- Dealership Structure: Different dealerships may have different compensation structures for their salespeople, impacting their earnings.
- Sales Commission: Car salespeople usually earn a commission on each vehicle sale, which is a percentage of the sale price. The commission percentage can vary between dealerships and specific models.
- Base Salary: Some dealerships provide their sales representatives with a base salary in addition to the commission, while others rely solely on commission-based compensation.
- Add-Ons and Extras: Salespeople might receive additional compensation for selling optional add-ons and services, such as extended warranties, financing options, insurance products, or accessories.
- Performance Bonuses: Dealerships may offer bonuses to their top-performing sales personnel based on sales volume or other performance metrics.
- Manufacturer Incentives: Car manufacturers sometimes offer incentives to dealerships based on sales targets or special promotions, which may indirectly benefit the sales representatives.
On average, car salespeople in the United States can earn annual incomes ranging from around $40,000 to over $100,000, depending on the factors mentioned above and their personal sales skills and negotiation abilities.
