I lost $1,000,000 selling cars at dealerships

Автокөліктер мен көлік құралдары

Sadly over my years of working for someone else our family has lost a lot of money due to dealership accounting practices. This is my story.
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I am the owner of Mike's Car Store In Georgetown, In. We sell used cars near Louisville Ky and ship nationwide. we look forward to helping you. mikescarstore.com
Buying a Car Doesn't Have to Suck™

Пікірлер: 432

  • @DrForbin001
    @DrForbin00111 ай бұрын

    I worked in service at dealerships over 15 years, real stuff here. The dealership model has to change or die, it has outgrown its usefulness to the customer and to its staff.

  • @markymarc136

    @markymarc136

    11 ай бұрын

    I agree with you 100%. What we need now is to do what Tesla is doing: No dealership, and direct sales to the customer. Ford is doing it with their new electric vehicle. Only online.

  • @Danger-fv2gz

    @Danger-fv2gz

    11 ай бұрын

    Not going to happen. Dealerships have a legislative monopoly on the purchase and sale of new cars from the manufacturers

  • @davefroman4700

    @davefroman4700

    11 ай бұрын

    EV's will be the death of this business model. Far fewer parts. Far less wear items. And even the things like brakes last 10x as long. And when they go autonomous? Most city dwellers will no longer need to own one. Its so cheap to operate from solar that it can turn a 25% profit at ten cents a mile today. 1/10th the cost of owning a car with all the luxury of being chauffeured around and not worrying about parking.

  • @LongDefiant

    @LongDefiant

    11 ай бұрын

    @@Danger-fv2gz Don't blame the government. Dealers paid good money for those laws.

  • @miracleman8022

    @miracleman8022

    11 ай бұрын

    @@markymarc136I mean Tesla stills sells expensive as cars even without dealers lol

  • @Danger-fv2gz
    @Danger-fv2gz11 ай бұрын

    Customers have lost billions buying AND selling at dealerships.

  • @davidcovey3001

    @davidcovey3001

    11 ай бұрын

    eactly.. Dealerships are nothing more than government mandated scalpers.

  • @ndb_static_6850

    @ndb_static_6850

    11 ай бұрын

    Government has nothing to do with dealerships 😂

  • @markviking98

    @markviking98

    11 ай бұрын

    @@ndb_static_6850 but they do. it is illegal for car companies to directly sell cars to consumers, they have to sell to dealerships first.

  • @LongDefiant

    @LongDefiant

    11 ай бұрын

    @@ndb_static_6850 The American government is for sale to the highest bidder. Dealers bid higher so they get the laws in their favor. Your "representatives" are just doing as they are told.

  • @gtamantube

    @gtamantube

    11 ай бұрын

    Ya they want trade value to be 10k lower than they sell them for

  • @mrkevin6390
    @mrkevin639011 ай бұрын

    That's why they call them Stealerships.

  • @WiseInvestor123
    @WiseInvestor12311 ай бұрын

    everything Mike said is true. Greed will cost the dealership in the long run.

  • @subaruamazon

    @subaruamazon

    11 ай бұрын

    stephen but has it? are new car franchises with local monopolies on a car make really going to be in trouble?

  • @miracleman8022

    @miracleman8022

    11 ай бұрын

    @@subaruamazonproblem is that the brands have to buyout the dealer franchise which won’t happen because they don’t have the money to do this it would mean trillions to buy all the dealers out

  • @jimsteinway695

    @jimsteinway695

    10 ай бұрын

    Dealerships are in trouble right now

  • @Sarasdad91

    @Sarasdad91

    5 ай бұрын

    It already is costing them. The dealers are not selling.

  • @michigan_supercars6569
    @michigan_supercars656911 ай бұрын

    I used to work for a dealership as one of my first jobs. I was a washer/detailer/porter. I can tell you that they definitely underpaid me for all my efforts and expected the moon out of me. It's ridiculous!!!

  • @jimhendricks977
    @jimhendricks97711 ай бұрын

    Everything you said is absolutely correct, the biggest thing they also do is every few years they change your pay plan so that you're making less money selling the exact same number of cars, when I left Hendrick Chrysler Jeep I made half the money that I did when I started 10 years earlier selling the exact same number of vehicles.

  • @martyi398
    @martyi39811 ай бұрын

    I stay out of dealerships as much as possible, I’ve purchased many new cars over the years from Dealerships and I always decline anything extra they try to sell me like extended warranty etc, and the only time I go back to the dealership for service is only for a warranty item or the free oil changes, all other service items are either DIY or independent shop for me!

  • @raymondbeadnell3433
    @raymondbeadnell343311 ай бұрын

    Mike, The truck your selling is called a Denali (den-al-i)

  • @timhenderson5284
    @timhenderson528411 ай бұрын

    Retired Sales/UCM/Finance Director/GM over 30 years...you are 💯💯💯💯 - so absolutely spot on...I've worked for and with some of the slimiest managers/dealer principals...this video is a "must-see" for all green peas in this business

  • @Co1eTrain84
    @Co1eTrain8411 ай бұрын

    Did you just call that a DEN A LEE? It's DEN ALL EE😂

  • @jamahlknight1521

    @jamahlknight1521

    11 ай бұрын

    That’s how they get ya to comment 😉 +1 KZread moneys

  • @offtheshelfrides

    @offtheshelfrides

    11 ай бұрын

    ​@jamahlknight1521 comments don't mean anything to youtube and the algorithm.

  • @peterme7265
    @peterme726511 ай бұрын

    Mike I remember the days when you praised Bochman Chevrolet Mike also looks like you did alright at Bochman all those years

  • @Raider19582
    @Raider1958211 ай бұрын

    Never buy at Bob Lindsay Honda in Peoria Illinois.

  • @subaruamazon

    @subaruamazon

    11 ай бұрын

    why not?

  • @edbowejr6130
    @edbowejr613011 ай бұрын

    Chevy Dude should have a line of salesman at his door, they would be the best owners to work for as a salesman

  • @XX-166

    @XX-166

    11 ай бұрын

    At the end of the day.. he’s still a used car salesman getting paid on his padded car prices AND KZread.

  • @LongDefiant

    @LongDefiant

    11 ай бұрын

    you actually believe a car salesman?? C'mon bro. NONE of these people can be trusted.

  • @bertadelaudebri7179
    @bertadelaudebri717911 ай бұрын

    Thanks for sharing your personal knowledge of this industry and the greedy stealerships! Your,ongoing openness is greatly appreciated!

  • @BillyT531
    @BillyT53111 ай бұрын

    Welcome to the world of sales. The bottom line is most companies have an idea of what salespeople should make, and when you exceed that threshold, the pay plan changes.

  • @georgescarvids
    @georgescarvids11 ай бұрын

    God 100% spot on. I’m making my wife watch this with me tonight. From doing away with demos and everything in between. Seems like every year these Dealers find a new way to steal a little more from us

  • @jamesf.mcdonaldiii5495
    @jamesf.mcdonaldiii549511 ай бұрын

    Your honesty and transparency is something you don't see much of at all, especially in the car sales industry. Any sales person with an ounce of sense would be jumping at the b but to work for you, even with your high standards. Keep doing what your doing and I see good things for you and your dealership.

  • @texasgreenlawn3807
    @texasgreenlawn380711 ай бұрын

    I normally don't comment on videos but I appreciate how you operate your business, INTEGRITY goes a long way and it's refreshing to see especially in today's market.

  • @anotherbluenova6358
    @anotherbluenova635811 ай бұрын

    The stealership tryed to tell my wife she needs $1200 worth of exhaust on a 2020 Chevy Blazer. I brought it home put it up on the lift and the exhaust looks brand new. I found the noise they were supposed to find. The serpentine belt has a little squeek on acceleration. It cost $190 service fee and they didnt find the squeek and tryed to steal $1200

  • @subaruamazon

    @subaruamazon

    11 ай бұрын

    they make money on service. they have a big overhead. but their prices are obscene. yet, a lot of people service their cars at a dealership.

  • @josephoberlander

    @josephoberlander

    11 ай бұрын

    My latest adventure was getting my water pump replaced. It needed it. I went into the same dealership 6 months later for an oil change and under "recommended" items was changing my water pump. Exactly what I had done, but mysteriously at nearly twice the price.

  • @chrismiller1818
    @chrismiller181811 ай бұрын

    The times have caught up to the dealerships because now they are not selling cars and there lots are now loaded with unsold new car's and when floor plans kick in they will be in trouble

  • @devnull128
    @devnull12811 ай бұрын

    I’ve been watching you since the early C7 days and this may be your best video. Nice job, Sir!

  • @Gr8thxAlot
    @Gr8thxAlot11 ай бұрын

    I know car guys that still take their pretty old cars to the dealers for repair. It blows my mind how much they're overpaying when they should know better. Why in the world would anyone have a dealer do an overpriced brake job?

  • @subaruamazon

    @subaruamazon

    11 ай бұрын

    me too. private mechanic here. new car dealership service is an absolute rip off.

  • @handle-this-cock-youtube

    @handle-this-cock-youtube

    11 ай бұрын

    In the future consumers will be forced to with all these software problems. Unless independent shops are going to be allowed to use manufacturer equipment that can update software-- which I doubt they're going to fork over multiple grand for, plus any additional it is a month just to support updates to the tool itself.

  • @JDMSwervo2001

    @JDMSwervo2001

    11 ай бұрын

    People believe they are paying for premium service when they’re taking their cars to the dealer in reality they’re just paying for overinflated parts and helping the dealer keep the lights on

  • @CerretaniOutdoorsLLC

    @CerretaniOutdoorsLLC

    9 ай бұрын

    Perception.. big shiny garage and people think they are legit

  • @Veyronp87
    @Veyronp879 ай бұрын

    much respect for your approach to selling cars! i can appreciate the fact you saw shady dealer tactics firsthand and are trying to change the industry on your own!

  • @jonmurman8117
    @jonmurman811711 ай бұрын

    i have been screaming about this for over 20 years. i saw a $3,300 "shop bill" last week on a 2016 Chevy at a local dealership and yes i did a line item analysis of this document and it was a joke. Oil change was $110 brakes were $900 and that was not replacing any rotors but a quick resurfacing of them. This shop bill should have been $1,200 maximum so this is a super profit generator for most dealers and "pack" is more like $800-$1,000 at most New car dealers. As a car sales person it is near impossible to find the true cost of a Vechicle on the lot even if im the sales guy who took it in on trade because the house will "create" mysterious expenses you can't dispute.

  • @tommyparks4473
    @tommyparks447311 ай бұрын

    He even says Denali wrong. I think he does this stuff to bother people.

  • @mexicanspec

    @mexicanspec

    11 ай бұрын

    I hope he did that on purpose. He couldn't think that is the way it is pronounced.

  • @BrianMason3636
    @BrianMason363610 ай бұрын

    I’ve watched your videos for quite some time now and have always thought you were sincere and honest. This video is no different, all this time and haven’t changed at all. If I lived in your area you’d be the only dealer that would get my business.

  • @ppeller3
    @ppeller311 ай бұрын

    WAIT WAIT! Did you just say Den a Lee?🤔😳🤣

  • @ScarlettFire341
    @ScarlettFire34111 ай бұрын

    "First we overlook evil, Then we permit evil. Then we legalize evil. Then we promote evil. Then we celebrate evil. Then we persecute those who still call it evil." Fr. Dwight Longenecker

  • @steverollins4690
    @steverollins469011 ай бұрын

    Thanks Mike for your honesty and information 👍

  • @324amgela
    @324amgela11 ай бұрын

    I follow you for a lot of years. You are a good man, that's the way you treat customers so they can come back. And make customers happy. They don't do that here in New York. God bless you and I hope your business grow. My name is George phone, New York.

  • @TheEnd-eg6wq

    @TheEnd-eg6wq

    11 ай бұрын

    Exactly

  • @samehsmahany
    @samehsmahany11 ай бұрын

    Mike, you’re saying @ 3:45 a pack at the Chevy dealership of a $1000 cost you as a salesman $300 to $600 that mean your commission was 30% to 60%. And a pack at your own dealership of $300 cost your salesman $10 that means you give your salesman 3% commission. What a fair guy! I really feel bad for you to lose a million dollar over 21 years to these unfair people at Chevy. Your salesman will lose them in less than 2 years 😂😂😂 thanks to your fairness!

  • @orionschroeder9401
    @orionschroeder940111 ай бұрын

    This video speaks VOLUMES as to what happens at Stealerships! Everything Mike has said here is true, and there’s even a few things which could be added. FANTASTIC video Mike!

  • @20smgreen
    @20smgreen11 ай бұрын

    Don't ever compromise your integrity and your honesty. You're doing an awesome at what you do. Just wanted to tell you. Don't know how often you may hear it.

  • @wmurph3
    @wmurph311 ай бұрын

    Hats off to you sir. Huge reason why I try to buy and sell private before having to visit a dealership.

  • @albertnieves870
    @albertnieves87011 ай бұрын

    Thank You for your Videos and all the good advice you give. You helped me with the information on buying my car.

  • @azthundercloud
    @azthundercloud11 ай бұрын

    I worked at a dealership and they fined you for anything and everything. plus they would comein on the middle of a deal and then claim half of your commission. one day on a saturday we were really busy , another salesman and i up and quit. H.R. did an out inverview and we eventually got our money.

  • @Oxios

    @Oxios

    11 ай бұрын

    HR, a dealership, that isn't there just as a joke? Wow.

  • @azthundercloud

    @azthundercloud

    11 ай бұрын

    @Oxios was a big chevy dealership and Mitsubishi. Owner was buddies with ford dealer

  • @RacinAlpinestar2
    @RacinAlpinestar211 ай бұрын

    Great video. I've enjoyed your past videos and have learned quite abit! -Northwest Indiana

  • @wmweeza
    @wmweeza11 ай бұрын

    Let me just say, I have loved watching your business grow! I remember when your office was EMPTY

  • @chadfield376
    @chadfield37610 ай бұрын

    Good video for clarity; what you brought up is why I don’t preference new vehicles anymore. I always tell someone looking for a car to buy the best used car you can pay cash for or at least keep your payments to no more than 3yrs. Dealers have got extremely greedy and all the crazy fees are like looking at a tax form.

  • @allanstephenson9336
    @allanstephenson933611 ай бұрын

    When I worked at 1 dealer. At pay time. They took 1 car that had a. ACV ( actuall cash value) of 45500. The # was crossed out and had 38800. Put down. Wth. This means I lost 25% commission on 6700. == 1675. 00. The real money was 45500. Not 38800. They said they wouldn't fix it. I said. ******* **** you. Quit. I was so mad. It happened 3 time. 3rd time I left

  • @sparklander
    @sparklander11 ай бұрын

    Wow, that was enlightening to say the least. Thank you for sharing.

  • @timraber6575
    @timraber657511 ай бұрын

    Last year I had a major repair on my engine in my 2016 Canyon, the first dealership service writer shamed me not changing my oil with them. Each time I talked with him, I felt very angry. I went to another dealership with the same issue and got much better treatment. I let them fix my truck. It wasn’t that my truck needed repairing, it was the attitude of the service writer. I have never been a big fan of these businesses. I always figured if they cheat customers, they cheat the employees too.

  • @scotts4125
    @scotts412510 ай бұрын

    I had a friend that worked for ADP. They had a division that sold all the software and hardware that makes a dealership run. Reynolds and Reynolds was their main competition. He told me it was parts, service and used cars where the dealerships made money. On new car sales not so much. He was a numbers geek. This was back in the 90's before this over MSRP stuff was happening.

  • @Interceptor810
    @Interceptor81011 ай бұрын

    Everything you said is exactly why I am glad I am no longer in the dealership business on top of other things

  • @jetman7711
    @jetman771111 ай бұрын

    Yes it is GREED!! All these dealerships with mark ups is just ridiculous. Thanks for the explanation Mike.

  • @ryanm4013

    @ryanm4013

    10 ай бұрын

    As long as people pay them, the markups will continue. It’s simple economics

  • @jetman7711

    @jetman7711

    10 ай бұрын

    @@ryanm4013 it’s simple greed and robbery. You are right though people keep buying them with a huge mark up so good for them. That car/truck will be worth way less in the near future lol

  • @zackkennedy9266
    @zackkennedy926611 ай бұрын

    Worked in sales for 10 years and you had my blood boiling and reminded me why I’m taking a break. This happens in all sales in all industries make a big commission they want to cap it after deal is done. Land a huge sale they want you to split it up with the team that provided no help even when you are producing 4x more than everyone months in row. Then the constant reinventing the wheel every week thinking they unlocked some new formula and drive results in the ground instead and just go back to how it was until the next week with their new idea.

  • @video80634
    @video8063411 ай бұрын

    I've never been a car salesman before, but I have purchased several vehicles in my lifetime. I'm now in my late 50's and I can say that I've finally woke up to all the tricks dealership do to people. However, I didn't realize it was deeper than that, stealing from their own employees. That right there is 110% total "Greed." Greed will also come in the forms of lies too. I recently went car shopping with my cousin. The salesman gave us the "out-the-door" price for a particular vehicle he was looking at, excluding taxes and dealer handling. I said, "We don't pay dealer handling." Salesman: "I have to charge that because it's ...........(wait for it)...........(wait for it)...........illegal if we don't." This example right here is why car salesman get a bad rap! True story! He must have thought I was born yesterday....lol 🤣

  • @RossMalagarie

    @RossMalagarie

    11 ай бұрын

    how do you think those stealerships afford those HUGE buildings? There is no need for a building to be 40' tall and one story just to house a sales office with 8 desks, a break room, 4 bathrooms, and a few other offices. The main building of stealerships are millions of dollars and all the cars are out in the open in the parking lot.

  • @don2deliver

    @don2deliver

    11 ай бұрын

    Actually handling and shipping are bundled together and I believe do have to be paid by law. The Union freight haulers made it law that even if you pick up your car at the factory such as you can with a Corvette, you still must pay Shipping and handling like it was delivered to the dealer near you.

  • @monkeybarmonkeyman

    @monkeybarmonkeyman

    11 ай бұрын

    It's quite possible the salesman actually believe that because someone else trained him to believe it.

  • @larrybe2900

    @larrybe2900

    11 ай бұрын

    The whole pricing structure is industry owned. KBB?

  • @StrongerThanBigfoot

    @StrongerThanBigfoot

    11 ай бұрын

    @@monkeybarmonkeyman Thats exactly WHAT IT IS

  • @thembp4sho
    @thembp4sho11 ай бұрын

    Thank you sir for telling us the truth 🙏

  • @Martin-tb4oo
    @Martin-tb4oo11 ай бұрын

    Oooooor, they could lower the prices by 5-10k and just pay flat commissions on each type of vehicle. Average car price should not be 50k.... these cars will not be around in 20-50 years

  • @stephenr115
    @stephenr11510 ай бұрын

    Dude what a real vlog! Thanks for telling the truth!

  • @sbprecision
    @sbprecision11 ай бұрын

    Great video! Your explanations are simple, clear and accurate. I had similar experiences as a dealer tech many years ago. The commission cap you describe is the saddest thing because it reflects a dealer mindset that a Salesperson should only make "$xxx" per deal or year, or a Technician should only make "$xxx" per year. If an employee is making money on a commission-based pay system THEN THE DEALER IS ALSO MAKING MONEY! If you are a dealer who truly believes that, say, a Parts Counterperson should only make $40k per year, then pay them that with a small bonus and eliminate the problems that commission-based pay can bring. Otherwise, let your top performers PERFORM and know that as a Dealer if they are doing well, you are making money!

  • @4n0n87
    @4n0n8711 ай бұрын

    Sir I have a question. Can you make a video or re-make or link a video for new car buyers to beware of when entering a car dealership. like a quick 4 things to check like a framework to know if its a reputable business or not, something we can tell by sticker price or from one or two questions we can ask when first approached at a dealership to know if we should run out of there or not. thanks for all you years of confined knowledge.

  • @jeffreff2000
    @jeffreff200011 ай бұрын

    Honest and ethical is right. I believe dealers have the right to make money and honestly I don’t believe the dealers need to disclose all the ins and out on how they make money just like any other business doesn’t have to but if directly challenge by a customer or employee they shouldn’t be hiding anything. I’m interested in knowing what you would do differently if you are ever so fortunate to own your own dealership Mike. Thanks for making these videos.

  • @Volkswagenplanet

    @Volkswagenplanet

    10 ай бұрын

    He isint telling you the entire story as usual. Pac is to help pay all the non commission employees that help make the deals happen. Starting at the receptionist, porters, office personal. The power bill at our dealer here in Tampa is over 100k a month. Who pays that? Mike can come to work and basically has the opportunity to earn unlimited income with no risk in the game. His business plan us flaud. When the car values crash he will be sitting on cars he owes more than they are worth. With interest rates going up. He won't make it. I wish him and his family the best. You have to also be honest. Fewer sales, and over head doesn't last long. Mike will never respond to any comment I leave calling him out. Remember KZread is a source of income for him. He still us a click bait creator in the end. I know you see through his smoke. Mike is a good story teller. It's a trait you acquire selling cars. You see the corvette are leaving. Take care my friend. Have a good day

  • @csinalabama
    @csinalabama11 ай бұрын

    Every company with sales people works night and day to inflate costs to the salesperson, reduce salesman commission or eliminate it altogether. I have a friend in medical sales who had two States in his region and a great income. They took it away and made them all "house accounts". Companies rope you in with promises of great commission then when you are successful, they pull the rug out.

  • @uo2230
    @uo223011 ай бұрын

    Thx for bringing this to light. Gonna keep my 06 CVPI 247k runs great paid 2400 for it 5 years ago been a great car. New cars rob wealth from you. Stealers can just keep their new cars and can go pound sand. Glad you are real.

  • @WeLearnMore
    @WeLearnMore11 ай бұрын

    I worked in sales at a dealership for 7 months. The owner's favorite (who sat right outside the owner's office) got spoon-fed all the deals while we were lucky to even see enough customers in a month to meet quota, much less actually sell enough cars to meet it! They wouldn't take care of customers after the sale either, even if the problem was their fault (e.g. the time they filled the tank on a used car and forgot to put the gas cap back on and the "check engine" light came on). I love sales but hated the way the place was run. I'm happy to report that GM revoked their dealer license back in the 2008 "crisis". Couldn't have happened to a worse dealership. If I lived anywhere near you, I'd love to work for you!

  • @missyd0g2
    @missyd0g211 ай бұрын

    Back in 1980 I went to a Dealership looking to buy a car. The dealership offered the car at dealer manufacturers final invoice plus $100. I found a car and wrote down the VIN. Also took pictures of the sign of manufacture invoice. My employer was the Automotive car manufacturer and yes I live in Detroit. As a computer programmer responsible for systems including printing dealer invoices. Week later I went back to the dealership with my real manufacture dealer invoice for the car we wanted. The sales manager flipped when I presented the actual dealership invoice with the car VIN. Also my business card and Corporate ID. I knew of the multiple dealers invoices printed on Company paper. Unfortunately the dealer had so many complaints that when I as an employee proved there was an issue. Top changes were made by the car company. They became a preferred dealership for employee purchases too. A few years later our car was in for service with an unusual problem with fuel injection and the computer. My brother was the engineer that designed it and came over to look at the car. He showed the mechanics how to fix it.

  • @bobshowup2501
    @bobshowup250111 ай бұрын

    So if your saying that car that was sold was marked up $30,000 over MSRP and the gross profit was $50,000 that means the car only cost the dealership $20,000 LESS than what the MSRP said. So the manufacturer price to sell a car to a dealership didn't go up much because they don't use the market value to price the cars but the dealerships are and even though they might only buy a car from the manufacturer for a set cost the're artifishely marking up the sales price and ripping off buyers. Back in the day when you went to a car dealership you dealt with 1 person, the sale persson and they did everything as far as getting you in a car, nowadays the sales people take your info, then have to go talk with the sale manager and if your financing part of the car then they have to now go talk with the finance manager all the while adding more layers of people only forcing the car to cost more to the buyer. it's all BS and a rip off...

  • @subaruamazon

    @subaruamazon

    11 ай бұрын

    bob, the dealership pays a price for the new car. the msrp is printed on the window sticker from the factory. the difference is margin. mark ups go right into the pocket of dealership.

  • @josephoberlander

    @josephoberlander

    11 ай бұрын

    Even more reason to just avoid all of this and only do the manufacturer's lease. This is how you break the franchise model. Offer lower lease deals than the dealship can make money off of. Essentially bypassing them and their games. Ford could do this immediately on all models and yet.. one wonders how much of their CEO's angst is merely smoke and mirrors.

  • @subaruamazon
    @subaruamazon11 ай бұрын

    i sold cars in college. all salespeople are on commission. they give a draw but they take monies out of your check when you sell a car. they also carve money out of the gross that you dont get a cut off. if there is a 2000 gross. you get 20 percent. but there was a fee, a pac fee chevy dude just reminded of. I think it was 400 to 600 the dealership withheld so your gross is 1400. you get 20 percent of that so they just gyped you out of 80 bucks. also they make you do things like move cars on the lot. or pick a car up from another dealership on a sale. i didnt get paid for that and cannot sell on commission doing these things. plus salespeople are essentially free to a dealership. they are on pure commission. that is why you see like five toyota salespeople at the entrance of a dealership. salespeople are free and horrendously taken advantage from.

  • @alankowalski8781
    @alankowalski878111 ай бұрын

    Learned a lot on this video man, thanks

  • @paulmarc-aurele5508
    @paulmarc-aurele55082 ай бұрын

    I was a commissioned salesman in a different industry. There was an account that was doing $800,000 a year with us that needed a new account manager. They offered it to me saying I wouldn’t make any commission unless I grew the business by 20%. I accepted and in 1 year I more than doubled their sales by creating an innovative program that also cut our overhead down by 50%. A few years went by and we acquired our chief rival competitor, shortly after the account was reassigned to a non commissioned inside salesman. You are correct when you point out how GREED is alive in well in business today. I am glad to see you don’t operate that way!

  • @crushthequarter6863
    @crushthequarter686311 ай бұрын

    I hate going to car dealerships and buying cars and its all due to the sales staff and the games they play. I have yet to have a positive experience in purchasing a vehicle from any dealership. Keep the truth rolling!

  • @Paul-cx4gm
    @Paul-cx4gm11 ай бұрын

    So much truth to this, thanks.

  • @montecarloss305
    @montecarloss30511 ай бұрын

    Love the SS Performance Sedan in the thumbnail. Love the truth bombs in this one. Curious if that deal you were referencing with the commission cap was the catalyst that activated your leaving Bachman.

  • @salalbanese5537
    @salalbanese553711 ай бұрын

    I hope you do really well in your business, you have the right ethic values.

  • @wileecoyote5749

    @wileecoyote5749

    11 ай бұрын

    If not KZread pays $500 per 40 views

  • @babeadams9351
    @babeadams935111 ай бұрын

    Take a look at some of the homes, boats planes etc, these dealers own. Do you really think that is because they sell $500 over?

  • @pats88sox
    @pats88sox11 ай бұрын

    I was watching you and it just hit me, I've always paid sticker price. So hopefully you can make a few $$ of customers like me. But I got my 1st new chevy Z71 so I didn't care what the cost. ❤❤ my chevy . Thank you so much for your information.

  • @wallebo
    @wallebo11 ай бұрын

    They are referred to as stealerships for a reason. Enjoyed the video but it is not news to me that they steal from the public and their employees alike. That is how greed works. That's why I haven't been in a dealership since January of 1989. I still have the car. It runs beautifully. No stealership will see me anytime soon. I don't like being taken advantage of.

  • @Jon_87
    @Jon_8711 ай бұрын

    2:33 din a lee? 😆

  • @mexicanspec
    @mexicanspec11 ай бұрын

    What do you mean the service department charges the sales department to service a car? The sales department doesn't own any cars. The dealership owns them all and is moving money from one pocket to the other.

  • @josephoberlander

    @josephoberlander

    11 ай бұрын

    And skimming money into the owner's pockets with every move.

  • @mexicanspec

    @mexicanspec

    11 ай бұрын

    @@josephoberlander It is not going into the owners pocket, it is going into the dealerships account. Most of these dealerships are not sole proprietors. Dealerships have a huge nut to cover at the end of every month so they have to make money. Who doesn't know this?

  • @josephoberlander

    @josephoberlander

    11 ай бұрын

    @@mexicanspec Sure, they have to make money, but in the end, the person who owns the franchise is only interested in their money. And this is where the greed and games come in. If the dealership isn't making enough to cover that "huge nut" as you put it every month without lowering the owner's profits, then they start to find ways to solve their #1 problem.(in their minds) Not to find ways to increase sales or be more efficient. After all, it's far easier to skim money and grief their salespeople than change how they do business.

  • @RVingwithAndrewSteele
    @RVingwithAndrewSteele11 ай бұрын

    Great video! 🎯

  • @RCTexanGuy
    @RCTexanGuy11 ай бұрын

    It’s the Chevy dude !!! 👍🏽👍🏽 great video

  • @timkaldahl
    @timkaldahl11 ай бұрын

    Fortunately I do all of my own service, so I can buy mechanics specials for cheap. I'm glad you're changing what you can.

  • @thetrailoutthere
    @thetrailoutthere11 ай бұрын

    When I used to sell cars in had a very good ratio of selling front/back end products as a floor sales guy. I never got any commission on that, just a $50 spiff while the finance manager working that deal reaped the real reward. The only real incentive for me was the per-unit payout once I reached a certain number of sales for the month. As soon as I stopped doing the finace manager's jobs, the energy towards me from all the other managers quickly shifted to a type of energy i didn't want to be around. If dealers paid their top sales guys their worth, they wouldn't have a revolving door of heavy hitters.

  • @robertclubs9908
    @robertclubs990811 ай бұрын

    Thanks for being you my friend. 😊

  • @ScarlettFire341
    @ScarlettFire34111 ай бұрын

    "The individual is handicapped because they cannot imagine that something ultimately evil is among them" J Edgar Hoover

  • @dennissvitak148
    @dennissvitak14810 ай бұрын

    Chevy Dude's car dealership has a 4.8 set of reviews. This is very high. I am impressed..or rather, the customers of Mike's Auto Store have been impressed. Worth the drive to see this guy, folks.

  • @BrandonfromTN
    @BrandonfromTN11 ай бұрын

    Hey Mike, do you sell only chevys? Im wanting the 2024 Subaru Crosstrek Wilderness and the subie dealerships in Nashville (thats where i am) are asking me the exact questions you're telling all of us not to answer. If you could get your hands on one I could make the trip up to your store. if not no worries.

  • @The_Ray
    @The_Ray11 ай бұрын

    Mike, so who pays this soft or hard PACK? Is it redirected back to the customer in the final price? All these years when buying a car/truck when you get a "free" tank of gas, the customer actually paid for that free tank of gas?

  • @subaruamazon

    @subaruamazon

    11 ай бұрын

    pack is bull9*&^. it is a way of the dealership to rip sales people off. the gross of the sale less commission should be for the dealership. 2000 gross less 20 percent commission to the dealership 1600 should be used to pay all that.

  • @steveurbach3093

    @steveurbach3093

    11 ай бұрын

    Tank of Gas? One of the first things off the lot, is to get gas because the cars were all just a hair above 'E'

  • @subaruamazon

    @subaruamazon

    11 ай бұрын

    @@steveurbach3093 that is right. I remember going and getting gas before delivery. And we were supposed to make delivery FUN.

  • @don2deliver
    @don2deliver11 ай бұрын

    Plus some dealers make the service and body shop pay into the parts Department wage fund, because they are necessary to be staffed enough to attend to the mechanics and body shop guys. An outside shop often has to leave a message about the parts they need and hope to get a call back.

  • @tylerhawk742
    @tylerhawk74211 ай бұрын

    True Story … Started selling at a new Chevy Cadillac store in NW Ohio in 2018. The day I started was informed that the 2016 Chevy Conversion van that had been on the lot for over 2 years at that point was a loss leader and the GM put a $1000 spiff on top of the reg commission. Long story short within two weeks I had contacted a conversion van rental company out of Indiana and had the van sold. Got my check at the end of the month and only got $500 total for the conversion van sale. Needless to say that was my last day.

  • @petert1615
    @petert161511 ай бұрын

    All very true. Dealerships owners have so much income from non-commissionable payments that a salesperson would be paid. One dealership were I was a sales manager they paid my general sales manager on top of their salary a 6 monthly bonus from all the accrual of the holdback fees etc more than my total yearly income. This was never shown in any budget or target meetings.

  • @lisalarrr
    @lisalarrr10 ай бұрын

    Work at dealerships for 35 years and this guy is spot on. The dealer principal or owner always get their money. weather its from the sales dept, service, parts, and especially body shop. They will raise the fixed expense to suit their need and just screws over the rank and file.

  • @mikejames-drummerreginacan1386
    @mikejames-drummerreginacan138610 ай бұрын

    Interesting video.......THANKS !!!

  • @timothythompson4036
    @timothythompson403610 ай бұрын

    I worked at two car dealerships right out of college in the 80s. They treat the sales people like garbage. If you don't sell anything that day they threaten to fire you. One guy ,who was an industry veteran, told me about one salesman who had been at the same dealership for twenty years. He hit a spot where he wasn't selling, they fired him. This is the reason the auto industry has such a bad reputation.

  • @MrLeecho
    @MrLeecho11 ай бұрын

    Dealers rip off a lot of their clients Just like poker, the house never looses. Every time I’ve bought a new car, I go to at least 7 dealers. And then they want to add on so much BS. But thank you Chevy dude for keeping it real

  • @alexc1287
    @alexc128711 ай бұрын

    What an education! Thanks

  • @eddie-xi6ls
    @eddie-xi6ls3 ай бұрын

    Respect and In Integrity. does not apply to MOST dealers.

  • @derekdevore3002
    @derekdevore300211 ай бұрын

    So my wife and I bought a used Pacifica at the local bmw lot where we live about a month or so ago, and it had noticeably bad ac when we were doing an extended test drive so our salesperson made sure it was fixed and we bought it and love it. So going off this video does that mean he took a potentially gnarly hit to his commission just because he wanted to make sure we were happy and bought it?

  • @kevincampbell3173
    @kevincampbell317311 ай бұрын

    Great video! one of the MANY reasons i hope NEW dealerships go bankrupt! for me they serve no purpose. they are the only thing in my way between me and my new car.

  • @LarryHatch
    @LarryHatch11 ай бұрын

    So true. My local Dodge/Chevy dealer has an owner who has 120, yes 120, Corvettes in his collection. And I wonder why my tire value sensor was $170 on a $210 tire. Do the math and support your local mechanics who aren't building huge mansions, car museums, and such.

  • @sparklander
    @sparklander11 ай бұрын

    A similar thing happened when I was a Route Salesman at Coke. The company paid us a base plus commission for how many cases of soda we sold. Then they changed it to hourly, but because we were working over 70 hours/wk we made too much money. They moved it back to commission and did not pay OT. Then they cut the size of our routes. Over 30 years my pay was always around $50K no matter how many cases I sold.

  • @josephoberlander

    @josephoberlander

    11 ай бұрын

    Correcdt. Because management is only concerned with THEIR monthly profits. So if they are making 50K a month, they will maintain that no matter what, even if it means outrageous tactics and pricing. We see this in rentals as well. The economy could be crashing down into a pit and the rent goes UP because the owner only cares about their money/bottom line every month.

  • @carriemunnick9980
    @carriemunnick998011 ай бұрын

    Life isn't fair. I'm glad u have your own dealership now

  • @1scooterpilot1
    @1scooterpilot111 ай бұрын

    Great video..... Bravo

  • @gregmccarter3243
    @gregmccarter324311 ай бұрын

    I have never ever ever ever ever trusted a dealership....PERIOD.......

  • @eddym5532
    @eddym553211 ай бұрын

    Car dealerships have a lousy reputation, they are crooks.

  • @coreycodling6661
    @coreycodling666111 ай бұрын

    20 years as a dealer tech… never met an underpaid sales person, that can’t be replaced by a store clerk… watching the amount of money these fools make can turn your stomach… meanwhile I’m paying for 45k worth of tools… don’t talk to me about what you lost working for dealers

  • @shawngaspar9811
    @shawngaspar981111 ай бұрын

    Interesting info, I guess not surprising. Still hate that dealerships are adding premiums on msrp, it’s gutting the car enthusiast market. But I agree that the amount of effort to sell over msrp is harder on a salesmen and they should be awarded on overage.

  • @noelflores4389
    @noelflores438911 ай бұрын

    Right on!

  • @dannywood146
    @dannywood14611 ай бұрын

    Your videos make me want to drive from Fort Worth Texas to buy my next truck from you

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