Selling Cars for a Living

Hey champ. My fleet guy came back from a Lease Convention a few months back. He was most intrigued by a company that had set up his buy/here pay/here business around lease structures. Is this viable? Have you seen any data or know of anyone doing this? Thanks a million.

My first gig in the Car business was on the floor at Spring CJDR here in the outskirts of Houston, TX. We were #1 in our region monthly/annually, and they were that way before and after I got there. I made by far the most money I have ever made in the business at this dealership.

The payplan:
30% front (1599 flat pac from holdback), 8% of the back
10% hold on trade (ACV- Trade Allowance X .10) per deal
Fast start (12 cars contracted by the 15th, 1500)
Volume Bonuses:
11-14: $2000
15-17: $3500
18-20: $5000
21-23: $6500
24-26: $8500
27+: $10700

Then you had the 1099 Chrysler money /spins. #insanity
Needless to say, I did not leave the dealership and never missed a shift, until I was at the Magic 27#.
Long story short, Autonation bought them January of 2012, and with in 7 months, our pay plan was gone. And so was I.

Chevy has been great. We’ve grown a lot as a dealer, and it’s been very lucrative.

All that said, there is a great opportunity cost to this business like chevygirl alluded too. I think I’d be happier making 1/2 the money, dedicating a quarter of the time, and have the ability to chase down bigger deals, chill with the family, etc etc.

But if you’re young and find the right pay plan, and can overcome outdated industry platitudes and mores, then you’ll be happy and stack cash.

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@Boomba
@vhooloo
@mpd79
I figured I would get quotes of <1% of the market asking price especially since I was trying to do this as a 1-pay cash deal and I was on the Hackr Forum. We all know there is a cache of money in a back room especially for customers like me for no other reason than I am a hackr amongst Hackrs. And I not buyin’ those extra protections and services. They are all bogus…encryption, security and co-location cloud services (@Boomba). Nah I’m good. I’m not buying right now anyway; just hunting because I have nothing better to do but try to Hack a deal for my own pleasure, but I wont tell anyone I am inquiring with. Because, honestly, I won’t be ready for another 6 months when my current lease is up, but figured I would shop it now, knowing the programs will be completely different. So, I figured I would waste one of the dealer reps on the Forum time now. Go stand on the curb in the hot sun for the average guy and up looking to launch a startup and sell them your bill of goods and services. The calculator said I should be thousands less than any offer I got from you guys anyway…

Sheesh!! ‘Gotta have thick skin to be on this forum.’ otherwise, they will relentlessly eat you alive.

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@Randy_Haddox1- well put.

Snort! 20 20 20 20 20 20

Gotta remember, that’s the nice thing about software… cost of goods to sell 50 or 500 licenses is the same.

Also, from looking at your OP about the “nights and weekends” thing, any decent salesperson is always on the clock =)

The real money isn’t in the licenses. No. It’s in that sweet, sweet professional services, with projects that go on for years and years, billing $275/hr. It’s how I make my Benjamins.

And then once I leave, the maintenance revenue kicks in.

Licenses? Pffft. That’s just the loss leader to get you in the door. The real action is on the back end.

Hah, you’re oldschool then - Explore the 2016 data: Global 100 Software Leaders: PwC

Old Skool money is as green as New Skool money.

And some of those numbers are skewed. Show me that % for enterprise customers and Salesforrce is not anyhwere near 91%