what commission do car salesmen make

what commission do car salesmen make

1 year ago 61
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Car salespeople are typically paid on a commission basis, meaning they earn a percentage of the profit made on each car they sell. The commission rate can vary depending on a number of factors, such as the dealership, the number of cars sold, and the profit made on each sale. The usual range for commissions on new car sales is from 20% to 30% of the net profit. The average commission for a car salesman is around $550 per car, for both new and used cars combined. However, this can vary depending on the dealership and the salespersons skills. The more cars a salesperson sells, the higher their income, and the commission rate can increase based on the number of cars sold. For example, a salesperson who sells one to seven cars per month can earn around 25% of the gross on each vehicle, while a salesperson who sells eight to 10 cars per month earns a 30% commission per car. From 11 to 14 cars per month, the commission earned is 35%, and for 15 cars and over, a car salesman sees a commission rate of 40% per sale. Its worth noting that not all car sales generate a profit, and in such cases, salespeople may receive a minimum commission, also known as a "mini deal".

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