The Used Car Dealer: The Most Misunderstood Profession in South Africa?

This is an opinion piece. It reflects one dealer's view of the profession.

When I entered the motor industry, I thought selling cars would be relatively simple: find a good car, put a fair price on it, find a buyer and make a living. I soon learned that I had signed up for a career in law, mechanical engineering, psychology, customer relations and, occasionally, miracle-working.

First, we must be mechanics

Not ordinary mechanics. We are expected to know exactly what is wrong with a vehicle, even before the diagnostic equipment has finished thinking about it. And when a warning light appears six months after delivery, we are expected to explain why a component in a ten-year-old vehicle has decided to retire.

Then we must become lawyers

We must understand the Consumer Protection Act, implied warranties, fair wear and tear, disclosure requirements and the difference between a defect and a maintenance issue. We must also be prepared to defend our decisions before regulators, councils and tribunals.

Next comes psychology

We must understand why a customer believes his trade-in is worth R200,000 when the market suggests R130,000, and explain that buying a used car is not the same as buying a new one, without offending anyone's feelings. When a customer phones to report a problem, we must listen patiently, stay calm and remember that "I am taking this further" is not necessarily a personal threat.

But wait, there is more

We must also be financial experts, marketing specialists, compliance officers, data analysts, negotiators and sometimes even detectives. We find good stock, manage cash flow, deal with finance houses, keep up with changing legislation and satisfy suppliers, and somehow make a profit.

Everyone sees the selling price, but very few see the reconditioning, salaries, advertising, floorplan interest, warranties and overheads that come with putting a vehicle on the showroom floor. By the time everyone has been paid, the dealer is sometimes left wondering whether he sold a car or sponsored someone's holiday.

And let's not forget the regulators

Dealers must comply with an ever-growing list of rules, reporting requirements and procedures. We keep records of everything, explain everything and are ready to justify almost everything. Sometimes I wonder whether the ultimate qualification for becoming a used-car dealer will soon be a law degree, followed by a mechanical engineering diploma and a compulsory course in emotional intelligence.

The biggest misunderstanding

People still believe selling used cars is an easy way to make money. It isn't. It is a business built on risk, experience, knowledge, relationships and an awful lot of patience.

So, to all my fellow dealers: you are doing far more than simply selling cars. You are managing expectations, solving problems, creating employment, taking financial risks and keeping an important part of the motor industry moving.

Perhaps it is time regulators spent a week working in a used-car dealership before deciding how easy the business is. They might discover that the most complicated part of the motor industry is not the engine, the gearbox or the electronics. It is selling the car, keeping everybody happy and still having enough money left at the end of the month to pay the electricity bill.

Perhaps we should stop calling ourselves used-car dealers and start calling ourselves Automotive Survival Specialists. At least then, people might understand what we actually do for a living.