Anyone work car sales before? How’s it work?

[Bonnie6G]

Just curious if anyone knew some details or had experience selling vehicles for a dealer before? The dealership buys the bronco from ford for invoice, then wants to sell it for as high as possible? How do the commissions work for the sales person? If there’s only a few grand between invoice and sales price, I’d imagine that the sales person has to sell a ton of vehicles to make ends meet. Do they get paid more if the vehicle is financed through ford or if the finance guy sells a warrantee on top?

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[M4Madness]

I know a guy in his late 30's that works for a dealership as a salesman. Or at least that's what position he started in (haven't talked to him for a few years.) I was told he made over $100K a year in a small town with a population of 20,000. I've often wanted to reconnect with him and get the inside scoop. LOL!

 

[Fat dog]

I know a guy in his late 30's that works for a dealership as a salesman. Or at least that's what position he started in (haven't talked to him for a few years.) I was told he made over $100K a year in a small town with a population of 20,000. I've often wanted to reconnect with him and get the inside scoop. LOL!

I would take anything a salesman says with a grain of salt.

 

[bigblueboing]

Just curious if anyone knew some details or had experience selling vehicles for a dealer before? The dealership buys the bronco from ford for invoice, then wants to sell it for as high as possible? How do the commissions work for the sales person? If there’s only a few grand between invoice and sales price, I’d imagine that the sales person has to sell a ton of vehicles to make ends meet. Do they get paid more if the vehicle is financed through ford or if the finance guy sells a warrantee on top?

I was a salesman for awhile.
Dealerships actually finance the vehicles from ford. But yes at invoice minus and incentives and holdbacks. These are to push vehicles out that are harder to sell. But yea right now there’s nothing.
The finance guy gets all the finance money.

Salesperson gets paid two ways. Commission on the profit between invoice and actual sales price.
You can also get paid commission on undervaluing a trade. Let’s say a trade is can be sold for 10000$ on the lot at a dealership. And let’s say I offer you $1500 I will get a commission on that difference minus and costs to get the vehicle sales ready.
If there’s no profit margin on a sales deal you will get a “mini” which is usually $100 which is a minimum profit margin deal. And yea you have to crank out deals to live on that.

The secret to car sales is to stay at one dealership. Start when you are 18-21 and build your book of business so that you can get paid when you are not even there and have multiple deals going at once because if someone asks for you by name you get 50% of that commission.

 

[M4Madness]

I would take anything a salesman says with a grain of salt.

Normally I'd agree, but I didn't hear the income amount directly from him. But, if he did tell me personally, I'd believe him as he's a very honorable, respectable guy. I'd have never dreamed that he'd quit his teaching job and sell cars. LOL!

 

[Bonnie6G]

I was a salesman for awhile.
Dealerships actually finance the vehicles from ford. But yes at invoice minus and incentives and holdbacks. These are to push vehicles out that are harder to sell. But yea right now there’s nothing.
The finance guy gets all the finance money.

Salesperson gets paid two ways. Commission on the profit between invoice and actual sales price.
You can also get paid commission on undervaluing a trade. Let’s say a trade is can be sold for 10000$ on the lot at a dealership. And let’s say I offer you $1500 I will get a commission on that difference minus and costs to get the vehicle sales ready.
If there’s no profit margin on a sales deal you will get a “mini” which is usually $100 which is a minimum profit margin deal. And yea you have to crank out deals to live on that.

The secret to car sales is to stay at one dealership. Start when you are 18-21 and build your book of business so that you can get paid when you are not even there and have multiple deals going at once because if someone asks for you by name you get 50% of that commission.

Thanks for this info. I asked the questions because my sales lady seems to hate me and based on how you described she likely gets compensated, I’m certainly not helping her cause. Im not trying to be a jerk in this deal, just trying to max out my trade in value, get the best rates, etc. I’ve had 2 years to research this sale and everything I should do, ask, lookout for. Because of that, she gets this look on her face when she sees me walk in and never answered my calls/texts.

 

[Puddle Jumper]

As someone who has worked in auto sales in some capacity for almost 25 yrs, I can tell you that every dealership has a different pay plan. It’s like any sales job though, a good salesperson can make a good living. Auto sales can be very stressful and you have to do your best to not let market conditions dictate your success. Like any profession, you need to be dedicated to your craft if you want to be able to survive the ebbs and flows. Most salespeople are making more on each vehicle sold these days, but the quantity just isn’t there. Give you an idea, we normally operate with around 300-330 new vehicles on the lot. Right now, we have about 12. With us getting only about 6-8 new vehicles a week on average (most pre-sold), you can do the math. The bills still need to be paid. It’s not a complicated equation.

What I won’t do is tell you how much our hardworking employees make. That’s their business.

 

[bigblueboing]

Thanks for this info. I asked the questions because my sales lady seems to hate me and based on how you described she likely gets compensated, I’m certainly not helping her cause. Im not trying to be a jerk in this deal, just trying to max out my trade in value, get the best rates, etc. I’ve had 2 years to research this sale and everything I should do, ask, lookout for. Because of that, she gets this look on her face when she sees me walk in and never answered my calls/texts.

Yea unfortunately the anonymity goes both ways on a car dealership. Most people would put car salespeople up there as the most unsavory people to deal with. And most salespeople hate that customers negotiate everything down to the penny. And then walk away over 150$.
Hence my advice is to never walk away from a deal. Lol.

My advice to you is to take a step back and just realize that you and her are both people trying to make a living.

 

[bigblueboing]

As someone who has worked in auto sales in some capacity for almost 25 yrs, I can tell you that every dealership has a different pay plan. It’s like any sales job though, a good salesperson can make a good living. Auto sales can be very stressful and you have to do your best to not let market conditions dictate your success. Like any profession, you need to be dedicated to your craft if you want to be able to survive the ebbs and flows. Most salespeople are making more on each vehicle sold these days, but the quantity just isn’t there. Give you an idea, we normally operate with around 300-330 new vehicles on the lot. Right now, we have about 12. With us getting only about 6-8 new vehicles a week on average (most pre-sold), you can do the math. The bills still need to be paid. It’s not a complicated equation.

What I won’t do is tell you how much our hardworking employees make. That’s their business.

We know how much salespeople make is not hard to figure out.
The real funny thing is how much the owner of the dealership makes. That’s what is sad. And never revealed.

 

[BUDXR7]

I’m in industrial sales. I know what profit margins we achieve because I have discretion on sell price for every sale I make. I don’t need permission from a manager. What’s good for the goose is good for the gander. What I’m curious about is not how much a car sales guy makes. What I want to know is the true (typical) profit margin. For both new (including hold backs) and used. We all know “invoice” is a BS gimmick. Honestly an insult to my intelligence. Like being lied to daily by the media and government. Think we’re stupid.

 

[homerpezneckdispenser]

It rubs the lotion on the skin, or else gets the hose again.

 

[bigblueboing]

I’m in industrial sales. I know what profit margins we achieve because I have discretion on sell price for every sale I make. I don’t need permission from a manager. What’s good for the goose is good for the gander. What I’m curious about is not how much a car sales guy makes. What I want to know is the true (typical) profit margin. For both new (including hold backs) and used. We all know “invoice” is a BS gimmick. Honestly an insult to my intelligence. Like being lied to daily by the media and government. Think we’re stupid.

Salespeople get paid on the actual invoice cost. The dealership keeps the holdbacks and incentives. Or sometime they’ll offer a spiff on one of those undesirable cars.

 

[BUDXR7]

Salespeople get paid on the actual invoice cost. The dealership keeps the holdbacks and incentives. Or sometime they’ll offer a spiff on one of those undesirable cars.

I don’t see how that can be. There would be no motivation to achieve max sell price. In this case, all sales people would be salary. Good luck with that model.

 

[bigblueboing]

I don’t see how that can be. There would be no motivation to achieve max sell price. In this case, all sales people would be salary. Good luck with that model.

It’s a tough gig
But right now if you sell a bronco for 25k over sticker you will get commission on that as well.

You just have to sell a lot.

 

[Puddle Jumper]

I’m in industrial sales. I know what profit margins we achieve because I have discretion on sell price for every sale I make. I don’t need permission from a manager. What’s good for the goose is good for the gander. What I’m curious about is not how much a car sales guy makes. What I want to know is the true (typical) profit margin. For both new (including hold backs) and used. We all know “invoice” is a BS gimmick. Honestly an insult to my intelligence. Like being lied to daily by the media and government. Think we’re stupid.

Salespeople get paid on the actual invoice cost. The dealership keeps the holdbacks and incentives. Or sometime they’ll offer a spiff on one of those undesirable cars.

While I am not about to give up trade secrets, I will tell you this. Having been a Finance Manager, Used Car Manager and New Car Manager during my automotive career, I can tell you with certainty, your information is not accurate.

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