Leg

Managers call it leg, a more polite way of saying they’re packing the payments. I realize they don’t quite see it this way, but it’s one of the ways car dealership management rip off their salesman. Here’s the way it works: You work your ass off all afternoon to close your customer at a payment $400 per month. After much agony (and maybe even a turn!) you finally make your deal. You think, All right! High five! Another job well done!

But what your sales manager didn’t tell you is the real payment on the car was actually $380 per month. There’s an extra $20 packed in there, $20 THAT YOU WORKED YOUR ASS FOR, that will be used by the finance guy to help him sell an extended warranty, sealants (AKA snake oil) or whatever other bullshit stuff they’re currently hawking in F&I office. AND YOU DON’T GET PAID ON!

Back in the old days, it was the salesmen who sold the extra market stuff. It was a lucrative way to make more money. Sometimes it was more than the commission on the car. But in their heart of hearts most car dealers don’t like it when the salesmen are making a lot of money. (Not talking about you, Tom!) They feel this way because they think that salesmen that are kept hungry will work harder, or they simply have an aversion to signing big paychecks.

So somewhere around twenty years ago selling aftermarket was taken away from us and given to the F&I department. Ironically, this was probably a good idea. When the salesmen did it, the guy who was best at selling the crap sold the most stuff. By having someone with some talent sell the snake oil, the dealer was assured that more items were sold per sale.

The problem was they forgot about us, and even though we we’re doing part of their job, i.e. the leg; they decided we weren’t deserving of participating in the profit generated by our efforts. I’ve got nothing against the F&I department selling the stuff—as long as we get a little taste of the action if we’ve helped them. The problem is that Car Men, whether on the line or in a manager’s office, are ultimately a little lazy. So if they can make their lives a little easier by screwing us out of a part of the gross, they will do it. Every time.

I think the F&I department should earn his money just like we do. I think that every dime should be put into the deal, and if the finance man can bump the customer good for him. Or if payments are being packed, a generous spiff should be paid to the salesman.

A year or so ago the state of California came up with a form called “The Optional Products and Services Disclosure”. The form tells the customer what is payment is with all the extra crap on the contract and what it would be without it. It has effectively put an end to the leg. Hallelujah!

Now I know the state of California could give a rat’s ass about car salesmen. This law was designed to protect the consumer. (I won’t go into how I feel about that!) But an unintended result is a little payback for the guy on the line. At least in California we won’t be doing extra work for free anymore!

Got a feeling this will piss some people off. I love it!


Talk to you later,


David