The Motor Industry is a multi billion pound business employing thousands of people from all walks of life. Once you have bought a new car you will have effectively contributed to employing over 200 people to get that shiny new car to your front door. However, at the front line, we naturally focus on one person. The person who spoke to us, dealt with us and ultimately sold us the car, the Sales Person. The aim of this guide is to provide you the consumer with an armory of information that you can use to your advantage, TO HELP YOU SAVE MONEY, when you next buy a car. The information included goes further into the truth about how motor dealers operate than ever before. Included are the how’s and why’s of dealer sales processes, their additional profit centers and how to strike that competitive deal.
This guide is not designed as a literary witch hunt, the face of the Motor Trade is changing and it has needed to. Buyers are entering dealerships forearmed with far more information than 15-20 years ago. Mainly down to the raft of information available from the wonder of the internet. I have worked in and around the Motor Trade for over 15 years. When I left school with mediocre grades, I started out as a Trainee Sales Executive, that’s another name for a glorified “dog’s body”. I learnt the basics of sales, how to negotiate, how to really get customers to buy a car. I soon progressed up the ranks and was promoted to running a Sales Department, then a dealer groups Finance and Insurance arm. Since then I’ve moved out of the dealership and in my current role I now train and manage dealerships in sales and performance development. I’ve worked with a number of the major manufacturers but as I’m sure you will appreciate, I’m a bit reluctant to name them.
I have earned a reasonable living from the Motor Trade and I continue to do so. The fact is that anyone with good people skills could have got a job as a Sales Executive a few years ago. That is changing. The industry is becoming far more regulated, far more demanding and this is a good thing. Ultimately, I believe it will make things a little harder for you, the consumer, to strike a good deal. I say this because Motor Dealers are experts at using every angle possible, to make as much money as possible. This includes using regulations to their advantage. At the end of this guide I would hope you have enough knowledge to understand and appreciate that your local dealership is a business, they need to be profitable otherwise, they won’t be there. However, armed with this knowledge, I know you will be able to turn some of their profit into your savings. This information will equate to saving considerable money when buying your next car!
Understanding where to buy from There are different forms of car retailers which each have slightly different aims as businesses. It is important to have a general understanding of this before you decide where to buy your car from. This is because ultimately, it will affect the type of deal structure you will be offered. The main types are listed below Main Franchised Dealers (either independently owned or manufacturer owned) Used Car Supermarkets Independent Used Car Sites Online Retailers Main Franchised Dealers These are undoubtedly most people's first point of call when choosing a car. At your local main dealer you will find a nice shiny showroom, kitted out in the relevant manufacturers logos and standards. Also, normally attached to the showroom, will be a workshop where you will be able to get your car maintained, a parts department and sometimes a body-shop (accident repair center), should you unfortunately put a dent in your car. Franchised dealers traditionally do not make a huge amount of money from the sale of a New Car. Consider that the building, lighting, staffing, marketing etc of the site and you will appreciate the profit margin in the car itself won’t go very far. Used Cars traditionally will have a bigger profit margin but ultimately it is the After Sales Department, where you service your vehicle, which tends to keep the business afloat and profitable. Here you will normally find a well structured sales team and sales process. It should be a customer centered experience as the franchised dealers' aims are normally to ensure you continue to return to them in the future for service work and ultimately buy another car.
It must be said however, that if you present an opportunity for them to make money, they’ll take it. Most have a robust Approved Used Car Program with guarantees, checks and standards to maintain. Also, the Manufacturer Finance Offers are available which may be of benefit to you. These sites can be privately owned, run larger organizations or run by the Manufacturer.