“I’ll tell you something,” the grizzled used car veteran said to me menacingly from across his massive, oaken desk. “The internet has ruined this business.”
Tell me something I don’t know, old man.
It’s a variation of the same thing I’ve heard for five years. The car business used to be a place where men of little to no education or intelligence could make veritable fortunes, simply by preying upon the ignorance of their customers. Pre-internet, it was completely realistic to make $4,000 of front-end gross profit on the sale of a used car — and sometimes even more! Pull up a chair across from the more tenured sales guy at any Cadillac store, and he’ll gladly spin you a yarn about that one time he made $10,000 in gross on a little old lady who was on a fixed income, and he’ll laugh as he’s telling it.
Of course, he’ll have plenty of time to tell you this tale because he’s the guy who doesn’t take ups and instead lives on his book of referrals — and those are dying faster than the baby boomers who made them an integral part of the car business in the first place.
But now? Why, that rotten internet and all of its information has made it impossible for dealers to screw customers. Or has it?