For all 6 years of our marriage, my husband has worked at a car dealership. Was it his first choice? No. But it was the only job he could find at 22 after moving back to small town Oklahoma after a big move to sunny Southern California.
"It's only temporary," I remember telling him.
He started out as a glorified errand boy. Which, if you're in the car dealership business, is almost worst than the rough conditions of being a lot porter. In Oklahoma, lot porters work in sun, sleet, snow and severe heat all year long. Their job? To keep the lot clean and organized.
Eventually my husband worked his way up to Delivery boy. Deliveries consisted of teaching and training customers on how to use their new vehicles (and sometimes even dropping off vehicles). There's a lot of gadgets nowadays, aren't there? It's an important job because some cars are push start, some require keys, some have key fobs, etc. (Side note: DO NOT under any circumstances LOSE, MISPLACE or BREAK a key fob. They're EXPENSIVE to have replaced. So I've been told...)
Can I be honest? My husband always lost me at the ignition. Just tell me how to get it started and I'll figure out the rest later. This is probably bad advice because my husband installed a new radio in my Explorer for my birthday and I just figured out how to make sure my phone Bluetooth is correctly connected to the stereo. 7 months later isn't that bad, right?!
As my husband settled into his Delivery boy status, the owner of his company sold the dealership to a competitor. We were nervous he would lose his job and for a while, he just sat in a back room and fixed computers. They weren't sure what to do with him. He had sold cars in the past. He's good at sales but he doesn't like putting pressure on customers to purchase a vehicle. It's a big decision. Especially when we understand how hard people work for those dollars.
Eventually, they attempted to get rid of him. Not because they didn't like him, but because they couldn't figure out what to do with him. Finally, his current boss who instructed him to fix computers, brought him on as IT at their main store. And so, a Network Administrator was born. Who also has held almost every job in the dealership world except: Finance, Sales Manager, Service Manager and Accounting.
My husband can create a service tickets, detail a vehicle, inventory, film and edit marketing videos, create Gas tracking systems, sell a vehicle, tell you how to use sold vehicle, and dabbles in Operations from time-to-time. On top of all that, he is an excellent Network Administrator. He's a jack-of-all-trades in the dealership world. Well, in my humble opinion anyway.
Because my husband has been so well immersed in this world, I thought I would debunk a few myths we've observed over the years.
1. You're paying more for a dealership-bought vehicle than a privately-bought vehicle.
It depends. It's wisest to sell your personal vehicle on your own rather than trade it in. Trade-in value through a dealership will always be less than selling the vehicle on your own. That's because a dealership then has to turn around, possibly service your vehicle if it needs it, sell your vehicle at a competitive price and make money. Why do they need to make money, you ask? They employ lots of people. Sales staff. Accountants. Title Clerks. Shuttle Van Drivers. Finance people. Lot Porters. Detailers. Service Technicians. Service Writers. Receptionists. Power Washers. Marketing Whiz's. IT/Network Administrators. That's a lot of people to have on a company's payroll. But they each pull their own weight to (hopefully) run a tight ship. So, maybe you pay a little more for a vehicle, but something wise to remember is this: research. Research the vehicle you want. Research competing dealership prices. Share this knowledge with your salesperson. And don't forget how many people see that newly purchased vehicle of yours before you do. That vehicle has made it's rounds through sales, service, accounting, detail, etc., before you ever sit down in that driver's seat. You must also remember that a reputable dealership will have your vehicle road ready to drive and will have fixed any issues before selling the vehicle to you. These issues could include: new tires, an oil change, replaced older hoses, new brakes, etc. If you find the car you want for cheaper price through a private dealer, go for it. But also remember that if you're most likely responsible for fixing any issues with the vehicle.
2. Salesmen are pushy.
This also depends on numerous factors. Every dealership will have it's fair share of salespeople. Some will be pushy. Some will be laid back. Some are still green. Some are seasoned pros. My personal belief is that a salesperson's sales approach depends on their personality. You have to remember that while these people have been trained to help you "appreciate" a vehicle a little more, they, too, have families to provide for. And if they don't sell, they don't collect a paycheck at the end of the month. Sure, they chose this profession, but they still have responsibilities just like you do. Once again, your best weapon of defense is to research the vehicle you'd like long before you step through those glass doors. If you know what you want, it will be harder for a salesmen to push you around. Vigorous research is always key. If a competing dealership has a better price, you are always welcome to walk out those doors and drive to a better price. And by all means, DO IT. It's important to keep in mind that most sales people are well-versed on the vehicles on their lot. They know what special features they have and they can be very helpful in putting you in a different vehicle that better suits your desires or price range. They know their stuff. 0
3. They just want to make a killing off me.
Yes, some salesmen do. Some are greedy and they want a big, fat paychecks to purchase expensive watches and spray tans. In fact, there is an acronym I used to see written on vehicles before management changed at my husband's current dealership. It basically meant they had made a killing off a customer. Since things have changed and people have been let go, I haven't seen that anymore. A dealership has many moving parts. Sometimes, it takes a little while for people's true colors to rise to the surface. In my experience, those people don't last forever. If you think someone is trying to make a killing off you AFTER you have done your research, walk out the door or request a different sales person. If they still won't budge on the price, I would leave your phone number and tell them if they decide to lower the price, you'd be more than happy to receive a phone call. The best time to do this is at the end of the month when sales reports are due. But you didn't hear that from me ;)
4. A new vehicle is better than an old one.
Dave Ramsey may have been the first to debunk this myth, but let me be the second. The moment you drive that shiny new vehicle off the lot, you can kiss a couple thousand dollars goodbye. You won't get it back. In fact, if you bring it back the next day to trade it in, you might as shoot yourself in the foot. We have purchased three vehicles from dealerships. And all three have been older vehicles with lower mileage. What does this mean: CHEAPER. What does this also mean: PAY THE CAR OFF SOONER. We live in a world that tells you brand, spanking new is better. They shove it down your throat. But keep in mind that a vehicle's true purpose is to get you and your loved ones from A to B safely. If you can pay cash for a brand new vehicle, go ahead. But don't take out a loan on a new car. Take a decent loan out on a 3-5 year-old vehicle with low mileage. Why? Lower mileage = bigger pay off in the end. When you go to sell that somewhat older vehicle with lower mileage, you'll get more out of it than you would on a new car with lots of miles. Low mileage is what you're looking for. Trust me. I know what I'm talking about.
5. The Car Sale Price is the final price.
This is a big NO. The car sales price is just the beginning. You can walk into finance and expect to pay $20,000. But that's not what you're going to pay when you leave. You will always have a Doc fee. I've always paid around $350 for this. Then, you can purchase warranties (which I highly recommend on older vehicles. We paid for a warranty and didn't have to pay for a brand new tranny. It was a breakeven and I'm thankful we did it.) They'll offer you Gap Insurance. I always buy it now. I didn't have it and when my car got totaled by a woman having a heart attack, we took a huge loss on our car. It protects you from having to make payments on a vehicle that is no longer drivable. They'll offer you other features you can say yes or no to. Lifetime oil changes. Details. Etc. You choose what best fits you, but remember there is always a Doc fee. Once you leave there, you also have registration and taxes to pay at your local DMV or Tag Agency. If you don't have the funds upfront, ask Finance if that can be included in your loan. It was a lifesaver for us when we purchased our now paid-off-two-years-early Explorer.
The dealership world is a strange place to work and even buy from. But it's important to remember that the less you know about the vehicle you want purchased, the more tempted a salesperson is to drive up the price. Be wise. Do your research. Take a friend to help you look over the paperwork. You wouldn't buy a house without researching all the ins and outs of the home; take the same approach with a car.
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