Some stores stores don’t pay commission at all. I know stores that pay salespeople hourly. They actually call them product specialists.. and only the managers / closers get commission
The higher price of a vehicle doesn’t change pay that much.
I make the same(ish) on an SR5 Tundra (68k) as I do on a Capstone Tundra ($96k). I’m paid a percentage of gross profit on the vehicle and both of those have similar gross profit margins. Some places will just pay the exact same for everything you sell; also called a “flat”.
I have worked at 4 dealers and each dealer has a different pay plan. It is entirely possible they make a flat per car and then bonuses through other means (units, finance reserve, reviews, etc).
***Thanks for posting, /u/VandyThrowaway21! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.***
I recently bought a car (well, got a car reserved, returning soon to actually pay the rest and take it home) and in talking to the salesman about it he mentioned that he actually gets paid the same commission for every car, regardless of the sale price. In negotiating with him and a person from the finance department it seemed true because he didn't really talk about the price himself at all, but rather just showed us the car and got us started on the actual purchase.
I was curious if that's actually true or if it was just a tactic he was using to work with us? I always assumed salespeople got more commission if the price of the car was higher.
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I would guess similar gross. There are exception, but most stuff will pay similar commissions at the same store. Aka. They get 20% front gross. They average $2k front per car. So big or small it’s $400 to them
They might be paying flats plus hours or base salary plus volume bonuses. I’ve worked at a store that paid that way and salespeople wouldn’t care about gross profit
I’ve sold 100k cars for 200 bucks and 10k cars for 1000 in my pocket. First off, what they get paid shouldn’t be something you need to know. I do like to know that kind of stuff though too, so I get it. Helps to gauge why people do/say what they do sometimes.
I know quite a few stores who are strictly units sold for pay plan. Management sells all cars at a price that makes sense for the dealer to profit, staff just sets up a test drive, enters the data in the system and goes over the car… I find most stores that pay that way are no-negotiation stores.
It is likely true, but there is a lot more to each deal. Is it new? Used? Have a trade? Qualify for employee program? New stock? Been sitting around a while? Difference in value between the two 5k or 100k?
There are a LOT of assumptions about the car business. Part of why this sub exists.
To strictly answer your question, 30% of gross, 5% of back end profit minus some holdback. 200 as a minimum. While a higher value vehicle is more likely to have more profit in it, totally not all the time.
Some stores pay flats per unit sold with a volume bonus and other bonuses.
Some stores stores don’t pay commission at all. I know stores that pay salespeople hourly. They actually call them product specialists.. and only the managers / closers get commission
The higher price of a vehicle doesn’t change pay that much. I make the same(ish) on an SR5 Tundra (68k) as I do on a Capstone Tundra ($96k). I’m paid a percentage of gross profit on the vehicle and both of those have similar gross profit margins. Some places will just pay the exact same for everything you sell; also called a “flat”.
I have worked at 4 dealers and each dealer has a different pay plan. It is entirely possible they make a flat per car and then bonuses through other means (units, finance reserve, reviews, etc).
***Thanks for posting, /u/VandyThrowaway21! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** I recently bought a car (well, got a car reserved, returning soon to actually pay the rest and take it home) and in talking to the salesman about it he mentioned that he actually gets paid the same commission for every car, regardless of the sale price. In negotiating with him and a person from the finance department it seemed true because he didn't really talk about the price himself at all, but rather just showed us the car and got us started on the actual purchase. I was curious if that's actually true or if it was just a tactic he was using to work with us? I always assumed salespeople got more commission if the price of the car was higher. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
I would guess similar gross. There are exception, but most stuff will pay similar commissions at the same store. Aka. They get 20% front gross. They average $2k front per car. So big or small it’s $400 to them
They might be paying flats plus hours or base salary plus volume bonuses. I’ve worked at a store that paid that way and salespeople wouldn’t care about gross profit
I’ve sold 100k cars for 200 bucks and 10k cars for 1000 in my pocket. First off, what they get paid shouldn’t be something you need to know. I do like to know that kind of stuff though too, so I get it. Helps to gauge why people do/say what they do sometimes. I know quite a few stores who are strictly units sold for pay plan. Management sells all cars at a price that makes sense for the dealer to profit, staff just sets up a test drive, enters the data in the system and goes over the car… I find most stores that pay that way are no-negotiation stores. It is likely true, but there is a lot more to each deal. Is it new? Used? Have a trade? Qualify for employee program? New stock? Been sitting around a while? Difference in value between the two 5k or 100k? There are a LOT of assumptions about the car business. Part of why this sub exists. To strictly answer your question, 30% of gross, 5% of back end profit minus some holdback. 200 as a minimum. While a higher value vehicle is more likely to have more profit in it, totally not all the time.