However, you can work at an existing dealership, usually on commission, without having to pay a high level of income. Below is the total salary of the 10 companies that pay the best for a car seller in the United States. Employers include Mike Terry, Hendrick Automotive Group and Ken Garff Automotive Group. The company that pays the most in construction, repair and maintenance services for car sellers is Mike Terry.
Selling 8 to 12 cars a month certainly won't make you rich, but it can provide a stable income stream. A vehicle service contract (VSC) is often referred to as a “car warranty” or “extended car warranty”, but it is not a warranty. The salary estimates are based on 1,485 salaries submitted anonymously to Glassdoor by a Car Salesman employee. After 90 days, payment plans for car sellers generally go solely to commissions, although more and more dealers are developing hybrid compensation plans that include a salary plus a commission, hoping to encourage more people with college education to consider a career in the auto retail business.
The best auto sales professionals always practice and test to make sure they “never make mistakes.” Another thing to know about the net profit of selling a new car is that there are often no profits and that the dealer loses money on a lot of new car sales. If your goal is to make more than six figures selling cars, then walking into a luxury store may be beneficial for you. However, a VSC offers repair coverage for your vehicle after the manufacturer's warranty expires. The average profit margin on selling a new car is surprisingly low, only about 5 percent on a lower-cost vehicle and 10 percent on a luxury car.
Fees for selling new cars vary from dealer to dealer, but the usual range is 20 to 30 percent of profits. In theory, salespeople at new car dealerships work primarily on commission and receive 20 to 30 percent of net profits, and 25 percent is common. During my more than 42 years in the auto retail business, I've seen too many different types of compensation plans for sellers. Those who don't practice or work on their skills (or those who sit aimlessly at their desks waiting for a customer to arrive, the sad reality is that this represents the work ethic of many car salespeople today), rather than proactively looking for customers, tend to find themselves at the lower end of the pay scale.
On the bright side, a car seller usually earns more money from bonuses, which can be offered for selling a certain number of vehicles in a 30-day period, or for selling add-ons such as corrosion protection and undercoating. If you're thinking about becoming a car salesman or are planning the next step in your career, find details about the position, career path, and salary trajectory of an auto salesman. At every stage of my professional career, each payment plan had one thing in common: they were structured to keep the seller's total compensation within the industry benchmark of 18 to 22% of expenses (more information here).
