Car Buying Tip # 7 - Payment Plans typical car dealership

I'm sure this will be a rather controversial article for employees car dealers who read this, then the feedback should be interesting.

The pay most common is that I've seen people start a sales commission of 25% of the gross profits of front-end. So, if the dealer buys a car for $ 9,500 and does some repairs and retail for $ 500, will own the car for $ 10,000. Most merchants will have a package for more, not commission a profit paid directly to the retailer, which varies, but usually falls in the range $ 500.

In this scenario the sales person is starting from a base cost of $ 10,500 and say that the selling price on the vehicle is set at $ 15,995. Assuming the customer has paid the full price, would be a front-end gross of $ 5,495 which he / she would be paid 25% or $ 1,373.75.

Wow! They do so much? Not really. Offers like this do not happen as often as some might think. With new cars, for example, most of the time a sales person will be paid a mini. A mini is a fixed amount paid for a sales person, when the amount of commission is less than the set "mini". Most traders have a mini for $ 100. I saw a little 'taller and a little' a little lower, but this is the most common.

Keep in mind, the national average for people in car sales is about 6-8 vehicles sold per month. Not many sales people are getting rich in this area. If you feel bad for the sales person, you can always tip if you feel they did a good job and were professional.

Tips not only helps the sales person to pay the bills, but they can get on your side and help you reach the bottom line faster. Spending a few hundred dollars on a tip when saving $ 1500 on the price of the vehicle seems a good compromise for me. Be careful not to let the dealer know that points otherwise you may never see that person's sales there again!

Most dealers will have some sort of incentive for people to sell a lot of self, and is usually in terms of increased commission rates for a certain amount of units sold in a month. The most common I've seen, the percentage to 30% at ten units sold and 35% go to thirteen units sold for the month. This is usually retroactive and will pay the higher rate all the way to deal with for a month.

Usually there are bonuses that car dealerships are set for sales people as well. Sometimes it is a bonus volume, selling 15 vehicles and receive a bonus of $ 250, or as extravagant as some of the $ 50 "Spiff" to get a customer to get in the trunk of a car and close the door to show the glow in the dark trunk release child safety. Unless you are one who does not embarrass easily, please do not do it. Trust me, the entire dealership will be watching.

Your average sale is not working for a dealership of high-end, will make between $ 30,000 and $ 45,000 a year. Most people tend to believe car salespeople make a lot more, but this seems to be the average range of sales for most of the people I met.

There are exceptions. I met really good sales people who earn over $ 200,000 a year. A truly good sales person working in a high-end dealership (BMW, Mercedes, Lexus, etc.) can easily make $ 200,000 a year with the worker at the top I've ever met to make more than $ 300,000 a year. Big Money!

Use this information as you see fit, just please keep in mind the majority of car sales people are not bad people, and certainly does not deserve to be treated in this way even if you have had bad experiences in the past. Remember that if you do not like who you're dealing with you is always possible to leave or request a new vendor.

As for the rest of the staff retailers, ie the management, their pay can vary greatly depending on the volume of vehicles sold by car dealerships.

Sale and / or Desk Manager - about $ 6,000 - $ 12,000 a month.

Closer - is about the same $ 6000 - $ 12,000 a month.

Finance Managers - about $ 5,000 - $ 12,000 a month.

General Sales Manager - about $ 10.000 - $ 15.000 per month.

Director General - about $ 15,000 - $ 30,000 a month.

For owners, their pay can vary even more. The owners of smaller dealers can make a few thousand dollars a month, while owners of large dealerships can perform up to or exceeding $ 1 million a year in salary. As I said can vary widely, and typically depends on the size of the dealership. Higher car dealer volume = more money, lower the volume car dealer = less money .......