Used Car Salesmen [HD]

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just throw more tax money at the problem, the supply is apparently limitless

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One salesman told me he makes $100 per vehicle he sells. Is this accurate? I know it’ll vary from location to location, and dealer to dealer, but the AVERAGE?

On a new car on average bout $250 add on’s extended warranty’s etc that is where big $$ is made and the salesman doesn’t see that.

Used cars are much better more profit can be made,Pay $2000 for a trade in and resale it for $8000 (done every day) the dealership takes out prep charges and service and and and then the salesman get a % of profit made. Then commission could be in the $500 to $800 range depends .

When I was a green pea (new salesman) I got $150 per sale no matter what the profit was… with a Base of $1500 a month (6 days a week 12 hour days) when I went straight commission I averaged bout $300 per car sold 12 to 16 cars a month. Most average salesperson will make $25k a year starting out and get up to $40k after a few years. BUT at a good dealership and with large amount of UP’s (customers) the average sales person will make $60 to 80K some will make over $100k but you have to have large volume of customers and sell 30 cars a month. That’s hard I have HEARD some sales people selling over 100 cars a month … never seen it…..

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there is the msrp price. and invoice price.
however the dealer has to get the car way below invoice, right?
Because if the sales guy gets a commission. and the deal needs to make money.

so what do car salesmen make on a car sale?

Each dealer has their own pay plan. MSRP and INVOICE have nothing to do with it, so the first two answers here, are basically not an answer at all. On a new car, car dealerships hardly make any money. On used cars, they have to sell the car quickly in order for their profit to stay high.

A dealer I used to work for was 30% of the GROSS profit on the car, was what we were paid, and there was a minimum of $250 per new car, and $150 per used car. That sounds like a lot, but when you’re selling a new car that is so heavily discounted, the dealer loses money to sell it, or only make $400-500, you’re actually better off getting your $250 minimum. On used, where a car might have $2000 profit in it, you can make $600 or so on some cars.

People have a misconception that dealers make tons of money on new cars, and used cars are a steal. In all honesty, most dealers lose money on new cars, and make money on used cars – if they do it right.

Some dealers that are "one price" or "non-negotiable" on their pricing, they have a pay plan based on the number of cars they sell. This is what my dealership does. As a salesman, I get paid a flat-fee per car that I sell, and then there is a bonus scale at the end of the month based on the number of cars I sell. So, I dont care if I sell a $3000 beater that some kid buys, or a $40000 SUV, it makes no difference. If we have a car that we’re losing $1000 to sell because we’ve had it on the lot for 8 months, I dont care. A car is a car, and it’s just another checkmark on the board for my pay.

Lets say I get $250 per car, and I sell 15 cars. That’s $3,750 in commission, plus 15 cars gets me another $1,000 bonus. We get some bonuses for financing, warranties, etc, but that’s maybe $30-$70 per car. So if I sold 15 cars, I’d expect to make around $6000-6500 depending on how the bonsues work out that month.

Believe me, unless you’re REALLY good at this….it’s actually not as lucritive of a job as many people think it is.

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I have two old cars, but I only need to buy one new one.
I wondered with the economy as bad as it is. Would a car dealer ever consider taking two old cars both 10 years old as trade in on the new car? Is there any car salesmen in the audience here?

Some may, depending on the type and condition of the cars and what car you want to buy. The only way to find out is ask. However I wouldn’t tell them I had a trade until I had an agreed on price on the new one. Then ask them and you’ll find out how much you’re getting for the trades. If you go in there with the trades up front you never really know whether they really gave you anything for your car(s) or not.

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