25th November 2019


How much does a car salesman make on a sale?

Most dealerships pay salesmen a paltry base salary of roughly minimum wage. Salesmen then typically earn commissions of 25% of the dealership's gross profit on the car. The commission can put an extra $300 to $400 in a salesman's pocket per car sold, and the average salesman sells ten cars per month.

Also to know is, how many cars does a car dealership sell in a month?

The short answer is that most car salespeople don't earn a whole hell of a lot of money. Dealership salespeople average about 10 car sales per month, and earn an average of about $40k per year. If you do the math, that's about $330 per car.

How much money does a dealer make on a new car?

It's typically 2 or 3 percent of either the invoice or the sticker price of the car. On a $20,000 car, a holdback represents $400 to $600. The holdback allows dealers to sell a car at invoice price (or even below invoice) and still make money. Most manufacturers offer holdbacks to their brands' dealers, but not all.

How much can you make as a car salesman?

If this turns out to be an average month, then as a car salesman I'll be making about $36,838 this year. Not too bad . . . but not Bill Gates territory, not by a long shot. The thing I find most interesting about this chart is the amount of money a dealership is willing to lose on certain sales to make a deal.
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