Hi
I used to ba a car salesman for 3 years and my pay structure in $AUD was as follows:
$525 debitable retainer ( if you sold nothing in a week then thats what you took home )
$175 per car PLUS
20% of the gross profit after the "lot" fee.
So here’s an example to help you understand better :
Lets say the dealer bought a car for $10000.
Add the "lot fee"- ususally $2500 ( this covers all the fixed expenses of the yard, full time staff wages, mechanics etc etc ).
Car now "owes dealer" $12500
Sticker price $14950
So, If I negotiate with the client and sell for $14500, there’s $2000 gross profit. Therefore I would receive:
$175 ( for selling the car )
$400 ( for maximising the profit )
$575 AUD total.
Remember, everytime you discount the car you are giving away 20 cents in every dollar. It was a great system, encouraging me and the dealer to make more money. If this wasn’t in place then you’d simply "give" away the cars, applying the maximum discount.
I was turning over an average of 15 cars ( all used ) per month so there is good money to be made but be warned – it’s a hard job, lots of hours, lots of time spend on your feet and a lot of "attitude" from clients. " I’m just looking " is a favourite – in other words car salesman – GO AWAY !!
Get over all that and with a passion for cars you should enjoy it.
Enough from me anyway – good luck.