July, 2024
How to Choose the Right Dealership: A Guide for Sales Professionals with 3-6 Months of Experience
Once you’ve gained 3-6 months of experience in auto sales, it’s time to start thinking strategically about where you want to work. By this point, you’ve proven your abilities not just to your employer, but more importantly, to yourself. Now, it’s about taking control of your career and deciding which dealership deserves your talents.
In this phase of your career, you’re no longer at the mercy of any dealership willing to hire you. Instead, you should ask yourself: “What dealership is the right fit for my skills, my values, and my growth potential?” By developing this mindset, you position yourself not only to succeed in future interviews but to excel in your long-term career path.
There are three essential factors to consider when choosing a dealership: low turnover, a challenging hiring process, and a detailed onboarding and training program. These factors will help you avoid chaotic, high-turnover dealerships and guide you to a place where you can thrive, grow, and succeed.
1. Signs of Low Turnover: Stability is Key
Low turnover is often a sign of a well-managed dealership with a positive work environment and structured processes. However, it can be tricky to spot at first glance, as even top-performing dealerships are often hiring due to growth or expansion.
What to Look For:
• Management Tenure: One of the best indicators of a dealership’s stability is the tenure of its management team. If you see a general manager (GM) who has been with the company for 10-30 years or a general sales manager (GSM) who has grown from sales into management, that’s a great sign. Longevity in management positions suggests that the dealership values and retains its people. It also indicates the presence of clear processes that support career development.
• Internal Promotions: Look for a dealership where management has been promoted from within. High internal promotion rates show that the dealership invests in developing its employees and offers clear paths for career progression. Conversely, a dealership that frequently demotes its staff could be a red flag, suggesting instability or a lack of patience with employee development.
• Balanced Hiring: While a dealership may always be hiring, especially if it’s growing, you want to ensure that the hiring isn’t due to high turnover. Look at the length of tenure for employees in different departments, not just in sales. If you notice a high proportion of long-term employees in service, finance, and management, it’s a good sign that the dealership fosters a stable environment.
Why It Matters:
A dealership with low turnover generally has a positive culture, clear processes, and consistent leadership. This creates an environment where you can learn, grow, and succeed without constant disruptions from high staff turnover or management changes. Low turnover means you’re entering a team-oriented culture where people want to stay and succeed together.
2.) A Difficult Hiring Process: The Hidden Indicator of Success
You might assume that a dealership with a quick and easy hiring process is an advantage, but it’s often a red flag. A dealership that hires too quickly may be suffering from high turnover, poor training, and chaotic operations. A challenging and selective hiring process, on the other hand, is a sign of a dealership that takes hiring seriously and is committed to long-term success.
What to Look For:
• Multiple Interviews: If a dealership puts you through multiple rounds of interviews, it’s a positive sign. It means they are investing time in finding the right fit and are likely to invest in your development once you’re hired. The more selective they are, the more likely you’ll be working with a team of high-caliber professionals who also went through a rigorous selection process.
• Thorough Vetting: A dealership that asks tough questions and requires you to sell yourself during the interview process is showing that they value quality over quantity. This creates a sense of exclusivity that can boost morale among the team, as everyone knows they’ve earned their spot.
• Avoiding Desperation: If a dealership is desperate to fill positions and hires without proper vetting, it’s often a sign of chaos and disorganization. They may lack the processes and leadership needed to retain employees, which can lead to a toxic work environment. Instead, seek dealerships that challenge you to prove your worth and show restraint in hiring decisions.
Why It Matters:
A difficult hiring process indicates that the dealership is serious about building a strong, skilled team. It also means that once you’re hired, you’ll be surrounded by highly capable colleagues, creating a more positive and productive work environment. When you and your colleagues know you’ve earned your place through a rigorous process, it fosters teamwork, respect, and shared purpose.
3.) Detailed Onboarding & Training: Setting the Foundation for Success
One of the clearest signs of a well-run dealership is the presence of a comprehensive onboarding and training program. If a dealership expects you to jump into a mid-level or senior role without any formal training or orientation, it’s likely a sign of chaos and disorganization. Conversely, dealerships that provide structured training show that they are committed to your success from day one.
What to Look For:
• Scheduled Training Programs: Before you start, the dealership should have a clear training schedule, whether you’re being hired into sales, finance, or management. Look for structured programs that cover the dealership’s processes, systems, and customer interaction standards.
• Onboarding for Management Roles: If you’re being hired into a mid-level management role, there should be a specific onboarding process designed to integrate you into the dealership’s leadership structure. This helps ensure you understand the dealership’s goals, values, and culture, and can lead your team effectively from day one.
• Process-Driven Training: The best dealerships have well-documented processes for everything from sales techniques to customer service. Ask about the dealership’s processes and how they train employees on these. A dealership with solid processes will not only help you hit the ground running but will also make your job easier and more effective in the long term.
Why It Matters:
Detailed onboarding and training are critical for your long-term success in any dealership. Without structured training, you may find yourself struggling to keep up in a chaotic environment where processes are unclear and expectations are inconsistent. A well-organized dealership ensures that you have the tools and knowledge you need to excel in your role, providing you with a strong foundation for success.
Bonus: The Truth About Pay Plans
While many people in the auto industry focus heavily on pay plans when choosing a dealership, it’s important to realize that pay plans are just one piece of the puzzle. A dealership may offer a high commission percentage, but if it has low volume, poor management, or a chaotic work environment, those pay plans won’t matter. In contrast, a dealership with stable processes, strong leadership, and a collaborative culture may offer a lower commission percentage but will likely result in higher overall earnings due to better performance and higher volume.
Why It Matters:
Don’t be blinded by pay-plan numbers. Instead, look at the bigger picture. Is the dealership well-managed? Do they have processes that will help you succeed? Is the culture one where you can thrive and grow? A good pay plan in a toxic environment is worthless. Focus on finding a dealership where you can build a successful career and watch your earnings grow naturally as a result.
Final Thoughts: Choose Wisely and Thrive
By focusing on these key factors—low turnover, a challenging hiring process, and detailed onboarding—you can position yourself for long-term success in the auto sales industry. Don’t settle for just any dealership. Choose a place where you can grow, thrive, and contribute to a team that values your skills and talents.
Remember, the best dealership isn’t necessarily the one with the highest pay plan—it’s the one that gives you the tools, support, and environment to succeed and maximize your potential.