Question: 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.

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

Do car salesmen get paid weekly?

Commission Only Car Sales Pay Plan

Most traditional car dealerships pay their salespeople on a “commission only” pay plan. This means if they do not sell a car, they do not get paid. There is no limit to what a car salesman can make on this kind of pay plan.

What do Ford salesmen make?

The average Ford Motor Company salary ranges from approximately $40,000 per year for Sales Assistant to $98,174 per year for Sales Consultant. Average Ford Motor Company hourly pay ranges from approximately $14.23 per hour for Sales Associate to $17.00 per hour for Client Services.

Do car salesmen get hourly pay?

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.

Can a car salesman make six figures?

If you can sell 20 or 25 cars a month, and “hold gross” (make a big profit) on each of them, you can make more than six figures annually. That’s the minimum the dealership will pay you when a car deal makes no money.

What type of sales make the most money?

The highest-paying sales job in the US pays as much as $185,000 a year—here are the other 6

  • Sales engineer. Glassdoor salary range: $68,000-$185,000.
  • Software sales rep. Glassdoor salary range: $50,000-$141,000.
  • Realtor.
  • Pharmaceutical sales.
  • Major gifts officer.
  • Medical device sales rep.
  • Recruiter.

What is a normal commission rate?

Average Commission Percentages

Each company determines the percentage for its reps. Average percentages depend on the industry. For example, car salesmen might earn commission percentages between 20 and 25 percent of the profit on the sale, whereas someone in advertising sales can receive 50 percent of the sale.

How are salesmen paid?

A commission is a form of pay based on the amount of sales a worker makes. Some salesmen are paid on a 100 percent commission basis, meaning they must make sales in order to earn money. Commissions are typically a fixed percentage of the sale price of goods sold.

Photo in the article by “Wikipedia”