edmunds.com: Confessions of a Car Salesman

In this article on edmunds.com we get a glimpse into the dark underworld of car salesmen. According to the Introduction:

These were the questions we, the editors at Edmunds.com, wanted to answer for our readers. But how could they really know that our information was accurate and up-to-date? Finally, we came up with the idea of hiring an investigative reporter to work in the industry and experience, firsthand, the life of a car salesman. We hired Chandler Phillips, a veteran journalist, to go undercover by working at two new car dealerships in the Los Angeles area. First, he would work at a high-volume, high-pressure dealership selling Japanese cars. Then, he'd change over to a smaller car lot that sold domestic cars at "no haggle" prices.

The article is in nine parts, and that makes it a pretty long read, but it's worth it. I learned a lot about the car business, and I feel like I'll be better prepared for my next purchase. I particularly liked this part:

I asked how he did it. He said he checked prices on the Internet. He then called the fleet manager and made the deal over the phone. I had a schizophrenic reaction to this. Part of me admired the fact that he had outfoxed the dealer. But the car salesman side of me was angry that I never "got a shot at him." It seemed like just a matter of time before people who, in the past, walked onto our car lot, would be on the Internet making deals. The salesmen are only vaguely aware of this developing trend. I was standing on the curb next to George and we saw one of these high-demand SUVs ready for delivery. "Another damn Internet sale," George said. "Why don't they turn that car over to us? We'd get a grand over sticker. Instead they're selling it at invoice. Does that make sense?" As the days passed I noticed more and more cars marked "carsdirect.com." And as I approached people on the car lot they often informed me that they were here to see the fleet manager. More Internet customers.

I would have thought that the internet business was more closely tied to the regular dealer business, but maybe when you cut out all of the commission the dealer ends up with the same profit. Either way, it's great for the customer. [via BoingBoing]