ton of time narrowing down your options, then you research prices, and then you go to the dreaded dealership to test drive a car.

This can be a very stressful process; especially the going to the dealership to take a test drive. Now, there are site that you can buy a car online and they deliver it to you, but you still need to know how it rides.

When it comes to price, there are dealerships that have 1 price shopping, but did you know they are still making money and a lot of times you can get a better deal at a dealership that you can negotiate at.

So how do you relieve the stress of buying a car? Know what your doing. This means, know your budget, know your credit score range, know the vehicle you what, have a rough idea of your trade-in value, and understand the finance products you will be offer and may what to purchase.

What are F…

Are you trading your vehicle at the right time of year?

Just like a house you want to sell when the market it up. For i.e., if you live in a great school district you will get more money for your house during the months before school starts, as opposed to selling it in January.

So if you have a convertible to trade, you can get the money right when the weather starts warming up and the dealer is looking for convertibles to stock his/her inventory for the spring and summer.

Got to love the badger

What's For Lunch?

Did you know that the most talked about thing in a car dealership in the morning is, "What's for lunch?"

This is why you need to take control of your car deal by knowing all your rights and through a proper buying process. If you do not take control you will have the same buying experience you have had in the past.

Here is why you need to take control:

Dealership employees are lazy. Yes, we said it. Because we understand it, we have been there and we see it every day.

This is the largest purchase the average consumer ever makes outside of their home purchase.

This is your money and you deserve the right to be fully informed and treated properly.

The more you know, the more power you will have to control your vehicle purchase transaction. Keep the dealer honest and make them work to have the honor to sell you a vehicle.

Learn more about how to take back control of your car deal at CarRights.com