What percentage does a car salesman make on a new car sale? On a used car sale?

November 11th, 2009 | by admin |


I love the answers stating: How much they can screw you over…..Anyway, the car business, is simply that, a business. All in all, the automotive industry has some of the lowest markups on products. Where a TV may be marked up 50 percent, a car is generally only 6 to 10 percent. A little more depending on make. The sales person is generally always paid on the amount made over what the car is owned for. Commission percentages range from dealer to dealer. In some cases, salesmen aren’t paid a salary. Some others work on a draw structure, where they are paid a wage, but once a commission is made, the amount paid is deducted from that commission.

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Tags: Automotive Industry, Car Business, Car New, Car Sale, Car Salesman, Commission Percentages, Love, Markups, new car, Salary, Sales Person, Salesmen

5 Responses to “What percentage does a car salesman make on a new car sale? On a used car sale?”

  1. By rob1963man on Nov 12, 2009

    They make a percentage of the amount of money that the car is sold OVER the invoice.

    The exact percentage varies from company to company and even from dealership to dealership.

    It’s not a profitable business for the salesman uness he’s very good and very dedicated. I don’t know what the turn-over ratio is as a carsalesman in a dealership but it’s probably very high.

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  2. By gibson_slayer on Nov 12, 2009

    That depends on how much he can screw the customer, and how many options like undercoating he can talk the customer into.
    References :

  3. By Big C on Nov 12, 2009

    In 1970, at a large car dealer in San Antonio, it was 25% of whatever you could stick them with. But some low profit cars, like the Ford Pinto was only $25 commission period.
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  4. By Don E on Nov 12, 2009

    It depends on how much you beat him out of on the price.
    References :

  5. By t.carp on Nov 12, 2009

    I love the answers stating: How much they can screw you over…..Anyway, the car business, is simply that, a business. All in all, the automotive industry has some of the lowest markups on products. Where a TV may be marked up 50 percent, a car is generally only 6 to 10 percent. A little more depending on make. The sales person is generally always paid on the amount made over what the car is owned for. Commission percentages range from dealer to dealer. In some cases, salesmen aren’t paid a salary. Some others work on a draw structure, where they are paid a wage, but once a commission is made, the amount paid is deducted from that commission.
    References :

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