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E90/E91/E92/E93 (2006 - 2013)
The E9X is the 4th evolution of the BMW 3 series including a highly tuned twin turbo 335i variant pushing out 300hp and 300 ft. lbs. of torque. BMW continues to show that it sets the bar for true driving performance! -- View the E9X Wiki

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  #1  
Old 07-26-2005, 02:15 AM
justchecking justchecking is offline
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Is car dealership a good career ?

no idea.

Last edited by justchecking; 07-26-2005 at 11:33 AM.
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  #2  
Old 07-26-2005, 12:55 PM
LA X3 LA X3 is offline
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Here is an article by a writer who worked "undercover" as a car salesman. Sounds awful to me.

Edit: http://www.edmunds.com/advice/buying...2/article.html
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  #3  
Old 07-26-2005, 03:15 PM
e90er e90er is offline
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I just asked my salesperson that the other day when I picked up my car and I can't remember the exact number but I was surprised it seems like it was one to two per day on average at the dealer and she averages 5-6 per month.
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  #4  
Old 07-26-2005, 04:25 PM
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Jon Shafer Jon Shafer is offline
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The answer to your question is "it depends". It depends on brand, location, so
many different things. I was in the car business for 18 years. I began selling
Nissans, and ended up as General Sales Manager of a BMW Center for the last
six years - with several stops in between. The are Ford dealerships that sell 250
new vehicles per month. There are BMW dealerships that sell less than 100 new
vehicles per year.
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  #5  
Old 07-26-2005, 07:48 PM
drallafi drallafi is offline
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Quote:
Originally Posted by LA X3
Here is an article by a writer who worked "undercover" as a car salesman. Sounds awful to me.

Edit: http://www.edmunds.com/advice/buying...2/article.html

This article kicks ass.
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  #6  
Old 07-26-2005, 08:30 PM
mthz mthz is offline
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Quote:
Originally Posted by LA X3
Here is an article by a writer who worked "undercover" as a car salesman. Sounds awful to me.

Edit: http://www.edmunds.com/advice/buying...2/article.html
That article was _awesome_. Very, very well written and very interesting. Did anyone else get immediately reminded of the movie "Boiler Room" while reading it? Anyway, thanks for the link.

-Matt
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  #7  
Old 07-26-2005, 09:05 PM
hunter399 hunter399 is offline
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Quote:
Originally Posted by e90er
I just asked my salesperson that the other day when I picked up my car and I can't remember the exact number but I was surprised it seems like it was one to two per day on average at the dealer and she averages 5-6 per month.
There is a Rolls, Bently, Aston dealer up my street....Sold a total of 7 cars last year...
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  #8  
Old 07-26-2005, 11:10 PM
LA X3 LA X3 is offline
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Quote:
There are BMW dealerships that sell less than 100 new
vehicles per year.
It's things like this that amaze me. When I got my X3 -- and I was quite satisfied with both the price and the sales process -- the guy showed me his "deal sheet" printed from the dealer's system. He circled the $15 at the bottom and said, "That's what we're making -- we can't go any lower." Then we read quotes like the above -- is it any wonder people don't trust car salesmen?
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  #9  
Old 07-26-2005, 11:11 PM
upandown upandown is offline
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That is one hell of a good article

I'm a writer/reporter by trade, and he did an excellent job.

And although I have made what I think to be a very good deal, it gives a person pause.
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  #10  
Old 07-27-2005, 06:40 AM
Bimmer PR Bimmer PR is offline
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Quote:
Originally Posted by LA X3
Here is an article by a writer who worked "undercover" as a car salesman. Sounds awful to me.

Edit: http://www.edmunds.com/advice/buying...2/article.html
I spent the last two hours reading this. Is really a good article.
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  #11  
Old 07-27-2005, 07:25 AM
itznin itznin is offline
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Quote:
Originally Posted by LA X3
Here is an article by a writer who worked "undercover" as a car salesman. Sounds awful to me.

Edit: http://www.edmunds.com/advice/buying...2/article.html
I read this article a while ago, very informative!
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  #12  
Old 07-27-2005, 08:22 AM
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Jon Shafer Jon Shafer is offline
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Quote:
Originally Posted by LA X3
It's things like this that amaze me. When I got my X3 -- and I was quite satisfied with both the price and the sales process -- the guy showed me his "deal sheet" printed from the dealer's system. He circled the $15 at the bottom and said, "That's what we're making -- we can't go any lower." Then we read quotes like the above -- is it any wonder people don't trust car salesmen?
You don't believe that there are BMW dealerships that sell fewer than 100
new BMWs per year.? Up until 2001, Coast BMW and Home Motors (now
known as BMW Santa Maria) sold fewer than 100/yr.


There are more than that out there. You should check your facts before shooting your mouth off.
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  #13  
Old 07-27-2005, 08:53 AM
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James James is offline
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Quote:
Originally Posted by Jon
There are more than that out there. You should check your facts before shooting your mouth off.
I guess I read his comment differently. If the dealer makes so little on each car and sells so few how do they pay the bills? From an outsider's perspective something doesn't add up. Maybe I should read the linked article .

James.
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  #14  
Old 07-27-2005, 09:42 AM
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missing23 missing23 is offline
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Quote:
Originally Posted by Jon
You don't believe that there are BMW dealerships that sell fewer than 100
new BMWs per year.? Up until 2001, Coast BMW and Home Motors (now
known as BMW Santa Maria) sold fewer than 100/yr.


There are more than that out there. You should check your facts before shooting your mouth off.
Wow, Jonnie is fired up!

Bottom line in regards to trusting car sales people is that it is hard to completely 'trust' ANYBODY in sales..******s relations do become more 'honest' the longer the relationship has been in place though...good salespeople try to keep their margins up and 'truths' may be stretched...I (not in car sales) just try to do it without being completely dishonest.

Large dealers selling for low gross profits can make it up on volume, but dealers selling low volume need to sell on margin.
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  #15  
Old 07-27-2005, 09:47 AM
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Quote:
Originally Posted by greginaz1
Wow, Jonnie is fired up!
Anyone who knows me knows that I don't pull sh*t out of my a$$.

I don't like being called a liar...

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  #16  
Old 07-27-2005, 09:51 AM
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Quote:
Originally Posted by James
I guess I read his comment differently. If the dealer makes so little on each car and sells so few how do they pay the bills? From an outsider's perspective something doesn't add up. Maybe I should read the linked article .

James.
There are small market rural BMW dealers such as the one in Idaho who get by
on low volume coupled with low overhead. The service department in every
dealership is what keeps the doors open. In other cases you can have
multi-franchise points that support their BMW point. For instance,
in San Luis Obispo, the BMW Center was conjoined with a Nissan franchise,
while the Santa Maria BMW Center shared floor space with Chevrolet.
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  #17  
Old 07-27-2005, 11:28 AM
LA X3 LA X3 is offline
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Quote:
Anyone who knows me knows that I don't pull sh*t out of my a$$.

I don't like being called a liar...
I'm not calling you a liar at all, nor challenging your information. If you read my post carefully, you'll see that I'm saying car salesmen who claim to be making $15 on a deal are most probably lying. At 100 cars per year, such a dealer would have a net income of $1500/year. Again, I'm not challenging you, I'm calling out the absurdity of a car dealer who claims to be making $15 on a $40,000 car.

You'll notice I talked about msitrusting car salesmen, not mistrusting webmasters. If you review my posts on this board, you'll find I have never insulted another poster, nor would I. Please be more careful before shooting off about other people shooting off.
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  #18  
Old 07-27-2005, 11:39 AM
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Quote:
Originally Posted by LA X3
I'm not calling you a liar at all, nor challenging your information. If you read my post carefully, you'll see that I'm saying car salesmen who claim to be making $15 on a deal are most probably lying. At 100 cars per year, such a dealer would have a net income of $1500/year. Again, I'm not challenging you, I'm calling out the absurdity of a car dealer who claims to be making $15 on a $40,000 car.

You'll notice I talked about msitrusting car salesmen, not mistrusting webmasters. If you review my posts on this board, you'll find I have never insulted another poster, nor would I. Please be more careful before shooting off about other people shooting off.
Please accept my sincere apology. It appeared to me that your reference
was to my quote, since that was the one you were quoting...

http://www.bimmerfest.com/forums/sho...14&postcount=8

Anyhow, I do see how as an ambiguous stimilus that it could be
interpreted the other way. It's no big deal...


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  #19  
Old 07-27-2005, 11:44 AM
LA X3 LA X3 is offline
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  #20  
Old 07-27-2005, 11:50 AM
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Jon Shafer Jon Shafer is offline
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Quote:
Originally Posted by LA X3
If you'll check your User CP you'll see that your avatar functionality has been
enabled (prematurely)...

Go ahead, check it out!

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  #21  
Old 07-27-2005, 12:02 PM
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dherzfeld dherzfeld is offline
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Quote:
Originally Posted by mthz
That article was _awesome_. Very, very well written and very interesting. Did anyone else get immediately reminded of the movie "Boiler Room" while reading it? Anyway, thanks for the link.

-Matt
Glengarry GlenRoss
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  #22  
Old 07-27-2005, 02:27 PM
mikepinkerton mikepinkerton is offline
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I was reading in some bmw magazine at the book store that the total year-to-date sales in *north america* of the Z8 was....drum roll....one (1).

I can totally believe there are dealerships that sell < 100/yr.

-Mike
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  #23  
Old 07-27-2005, 03:27 PM
akhbhaat akhbhaat is offline
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Quote:
Originally Posted by James
I guess I read his comment differently. If the dealer makes so little on each car and sells so few how do they pay the bills? From an outsider's perspective something doesn't add up. Maybe I should read the linked article .

James.
Service and parts. Ever compared dealer prices and labor rates to wholesale distributers and independent garages? Sometimes it's twice as much in both instances.

Remember, virtually every new car dealership has a service department (in my town, Honda and BMW are owned by the same family and share the same service bays and parts depot), and because of manufacturer warranties (dealerships are reimbursed in full by the manufacturer for any warranty work that they do), they're virtually guaranteed to service the vast majority of the new and certified pre-owned cars that they sell for several years. Why do you think every single car on a new car marque-specific dealer lot is "certified pre-owned?" There's just as much incentive for dealerships to sell these, because people will continue to have them serviced at the dealership for the duration of the extended warranty and quite possibly beyond.

In addition, most of the privately owned higher end dealerships, with lower volumes than mass market marques, tend to share floor space with one of those bigger marques to cut overhead.

The only exceptions in this area are the two nearest Mercedes-Benz dealerships, which are both operated with their own exclusive service and parts departments. Toyota and Lexus are together, BMW and Honda, Saab and GMC/Buick. Volvo is with Infiniti and Hummer.
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  #24  
Old 07-27-2005, 04:26 PM
ViperSSD ViperSSD is offline
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on top of the profit over the invoice, there is also a dealer holdback, though for low allotment models, i can imagine the need to sell at msrp to make a decent profit

though, from what ive heard (and if im wrong please let me know), ED does not affect a dealers allotment numbers so there is a greater chance of a close to invoice price
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  #25  
Old 07-27-2005, 07:13 PM
tksung tksung is offline
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Quote:
Originally Posted by ViperSSD
i can imagine the need to sell at msrp to make a decent profit
If they can't make decent profit selling at less than msrp, that only means they should go out of business. The capital can be employed for more productive use somewhere else.
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