How to Lose Money in the Car Business: Money for the Guy at the Bank
I would say this video falls into the category, “I can’t believe that actually happened”. But I can tell you it did because it happened at my store many years ago, and it’s an example of just how far an unethical salesperson with a very small brain can go.
Some years ago in the early days of non-prime finance, we had some pretty good sales staff. Closers, I would say. These guys were making ten grand a month 15 years ago. One day the manager gets a call from a customer asking for a refund of the $500 she left as a deposit so that she could get approved. Now here’s the thing: she said she left the deposit of $500 so the salesperson could give it to the guy at the bank in order to approve her application. According to the client, the salesperson told her ”We can’t get you approved unless we pay off the guy at the bank. If you give me $500, I’ll give it to the guy at the bank, and he will approve you”. Unbelievable.
Now I wish that’s how it worked, we would sell a crap-load more cars, but bankers, at least the ones approving car loans, don’t generally accept bribes to issue approvals. A few beers at lunch maybe, cash never.
Some customers actually believed they were paying off bankers to get approved, and he was selling a ton of cars.
This is the really unbelievable part: the salesperson had actually issued her a receipt! From his own receipt book! He had a little business going. Some customers actually believed they were paying off bankers to get approved, and he was selling a ton of cars. Not only was he stupid enough to tell clients he was paying off bankers for approvals, he was actually issuing signed receipts as evidence of his behavior. It was truly unbelievable.
The client provided us a copy of the receipt, and documented the date and time when he visited her at her apartment to collect the money. In fact, the only reason she even came forward was because we couldn’t get her approved, and he didn’t have the money to give back. I’m pretty sure it either went up his nose or to his bookie but who knows?
It never ceases to amaze me how easily some people lie. When we confronted him with all the evidence he denied it. We had him cold, but he just sat there and lied as easily as he breathed. When we told him we knew he was at the clients apartment on a certain day he said he was with his wife. When we called his wife she said ”I don’t want to be involved in any of his stuff” and hung up. He sat there, caught red handed, and still denied everything. Just amazing really.
It never ceases to amaze me how easily some people lie.
Now of course, we gunned him, and we grabbed the $500 off his last pay to refund the client, but to this day I have no idea how many clients are out there thinking they paid off the banker to get approved.
Here's the thing, that's a true story that with any luck will never happen again, but the real issue is having that type of salesperson in your business. That individual that has absolutely no moral compass. That person that lies as easily as they breathe. That person that lies as easily as they tell the truth. That person who lies so easily and often that they will just lie even when the truth is just as good. You know who they are. Likely the rest of the staff knows who they are, and they don't like them. Likely you get tons of heat from unhappy customers. They were promised this or that, the salesperson told them this.. all from the same source, the same salesperson. You can't fix that, so unless they happen to be your kid or something, get rid of them...today.
You can be honest, and sell lots of cars, and generate lots of gross. In a business where we live with the lying salesperson stereotype every single day, the last thing you need to do in your dealership is reinforce that stereotype. So subscribe and find out who else you should get rid of!
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