Why do car salesmen make good money

why do car salesmen make good money

The amount that a car salesman makes is impacted by a number of factors that are tied to the dealership they work for. Prices always seem to be increasing. When I told him that, a big smile grew across his face, like we were pulling his leg, and he said «Oh, no way! So if you come in and ask me to test drive a few cars, and I work numbers with you, and you take up three or four hours of my time, but you leave and don’t buy a car. I’m already a fan, don’t show this again. Some of it has to do with how car salesmen are paid and how their pay plans work.

How much does a car salesman earn from commission from selling a vehicle? Ask makee question, get a great answer. Learn from experts and access insider knowledge. The short answer is that most car salespeople don’t earn a whole hell of a lot of money. However, that’s not the whole story. Almost all dealerships set a minimum commission amount, which is the least amount of money you can earn od selling a car. A car sale that results in the minimum commission is called a «mini» in the car business, and salespeople hate minis.

These Days, the ‘Home Run’ Is Harder to Come By

why do car salesmen make good money
Show less Being a car salesman isn’t just about selling a product to the customer, it’s an art and a science. Personality, appearance, authenticity, and your ability to persuade all play a part in working in a car dealership. Many people walk into a dealership and already have a negative perception of car salesmen, and so your job is to change that image into something positive for the customer. You want to show them that you know what you’re talking about and you want to get them the best deal possible. So, it’s important to know a few key things about how to interact with your customers and how to, at the end of the conversation, have your customer satisfied with their experience and eager to purchase a car from you.

Education Requirements

How much does a car salesman earn from commission from selling a vehicle? Ask a question, get a great answer. Learn from experts and access insider knowledge.

The short answer is that most car salespeople don’t earn a whole hell of a lot of money. However, that’s not the whole story. Almost all dealerships set a minimum commission amount, which is the least amount of money you can earn when selling a car. A car sale that results in the minimum commission is called a «mini» in the car business, and salespeople hate minis.

For the most part, new vehicle sales are all minis. However, this figure likely includes profits that salespeople never see That way they reduce commissions for salespeople and management even. Salespeople have a relatively low quota units per month, depending on store and market.

Salespeople who fall below the quota are hard to keep around, partially because they usually suck, and partially because they’re negative people who don’t make good money and consequently drag everyone’s energy. Commissions will vary from one department to the. Internet salespeople, for example, may not be paid commission at all: they may just earn a flat fee for each delivery. Car sales compensation plans are designed for hard-chargers.

If you’re not willing to work hours a week, not aggressive enough to ask for the sale, and not polished enough to make people feel comfortable, you’re not going to make much money. It’s all about selling lots and lots of cars every month.

That’s what gets you paid. It will depend on how many people they have, how big their market is. They also often have lower commission rates and minimum monthly guarantees. US Edition U. News U. HuffPost Personal Video Horoscopes. Newsletters Coupons. Terms Privacy Policy. Part of HuffPost Business.

All rights reserved. Tap here to turn on desktop notifications to get the news sent straight to you. If you’re at quota, you get to keep your job. If you don’t, you’re at risk of being fired. Pack fees will be different for new and used cars, as will commission rates. More questions on Quora :. Buying Cars : What are the best bargaining techniques when buying a car from a dealer? Cars and Automobiles : Why are American cars why do car salesmen make good money less reliable than Japanese cars?

Hypothetical-Scenarios : If a plague wiped out most people on Earth, what car should I steal to go look for survivors? Calling all HuffPost superfans! Sign up for membership to become a founding member and help shape HuffPost’s next chapter. Join HuffPost. Today is National Voter Registration Day!

Is selling cars a secure job?

I’m already a fan, don’t show this. As an employee of the dealership, car salespeople generally also receive various benefits like health insurance, a k plan and other normal employee benefits. US Edition U. Where is the conflict? I would also like to salesmenn out that one of the couples we made the most money on — Mr. And occasionally female meteorologists will strap their mic pack to their calves or thighs rather than salesemn more unpleasant option of stuffing it into their waistband or strapping it onto their bra. This type of pay plan is called a «guarantee» and are usually only available for the first why do car salesmen make good money to 90 days of employment. Share on Facebook Share on Twitter. Another thing to know about the net profit on a new car sale is that often there is not a profit and that the dealer loses money on a lot of new car sales.

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