Used car salesmen are ding dongs

Just the other day my wife and I drove past some hole in the wall used car lot. She remarked, I don't know how these kind of people can stay in business.

Today, against my better judgement, I stopped at one of these places today....a small lot on a busy road, with about 20 cars.

What caught my eye was a turbo brick tucked in the corner. I parked right in front of it and I got out of my turbo brick (hint to car salesman, this usually is a sign of interest).

There was some lady walking around not paying any attention to me...isn't there a happy medium, either you get attacked or you get ignored....when you have to yell out for her to get her attention as I did, that's usually not good, you would think it would be the other way around.

I had to ask if she worked there given her lack of interest. She said she did but she knew only a little about the car in question. She told me to go into the office. (note to car salesmen, saleswomen, whatever, why not offer to get the keys to open it up so I can take a look instead of telling me where to go?)

So I go in to the office, some guy is on the phone, another guy is giving him cash apparently for a previous transaction and he's talking on the phone at the same time. I did manage to get a greeting out of the guy who told me he would be right with me. I stood outside for a few minutes and used the time to make a phone call. The girl who worked there by that time was milling around in and out of the office. The wait was not a problem.

The guy comes out after a few minutes and said hello and asked how he could help me. I told him the car I was interested in. He just stood there. The girl who worked there already talked with him in the office, surely she would have given him a heads up on the car I asked about right? (Note to salesmen, come out with keys in your hand, walk the person over to the car and show it to them. I shouldn't have to prompt you to open up the car up for me.)

I asked him a few basic questions and he responded but it felt like I was pulling teeth.

I had to ask for the price and when he told me $5k I said thanks, I reached out and shook his hand and said no thanks. I got in my car and left.

I really don't know how these guys stay in business, I didn't sense any effort to sell me the car.

Most small lots are "Buy here, pay here." As such, they're more like a lending company. He makes his money by financing high-risk customers.

Or, maybe it's a front for the Mafia and they don't actually want to sell to real customers.

plance1 wrote: Today, against my better judgement, I stopped at one of these places today....a small lot on a busy road, with about 20 cars.

I had to ask if she worked there given her lack of interest. She said she did but she knew only a little about the car in question. She told me to go into the office.

I asked him a few basic questions and he responded but it felt like I was pulling teeth.

The less he says, the less chance he can be accused of giving you misleading information about a vehicle. If he doesn't know anything about it, he doesn't have anything negative to disclose.

I really don't know how these guys stay in business, I didn't sense any effort to sell me the car.

You expected different? He didn't smell desperation (i.e. you already had a functioning car) so you were not his target market. If it looked like you REALLY NEEDED the car, he would have been more than happy to talk about why his overpriced car was the bargain you needed in your special situation.

I must vigorously object to your choice of thread title! Ding-Dongs are good to eat. Used car salesmen aren't good for anything.

MadScientistMatt wrote: Or, maybe it's a front for the Mafia and they don't actually want to sell to real customers.

Now you're sounding like a ding dong.

I love that just about every place I've been (short of private sales from "car/truck guys") whether it's new or used, the salesmen/women don't know JACK about the car, the truck or automotibles in general.

"I'll throw the "roller bars" in for free if you buy the truck today!". "I believe it's got a wench that comes with it!" Oh goodie, I need another WENCH in my life!

If one time I went to a dealer and they were able to tell me "it's got the 4.6"... or the 5.4, or any specific part for that matter.

I bet It'd be fun to ask what makes a Jeep Rubicon different from a regular Wranger... Ummm, off-road tires? Cool decals?

I'm starting to notice a few of those types of car lots near me, the kind that DON'T sell cars, they PACKAGE finance deals. You driving up in a car that is still capable of moving under it's own power tells them you aren't desperate for a car and probably can get it financed much more cheaply from a bank or credit union. But what probably didn't help you was driving up in a car similar to the one on the lot.

BTW, I'm not sure why you would expect folks who work in the same office are going to pass info along to each other about a possible sales prospect. You said you were outside, so there is no telling if or what they may have said to each other. Maybe they hate each others guts and rarely speak? And besides, most of the time the customer will have to "address" each salesperson in the chain, so to speak, just so each salesperson gets the complete "story". It's partly formality (like talking about the weather) and partly a chance to re-inforce the salesperson's role of "superior" in the "relationship".

But to go back to your original question..."how do these places stay in business?"

When I live here in Fl. in the '80s I saw several used car lots like the place you described. I couldn't understand what kept them going. YET, when I moved back 20 years later...still doing business at the same location.

they sell cars at inflated prices by preying on the people that can't actually afford a car or get financed anywhere else.. they make you put down a down payment that is probably close to what the car's actually worth, then they let you pay something like $50 or $100 out of every paycheck until you pay off their asking price- at which time the car is probably on it's last leg and they'll be more than happy to sell you another one while giving you almost nothing for your old car because it's worn out.. after they set the hook into you for the second time, they put as little money into the junker that you just traded in (the one they sold you originally) to make it presentable and seem safe and sell it to some other poor soul that can't get a regular car loan anywhere else..

novaderrik wrote: they sell cars at inflated prices by preying on the people that can't actually afford a car or get financed anywhere else.. they make you put down a down payment that is probably close to what the car's actually worth, then they let you pay something like $50 or $100 out of every paycheck until you pay off their asking price- at which time the car is probably on it's last leg and they'll be more than happy to sell you another one while giving you almost nothing for your old car because it's worn out.. after they set the hook into you for the second time, they put as little money into the junker that you just traded in (the one they sold you originally) to make it presentable and seem safe and sell it to some other poor soul that can't get a regular car loan anywhere else..

I did some research on used car companies some years ago and this pretty well describes it. The down payment is usually about what they paid for the car, which is about half of what the buyer pays, not including the exorbitant interest.

Then if the buyer misses a payment by so much as a day, they go put a hook on it immediately, drag it back and sell it again.

As for the salesmen? No education or experience required, pay is awful and everbody thinks you are a low-life liar. Quit expecting an Einstein.

My best moment was going to a small lot that specialized in "sporty" cars. 'Vettes, MR2, SHO, Ect. I knew more about the cars he was selling than the owner did.

Basil Exposition wrote:

novaderrik wrote: they sell cars at inflated prices by preying on the people that can't actually afford a car or get financed anywhere else.. they make you put down a down payment that is probably close to what the car's actually worth, then they let you pay something like $50 or $100 out of every paycheck until you pay off their asking price- at which time the car is probably on it's last leg and they'll be more than happy to sell you another one while giving you almost nothing for your old car because it's worn out.. after they set the hook into you for the second time, they put as little money into the junker that you just traded in (the one they sold you originally) to make it presentable and seem safe and sell it to some other poor soul that can't get a regular car loan anywhere else..

I did some research on used car companies some years ago and this pretty well describes it. The down payment is usually about what they paid for the car, which is about half of what the buyer pays, not including the exorbitant interest. Then if the buyer misses a payment by so much as a day, they go put a hook on it immediately, drag it back and sell it again. As for the salesmen? No education or experience required, pay is awful and everbody thinks you are a low-life liar. Quit expecting an Einstein.

Several years back, there was something of an explosion of 'buy here/pay here' lots and they were big moneymakers. There was a book called 'Successful Buy Here/Pay Here Strategies' that outlined the basics. I read maybe 1/3 of it and decided nope, not for me. I do not have a heart of stone so would have been out of business inside a week.

plance1 wrote: I really don't know how these guys stay in business, I didn't sense any effort to sell me the car.

Just as a counter point, my dad evolved his little foreign car repair shop into just such a little used car joint. All of our 'salesmen' were old mechanics who would have otherwise retired after their time in the shop.

He sold cars on the idea that, if his overhead is lower, he can sell the cars cheaper. We had the same cars as the big guys, but for $3000-5000 less. We didn't do any bogus financing or buy-here/pay-here crap. Just good cars for less money than anybody else could afford to sell them for.

His 'sales' staff was a bit gruff, but NOBODY knew more about the cars than they did. They didn't try to sell anybody anything. They answered questions, explained technical things that nobody seemed to understand or care about, and handed out keys. At it's peak (around 1999), his little E36-hole shop cranked out 100 cars a month.

That can certainly be done, I have seen hole in the wall Brit car shops which did a decent business selling cars on consignment etc. The average 'dirt lot' (as they are known in the business) is not run that way. The cars are nothing more than a way to bring in $, they don't know or care about the cars, the customer is of secondary importance. Of course there are exceptions to that rule, as in any business.

Its been years but I stopped back at this dealer today just for a laugh. The last time I called about a year ago the volvo wagon I was interested in was "$4,000." Today I saw that the car is still sitting in the lot. I noticed that they ruined the car by trying to do some weird, two tone paint scheme to it. They painted the top part of the car black. They didn't put all of the trim back so it looks terrible. A car detailer saw me and said he'd go get the owner. I look up to the office and I see the guy that owns the place just standing there not doing anything. I stood around for a few more minutes and since no one came to talk to me, I just got in my car and left. Maybe after a few more years the car will be in the GRM range. Or maybe I should come with a diguise so they will wait on me? I don't know, people are strange.

If they weren't the scum sucking buy here pay here leeches, they couldn't stay open.

that explains the one Miata on the lot near me.. 6 grand for a beaten NA with "aftermarket" stripes and really bad black paint.

It's been sitting there for over a year

I was one for 3 1/2 years, I can confirm this.

ive bought several projects and winter beaters off a local hole in the wall dealer/garage. Nothing that needed financed but the owner has always been up front and offered great prices. i usually just go look at what i want and then go ask about a price but this is a small town.

If this is the lot that I think it is... I want to know what they did with the old city of Ludlow fire truck that they had on the lot for about 6 months with an 8900 dollar price tag on the windshield. I can only assume it was there to draw attention.

I stopped at a reaaaaly small place, like 5 cars about a month back that had a saab 9-3 sportcombi , I had never seen one in real life and it was great. But the front bumper was hanging off, lots of dings. It had high miles and it was priced at 9,999. No one was there on a Saturday afternoon so I didn't get to look closer or drive it. But how can u expect to sell cars and not be open the one day most people are off from work?

wae wrote: If this is the lot that I think it is... I want to know what they did with the old city of Ludlow fire truck that they had on the lot for about 6 months with an 8900 dollar price tag on the windshield. I can only assume it was there to draw attention.

I think it's the same one! It's in Erlanger, on Dixie Highway

There is a place by me called "Euro-Moto".

They have about 30 Impalas, a couple dodge/chrysler/honda (who can tell?) mini vans on the lot and exactly one pristine MG in the showroom.

I hate them for reasons that don't make any sense but are as real as cancer.

You are assuming the point is to SELL cars. Hahahaaha!

The point is to generate revenue.

The down payment equals the wholesale price (what the dealer has in the car). He is completely repaid when the car leaves the lot.

After that, he collects weekly or monthly payments.

If you can collect $400 per month from a car in payments, 10 will generate $4000 per month. 20 will generate $8000 per month.

If the buyer defaults, repossess it and sell it again.

The math is pretty easy.

In reply to MadScientistMatt:RE: MAFIA FRONT! I would have done the quote reply except it kept saying broke.

I did run into that issue several years ago. The local used car guy showed a 1951 Bentley I really wanted to buy. It'd show up on the lot & I'd make an offer. He always told me someone else had already bought it. I even offered over the listed price and got the same answer.

A couple of years later that dealer went to federal prison after being convicted of drug charges. It seemed he'd ship that Bentley to another dealer in Miami. Where it was loaded up with cocaine, then returned to the local dealer who removed and sold the cocaine. Another six months out he'd do the same thing again.

If you're going to hide drugs, an old English branded luxury sedan provides about as many chances as any!