Capsule Review: 1995 Explorer And The Disney Deal

Jack Baruth
by Jack Baruth

Having just seen the new Explorer, but being under some kind of embargo, I’ve decided to write about old Explorers this week – jb

My parents raised me to never inquire about another person’s salary, but they didn’t have the chance to deliver this message to everyone else in America. As a result, I’ve seen this question asked of many people, including myself, during my lifetime. There are two ways this question can be answered. The first one is the way that everyone in the universe except paid-on-commission salespeople answer it. The pseudo-math equation is this:

(Reported annual income) = (actual annual income)

Salespeople answer the question differently. In fact, I’ve never met one who failed to give the following answer, expressed in the same style:

(Reported annual income) = ((Best Month Ever) * 12)

With that in mind, what follows is how I earned $108,000 a year selling Ford Explorers in 1995.

I want to explain the magic of the Ford Explorer to you in a way that everyone can understand. During 1995, Ford sold well over 400,000 units of both the Taurus sedan and the Explorer SUV. The average ticket for the Taurus at my dealership was about $17,500. Of that, about $16,000 went to Ford after rebates and holdback. That sixteen grand had to pay for a complex unibody vehicle with expensive components, relatively expensive trim, and a CAFE burden that needed to be addressed by subsidizing Ford Escort sales.

By contrast, the average ticket for an Explorer at my dealership was $29,675, which was what an XLT 4WD with sunroof cost. $26K of that went to Ford. A V-6 Ranger with identical mechanicals could be had for $18K. Get the picture? Ford made big bank on the Explorer. Maybe as much as $10K per unit profit, times 400,000 or more, for nearly a decade.

I arrived in the Ford business during the winter of 1994-5. One of my first sales was a previous-gen 1994 Explorer, and that’s a story I will tell tomorrow, but in general I was there to sell 1995 Explorers. We sold as many Explorers as we did other Ford vehicles combined. This was critical, because Explorers were the only Ford vehicles which sold at sticker that year. It was easy to make $400 commision on Explorer deals, compared to the $50 “minideals” to be had on a Taurus or Contour. Selling five Explorers meant you could eat that month and keep the lights on at home.

The vast majority of Explorer sales were the 945A XLT package. That was leather, sound system, tilt and cruise, 15″ aluminum wheels, tinted glass, and roof rack. It was the cheapest Explorer to lease, because it had the highest residual. Cheapskates and cash buyers were shown the $26,000 941A XLT with flat cloth seats. There was an Explorer XL four-door, but we never sold one.

The Eddie Bauer Explorer was a piece of shit, so we never stocked more than one at a time, compared to the 10-15 945A XLTs we had on hand constantly. The 16″ wheels and big tires made it miserable on the road and the price was well above the critical $30,000 mark. The Limited, at $35,000, was even worse and we wouldn’t even take them on dealer trades. I could lease you a 945A XLT for $450 a month. A Bauer was $650 on the same profit margin; a Limited was $800. Hell no.

There was one engine choice — a 4.0 V6 — and just two drivetrains — RWD and an “Auto 4WD”. We didn’t have a V8, and we didn’t have full-time AWD. It didn’t matter. The Explorer rode well in XLT form, it had all the goodies, it was reasonably spacious, and it looked prosperous. The line formed to the left.

My wedding was planned for August of 1995, and as of July I still had no money for a honeymoon. We didn’t even have any real credit cards to debt-float such a trip, so I figured we would just come home after the blessed event. I was earning an average of $2500 a month at the dealership, and there was no honeymoon money hiding in that figure. Oh well.

Around July 15, a young African-American man came into the dealership to look at Explorers. As is always the case at new-car dealerships, the arrival of a black man caused every salesman in the joint to mysteriously fade away, leaving me alone on the showroom floor. The guy’s name was, I think, Vince. Nice enough, and I took him out for a drive in the 945A XLT demo.

He was sold, at full sticker. The bank came back with an emphatic “HELL NO.” Vince wasn’t fazed; he would take a 941A. No chance. Okay, he’d take a two-door Sport, for $23,995. The bank said he was approved for a maximum of $22,000. Not a penny more. Vince said he had a thousand bucks in his savings account, give or take a few. My boss told me to take him across the street to the used-car shop.

In the converted Burger King which housed our used-car sales offices, I was greeted by Tim, the outrageously greasy and unethical used-car manager. “We have a $23K Explorer, no problem.” I took Vince out for a demo drive in it. It was a ’93 four-door XLT, plenty of equipment, 45,000 miles. I couldn’t believe Tim had the nerve to ask that kind of money for the truck, but Vince liked it. He was “sold and rolled” an hour later. I was called into the sales office to do my commission paperwork.

“Here’s the deal,” Tim said, grinning from ear to ear. “We had that on the lot at $16,995. I pulled the numbers off while you were stalling the mark. We paid $12,500 for it. He signed at $22,995. Pack (the part of the dealer profit on which a salesman is not paid) is $500, net is $9,995. You take 30% of that, $3332.50.”

I felt sick to my stomach. We’d cheated that man, and I said as much to Tim. He was a big Irish guy, and he rose to his feet with violence in his eyes. For the sake of some of the readers who complained about the language in my Aspire review, I will redact this one. “That (African-American) (individual who performs oral sex on men) was fucking stupid enough to pay the ticket. Nobody cheated nobody. Take your money and shut the fuck up before I kick the shit out of you.” Faced with the choice between collecting more than three thousand dollars and losing my job yet again for office fistfighting, I took the money.

Forty days later, my wife and I were in Disneyworld, enjoying a room in the “Contemporary” hotel and eating cost-no-object dinners every night. Energized by my agitation on that deal, I’d managed to earn almost nine thousand dollars that month, selling ten new cars and three used ones. I even bought myself a wedding present — a new HK P7M8 pistol that sold at the time for eleven hundred bucks. Good times.

I returned after a six-day absence to find a message on my desk. Vince had recommended me to a friend who was dealing with credit issues. Could I sell him a great Explorer like I’d sold Vince? On my way out the door that night, I turned, faded back in the jump-shot motion I’d learned playing Catholic-school basketball, and shot the crumpled message into the showroom wastebasket. There are limits.

Jack Baruth
Jack Baruth

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  • Wheeljack Wheeljack on Jul 23, 2010

    I was selling Fords when the Explorer first launched in 1990 as a 1991 model. Until the arrival of the Explorer, we pretty much sat around all day glued to CNN watching Gulf War I play out, just like most Americans at the time. Once the Explorers started showing up in any volume, we finally started to see some traffic at the dealership. Unlike Jack's situation, we sold every Eddie Bauer that came in almost immediately, and people seemed genuinely disappointed to have to "settle" for an XLT. On the opposite end of the spectrum, we had a "loss-leader" 2wd XL model advertised in the local paper to get people in the door. I want to say it was listed for $15,999 (or maybe $16,999 - memory is slipping a bit) and it was truly stripped save for an automatic trans. This thing actually had a maroon vinyl bench seat with a column shifter (no, really) and was resplendant in its metallic maroon paint set off by it's perfectly flat hubcaps (?!). Needless to say most folks wanted to see what else we had after seeing this little gem.

  • Rudiger Rudiger on Jul 24, 2010

    Dealership sales stories are interesting primarily for the deceit and survival involved - the idea of how low will someone go to make a buck so they can eat. Consider that without Vince, there wouldn't have been a trip to Disneyworld. I also wonder where Vince was dining during that same time frame. Once, while getting a carwash at a BMW dealership, a salesman came over and decided to tell me that it was a 'special' carwash machine. It was really just the usual, normal automatic carwash anyone has, but the salesman felt compelled to lie like a bastard for no apparent reason (other than to keep in practice). Likewise, I once drove up to a Honda dealership in a hybrid and was looking at an S2000. As a salesman walked by with someone else, he called out to me, "They're bringing out a hybrid version of that next year!" Again, he just couldn't keep himself from lying. I suspect that's really what's going on with the tactics at the sleaziest car dealerships. It's a game of finding out exactly how uninformed a potential buyer could be. To 'not' take advantage of someone that obviously is too lazy/stupid to do their homework before walking into a dealership would be considered 'unethical' by the car salesman 'code'. Fortunately, most people simply don't have the stomach for such behavior. It reminds me of a Will Rogers quote: "I'd rather be the one who bought the Brooklyn Bridge than the one who sold it".

  • 2ACL Too much, but at least it can get out of its own way. One adjustment I don't think I'll ever make to the modern automobile is sub-160 hp beyond $25k.
  • MaintenanceCosts The black wheel arches and rocker trim are ghastly. Looks like to get them in body color you have to downgrade to the N Line. And you can't get a 360-degree camera on the N Line. Oh well, I'm not a compact CUV customer anyway.
  • Gray Where is Subaru on the list? They build them in Indiana. NASCAR should field the Legacy sedan to go up against Toyota.
  • Redapple2 H-K Styling. May not be my cup of tea but they re trying. Gripe. This would be a deal breaker. Door cut out - seat postion - 'B' pillar. I m over 6'. So the driver's seat is towards full back position. Rental Equinox last week. 1100 miles. The seat bottom to seat back point was 8 inches behind and around the 'B' pillar. I had to be contortionist to get in and out of the car. Brutal POS. Wife's Forester? Nearly equal/flush. I ve never seen 1 car review where they complain about this.
  • Lou_BC In my town the dealers are bad for marking up products, even pickups. There were multiple "mega-projects" on the go in my region so money was flowing fast and loose both by corporations and employees. All of that is coming to an end plus we've seen a pulpmill close, one pulpmill line close and a few sawmill closures. Cash is getting tight.
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