Buying a car can be a daunting task, and one of the most significant factors that buyers consider is the price. But have you ever wondered how much of that price goes into the pocket of the car salesman? In this article, we’ll explore the question of whether car salesmen make commission and shed light on how their earnings work.
When you walk into a car dealership, you may feel like you’re entering a battlefield. The salesmen are all vying for your attention, trying to convince you to buy a car that fits their sales goals. But what motivates them to do so? The answer is simple: commission. Car salesmen make their living by selling cars, and the more they sell, the more they earn. However, this commission-based system can lead to pushy sales tactics and pressure on the buyer to make a purchase.
The short answer is yes; car salesmen make commission. In fact, it’s a significant part of their earnings. The commission rate varies from dealership to dealership, but it’s usually a percentage of the car’s sale price. The commission rate can also increase if the salesman meets specific sales targets or sells a more expensive car. So, the more cars the salesman sells, the more commission they make.
In summary, car salesmen do make commission, and it’s a vital part of their earnings. They are motivated to sell as many cars as possible to increase their earnings, which can sometimes lead to pushy sales tactics. However, the good news is that buyers can negotiate the price and terms of the sale to find a deal that works for them.
How Car Salesmen Make Commission
Car salesmen make commission based on the sale price of the vehicle. The commission rate can vary depending on the dealership, but it’s typically between 20-30% of the profit made on the sale. For example, if a car is sold for $30,000, and the dealership made a profit of $3,000, the salesperson’s commission would be between $600-$900.
However, some dealerships may have a commission structure that rewards salesman for meeting sales targets. In this case, the commission rate may increase if the salesman sells a certain number of cars within a specific timeframe. This structure can motivate salesmen to sell more cars, but it can also lead to pushy sales tactics.
The Pros and Cons of Commission-Based Sales
Commission-based sales can be both a blessing and a curse for car salesmen. On the one hand, it motivates them to sell more cars and increase their earnings. On the other hand, it can lead to pushy sales tactics and pressure on buyers to make a purchase they may not want or need.
For buyers, commission-based sales can be a double-edged sword. On the one hand, it can result in a lower price if the salesman is motivated to make a sale. On the other hand, it can lead to pressure to make a purchase, which can be uncomfortable for the buyer.
The Future of Car Sales
The future of car sales is changing rapidly, with more and more buyers turning to online channels to purchase their cars. This shift is causing dealerships to rethink their sales strategies and adapt to the changing market. Some dealerships are moving away from commission-based sales and offering a fixed salary instead. This new approach can lead to a more relaxed sales experience for the buyer and less pressure on the salesman to make a sale.
How to Negotiate with a Car Salesman
If you’re in the market for a new car, negotiating with the salesman can be an intimidating experience. However, there are a few tips you can follow to make the process easier:
- Do your research: Before stepping into the dealership, research the car you want and its market value.
- Be confident: Don’t be afraid to negotiate and stand your ground on the price.
- Be willing to walk away: If you can’t come to an agreement, be prepared to walk away.
Question and Answer
Q: Can car salesmen make more commission if they sell a more expensive car?
A: Yes, the commission rate can increase if the salesman sells a more expensive car.
Q: Do all dealerships have the same commission structure for car salesmen?
A: No, the commission rate and structure can vary from dealership to dealership.
Q: Can car salesmen earn a fixed salary instead of commission?
A: Yes, some dealerships are moving away from commission-based sales and offering a fixed salary instead.
Q: Is it possible to negotiate the commission rate with a car salesman?
A: No, the commission rate is usually set by the dealership and cannot be negotiated.
Conclusion of Do Car Salesmen Make Commission
In conclusion, car salesmen do make commission, and it’s a vital part of their earnings. However, the future of car sales is changing, with more dealerships moving away from commission-based sales and offering a fixed salary instead. As a buyer, it’s essential to do your research and negotiate confidently to get the best deal for you.
