Car salesman slams customers who try to get more off when they are losing money on deal

@kyleatvaden_/TikTok Ground Picture/ShutterStock (Licensed)

‘Clearly some people haven’t worked commission-based jobs’: Car salesman slams customers who try to get more off when they are losing money on deal

'At this point my commission is a high five.'

 

Phil West

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Posted on Mar 4, 2024   Updated on Mar 4, 2024, 12:34 pm CST

A car salesman is clapping back on customers who ask for prices to be lowered in car buying negotiations—even when the dealership is losing money on the exchange.

The short TikTok video comes from creator Kyle at Vaden (@kyleatvaden_), billing himself as a car sales professional based at Vaden Nissan in Statesboro, Georgia. In the staged video, the creator talks to a customer, using a clip from comedian Druski that’s currently making the TikTok rounds.

It goes, “You don’t get it yet, do you? I just gave you an opportunity of a lifetime, brother, and I’ll be damned if I be disrespected like this.”

In the text overlay, The TikToker writes, “When you’re losing money on a car deal and the customer is still asking for more off.”

The clip has garnered more than 203,200 views and almost 7,400 likes since going up Feb. 1.

@kyleatvaden_ You dont get it do you? #carbuying #statesboro #nissan ♬ original sound – Coulda Been Records

Commenters included car salesmen who revealed it might not be as lucrative for dealerships to sell cars as people think it is.

“Everyone says dealerships don’t lose money,” one claimed. “Even IF that was the case, the salesperson definitely does. Clearly some people haven’t worked commission-based jobs.”

Another cracked, “Best line I’ve every used was ‘at this point my commission is a high five.'”

Someone else groused, “They think we making $5k from the cost vs what we selling it for but all the backend cost eat all that away. Trying to hit volume over gross to get a bonus from the manufacturer, but only if the surveys are on point and enough of them.”

A Capital One article on the matter, titled “How Do Car Dealerships Make Money?” explains:

“Except for Tesla and Rivian, which do not use traditional dealerships, a dealership buys its new inventory directly from an automaker at wholesale prices. The automaker will usually provide financing to help the dealership float millions of dollars in inventory. The MSRP is exactly what it sounds like: a suggested selling price set by the manufacturer. Dealers can choose to discount a vehicle off of MSRP, or, for especially in-demand vehicles, they can choose to charge above it.

A vehicle sold at or below MSRP typically has a small profit margin, much of which may go directly to the salesperson’s commission.”

It adds, “On a new vehicle, a dealer can bolster its profit margin by selling accessories such as different wheels, rubber floor mats, or paint protection. That said, while not every accessory is worth it, some may actually be a good deal.”

The article also noted that most of the money for car dealerships is in used cars. “If a dealership pays, say, $10,000 for a used car, they may spend another $500 or $1,000 reconditioning it by fixing dents, scrubbing the upholstery, and performing service, and then they may place it in their showroom for $15,000 or more.”

The Daily Dot has reached out to Kyle via TikTok direct message.

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*First Published: Mar 4, 2024, 11:00 pm CST