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Old 12-14-2011, 12:34 AM
 
Location: Columbus, Ohio
406 posts, read 788,251 times
Reputation: 136

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I have a question I am very interested in knowing. I did some online research but to me can be a little confusing. If I got a job as a USED car salesman what will the average amount profit per car earned and what would be the avg. monthly pay and does this amount include a base pay or in addition??? Any help will be greatly appreciated.
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Old 12-14-2011, 01:25 AM
 
Location: Eastern NC
12,866 posts, read 8,298,492 times
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It depends on if you sell by commission or have a base salary plus commission.
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Old 12-14-2011, 02:25 AM
 
Location: Columbus, Ohio
406 posts, read 788,251 times
Reputation: 136
Quote:
Originally Posted by trlhiker View Post
It depends on if you sell by commission or have a base salary plus commission.
I have to take this drug and background check before I can get hired which I know i'll do fine. Once I start it will be 500.00 base pay every 15 days I believe. In addition from my research it seems that used cars make more profit than new cars and that the average is about 300.00, also the average amount of cars sold for the month being 8 nationwide. This would be 2,400 plus the 1,000 base pay totaling 3,400 monthly which comes out to about 40,000 the first year on avg. How much of this information is correct? I'm not sure seeing as how I got the info from various sources and don't know how reliable some of them are.

Last edited by iwantyall2know; 12-14-2011 at 02:33 AM.. Reason: correction
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Old 12-14-2011, 02:33 AM
 
754 posts, read 688,875 times
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Quote:
Originally Posted by iwantyall2know View Post
I have to take this drug and background check before I can get hired which I know i'll do fine. Once I start it will be 1,000 base pay every 15 days I believe. In addition from my research it seems that used cars make more profit than new cars and that the average is about 300.00, also the average amount of cars sold for the month being 8 nationwide. This would be 2,400 plus the 1,000 base pay totaling 3,400 monthly which comes out to about 40,000 the first year on avg. How much of this information is correct? I'm not sure seeing as how I got the info from various sources and don't know how reliable some of them are.
Actually it would be about $4,400 monthly using your figures. $1,000 every 15 days equals $2,000 per month then add the $2400 for commissions.

I've never worked in car sales, but know people who have. Don't count on being "average" the first few months out until you find something that works for you.
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Old 12-14-2011, 02:35 AM
 
Location: Columbus, Ohio
406 posts, read 788,251 times
Reputation: 136
Quote:
Originally Posted by dbbd View Post
Actually it would be about $4,400 monthly using your figures. $1,000 every 15 days equals $2,000 per month then add the $2400 for commissions.

I've never worked in car sales, but know people who have. Don't count on being "average" the first few months out until you find something that works for you.
I just made the correction to that... (my mistake), I did mean 500.00 every 15 days. I never have sold cars before but my major is Marketing and I am pretty good at sales; I hope for this to give me some kind of advantage but good advice about not counting on anything being average the first few months...
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Old 12-14-2011, 02:37 AM
 
754 posts, read 688,875 times
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Quote:
Originally Posted by iwantyall2know View Post
I just made the correction to that... (my mistake), I did mean 500.00 every 15 days. I never have sold cars before but my major is Marketing and I am pretty good at sales; I hope for this to give me some kind of advantage but good advice about not counting on anything being average the first few months...
Best of luck to you....it's not impossible to be "average" or better. The "don't count on it" just comes from "being prepared for the worst and hoping for the best" mentality I live by.

Heck, if I were in sales I'd be trying to figure out how I could live on $1000 a month.
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Old 12-14-2011, 02:40 AM
 
Location: Columbus, Ohio
406 posts, read 788,251 times
Reputation: 136
Anyone else with any info? Anybody involved with sales or possibly a car salesman or know someone who is that might have some information they may be able to share with me? Any help is appreciated.
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Old 12-14-2011, 10:33 AM
 
Location: Eastern NC
12,866 posts, read 8,298,492 times
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Is this for a major dealer or a small dealer?
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Old 12-14-2011, 10:47 AM
Status: "The Union forever! Down with the traitors." (set 1 day ago)
 
13,619 posts, read 17,206,640 times
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The problem is that it is incredibly variable not just by region, but by individual dealers as well. Your earning potential all comes down to how the dealership you are working for structures the compensation. I have seen ones that do a base salary as high as $40k and then pay only $150 per vehicle sold. I have seen others with virtually no base, but that pay high commissions. There are also ones that have variable commissions based on volume as well as incentive bonuses that can make a huge difference in salary. I know salesman that barely make $35k a year and I know ones that make $120k+.

The key is to find out what the structure is at the dealer you will be working for as well as some of their stats regarding sales and traffic. While there can be more money in used, there is generally just as much money in new as well and being able to sell both is a big advantage versus being pigeon holed into one or the other. Another big key is looking at the sales force turnover if they are willing to share that information, any good dealer will. A lot of shadier dealers will basically give their salesman a two week crash course and then throw them out on the floor to sink or swim, perform at the lower tiers and you get booted out for the next guy. Good dealers will treat their salesforce as professionals that get developed overtime and give you the opportunity to build a base.

When talking about commission you also need to look into how they manage sales traffic and splits. Is there a rotation that handles walkins and calls or is it a free-for-all? Are new salesman basically banished to walking the lot and not allowed to generate phone and internet leads? If someone makes contact online with the internet sales manager and then gets handed off to a salesman to complete the transaction do you get a reduced commission? If one of your customers comes in for a followup and you aren't there, do you still get a share of the commission or is it "winner take all"?
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Old 12-14-2011, 10:53 AM
 
Location: Apple Valley Calif
7,392 posts, read 11,853,615 times
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Usually the $500 a month is to get you started, and that amount will diminish after a while. They expect you to make your money on selling, so the guarantee goes away after a couple of months.
They also expect you to sell a certain number of cars a month, or you are out the door. Even if you work strictly commission and it cost them nothing, they still won't keep you if you don't produce.
It's a tough, miserable life. The few that make it can do very well, but the % that do make it aren't good.
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