Any car salesman on the board?

RPMClassic · 09-22-2003, 07:16 AM

Just curious...what do you think the commish is to a dealership sales person that sells a Cayenne Turbo or GT3. IS there a universal formula that places use?

GB83SC · 09-22-2003, 07:45 AM

I have a good freind that is a Sales manager at a dealership, the commission is based on the gross amount of the profit,
Normally 25 to 40% based on number of units sold.

CHILI · CHILI's Garage

Yep, did it for about 4 years (don't hate me

. All mainstream stuff so never any exotics. They might be higher % based on the fact that one wouldn't sell as many.

Normal Nissan/Dodge commission for the salesman is about 20-25% of profit. Like George said. This is the amount that is paid above invoice (there's only about 10% mark-up, by the way). Some dealers also pay on dealer incentive profits. I.e. the Dealership gets $1,500 for every Altima sold, so the salesman gets 20% of that, too. But there aren't too many dealers that do that. And, not many cars have incentives. It just depends on Corporate's programs.

As a closer, (hammer) you get paid on front end and back end profit. Back end is anything Finance sells you. Smaller percentages, though, because you have a team of salesman under you.

Then of course as George said, Sales Managers or GM's make lots more. Some Sales Managers get a percentage of the books. New if you are a new Sales Man, or used if you are the Used Sales Man.

Zeke · 09-22-2003, 01:58 PM

I still have my license. Did it for a liitle while during recouperation from a back injury. The above is pretty typical of what I saw. And it's a racket. Two kinds of dealers: The TO (or take over store) and straight up sales, like you'd find at a Porsche dealer. Just go to a high volume import store if you want to experience the TO method.

Commisions vary with performance and type of store. New cars are sold so close the the invoice (which is how the commision is determined regardless of dealer holdbacks, incentives, etc. that the dealer sees.) that most new car sales produce a minimum commission as determined by the dealer. Ususally around 75-100 bucks for straight up and as low as $50 for a TO.

The commision money is in used car sales. The gross is way up there and 30% of $1000's can be lucrative. I didn't do it that long and that most money I made on a car was abut $700. It was a used SUV.