Quick Answer: How Much Commission Do Car Salesmen Make??

Most dealers pay their salespeople a 25% commission rate, which is based on gross profit minus a “pack” fee.

Pack is usually a few hundred dollars ($800) but can also be a percentage.

Example: You sell a used car for $3000 over cost.

The commission rate is 25% after pack, and pack is $800.

Do car salesmen only make commission?

Most dealerships pay salesmen a paltry base salary of roughly minimum wage. Salesmen then typically earn commissions of 25% of the dealership’s gross profit on the car. The commission can put an extra $300 to $400 in a salesman’s pocket per car sold, and the average salesman sells ten cars per month.

How much commission does a Honda car salesman make?

Commissions on new car sales vary from one dealership to another, but the usual range is from a 20-to-30 percent of the profit. The profit amount is also different among dealers. The bottom-line is that a good salesperson at a popular dealership can make over $50,000, but the average is considerably less.

What is a good commission rate for sales?

The industry average seems to be between 20% – 30% of gross margins, or 7 – 15% of gross sales, with lower commissions being offered for “easy sales,” i.e. manufactured products with a simple sales cycle and little or no service or training required and higher commissions being offered for sales that are more complex

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