Buying a car can be a daunting experience for many people, and part of the reason is because of the salesmen. It’s no secret that car salesmen have a bad reputation for being pushy and only interested in making a sale. But have you ever wondered how much they get paid for their efforts?
One of the biggest pain points for customers is feeling like they’re being taken advantage of or being pressured into buying something they don’t want. It’s important to understand the motivation behind the salesman’s actions, and one factor that plays a big role is their commission.
Car salesmen typically earn a commission based on the sale price of the vehicle. The commission percentage can vary depending on the dealership and the type of vehicle, but it’s usually between 20-30% of the gross profit. This means that the more expensive the car, the higher the commission the salesman will earn. However, some dealerships offer a flat rate commission, which means the salesman will earn a set amount for each car sold, regardless of the sale price.
In summary, car salesmen earn a commission based on the sale price of the car, which can range from 20-30% of the gross profit. However, some dealerships offer a flat rate commission instead.
Personal Experience with Car Salesmen Commission
When I was shopping for a car, I had a salesman who was very upfront about his commission. He explained to me that he would earn a percentage of the sale price, but also made it clear that his main priority was finding a car that met my needs and budget. He didn’t pressure me into buying anything and was very helpful throughout the process. In the end, I purchased a car from him and felt good about the experience.
Factors That Affect Commission
While the commission percentage is one factor that affects how much car salesmen get paid, there are other factors to consider as well. For example, the amount of experience a salesman has can impact their commission, as well as the number of cars they sell in a given month or year. Additionally, some dealerships offer bonuses or incentives for reaching certain sales goals or for selling certain types of vehicles.
Commission vs. Salary
It’s worth noting that not all car salesmen are paid on commission. Some dealerships offer a salary or hourly wage instead, which can be more stable and predictable than commission-based pay. However, this also means that the salesman may not have as much incentive to sell as many cars or to sell higher-priced vehicles.
Negotiating Commission
If you’re in the market for a car and want to negotiate the commission with the salesman, it’s important to understand the dealership’s policies and to have a clear idea of what you’re willing to pay. Keep in mind that the salesman’s commission is just one factor to consider when negotiating the price of the car, and there may be other incentives or discounts available as well.
My Experience with Negotiating Commission
When I was buying a car, I did negotiate the commission with the salesman. I explained that I was willing to pay a certain price for the car, but that I wanted him to lower his commission so that I could get a better deal. He was willing to work with me and we were able to come to an agreement that worked for both of us.
Question and Answer
Q: How much do car salesmen make on average?
A: It’s difficult to say exactly how much car salesmen make on average, as it can vary greatly depending on the dealership, the type of vehicle, and the salesman’s experience. However, according to Glassdoor, the average base pay for a car salesman in the United States is around $40,000 per year.
Q: Is commission-based pay better than salary-based pay for car salesmen?
A: It depends on the individual salesman’s preferences and goals. Commission-based pay can be more lucrative if the salesman is able to sell a lot of cars or sell higher-priced vehicles, but it can also be more unpredictable. Salary-based pay can offer more stability, but may not provide as much incentive to sell as many cars.
Q: Do car salesmen get benefits?
A: Some dealerships offer benefits such as health insurance, retirement plans, and paid time off to their salesmen. However, this can vary depending on the dealership and the individual salesman’s employment status (full-time vs. part-time).
Q: Can you negotiate the commission with a car salesman?
A: It’s possible to negotiate the commission with a car salesman, but it’s important to understand the dealership’s policies and to have a clear idea of what you’re willing to pay. Keep in mind that the salesman’s commission is just one factor to consider when negotiating the price of the car.
Conclusion
In conclusion, car salesmen earn a commission based on the sale price of the car, which can range from 20-30% of the gross profit. However, some dealerships offer a flat rate commission instead. Other factors that can impact how much car salesmen get paid include their experience, the number of cars sold, and any bonuses or incentives offered by the dealership. Whether you’re negotiating the commission or simply trying to find a good deal, it’s important to understand the dealership’s policies and to have a clear idea of what you’re willing to pay.
