every day, I see someone post a Q like "How do I get a dealer's license in <state>?"
I have been in this business for over 15 yrs. I have weathered many a storm, as have many other career 'car guys'. I didnt intend to stay in the auto industry, but it sort of gets in your blood and its hard to stay out.
Getting a dealer license is not easy. You need a surety bond, insurance, DMV and background checks, business license, tax ID. Depending on the state you are in, you may be required to have a physical business address, with a sign and sufficient room to display a certain number of cars (In NV thats just 2).
My bond this year was 7800. After licenses, insurance, rent, etc - I was staring at a $40K+ nut to crack, just to break even. That does not include paying myself.
The hours suck. the customers lie 100x more often than any dealer. Business is in the tabk right now. Some months you may sell 30, others you may sell 5. Its not a business for the faint of heart. If you look at it and say 'Man, that is an easy way to make some extra money" you are in for a shock. Go to a dealer auction or a bid sale at a major dealership. You will be the rookie at the table, in a room full of card sharks.
To be a dealer, you need to have a MINIMUM of 5 yrs in this business before you know whats what. Some guys can make that leap sooner. Some just have a natural aptitude and instinct for this.
But to know the business well enough to run one, you need time on the line, as a closer, desk, finance, GSM, GM - even service writer.
So I pose it to those who think they want to get into this - why? if you have no experience, and lack deep pockets, this is choppy water and you are in a rowboat.
So - why would you want to do this? Oh man, that's an easy one.
(All of these are based on experiences)--->
1) I want to rise at 6AM, be on the lot by 7:30, and stay 'til 11 or 12 that night to satisfy that one customer who wants to drive their car home without waiting 'til Monday.
2) I want to work my a** off for 4 days getting someone with a FICO of 480 and income of $1200/month approved on a nice $6,000 Toyota through a local bank that took a chance on her, be excited to tell her that she was finally approved, and then be told by her that she "now wants the $45,000 Lexus... because, after all, she was approved!" -- (*She drove home in her old car*)
3) I want to work for 4 hours to find a customer the right car during a Saturday sale event, sweating my you-know-whats off, only to be told they were just there for the free hot dogs to feed their kids.
4) I want to be called a liar, because I cannot match the deal of the Chevy dealer next door, which was $7500 off a Suburban. They were asking for this off of a Toyota Land Cruiser, which was the brand-new body style and commanding $3-4,000 over sticker (even dealers wanted to trade for them over sticker). But, hey, I'm a liar, I could've matched that deal on a superior vehicle, right? *wink wink*
5) I want to be told that the invoice pricing I'm showing them is fake, and the "real invoices are kept in the safe in the back". After all, the customer did hear this from his buddy.
6) I want to turn the keys of a $40,000 twin-turbo Supra over to an 18-yr old kid, because "his dad wants the car, but can't drive it today because he's busy, so he wants his son to take it out for him".
7) I want to be hung up on daily when people call the dealership, since I did a horrible thing and asked them their name.
8) I want to be told I'm being sued because I asked some bratty 4-yr olds not to punch the windows of a sold vehicle we had in the showroom. After all, I'm sure most folks would love for their new cars to have damage before they even get to come back from overseas and pick up their new vehicle.
9) I want to have someone run over my toes after I approach their vehicle (they waved me over), get yelled at for not having the color they want on the lot, and having the audacity to ask the customer to wait 5 minutes while I check the back. How dare I do so!!!
10) (*My favorite*) - I want to be told I'm being sued because I would not honor a trade-in quote, since we trusted the customer on what they told us they had. We gave the customer a ballpark (despite strongly against this, and stressed as "non-binding", and had her sign stating so) trade-in value based on what she told us she owned. She told us she had a 6-7 year old Honda Accord, which (at the time) would have brought $6,000 in good condition. Her eyes lit up, she ran to her friend to take her home... after all, that $6,000 was an excellent price. 30 minutes later, she returns with an old Hyundai Accent, worth $500. We explain that she misrepresented her car, and we cannot honor the trade-in value we gave. Naturally, she calls us liars and thieves. We had "promised" her $6,000, after all. We were going to hear from her lawyer. After 12 years, I'm still waiting to hear from him/her.
Yes sir! Sign me right up! After all, I'm a glutton for punishment. just work 4 a lot To add to that...
You will have customers that have sh*t credit , no down payment, and a gas hog with a payoff that is more than the vehicle is worth for a trade. The funding companies are getting so tight (don't want to fund marginal credit) that even if you want to sell a car, it takes some real doing. Some funders even want 2 or 3 grand, up front, to take on a loan. This money is paid by the dealer.
I understand that people want out of their hogs but to take it to a dealer and expect to walk away from a bad loan, a new car(at dealer cost) and still have the nerve to ask about 'buyer remorse' or 'did I get screwed' is too ignorant for words.
Thanks for the opportunity to vent. |
