Staff pay - New car sales

[SpikieMikie]

How much to new car salesmen and women get paid and how is it worked out ?

I went to a Sytner group dealership for a test drive last weekend and during conversation I found that the salesman I spoke to was on �8k basic. I know they work on commission but they either have to sell a lot of cars or the commission per car must be quite high to make it worth their while.

So whats a typical annual salary then ?

[LCDMAN]

Back in the early 90's my ex used to work on reception for a largish chain of dealers in the North (Perrys). The guys there were on a basic of �6k, could earn around 6% of the net profit on a used car sale and 4% for a new car sale. The best earners were selling maybe one of each per week. Still have mates in the car game and they reckon the actual amounts per car haven't changed a lot, although basics have risen slightly.

Having said that, they do say that the actual retained net margin (the real amount of money) on a new car sale is lower than ever. The dealers actually make a larger amount from a used car sale than a new car sale.

[maviscoull]

they need to sell alot of cars......trust me !

[gouldc]

Where I was working in 2000, unsure what the basic was, but it was �50 per car (all used then), plus your extras if it was financed, warranty, etc.

Given that we'd come into the service department almost every Monday to find at least 10 cars sold over the weekend alone (between 3 salesmen), and they'd generally sell at least another 6 between them during the evenings, they'd make a tidy earning on commision alone.

Would also agree with LCD - the margins on some cars are very narrow - we used to sell a lot of BMW's and Daewoos - completely different ends of the scale, but good margins on both of them as well.

I would have thought basic is at least �10k now, if not more, which isn't too bad in itself dependent on your location in the UK

[chas2008]

that basic is about right, the rest is paid by commision on the nett profit of the vehicle. They aim for volume sales so the % isnt always that high.
I know of one used car sales guy on �45,000 + year working for a franchised dealer , wasnt a popular guy with the rest of the team or customers he did whatever it took to sell cars,
As car sales are well down the last 6 months or so there are a lot of very worried salesmen out there.

[js253]

When I started selling cars 10 years ago, my basic salary was �6500. Today it is �10000. In reality, it's just to help you through the quiet months. Commission structures vary from dealer to dealer, but you generally get paid about 10% of the profit in a car sale. Margins in new cars are very slim these days, most dealers rely on volume related bonuses to make any profit. A lot of new cars are sold at less than they are bought for to get volumes up. A good salesperson will always qualify the customer's needs in order to sell the right car. These customers are much more likely to use the dealer again and recommend the seller. A good salesperson with a few years experience and a healthy database of customers can make a good income selling 20 cars a month in a volume dealer. The same person working in a prestige showroom can expect to earn the same from 10 cars a month, with a salary of around �15000 basic. The greater the value of the item, generally the greater the mark up.