Car salesmen's earnings vary widely depending on factors such as location, dealership type, experience, and sales performance. Here is a detailed overview:

Average Earnings

• Nationally, the average salary for a car salesperson in the U.S. is around $82,000 to $103,000 per year, according to multiple sources including Indeed and Salary.com

• Entry-level car salesmen typically make about $38,000 to $40,000 annually, with monthly earnings around $2,000 to $4,000 if paid a base wage

• Average monthly income for a salesperson selling about 8 cars per month ranges from $3,000 to $4,000, while above-average salespeople selling 10-12 cars monthly can earn $4,000 to $6,000 per month

Commission Structure

• Most car salesmen earn primarily through commissions, which usually range from 20% to 40% of the front-end profit on each car sold

• Commission per car can vary; for example, selling 10 cars a month at $350 commission each yields $3,500 monthly

• Meeting or exceeding sales quotas often leads to bonus commissions, increasing total earnings

Salary Variation by Dealership and Vehicle Type

Dealership Type| Average Annual Salary (2024)
---|---
Luxury Car Salesman| $88,923
New Car Salesman| $60,457
Used Car Salesman| $40,100

Luxury brands (e.g., Porsche, Mercedes, Ford) tend to offer higher salaries due to larger profit margins

Geographic Differences

• Salaries vary significantly by location, with high-paying cities including Seattle (~$105,000), Concord, California (~$148,000), Dallas (~$96,000), and Washington, D.C. (~$80,000)

• For example, average yearly salaries in California are around $104,000, Texas $64,000, and Florida $65,000

Potential for Six-Figure Income

• Experienced and highly skilled car salesmen, especially those selling luxury vehicles, can earn over $100,000 annually

• However, income can be unstable with fluctuations depending on sales volume and market conditions

Summary

• Average car salesmen make roughly $60,000 to $80,000 per year.
• Commission-based pay means earnings are closely tied to sales performance.
• Top earners, particularly in luxury markets and high-demand areas, can exceed six figures.
• Entry-level pay is lower, often around $38,000 annually.

This makes car sales a potentially lucrative but variable career depending on skill, location, and dealership