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Starting my career at a car dealership, I appreciated the flexibility around my school schedule. However, I soon encountered questionable practices that shook my trust in the industry.
I quickly realized there was more to the job than met the eye. Despite spending years as a salesman, I was surprised to find that I wasn't allowed to disclose vehicle prices to customers. When I questioned this policy, I was met with vague explanations about preventing mistakes.
My suspicions grew when I learned that a colleague, who had been with the dealership longer, circumvented this rule by using the manufacturer's online "build your own" tool to obtain pricing information. When a customer approached me with a similar internet quote and I past it on to the sales manager for a better price. I was met with fury and suspicion.
My colleague was let go in the days that followed, leaving me bewildered by the severity of their manufacturer website rule. It wasn't until later that I uncovered the truth behind the dealership's secrecy. The software they used inflated prices by thousands of dollars, under the guise of "padding for negotiation." This marked-up price was then presented to customers, who were often unaware of the deception.
To cover their tracks in case the customer got wise, unnecessary add-ons like VIP kits and warranties were tacked onto the quote to explain the rise in price, they would simply state that it was possibly part of a deal that fell through. They'd apologize and fix it. What about when the customer doesn't find out? They then remove the add-ons and raise the selling price of the vehicle, pocketing the profits.
It's important to mention that if the car was sold at full manufacturer's retail price we would earn 100$. If you make the math, a good dealership averages 1000 cars a year with 8 salespeople, which averages out at 10 to 11 cars a month. If sold honestly at full price they would only earn 1000-1100$ and believe it or not, there's no base salary. Now, for every dollar of the "padding" salespeople received a 25% share. Meaning that to make a livable wage I was faced with choosing who would get scammed by the dealer, me or the customers.
Faced with this unethical behavior, I knew I couldn't stay. I sought employment at another dealership, but not before ensuring transparency was a priority. My first question to the general director of the new dealership was whether the national price matched the quoted price in the system.
My eye-opening journey through the car sales industry revealed the need for greater accountability and honesty. Customers deserve to make informed decisions without being misled by deceptive tactics.