Here is a more detailed breakdown of how car salesmen get paid commission:
* Gross profit: The gross profit on a vehicle is the difference between the sale price and the dealer's cost. For example, if a dealer buys a car for $18,000 and sells it for $20,000, the gross profit would be $2,000.
* Commission rate: The commission rate is a percentage of the gross profit that the salesperson earns. For example, if the commission rate is 20%, the salesperson would earn $400 on the sale of the $20,000 car.
* Additional compensation: In addition to commission, car salespeople may also receive a base salary, bonuses for meeting sales goals, and other incentives. For example, a salesperson who sells a certain number of cars per month may earn a bonus of $500.
The amount of money that a car salesperson can earn depends on a number of factors, including the dealership they work for, the commission rate, and their sales skills. However, car sales can be a lucrative career, and top salespeople can earn six-figure incomes.
Here are some tips for car salespeople who want to increase their commission:
* Build relationships with customers. The more customers you know, the more likely you are to sell them a car.
* Be knowledgeable about the vehicles you sell. Customers are more likely to buy a car from someone who knows what they're talking about.
* Be honest and trustworthy. Customers are more likely to do business with someone they trust.
* Be persistent. Selling cars can be a tough business, but if you're persistent, you'll eventually find success.
