Chapter 54 I Went Shopping for a Used Car
“The sale proceeds will be wired within fourteen days. Since the company held the vehicle title and handled the work as an independent-contractor arrangement, you can report the taxes using Form 1099-NEC.”
(Translator’s Note: Form 1099-NEC — A United States Internal Revenue Service information return used to report compensation paid for services performed by someone who is not treated as an employee. “NEC” stands for “Nonemployee Compensation.”)
After the auction ended, I completed the final paperwork in Hailey’s office.
“Got it. That’s the easiest and cleanest way.”
I was already familiar with Form 1099-NEC because we had used the same arrangement when I restored Donnelly’s Corvette.
“But is it really okay to give me all the profit like this? Won’t the company object?”
The profit I had earned this time was approximately fifty-five thousand dollars.
Even after deducting minor fees and taxes, it was an enormous sum.
“Hmm. Well, auction commissions are our main source of revenue. And this case was a little unusual.”
“Unusual?”
“Yeah. First, we wanted to see whether the market would respond to the modern-classic category. It was also a test of our direct-purchase strategy.”
As Hailey said, Sterling Selection was an auction agency.
Normally, it charged the seller approximately five percent and the buyer approximately fifteen percent.
“Direct purchasing… I suppose the returns would be higher if you had enough capital. But the risk would increase just as much.”
“Exactly. If we misjudge a trend, we end up with inventory and sunk costs. Those are risks that didn’t exist under our original business model. Until now, our expenses were limited to facilities, labor, advertising, and management.”
Interesting.
Despite how young she normally sounded and acted, Hailey was remarkably sharp when discussing business.
“Ahem. Still, judging by today’s response, it doesn’t seem like a bad idea. I’ll be going, then.”
“Wait. Take the suit and shoes with you.”
As I turned to leave the office, Hailey handed me a large shopping bag.
“Ah… These.”
“Honestly, how can you make it so obvious from your expression that you don’t like them? Those clothes are fairly expensive. Wear them to a party someday and everyone will be amazed.”
I doubted I would ever attend another party in my life that required a suit this expensive…
“Ah! Speaking of parties, shouldn’t you treat us? You broke the highest-price record in the entire country. We need a celebration.”
“…All right. I’ll think about it.”
I had made a substantial profit thanks to Hailey, and pretending otherwise without offering anything in return did not suit my personality.
“Oh, really? All right. I’ll look forward to it.”
“Don’t expect too much. It definitely won’t be the kind of party where you wear a dress like the one you had on today.”
“Hehehe. Okay!”
Hailey smiled brightly while forming a circle with her thumb and index finger.
There was no trace left of the career woman who had been discussing strategy and profitability moments earlier.
After leaving the Sterling Selection building, I first called Noah, who was probably waiting with his neck stretched out.
Ring, ring—
“Jason? What happened?”
“Yeah. It was huge. We broke the record.”
“Oh. My. God! Really? A new record?”
Even over the phone, I could vividly imagine Noah making a tremendous fuss.
“Yeah. Now that the auction is over, come straight to the shop tomorrow after school. Like I promised, we’ll go look for Rachel’s car.”
“Yes! Got it! Wow, I’m already nervous.”
Part of me wanted to use the profit to replace Rachel’s car myself.
However, Noah had strongly insisted that he wanted to do it with the money he had earned, so I decided to respect his wishes.
Instead, I’ll make sure we buy the used car as cheaply and wisely as possible.
It was time for the appraisal skill I had only used when purchasing restoration vehicles to shine.
At a used-car dealership on the outskirts of Tucson, Rick Dawson sat in the office and stared blankly at the banners fluttering outside the window.
Damn. Is this month’s bonus already out of reach?
The income structure for used-car salesmen was straightforward.
A base salary barely high enough to survive on, commission for every vehicle sold, and an additional monthly bonus if they exceeded a set number of sales.
At the dealership where Rick worked, the bonus threshold was eight vehicles per month.
With the end of the month approaching, he had somehow managed to sell seven, but no matter what he did, he could not close the final sale.
“Oh…?”
At that moment, an old black Chevy truck entered the lot through banners bearing slogans such as “No Credit, No Problem.”
The people who climbed out were an Asian man wearing jeans that looked as old as the truck and an excited kid who could barely contain himself.
Ah… Just a couple of unremarkable walk-ins.
Approaching his fifth year as a used-car salesman, Rick prided himself on being able to distinguish profitable customers from unprofitable ones based on appearance alone.
“Ahem! Welcome! I’m Rick Dawson.”
Rick approached them with his sales smile.
At the same time, he rapidly narrowed down a list of vehicles that looked inexpensive but offered large profit margins.
“Hello. We’re looking for a comfortable, reliable car that won’t break down.”
The man who climbed out of the truck had sharp eyes and did not look easy to handle.
But that was merely an impression.
Rick began skillfully working his tongue.
“Ah! Then you’ve come to the right place. Let’s start with this one. It’s a 2007 Camry. When you think Toyota, you think reliability and durability, don’t you?”
“Hmm. Camrys are good. May I open the hood?”
“Of course. Just a moment!”
Rick scoffed inwardly as he retrieved the key and opened the hood.
As though looking at it will tell you anything.
It was a common sight at the dealership.
People who knew nothing about cars would always begin by opening the engine bay.
“Noah, what do you think?”
“Hmm. There don’t seem to be any oil or coolant leaks. It looks all right.”
“Yeah? Then let’s check the other areas too. Excuse me for a moment.”
The man swept past him and ran his hand over the tire’s surface.
“The tires have about seventy percent left. Feel this. You should be able to feel the raised bars inside.”
“Oh, you’re right.”
The man then opened every door and began lifting the rubber weatherstripping.
“Sir, if you pull too hard—”
“See how the welds are different here? Factory stamp spacing is uniform, but these are closer together. This panel was replaced.”
Perhaps the man could not hear Rick, because he was too busy explaining things to the boy following closely behind him.
“We’ve seen enough. Do you have any other cars?”
The man spoke briefly after finishing his explanation.
“What? Ah, of course we do! How about this one? It’s a Honda SUV, and it’s in fantastic condition.”
Unlike what he had expected, the man appeared accustomed to handling cars, and Rick felt strangely intimidated.
“Yes, it doesn’t appear to have been in any major accidents. May I start it?”
The man stood in front of the Honda SUV this time.
“Yes, of course. Just a moment.”
Rick found the correct key from the bundle and handed it over.
Vroom—
“What do you think? It’s in good condition, isn’t it?”
It started immediately and showed no signs of oil or coolant leakage.
“Wait a moment. Noah, do you hear that high-pitched buzzing?”
“Hmm… I’m not sure. How is it different from the engine noise?”
“Somewhere around here. It isn’t the belt or the engine turning. There should be an electronic sound.”
At the man’s words, the boy brought his ear closer to the front of the engine.
“Oh? I hear it! A high-pitched whine!”
“That’s right. It’s the alternator. What battery voltage should we get while the engine is running?”
“Uh… Was it thirteen volts?”
“Correct. More precisely, somewhere between 13.7 and 14.5 volts is ideal. This one is probably barely producing something in the high twelve-volt range. The alternator is already considerably weakened.”
The man abruptly shut off the engine and returned the key to Rick.
By this point, Rick felt cold sweat beginning to bead across his scalp.
“You… seem to know cars extremely well. Is there a particular model you’re looking for? That may be better than relying on my recommendations.”
Rick asked cautiously.
His tone and attitude were far more respectful than before.
“Do you have a Tucson? Around a 2015 model.”
This time, the boy beside the man answered with a shrug.
There it is. I need to target the kid.
Rick felt relieved.
It was as though sunlight had found a tiny crack in an impregnable fortress.
“Of course! As it happens, we have two. One white and one silver.”
“Hmm… Then the silver one first. I think Mom likes silver. Her current car is silver too.”
Ah, so they’re choosing a car for his mother.
Rick did not miss a single word the boy said.
“This is it. It’s a 2015 model with high-end options, completely accident-free, and I can personally guarantee its condition. We’ve also replaced all the consumables.”
Rick puffed out his chest confidently.
He had already changed strategies after the Honda SUV.
Even if it meant accepting a smaller margin, he needed to close the sale itself.
To do that, he had to show them a genuinely good vehicle with nothing they could criticize.
“This car is good. I don’t see any particular problems. How much is it?”
Got them!
Rick cheered inwardly.
If the man was an automotive expert, then Rick was a sales expert.
He was confident that he would not lose when negotiating money.
“Yes, as you personally confirmed, this vehicle is in exceptionally good condition. It has a spotless accident history and plenty of options. The price is fourteen thousand dollars, but if you finance it through us, I can make a special adjustment and bring it down to thirteen thousand five hundred.”
First, subtly emphasize the vehicle’s value again, then present the price as though offering an exclusive discount.
Most customers fell for that sales technique.
“I see. Understood. Then I’d like to look at the white one you mentioned earlier.”
However, the man’s response defied Rick’s expectations once again.
“…What? Is there something you dislike about the car?”
“No. The car is excellent.”
“Then why…?”
It was common for customers to inspect several vehicles before making a decision.
However, this was not a request for comparison.
It was a rejection.
“The car is in too good a condition.”
“…Excuse me?”
The instant he heard the man’s answer, the professional expression of Rick Dawson, a salesman with five years of experience, cracked for the first time.
“Jason, wasn’t that car good?”
Noah pulled me aside into a corner and whispered.
“Yeah. It was good. The price was reasonable for its condition too.”
“Then can’t we buy it?”
Noah tilted his head as though he could not understand.
He wore the same expression the dealer had just made.
“No. I’m not looking for a car priced appropriately for its condition. I’m looking for one that’s cheap compared to its condition.”
“That would obviously be better, but… do cars like that really exist?”
Oh? Look at this kid.
Noah’s question was reasonable.
Excluding exceptional variables such as fraud and deception, the saying that there was no such thing as a cheap, good used car was surprisingly true.
“Normally, no. But we don’t have normal jobs, do we?”
“Huh? Ah… I understand. We’re looking for a car with damage or an accident history that other people would avoid, but that looks fine to us.”
“Exactly. Anyway, leave this to me. I’ll make sure you don’t lose money.”
I patted him on the back a couple of times, then returned to Rick, who was waiting for us.
“You obviously aren’t going to buy this one…”
At my request, Rick led us to another Tucson in the farthest corner of the parking lot.
A white SUV stood there with a thick layer of sandy dust covering the roof and hood.
This car must have been sitting here for at least six months.
I could tell the moment I saw it.
This was exactly the kind of dead inventory I had been looking for.
I slowly inspected the car using every aspect of my appraisal skill.
The engine and transmission fundamentals are good. There’s a slight oil seep, but no coolant leak. And the accident damage…
I addressed Rick again, whose shoulders now appeared noticeably slumped.
“This car has an accident history.”
“Yes… The front panel and side panel were replaced.”
“The side member was repaired too.”
“Whew… That’s correct.”
Unlike at the beginning, Rick had become completely docile and answered every question obediently.
An accident of that level would normally be classified as structural damage.
Most buyers would immediately turn away the moment they saw that phrase.
Repairs to a side member, in particular, were generally perceived as evidence of a major collision.
However, according to my appraisal skill—
—————
Frame Rails: No Damage / No Deformation
Wheel Housings: No Damage / No Deformation
Pillars (A/B/C): No Damage
Body Alignment: Within Normal Range
Straight-Line Stability/Handling: No Abnormalities
—————
It was clearly an accident whose effects could not be felt at all during actual driving.
Even if the side member had been repaired, the affected area was probably no larger than a fingernail.
Of course, they still had to record it as a repair on principle.
“So, how much is this one?”
“…What?”
Rick, who had been sighing as though the ground were collapsing beneath him, suddenly raised his head like a mole popping out of a whack-a-mole machine.
“Uh… It’s nine thousand one hundred dollars…”
“And with twelve-month financing?”
“If you finance it, I can lower it to eight thousand eight hundred dollars.”
The dealer would probably receive approximately five hundred dollars in financing commission, so it was not a bad offer.
That was assuming the vehicle was not dead inventory.
This car had clearly been tied up in stock for at least six months.
In such cases, there was a very high probability that the dealership would choose to secure cash even if it meant accepting a small loss.
“I’ll take the twelve-month financing, but without any additional warranty products. If you sell it for eight thousand five hundred dollars, we’ll purchase it immediately.”
It was a fairly aggressive price.
However, after briefly calculating the numbers, I determined that it was exactly the lowest amount Rick would be willing to accept.
“Ugh… All right. Let’s do that.”
As expected, Rick appeared to calculate the figures in his head for a moment before letting out a brief groan and offering me his hand.
“I really can’t beat you. In five years of selling used cars, I’ve never met a customer like you. What kind of work do you do?”
“I operate an automotive restoration shop on the southern outskirts. Please come find me if you ever need anything done.”
After shaking his hand pleasantly, I exchanged another small victory handshake with Noah behind Rick as he walked away to prepare the paperwork.
There was a different kind of respect in Noah’s eyes from what I saw when we were working.
[2007 Toyota Camry]
[2010 Honda CR-V]