Is there hourly pay ? Commission only etc? or both
The normal pay structure is commission plus bonuses.
By law all employers are required to pay minimum wage if commissions are not sufficient during any pay period – including car dealers.
Don’t expect to maintain employment in a car dealership if you’re looking for a minimum wage job. It rarely happens twice.
someone came in wanting the very car on the showroom floor. they are wearing dirty old torn jeans greasey shirt scruffy face ball cap. would you sell them the car knowing your commission comes from them being able to pay for the thing. or a few days later someone else is looking at the very same car wearing suit and tie pulled up in a limo ready to pay for the car in full. then the person says i was in the otherday and wanted the same car.
how would you handle the whole situation.
For one thing I wouldn’t asume nothing about the guy that came in looking greasy and scruffy! I would sale him the car. See the way that I look at it machanics get paid good.and more than likely can afford it.
Now if the man in the Limo wouldn’t even of showed up because he would already have the car!….I told you them dang guys make good money off of us!……But would you listen????……NO!
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…..
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.