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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.

1) Dealer initially increases net profit

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…

Mississippi Law - Extended Service Plans

Automotive Dealers in Mississippi offer both Manufacture backed and third party extended service plans. But did you know back in 2014, the House voted on Bill 581 (which went into effect in 2015) which provides added protection to the consumer.

Under Bill 581, the dealer is required to not only verbally tell the consumer, but also have the consumer acknowledge in writing that the extended service plan that they have been offered and are purchasing is not a manufacture backed product.

Why did they do this?

Well we can't say exactly why they did this, but we can say it is included in a Bill that protects Dealers in the event of a shut down of their location or product by the manufacture.  This looks to be a compromise to keep the manufacture and their interest groups happy with the full Bill.

What does this mean?

This is a good thing, it is added consumer protection. Dealers are required to properly inform their customers of their products and who backs them.

Consumers need to know exactly what they are buying without someone trying to pull a fast one. 

What are the consumer's rights if a Dealer did not tell them and have them acknowledge in writing?

First we are going to say that you need to consult legal counsel. But, if it is a law and the Dealer did not abide by the law, then there are grounds for your legal counsel to take action.

For more information about your rights as a consumer during the automotive buying process, check us out at