| I'm sure this is going to be a rather controversial article | | | | one for the month. |
| for any car dealer employees that read this, so the | | | | There are usually bonuses that car dealerships will set |
| feedback should be interesting. | | | | for the sales people as well. Sometimes it's a volume |
| The most common pay plans that I've seen start a | | | | bonus, sell 15 vehicles and get a $250 bonus, or some |
| sales persons commissions at 25% of the front end | | | | quirky ones like a $50 "spiff" for getting a customer to |
| gross profit. So if the dealer buys a car for $9,500 and | | | | climb into the trunk of a car and close the door to |
| does some repairs and a detail for $500, they'll own | | | | demonstrate the glow in the dark child safety trunk |
| the car for $10,000. Most dealers will have a pack on | | | | release. Unless you are one that doesn't embarrass |
| top of that, a non commissionable profit paid directly to | | | | easy, please don't do this. Trust me the whole |
| the dealer, which varies, but usually falls in the $500 | | | | dealership will be watching. |
| range. | | | | Your average sales person, not working for a high end |
| In this scenario the sales person is starting with a base | | | | dealership, will make between $30,000 and $45,000 |
| cost of $10,500 and let's say the sale price on the | | | | per year. Most people tend to believe cars salesmen |
| vehicle is set at $15,995. Assuming the customer paid | | | | make much more, but this seems to be the average |
| full price, that would be a $5,495 front end gross of | | | | range for most sales people I've known. |
| which he/she would be paid 25% or $1,373.75. | | | | There are exceptions. I've known really good sales |
| Wow! They make that much? Not quite. Deals like that | | | | people that earn over $200,000 a year. A really good |
| don't happen as often as some might think. With new | | | | sales person working at a higher end dealership (BMW, |
| cars for instance, more often than not a sales person | | | | Mercedes, Lexus, etc.) can easily make $200,000 a |
| will be paid a mini. A mini is a flat amount paid to a | | | | year with the top earner I've ever met making over |
| sales person when the commission amount is below | | | | $300,000 per year. Big money! |
| the set "mini." Most dealers will have a mini of $100. I've | | | | Use this information how you see fit, just please keep |
| seen some higher and some a little lower, but that's the | | | | in mind most car sales people are not bad people, and |
| most common. | | | | certainly don't deserve to be treated that way even if |
| Keep in mind, the national average for car sales people | | | | you've had bad experiences in the past. Remember if |
| is roughly six to eight vehicles sold per month. Not | | | | you don't like who you're dealing with you can always |
| many sales people are getting rich in this business. If | | | | leave or request a new salesperson. |
| you feel bad for the sales person, you can always tip | | | | As for the rest of a dealers retail staff, i.e. |
| them if you feel that they did a good job and were | | | | management, their pay can vary widely depending on |
| professional. | | | | the car dealerships volume of vehicles sold. |
| Tipping not only helps the sales person pay their bills, | | | | Sales and/or Desk Manager - roughly $6,000 - $12,000 |
| but can get them on your side and help to get to the | | | | a month. |
| bottom line quicker. Spending a few hundred dollars on | | | | Closer - makes about the same $6,000-$12,000 a |
| a tip while saving $1500 on the price of the vehicle | | | | month. |
| sounds like a good trade off to me. Be careful not to | | | | Finance Managers - roughly $5,000-$12,000 a month. |
| let the dealership know that you tipped or else you | | | | General Sales Manager - roughly $10,000-$15,000 a |
| may never see that sales person there again! | | | | month. |
| Most dealerships will have some sort of incentive for | | | | General Manager - roughly $15,000-$30,000 a month. |
| sales people to sell a bunch of cars, and usually comes | | | | For owners, their pay can vary even more. Smaller |
| in the way of increased commission percentages for | | | | dealership Owners can make a few thousand dollars |
| a certain amount of units sold in a month. The most | | | | a month, while owners of large dealerships can make |
| common I've seen, will up the percentage to 30% at | | | | up to, or more than, $1,000,000 a year in pay. As I said |
| ten sold units and go to 35% at thirteen to fifteen sold | | | | it can vary widely, and typically depends on the size of |
| units for the month. This is usually retroactive and will | | | | the dealership. Higher volume car dealer = more |
| pay the higher percentage all the way back to deal | | | | money, lower volume car dealer = less money. |