Go Back   DealershipForum.com > Dealer Talk > Automotive Discussions


Automotive Discussions Car People talking about the Car Business This is the place where it happens

Thread Tools Display Modes
Old 01-01-2018, 08:01 AM   #1
Senior Member
Join Date: Mar 2013
Posts: 577
Default Open Floor vs. New/Used Sales Departments

Happy New Year, everyone!

i wanted to get a conversation started about opinions on having an open sales floor versus split new and used car departments. We are obviously all in somewhat different markets, and my entire career has been spent in the Midwest, so I'm just curious as to everyone else's experiences when it comes to this subject.

Until the last year I was with a pair of dealership groups that had open floors and in one case, even sales management staff that desked new and used car deals equally, both worked on used vehicle acquisition... the only thing that fell solely on my plate was ordering new vehicles. This actually worked out pretty well for us, but I imagine you have to have a strong pair of managers to not have dedicated new and used managers to make sure nobody feels butthurt at times.

Anyhow, my recent concerns are more focused on the sales staffs. I'm looking at a possible restructure of my used vehicle department going into 2018. The setup, as I inherited it in 2016 and have left with few exceptions is:

New Vehicle Department: 1 manager, 5 dedicated new sales. Average monthly volume of 55.

Used Vehicle Department: 1 manager, 2 dedicated used sales. Average monthly volume of 15.

Finance manager shared between the two departments since volume is still low -- and I will back up the finance manager as needed because of vacations, weekends, and such.

I have a sixth new car staffer starting this week. My thought is to consolidate down to an open floor -- possibly losing one of the current used car staff in the process. As I mentioned before I prefer the open floor. I think it gives a more unified experience for the customer, is easier to manage, and holds used vehicles to a higher standard. I think going to an open floor gives a good chance at increased volume on the used car side. As it stands now I worry that two veteran shortcutting used car staffers just walk customers and push around the manager we have in place.

Used car department current runs in a separate building on our property, but thinking of bringing everything down to the new car showroom since we have room for expansion and I am only stocking ~125 new at this point.

Any thoughts?
mryan55 is offline   Reply With Quote
Old 01-01-2018, 09:18 AM   #2
Senior Member
Join Date: Feb 2008
Posts: 132

One floor is the way to go, unless you are worried about VGP. Your new car guys will soon find out that Used cars are the units that make them money and you might have a switch.
conn02 is offline   Reply With Quote
Old 01-07-2018, 07:07 PM   #3
Senior Member
Join Date: Mar 2013
Posts: 577

I am going to give it a try this year. VGP is of course a concern but the change will really strengthen my used car department immeasurably and make us more comfortable adding to the used car inventory. We will see how it goes.
mryan55 is offline   Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Breaking down the barriers between parts and service departments. FixedOpsGuy Service 2 05-08-2014 01:16 PM
OK, so who's going to have their sales departments open this Sunday? JoeRocket Automotive Discussions 17 12-25-2010 07:22 PM
Floor plan ssdd Sales 5 11-18-2008 11:12 AM

All times are GMT -7. The time now is 04:12 PM.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016