vintageracer
To Infinity and Beyond!
The new car business has changed significantly in the last 5 years. It's now all about volume. The more units you sell the more "Back End" money you get from the manufacturer. Even Lexus and other "High Line" brands are now all about volume.
Yes it's hard for the "Old Time Salesperson" to change from "Let's Negotiate" to "Here's the Price" via the internet. That's why you will never see a 40+ year old new car store Internet Sales Manager! The younger the buyer the greater the chance the only time that young buyer will come to the dealership is when they PICK UP their new/used vehicle purchase. Everything else will be done ON-LINE!
Cash is no longer King. Dealer's want your trade in and they want you to finance your new to you vehicle through them. Trade-in's and financing are a far more profitable part of the vehicle sale process than the actual sale of the vehicle itself. The dealer wants you buy what they have on the lot not what you want to order.
Leasing contracts continue to rise rapidly as Leasing (Just an alternative method of financing and typically the most EXPENSIVE) is once again on the way UP and viewed as an attractive way to drive a vehicle you can't afford! The last number I heard from a Lexus dealer I am acquainted with is that new car leasing now accounts for over 50% of all new vehicle sales at their dealership!
With astronomical MSRP prices and most every domestic OEM vehicle manufacturer promoting the rebate and discount cycle not much in the financing part of the transaction will change other than longer terms for the loan as the OEM's continue to want their customers to continue to be PAYMENT BUYER'S and inflated MSRP prices on new vehicles will continue to ensure this happens.
The attitude of most buyer's today is that I will always have a "Car Payment" so I might as well accept that fact and drive what I want not what I can afford. The average car loan term is now up to almost 70 months (almost 6 years) according to NADA with the reality that those same people taking out a 72 month loan rarely if ever keep that vehicle to end of the loan pay-off. Some highline dealer's are offering 96 month and 108 month loan terms on big money vehicles. Once again customers today now accept the fact that they will ALWAYS have a car payment and I want a new vehicle therefore it's all about the payment!
That's how BROKE PEOPLE think and Dealer's know it!
The biggest sales skill LACKING with most new car store sales people is their ability to LISTEN to what their customer tells them. As hard as it may be for the salesperson to believe not all customers are idiots who follow the HERD! Sometimes it's hard to LISTEN to your customer when your dealership sales training tells you to follow their sales script as that's what works to move the iron as the customer rarely knows what they want!
Welcome to the life of a "New Vehicle" Salesperson!!!
Yes it's hard for the "Old Time Salesperson" to change from "Let's Negotiate" to "Here's the Price" via the internet. That's why you will never see a 40+ year old new car store Internet Sales Manager! The younger the buyer the greater the chance the only time that young buyer will come to the dealership is when they PICK UP their new/used vehicle purchase. Everything else will be done ON-LINE!
Cash is no longer King. Dealer's want your trade in and they want you to finance your new to you vehicle through them. Trade-in's and financing are a far more profitable part of the vehicle sale process than the actual sale of the vehicle itself. The dealer wants you buy what they have on the lot not what you want to order.
Leasing contracts continue to rise rapidly as Leasing (Just an alternative method of financing and typically the most EXPENSIVE) is once again on the way UP and viewed as an attractive way to drive a vehicle you can't afford! The last number I heard from a Lexus dealer I am acquainted with is that new car leasing now accounts for over 50% of all new vehicle sales at their dealership!
With astronomical MSRP prices and most every domestic OEM vehicle manufacturer promoting the rebate and discount cycle not much in the financing part of the transaction will change other than longer terms for the loan as the OEM's continue to want their customers to continue to be PAYMENT BUYER'S and inflated MSRP prices on new vehicles will continue to ensure this happens.
The attitude of most buyer's today is that I will always have a "Car Payment" so I might as well accept that fact and drive what I want not what I can afford. The average car loan term is now up to almost 70 months (almost 6 years) according to NADA with the reality that those same people taking out a 72 month loan rarely if ever keep that vehicle to end of the loan pay-off. Some highline dealer's are offering 96 month and 108 month loan terms on big money vehicles. Once again customers today now accept the fact that they will ALWAYS have a car payment and I want a new vehicle therefore it's all about the payment!
That's how BROKE PEOPLE think and Dealer's know it!
The biggest sales skill LACKING with most new car store sales people is their ability to LISTEN to what their customer tells them. As hard as it may be for the salesperson to believe not all customers are idiots who follow the HERD! Sometimes it's hard to LISTEN to your customer when your dealership sales training tells you to follow their sales script as that's what works to move the iron as the customer rarely knows what they want!
Welcome to the life of a "New Vehicle" Salesperson!!!
Last edited:
