Dealership Sales People - how does the payment structure work?

Question

I am interested in knowing how a salesperson gets paid. I assume there is a commission, but do they also get an hourly wage?

Answer 1

Auto sales usually only pays $150-200 wk/ salary the rest commision.

Typically 25% of gross profit, so if you sell a car and make a $2000 profit you make $500.  this is not typical though, most of the time you will average about $1000 profit so your typical commision will be $250. A decent saleperson will sell 10-15 units per month.  I work for Volvo and average about 4k/month. Plus you get a free company vehicle to drive at no cost so that saves 4-500/month in car payment/insurance expenses.  i would say that if you can survive the first 90 days and can sell 10 cars per month you will make 40-50k/year. There are guys who make 100k+, but that comes after many years of experience, being at the same dealership, having alot of referal business and old owners coming back to you to buy again in addition to the new business.  All in all if your at the right dealership and are a decent saleperson it is a very easy job and you can make a decent buck.