Finding a good deal is all about competition. Prices go down when multiple companies sell the same thing. Whether it’s 
Should car salesmen be allowed to profit?
Should you feel bad using a systematic car negotiation strategy because it’s unfair to car salesman? One might argue that salesman are people too and deserve to earn a living. What if we take away all of their profit and put them out on the street?
Well let me explain why you shouldn’t worry too much about car salesman and why the smart ones may actually like my car buying advice.
You’re not putting a gun to anyone’s head
First of all, I’m all for win/win negotiations and I believe that car salesman are entitled to get paid for doing their job (selling cars). With that in mind, you aren’t going to force anyone to sell you a car at a lower price than they can afford. If a salesman wants to be competitive, they’ll give you a low bid. If not, you can buy from someone else. The price they offer is their choice and you can’t force someone to lose money on a deal.
You’re an informed car buyer
When you start contacting multiple dealers you’ll already know exactly what type of car you want and will be able to get right down to business. The car salesman will have to do very little work educating you. There’s no lenghty Q&A period because you will have done your research in advance of the negotiation process. They’ll simply give you a price quote for the make and model you want and nobody wastes their time.
You’re a guaranteed sale
According to the Joe Verde Consulting Group, only 10-20% of walk-ins end up resulting in a sale. Yet salesman must spend valuable time (sometimes hours) with 100% of them. As opposed to you, the informed Internet car buyer, for whom they won’t even have to get up from their desk. Bottom line: if they give you the best offer, you’ll buy from them.
You may trigger a bonus payment
Lastly, in some cases the profit on an individual sale may not be a big concern for the salesman or dealership. Depending on how close they are to hitting an individual or dealership sales goal, they might be willing to sell a car cheaply in order to trigger a big bonus.
Just remember, don’t feel guilty about being a competitive shopper. You are entitled to find the best deal. And the best way to get a good price on a car is to make car salesmen compete.
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Why is it free? Because buying a car is something almost everyone has to do and I strongly believe the process is designed to confuse and take advantage of consumers. I'd like to level the playing field and give everyone a chance at a fair deal.
Of course car salesmen should be allowed to profit, but as you point out that has nothing to do with being a competitive shopper.
Car salesmen aren’t necessary – they are the decision of the manufacturer or sales center. If they didn’t exist there would be less sales-intensive channels for purchasing a car. So you shouldn’t care at all whether they are making a profit. If a grocery store decided they needed a cereal salesman, would he suddenly “deserve” a profit? Of course not.
I know this post is 6 months late, but as a car salesman, things are pretty crazy right now. To ethan, your analogy of a “cereal salesman” is completely bogus. There are very few people that have questions about how to eat cereal, and if they buy a cereal that doesnt work for them, well, they can buy another brand while losing a only a few bucks. Cars are complex technologicaly advanced machines. There are many options available for most cars, and sometimes those option could use some explaining.
I work my guts out, and put in over 50 hours every week. I devote myself to learning about my product and my competition daily and I treat customers with respect and honesty. At the end of they day, when the paycheck comes, I’m just a little over the poverty line for my state. I struggle to pay basic bills and live a very strict budget. Yeah, I’ll have two months out of the year where I make good money, but it just makes up for the other 10 months of falling behind. I’m a strong performer for my dealership. If you aren’t a strong performer, you are forced into the streets or to live on welfare. Just a heads up. Try selling cars for a few months, you might just be grateful for whatever job you have. I’m not complaining, its my choice to work at the dealership. But I think you should maybe think some more about your comment. Thanks for your time.