I Just Left My Dealership Sales Job, Opening My Own Business - My Story

"NYSS" (NYSS)
09/25/2014 at 19:12 • Filed to: dealership, salesperson, used car dealer, small business, advice

So as the story goes, I graduated college in 2010 with a Bachelors Degree in Business Administration. As a Marketing major. Being that this was 2010, jobs in my field, or jobs of any kind were scarce, at best. So, after 6 months of job hunting to no avail, my father saw a posting for sales positions at my local Chevrolet Dealer. That moment would change my life forever.

Ever since I was little, I always loved cars. I was a piston head since birth. But, being as I have never sold cars in my life, or even really liked American cars, I was skeptical. My father told me my love for cars would prevail, and it can just be temporary until the market gets better. "Besides," he said, "It doesn't look bad on a resume."

I walked into the dealership, I left with a job.

That was almost 5 years ago.

Fast forward to present day. I have worked up the ranks, to be a senior salesperson, General Motors Mark of Excellence Certified for sales volume and Customer Satisfaction (CSI scores) for the last 3 years in a row. I also had the title of Commercial Truck Manager, Used and Internet inventory Manager, and Performance Vehicle Specialist.

Those titles and sales experience are awesome, but the most important lesson I have learned from all this experience is, to always be honest, and offer a fair deal to EVERYONE. Treat EVERYONE, like they were there to buy 50 cars. Treat EVERYONE as if they had perfect credit. Treat EVERYONE with dignity and respect, even if they had none to offer me.

That way of doing business promised that I would not make a lot in commission, and piss off my managers from time to time. What it did do, was gain me respect from my customers. Who in turn referred me to everyone under the sun, and gave me exceptional gratitude and praise. My repeat business was off the charts.

Yet I digress, the dealership world is governed by results. When a new manager was brought on to increase sales, we butted heads. We had a fundamental difference in opinion on the correct way to deal with people, and how to encourage them to purchase our product. My way of doing things, just not his way. Which is ok, I understand everyone has there style. His style began to wear on my motivation to get up and come to work everyday. I became a lump.

Thus after a heated debate, which I admit was partly my fault, I am no longer working there. To there credit, I did it to myself.

So here we are, a 27 year old with 5 years of experience, about to take the biggest risk thus far. Open my own store.

My plan is to get my dealers license here in NY, with a small retail space (suggestions for that please if you have any) to try and sell inexpensive cars, that are very clean inside and out, and have no major mechanical issues. My goal is to buy cheap, $500-$2500 and sell cheap, $4500 max. My whole pitch is to give people who can't afford anything else, who need a 2nd winter car, college kids, and folks who just don't want to spend a lot of money on transportation, quality used vehicles, with no major mechanical problems. I'm one of the honest ones out there, and hopefully my personality and way of doing business will speak for itself.

If you have experience with this type of thing, please comment, I need all the advice and suggestions I can get!

Thanks Oppo!

Image via: DMV.NY.gov (New York State Department of Motor Vehicles)

DISCUSSION (33)

Nerd-Vol > NYSS
09/25/2014 at 19:17

I recommend selling shit cars to people with bad credit! Best of luck regardless!

NYSS > Nerd-Vol
09/25/2014 at 19:23

I agree, special finance customers, are a good market to go after, since there credit limits them getting financing elsewhere. But my goal is not to sell shit cars. Inexpensive cars, yes!

I can get a cheap car, make it run right, and wet sand, compound, buff, de-yellow the headlights, shampoo the interior, and prep the engine bay, change all the fluids, and with labor that should cost $500-$700... if its a mechanically sound car, that leaves a good margin to make some money. Selling garbage to the public, just leaves you open for liability, and a reputation as being a scum bag. Shit cars you send to auction, where you can still make money, and your reputation, or legal liability isn't at risk.

dogisbadob > NYSS
09/25/2014 at 19:25

Good luck!

N51fanatic > NYSS
09/25/2014 at 19:26

Why would they give the interent manager a hard time about being a low gross guy? Internet guys are the volume guys. That doesn't really make sense

As for the new business. Just for some reference, I sold cars for 6 months 11 years ago, I am a car nut, I have a family member with a dealers license that I can utilize to get access to auction cars. I think you are going to have a hard time. Its easy to make folks happy when your selling them a cruz, cavalier, imapala, sonic or spark for invoice minus rebates. Its A LOT harder when selling them a 1999 Chevy Monte Carlo with 150k miles.

I bought 1 car from auction to flip. It was described as a VERY CLEAN car with NO MECHANICAL errors. The pics were low res, it looked ok, I bought it, sight unseen. Well, I got the car home , the radiator was cracked, and the rear wheel bearings were blown. I look at the auctions twice weekly, the cars there are rats.

When you own a "rock lot" its all about your reputation, if you sell dogs, no one will buy from you in the future. Don't be discouraged, best of luck.

Verdog ~ manual Bro, Bro - HellHawk Equipped > NYSS
09/25/2014 at 19:27

Wacky Waving Inflatable Arm-Flailing Tubeman!

AlmostJalop > NYSS
09/25/2014 at 19:33

if you can find me a clean old BMW consider me your first customer!

lone_liberal > NYSS
09/25/2014 at 19:35

I don't have any experience selling cars, but I think you should look up Steve Lang's stuff. He writes about being in the by here pay here business while still being able to look at yourself in a mirror.

RyanFrew > NYSS
09/25/2014 at 19:37

Congratulations! I've started five businesses, all with varying levels of success, but none of which have been failures. Definitely don't hesitate to reach out if you want some advice. My current project is called Orien Creative. Just started getting it together this week. If you need a website for the new shop, I'd love to help out an Opponaut. www.oriencreative.com - that's still under construction. Even if you don't need a website though, and just have miscellaneous questions, shoot me an email: ryan@oriencreative.com

NYSS > N51fanatic
09/25/2014 at 19:37

I was an Internet inventory manager, I took pictures, did marony stickers, and listed them online... we had a BDC department that got them in the door on cars, and leads were given to someone else... basically I did alot of work for a little more pay, and no glory.

My experience has been, as long as your honest in what your selling... it is what it is.... people are more receptive to you, and they know that there buying a 2000 dollar car for a reason. my experience has also been that if that 2000 dollar or 3000 car really shines and looks good, and the interior doesn't look like shit, thats the stuff that turns...

luckily I have a contact who is gonna show me the ropes, and I'm going to shadow him and his business for a few weeks to see if its for me, and if I can do well on my own, before I invest in any thing.

Thanks for your input! I need all the advice I can get.

Tom McParland > NYSS
09/25/2014 at 19:38

drop me a line once everything is up and running...if you got something my customers want we can do some business. :)

I'll also be glad just to send people your way if they need cheap stuff

Automatchconsulting @gmail.com

PS9 > NYSS
09/25/2014 at 19:58

"...to always be honest, and offer a fair deal to EVERYONE. Treat EVERYONE, like they were there to buy 50 cars. Treat EVERYONE as if they had perfect credit. Treat EVERYONE with dignity and respect, even if they had none to offer me."

DAMN RIGHT. The truth is that large businesses are always going to push people like you out, because making money is more important than not being a douche bag, and a dishonest dollar will spend as easily as and honest one. BUT YOU DON'T HAVE TO LET YOURSELF BE MOULDED BY THAT SHIT. Never mind what the emperors and gatekeepers think, there is always a place in the world for honest businessman who care about the needs of their clients.

shop-teacher > NYSS
09/25/2014 at 22:10

I have no advice to give, but I wish you tremendous success.

NYSS > Tom McParland
09/25/2014 at 22:15

Thanks Tom! Are you in the NYC area?

Tom McParland > NYSS
09/26/2014 at 06:30

south Jersey...but I get customers from that area frequently.

Jmaister > NYSS
09/26/2014 at 12:40

Those "EVERYONE" clauses, you'd think should be common sense, but no.

But since you learnt, you would do very well i tells ya.

Fleetwood T. Brougham > NYSS
09/26/2014 at 14:55

Never underestimate the sheer amount of money that can be made off broke people. One of the highest net worth individuals I know started with one pawn shop and now owns a chain. Not exactly 1%-er clientele.

gs69350 > NYSS
09/26/2014 at 15:47

I have the benefit of your situation in reverse. I got to be there at the inception through completion of starting a used car dealership. My money wasn't involved, but 2+ years of my life 6 days a week 12+hrs per day were. Now, I am just a mere salesman at a new car dealership.

What you are considering is great in concept, but hell in practice. I'm assuming because you were inventory manager that you have experience buying cars on the wholesale. Just realize that buying at auction is not the same as taking in a trade. The auction prices are higher, and then there are the auction fees, then the floorplan costs if you do that too. The price range you are looking to buy in, those cars will NEED reconditioning. You will undoubtedly buy cars with bad engines / transmissions that you will either have to pile cash into or unload back to the auction. You will spend so much time trying to keep inventory on the lot and doing reconditioning that you will not be able to be there for your customers to sell them. You will get 5000 people a day wanting you to finance the cars on the lot, this isn't unreasonable if you've got a few million dollars to spend on inventory, if you've only got enough cash to buy 30 cars, what are you going to do when all that cash is on the road and your lot is empty? The big banks you are used to working with won't even meet with you (not that they would finance a $4500 car anyway)

Perhaps the market your in will support your plan vs. where I live. Are there any lots that are currently doing what you are considering? How are they doing? Have you talked with their owner/managers?

I'd be happy to go on and on about my experience, feel free to follow up with me.

kunhan > NYSS
09/26/2014 at 15:49

where in ny are you looking?

My Miata's name is Senna > NYSS
09/26/2014 at 16:12

Get a spot in brooklyn and I can be your first hire!

Tohru > NYSS
09/26/2014 at 16:44

Send Tavarish a message - he's great at sourcing cheap cars.

NYSS > gs69350
09/26/2014 at 17:25

Thanks for your response! Quick question, where was your dealer located... and were you guys going alot of wholesale stuff too or no?

NYSS > Fleetwood T. Brougham
09/26/2014 at 17:27

unfortunately it's a cycle for them, but I say again, I have no problem catering to the needs of the financially insecure, I'm just trying to do it in a way thats open and honest for both parties. So I can actually sleep at night.

NYSS > kunhan
09/26/2014 at 17:28

Bronx, Westchester, Putnam

Fleetwood T. Brougham > NYSS
09/26/2014 at 18:29

Hope I didn't come across as condescending.....I was applauding your business model. I don't think that catering to the non-well-off and sleeping well at night have to be mutually exclusive at all.

gkwilly > NYSS
09/26/2014 at 19:23

We need dealers in that specialty who are not crooks. You will be helping people with your approach.

NYSS > Fleetwood T. Brougham
09/27/2014 at 02:50

I didn't think you were being condescending at all fine sir! I just wanted to put my thoughts in writing, because most people would hear our conversation, and automatically think I was trying to be a shark. Unfortunatly there is a certain percentage of the population that will have to rely on people like me, to purchase a vehicle. Some stores take advantage of that fact, and really screw people that are already in a bad spot....

I was just clarifying my thoughts, I know you weren't being dickish... Just want to one day hopefully change peoples opinion and realize, there are good people in this world...

I will go out of business, before screwing someone to make a cheap few bucks... Karma always has a funny way of coming back to people... good or bad...

George McNally > NYSS
09/28/2014 at 20:11

My brother-in-law's brother-in-law has a buy here-pay here lot. He sells mostly decent stuff from a range of 5 to about 10 grand with a few clunkers and a few really nice cars thrown in.

He is completely honest and upfront with all his customers.

Most of his customers have terrible credit and he tells them upfront that if they can't pay for a week or two to just come in and they can work something out as the last thing he wants to do is disable their car and repossesses it. He had to drive his rollback the whole way to Florida last month to repossess a BMW and he probably lost money on the deal.

His business is off the charts due to word of mouth advertising, he has trouble finding decent cars.

He started about 5 years ago with absolutely no experience selling cars......all I know is that he worked a shitload of hours building up his business. My brother-in-law and I used to go to his lot to help him detail cars........now he does well enough to have paid staff :-)

NYSS > George McNally
09/28/2014 at 21:05

Thats really encouraging to hear... do you know more details about how he works out the Buy-here-pay-here formula in terms of how much customers put down relative to the vehicle, and how much "interest" he charges on loans?

Also, what state/metro area is his dealership in?

Thanks for the reply!

George McNally > NYSS
09/28/2014 at 23:03

We live in York PA...not really sure what interest rate he charges.....I haven't talked to him for a couple of months. This is his website if that helps :-)

NYSS > George McNally
09/29/2014 at 17:45

thanks man that does help... his website just looks like a non-scummy place... doesn't have bait and switch BS payment numbers all over the place... thats the type of business Im trying to go for... Make an honest sale, at margins that are ethical.

George McNally > NYSS
09/29/2014 at 18:56

He a good guy, I just got off the phone with him-I'm going to his house later this week to help him with some computer networking issues.

CaptainBoss > NYSS
10/06/2014 at 10:58

Good luck! Speaking as someone who just picked up a 2003 Durango as a winter beater, I have advice for you as a soon-t0-be used car salesman. Apparently the standard practice for used car dealers is to have shitty cars on their lot which need repair, and to not repair them until a deal has been made for the car's purchase. This may work for a low-end and uneducated clientele, but as someone who knows cars can afford a nice car and chose to get a cheap beater it sours the entire process because you know that they'll make whatever repairs need to be done with a limited budget, if at all. If I had found a mechanically and aesthetically sound truck at a dealership I would have bought it, but they chose to operate with sketchy business practices. I looked at a few trucks at dealers and ended up buying from a private party because the shops were all sleazeballs. Just something to think about when you're stocking your lot.

NYSS > CaptainBoss
10/06/2014 at 17:11

couldn't agree with you more... $500 spend in needed repairs that results in less profit on a deal is the whole idea I'm going with...

id rather gain a customer with a slim margin, who then tells all his friends that buy 5 cars from me, then not gain a customer at all.