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 get paid hourly?

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.

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

How do I become a successful car salesman?

How to Be a Good Car Salesperson

  • Remember names.
  • Ask the right questions.
  • Build rapport.
  • Listen twice as much as you talk.
  • Treat every customer equally.
  • Don’t disparage other dealers.
  • Don’t be pushy.
  • Make eye contact.

What should you not say to a car salesman?

10 Things You Should Never Say to a Car Salesman

  1. “I really love this car” You can love that car — just don’t tell the salesman.
  2. “I don’t know that much about cars”
  3. “My trade-in is outside”
  4. “I don’t want to get taken to the cleaners”
  5. “My credit isn’t that good”
  6. “I’m paying cash”
  7. “I need to buy a car today”
  8. “I need a monthly payment under $350”

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 are the pros and cons of being a car salesman?

Being a Car Salesman the Pros and Cons

Pros of Being a Car Salesman Cons of Being a Car Salesman
You can make a six-figure income selling cars, but you will work more than forty hours a week. You have to work long hours.
Selling cars can be a lot of fun. Selling cars is stressful.

10 more rows

Why you should never date a car salesman?

Never date a salesman, because the first thing they learn is the Law of Averages. They will approach anyone and everyone, then zero in on those who show “potential”. Never date a salesman, because they know how to build rapport. Never date a salesman, because he can paint you pictures in your head.

How many hours do car salesmen work?

The hours the average car salesman puts in are ridiculous. I haven’t worked a 40-hour week in over seven years. My average week is somewhere between 50 and 60 hours — and that’s considered “part time.”

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.

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.

How do you calculate sales commission?

Just take sale price, multiply it by the commission percentage, divide it by 100. An example calculation: a blue widget is sold for $70 . The sales person works on a commission – he/she gets 14% out of every transaction, which amounts to $9.80 .

Photo in the article by “Wikimedia Commons” https://commons.wikimedia.org/wiki/File:Pierre_Moscovici_(36400654864).jpg