The GM of our store and the used car buyer are having a disagreement as to what a used car buyer's responsibility should be.  We are making a few changes in our management team and the used car buyer wants to take on the used car manager responsibilities (pricing, managing recon, merchandising, marketing etc).

     The GM's argument is that a store should have a buyer who's only responsibility is to acquire inventory and a used car manager who handles the rest of the responsibilities that I already mentioned.  He says that you should never mix the two. A used car buyer should be paid on the volume of cars that we sold of his and the time in which they turned. A used car manager should be paid with the rest of the management team on the overall gross generated by the sales department. He thinks it is impossible for one person to do both jobs efficiently and not effect the volume/gross of the store.

     Our used car buyer's argument is that he used to do both jobs at another dealership that he worked at and managed to do a very good job. He says that both jobs go hand in hand, and it is easier to just do everything yourself rather than rely on someone else to do their job.

     I'm somewhat stuck in the middle but definitely agree more with the GM than I do with the buyer. We sell 70-80 used cars a month on average and I feel like there is way too much work involved to maintain that level. It would be one thing if we worked at Bob's auto and sold 20-30 cars per month, but we don't. I think that anytime you overload somebody with too many responsibilities, inevitably something will suffer. What are your guys' thoughts????

     The GM of our store and the used car buyer are having a disagreement as to what a used car buyer's responsibility should be.  We are making a few changes in our management team and the used car buyer wants to take on the used car manager responsibilities (pricing, managing recon, merchandising, marketing etc).

     The GM's argument is that a store should have a buyer who's only responsibility is to acquire inventory and a used car manager who handles the rest of the responsibilities that I already mentioned.  He says that you should never mix the two. A used car buyer should be paid on the volume of cars that we sold of his and the time in which they turned. A used car manager should be paid with the rest of the management team on the overall gross generated by the sales department. He thinks it is impossible for one person to do both jobs efficiently and not effect the volume/gross of the store.

     Our used car buyer's argument is that he used to do both jobs at another dealership that he worked at and managed to do a very good job. He says that both jobs go hand in hand, and it is easier to just do everything yourself rather than rely on someone else to do their job.

     I'm somewhat stuck in the middle but definitely agree more with the GM than I do with the buyer. We sell 70-80 used cars a month on average and I feel like there is way too much work involved to maintain that level. It would be one thing if we worked at Bob's auto and sold 20-30 cars per month, but we don't. I think that anytime you overload somebody with too many responsibilities, inevitably something will suffer. What are your guys' thoughts????

Which is better: Experience or a rookie?

     We are in the process of interviewing and hiring 3-4 guys in order to get our sales team to an appropriate level for the spring and summer. The other sales manager and I are in agreement with the owner that we need the help going in to the busier months but we are struggling to find the right guys. Part of the problem is that the owner only wants us to hire someone that has a good amount of previous sales experience under his belt ( car sales or not). His take is that if we hire a person who already has experience, we will have to spend less time training him and getting him where we need him to be.  While I think experience is really important, I don't think that should be the determining factor as to whether or not we will hire them.

     My take is that ideally we would like to hire a guy with some sales experience, but I think we should be more open minded. We put our prospective employees through a screening process and the lady that does that for us asks them about sales experience. She doesn't even set up an interview with people that don't have experience. I think we could be turning away some really good candidates and I haven't even had a chance to meet them. I tried to argue the point by telling him that his 2 managers ( myself and the other desk manager ) were both hired with no sales experience whatsoever. I like the idea of taking a young, ambitious guy and training and molding him into a superstar. But that's just me!

     So who's right? Do you go for instant gratification and get a mediocre guy with some experience or do you look for a guy that could be great and invest the time into him?

Which is better: Experience or a rookie?

     We are in the process of interviewing and hiring 3-4 guys in order to get our sales team to an appropriate level for the spring and summer. The other sales manager and I are in agreement with the owner that we need the help going in to the busier months but we are struggling to find the right guys. Part of the problem is that the owner only wants us to hire someone that has a good amount of previous sales experience under his belt ( car sales or not). His take is that if we hire a person who already has experience, we will have to spend less time training him and getting him where we need him to be.  While I think experience is really important, I don't think that should be the determining factor as to whether or not we will hire them.

     My take is that ideally we would like to hire a guy with some sales experience, but I think we should be more open minded. We put our prospective employees through a screening process and the lady that does that for us asks them about sales experience. She doesn't even set up an interview with people that don't have experience. I think we could be turning away some really good candidates and I haven't even had a chance to meet them. I tried to argue the point by telling him that his 2 managers ( myself and the other desk manager ) were both hired with no sales experience whatsoever. I like the idea of taking a young, ambitious guy and training and molding him into a superstar. But that's just me!

     So who's right? Do you go for instant gratification and get a mediocre guy with some experience or do you look for a guy that could be great and invest the time into him?

     We have had an eternal struggle at our dealership with getting sales guys to attend the BDC on a regular basis. I'm sure most dealers have had similar difficulties convincing their salespeople to leave the floor for an hour every day and go to the BDC. We have a few guys that see the vision and have bought in to the benefits of their efforts in the BDC. The problem is trying to get all of our salespeople to buy in so we don't feel like we are forcing them to go up.

    I feel like we have tried just about everything to get them to cooperate. We have tried: letting them make their own schedule, trying to show them success stories because of hard work in the BDC, reminding them constantly, negative reinforcement if they fail to go up at least 75% of the time, and positive reinforcement by spiffing them for just showing up. Nothing has seemed to work over the long term. It sucks that you have to spiff them to do their job, that doesn't seem right to me!

     Anyway, I know there are many dealers out there that have very successful BDC departments and I want to know what the secret is. I know how important it is to have a scheduled time dedicated to both sold and unsold follow up. Are my guys just lazy? Should I give them the boot and start with a clean slate? Let me know what you guys have done that works.

     We have had an eternal struggle at our dealership with getting sales guys to attend the BDC on a regular basis. I'm sure most dealers have had similar difficulties convincing their salespeople to leave the floor for an hour every day and go to the BDC. We have a few guys that see the vision and have bought in to the benefits of their efforts in the BDC. The problem is trying to get all of our salespeople to buy in so we don't feel like we are forcing them to go up.

    I feel like we have tried just about everything to get them to cooperate. We have tried: letting them make their own schedule, trying to show them success stories because of hard work in the BDC, reminding them constantly, negative reinforcement if they fail to go up at least 75% of the time, and positive reinforcement by spiffing them for just showing up. Nothing has seemed to work over the long term. It sucks that you have to spiff them to do their job, that doesn't seem right to me!

     Anyway, I know there are many dealers out there that have very successful BDC departments and I want to know what the secret is. I know how important it is to have a scheduled time dedicated to both sold and unsold follow up. Are my guys just lazy? Should I give them the boot and start with a clean slate? Let me know what you guys have done that works.

     Everybody has heard the term "misery loves company" and that's what I hope to accomplish from this post. It's no secret that December is a slow month in the car business but this December seems to be especially brutal.  I was hoping to see if the amount of cars we have been selling lately is average so I can feel a little bit better about the situation, or if we just flat out suck!

     We average probably 90 cars in December, so that would average to 3.5 - 4 cars per day. In the last 10 days we have sold 13 cars ( new and used combined ).  Last weekend we sold only 1 on Friday and 3 on Saturday. To make matters worse, I am used car manager, and only 4 of those 13 cars over the last 10 days were used. OUCH!!!     

     So how is everyone else out there doing this month? I realize if everyone is doing crappy like me that won't put us in a better position, but it sure as hell will make me feel better about our performance. Let me know how it is going for you guys out there. Also, don't respond back to me if for some reason your dealership is killing it right now!

     Everybody has heard the term "misery loves company" and that's what I hope to accomplish from this post. It's no secret that December is a slow month in the car business but this December seems to be especially brutal.  I was hoping to see if the amount of cars we have been selling lately is average so I can feel a little bit better about the situation, or if we just flat out suck!

     We average probably 90 cars in December, so that would average to 3.5 - 4 cars per day. In the last 10 days we have sold 13 cars ( new and used combined ).  Last weekend we sold only 1 on Friday and 3 on Saturday. To make matters worse, I am used car manager, and only 4 of those 13 cars over the last 10 days were used. OUCH!!!     

     So how is everyone else out there doing this month? I realize if everyone is doing crappy like me that won't put us in a better position, but it sure as hell will make me feel better about our performance. Let me know how it is going for you guys out there. Also, don't respond back to me if for some reason your dealership is killing it right now!

     I'm sure we are in the same boat as most dealers right now, but I have been getting lectured about how my front end gross for used cars is too low lately. Anyone that knows used cars is aware of the fact that the market shifts quite a bit in October/November and it is really easy to get yourself in a bad position with regard to what you own your inventory for.  As a result, we have been pretty much buried in half of our inventory the last couple of months.

     In the past, we used to wholesale out of a lot of these cars towards the end of the year but now we keep everything and retail out of it. That strategy poses a problem when it comes to adhering to some sort of a turn policy. We figured we would just take the hit on the front end gross rather than take a huge wholesale loss for 2 months, and hopefully minimize the loss with any back end money made.  I feel like it is the best way to go and the owner and I both agree on this strategy.  However, he still gets all frustrated when our front end per car is $300 or so less than normal. It's a lose-lose for me!

     So the reason for the post is to figure out how we are doing compared to other stores.  We average approx $1400 per car on the front throughout most of the year ( used only ).  We have averaged right around $1000 over the last couple of months counting all the cars that were losers. I don't think those numbers are all that bad, but the GM thinks different. What is average gross these days on a used car? Are we really leaving that much money on the table? For my sake, I hope not! Let me know what you guys think.  P.S. The gross I'm referring to is after all costs including pack.

     I'm sure we are in the same boat as most dealers right now, but I have been getting lectured about how my front end gross for used cars is too low lately. Anyone that knows used cars is aware of the fact that the market shifts quite a bit in October/November and it is really easy to get yourself in a bad position with regard to what you own your inventory for.  As a result, we have been pretty much buried in half of our inventory the last couple of months.

     In the past, we used to wholesale out of a lot of these cars towards the end of the year but now we keep everything and retail out of it. That strategy poses a problem when it comes to adhering to some sort of a turn policy. We figured we would just take the hit on the front end gross rather than take a huge wholesale loss for 2 months, and hopefully minimize the loss with any back end money made.  I feel like it is the best way to go and the owner and I both agree on this strategy.  However, he still gets all frustrated when our front end per car is $300 or so less than normal. It's a lose-lose for me!

     So the reason for the post is to figure out how we are doing compared to other stores.  We average approx $1400 per car on the front throughout most of the year ( used only ).  We have averaged right around $1000 over the last couple of months counting all the cars that were losers. I don't think those numbers are all that bad, but the GM thinks different. What is average gross these days on a used car? Are we really leaving that much money on the table? For my sake, I hope not! Let me know what you guys think.  P.S. The gross I'm referring to is after all costs including pack.