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Car Salesmen and Realtors. Are they the same?

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

I am launching into the task of buying a new car. I hate to shop for vehicles. I typically see something I like, and I go buy it. This year is different. I haven't bought one for a long time so things have changed. I'll need to look a little more than normal to see what the options are today. 

I know I want a four-wheel drive vehicle because of where I live, but I'm not looking for a big bulky one like the one I own. I'm more open to something a little smaller with the ability to carry my boogie board to beach and my bike on the back (or inside). 

The problem I run into with shopping for cars are car dealers. I don't trust them. Why? Why do I distrust car dealers? It's because of decades of dealers who will do anything to make a sale, including lie, manipulate and purposely hide things. 

I have had one car salesman I trusted in my lifetime. I bought at least three vehicles from him and then he left the business. The last vehicle I bought from a dealer included multiple lies from the saleswoman that I unraveled over the first year of ownership. Can you see my dilemma? 

Now, there is another business that people tend to distrust: real estate. Real estate has garnered some of the same distrust because of some of the same reasons. There are thousands of hard working, smart, ethical real estate agents in the business, but there is another group out there too. There are those who will do anything to make a sale and collect a commission even if it borders on dishonest practices and manipulation. How do we improve our image? Hopefully in the same way my next car salesman will improve his for the industry.

  • Be upfront about everything. No home-buyer deserves to be sold a property that has hidden flaws that are known by the seller or the agent. No home-seller deserves to be sold on selling his property at 20% below the market if the market will bear a higher price. A commission should be earned by doing a great job while securing a client's best interest. Anything else is subject to question. Always be upfront about everything. 
  • Be honest. Don't show a buyer homes that he just can't afford. I've had many clients who came to me because their previous agent only showed them homes that were out of their price range. The agent hoped to push them to buy a home that was more than they wanted to spend because the commission was higher. Again, it's the clients best interests we represent, not our own.
  • Don't make promises you can back up. I've seen many a car salesman say he can get the price down with a short talk to the sales manager only to return with no success. I imagine it's part of the game, but in real estate you can only deliver on what others will agree to. Ask first, promise second. 
  • Always put your clients first. I know you need to pay your mortgage payment, car payment and buy groceries. I hear you, I can relate, but that still doesn't give you and me the right to do what's to our benefit first and our client's second. If you always put your clients first, you'll have plenty of clients. My buddy who sold cars was the best. I would recommend him to any and everyone. That industry lost a real superstar when he quit. You want your clients to feel the same way about you because they will tell their friends, family and co-workers.

This list could be ten times this long but you get the gist. Real estate sales are about the client. No one likes to feel like they've been taken advantage of, and I can guarantee you if they do, they will talk, and today, they will blog. Car salesmen and Realtors, are they the same? Only we can answer that one client at a time.

Comments(52)

Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

After hearing a Real Estate dispute one time, my associate panel member remarked that one of the participants came across as a car salesman and she meant it as a derogatory remark...I believe that sales shows up everywhere

Jan 02, 2015 10:55 PM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Mike Cooper ... I, like you, don't enjoy car shopping at all.  I consider cars a necessity ... but ones that are a losing proposition.  Unlike much of real estate, they lose value as soon as you drive them off the lot.

As far as the similarities between car salesman and agents (and I should probably add Lenders) ... I've come to believe that, just like every profession, there are good and bad.  I try to judge them independently on their own merit.  I certainly want people to do the same regarding my services ...

Gene

Jan 02, 2015 11:38 PM
Marie Story
Coldwell Banker - Pinecrest (Miami) - Pinecrest, FL
Broker Associate, Pinecrest (Miami) Specialist

Mike, I too will be buying a new car this year.  And what should be a fun and exciting experience I am just dreading.  I really do not look forward to dealing with a car salesperson. 

I'm going to see if I can buy it through the internet.

BTW, for many years I've had a Nissan Pathfinder - I love my car!

Jan 03, 2015 12:53 AM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Mike Cooper Interesting that you would want to try to compare cars salespeople with Real estate agents. There is no comparison. We, as Real estate agents work under individual licenses from the state and abide by a Code of Ethics as NAR members. Car dealers, and their emplyees work under the U.C.C. and individulas do not need a state license, only the business. You are right that there is a world of difference between dealerships and the term caveat emptor must be taken seriously when purchasing a car. Good post!

Jan 03, 2015 02:50 AM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

I sure do hear a lot of horror stories from my clients.....  Rushing them to buy the first thing they see.

 

Jan 03, 2015 04:47 AM
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Mike ... interesting post and some great comments. Around 7 years ago I wrote a post about Realtors & Car Sales persons being quite similar, and some agree agents were leaving comments 

Your post has been featured to the group:

Addicted to Active Rain

 

Jan 03, 2015 06:33 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Just had the same experience with & I didn't buy the car. Very bad dealings but not with the salesmen, with the finance guy & all the garbage he pulled.

I strive to be totally different as you mentioned.

Jan 03, 2015 07:31 AM
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

Hi Mike,

No, they are not alike! However that being said I bought a new car last year and had a great salesman so they can't all be painted with the same brush just like real estate agents! I would definitely recommend him and will use him again if our next purchase is a Lexus.

Jan 03, 2015 11:02 AM
James (Jim) Lawson, DBA
DomainRealty.com LLC - Bonita Springs, FL
Broker Associate, RSPS, BPOR, HI & PE

I've successfully used the Bill Reddington (#21 post) approach for many years. However, now some car dealers are trying to intimidate buyers with their no-hassle pricing policies and dealer add-ons that are worse than ever. I get right to the point, "Let's not waste each other's time. Here are the terms and the offer, yes or no?" Furthermore, the offer is always the out-the-door amount. This usually drives the financial guy or gal nuts since the bottom-line is my number, not their's.

Jan 03, 2015 12:00 PM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

Some realtors are like used car salesmen.  Some of them are relentless and all they care about is making a sale.

Jan 03, 2015 07:56 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Mike, as I see it, the big difference in Realtors and car salesmen is the fact that a Realtor can show you all the different brands, a car salesman wants to sell you only his.  I see similarities between going to a builders rep to look for homes.

Jan 03, 2015 09:25 PM
Jason Potrzeba
Home Loan Investment Bank - Warwick, RI
Senior Account Executive

I will offer a differnet opinion here. I spent 5 years in sales for Honda and from my experience, one of the worst groups to sell to was a real estate agent. I've always conducted myself in an honest and professional manner. I don't know what it was with real estate agents and someone in car sales but the relationship was usually poor. Unlike the normal process, the agent would be back time after time after time, unable to go to sales agreement. They wold go from dealer to dealer to dealer and back. The process was usually long, and many times the time spent was not worth it. I think a lot of it was do to fear. The agents work in sales and can somewhat control and direct the sales process with a house. When buying the car, the agent isn't in control and they are scared of getting screwed and this may be why it takes them so long to actually make the decision to buy.

Jan 04, 2015 12:16 AM
Thomas F. Scanlon
Borgida & Company P. C., CPA's - Manchester, CT
CPA, CFP

Mike Cooper - Well done. I have never enjoyed buying my vehicles. Not sure I ever will. 

Cheers!

Jan 04, 2015 12:48 AM
Teral McDowell
Referral Patners LLC - Murphy, TX

I'd rather buy a house than a car anyday - it's a much more pleasant experience having done both mulitiple times.

Jan 04, 2015 01:41 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Just stopped by to ay stay safe out there today - saw a glimpse of Winchester in the snow on DC news channel this morning .

Jan 05, 2015 09:10 PM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Mike, it really is about one client at a time and keeping their best interests as our top priority at all times. I have bought my cars from the same person for the last 8 years. It's such peace of mind knowing he's honest and does right by me. 

Jan 05, 2015 10:33 PM
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

I agree with not showing your buyers homes out of their price range.  It is easy to fall into that trap and start appreciating the more expensive homes.  That makes the ones in your price range fail in comparison. 

Jan 06, 2015 03:26 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

like so many of our real estate clients,I do a lot of searching online for vehicles before I go to a dealership, and usually the car I want is online as well. I do as little as I can with a dealership and will stay away from some even if the car I want is there.  Nice analogy but not so good for where the comparison  lies

Jan 08, 2015 01:18 AM
Anonymous
William davidson

Now the shoes on the other foot,I'm a 30 car month new and used guy . Been in the car business 25 years. Here's the problem no good car guy whants to deal with real estate people period.. Yes I will enjoy selling to attorneys, Japanese,and ect.every realtor that I have sold lied about everything and so worryed to death how much your making,even if it's 50 dollars over coast . But I have to say attorneys of all I have sold cars to I have made the most money and they were happy customers.

Jan 08, 2016 02:25 PM
#51
webb rowan
The Smarter Finance Company - Baltic, CT
Rowan Webb is a New Zealander.

I don't think we can deny that sales people from all industries are a little dubious and dodgy. But we also cannot deny that they have the information and know-how for their industries that put us in a position that requires their help. We just have to go into the discussions with our eyes opened so we don't get swindled in the process of purchasing something.

Oct 05, 2016 03:43 PM