What Does a Used Car Salesman Make on Commission?

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How much does a used car salesman earn on commission? The average salesman makes between $35k and $50k per year, depending on the amount of sales he makes. The average salesman works 55 to 60 hours per week. However, if a salesman sells 120 Audis per month, he will make a total of $650k per year. What does this mean for you?


A holdback on a used car salesman’s commission is a percentage of the vehicle’s invoice price or MSRP. The manufacturer typically pays the withheld amount on a quarterly basis. Holdbacks began to be used more widely several years ago and they are used to help dealers increase their profits. Because they decrease the gross profit of a sale, they can be seen as a negative for the salesperson.

The holdback is a percentage of the invoice price that the manufacturer keeps back after selling a vehicle. It usually ranges from one to three percent of the vehicle’s price. While this small percentage doesn’t sound like much, it can add up quickly, especially when used cars sell for a lower price than the original invoice price. Dealers can use holdbacks to offset the cost of inventory, which is a major part of their bottom line.

Dealers are usually reluctant to pass the holdback on to their salespeople. This is because the money goes towards increasing the dealership’s profit. But when it comes to used car salesmen, this holdsback gives them an opportunity to charge higher prices. This way, they can cover the cost of a floor plan, as well as the salesman’s commission. The dealership will also be able to keep a greater portion of the car’s true profit.

A dealer can use a holdback on a used car salesman’s commission as leverage in negotiations. Using a holdback as leverage, car buyers can ask the dealer to dig deeper into the holdback. It may be beneficial to ask for a larger discount. To do this, they must ask the dealer the right questions. And remember, the holdback is only one of many possible ways to negotiate.

A car salesman who sells one to seven cars per month can make up to 25% of the sale’s gross profit. If they sell ten or more cars per month, the salesman can earn up to 30% of the sale price per car. But if they sell 14 or more cars a month, the car salesman can earn up to 40% commission on each vehicle sold. This amount can add up to a lot in terms of income.

Monthly bonus

A monthly bonus is a great way to motivate your sales team to sell more cars. Many dealerships offer incentives for their sales representatives to sell more vehicles. For example, Toyota sends its sales representatives a debit card loaded with between $50 and $250 per car they sell. Dealerships, on the other hand, usually offer «cash spiffs,» or extra cash, which may amount to several thousand dollars.

Depending on the dealer and type of salesman position, car salesmen can earn anywhere from $300 to $400 per month. Some dealerships even reward salespeople with incentives to reach volume targets. For example, Ford Motor Company recently paid a Lincoln dealership $10,000 to sell the flopped Lincoln Blackwood SUV. Many times these incentives are passed on to buyers. Monthly bonuses for used car salesman are a nice addition to a car salesman’s income.

In addition to commissions, salesmen may also earn a fixed salary. Most salesmen receive a fixed salary that is based on their gross profit. In other words, they are paid the same amount regardless of how many cars they sell. However, a monthly bonus isn’t something that many salesmen want to see. However, salesmen who make between twenty to thirty cars a month may earn upwards of $8,000 per month.

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Some auto manufacturers also offer bonus programs for specific vehicle models. Bonuses can range anywhere from $50 to $200. However, many automakers require salespeople to go through certification to qualify for these incentives. Dealers may also offer in-house incentives for selling specific models. Some dealerships give their salespeople a bonus every time they sell five or ten cars. These bonuses can add up to a significant additional income. Some dealers may even have special rewards for the top salespeople in their dealership.


The average gross profit for a used car salesman is about $2400, compared to $1900 for a new car. Because used cars outsell new ones more than two to one in the U.S., used car salesmen can earn higher commissions based on volume. Luxury cars, on the other hand, are more expensive and offer a higher gross profit potential, but require less sales volume to generate the same commission.

The salary for a car salesman on commission varies by department. Typical commission rates are twenty to forty percent of the net profit, with a minimum commission of $125 per car. However, commissions for used car salesmen vary widely, ranging from $800 to $2400 per car. However, in many cases, commissions for used car salesmen are much higher. It is possible to earn as much as $10,000 a month as an exceptional salesman.

Despite the fact that there are many benefits of a used car salesman on salary, some buyers prefer to shop at a dealership with a guaranteed minimum wage. A lower-pressure environment means more satisfied customers. A salesman on salary may also be less inclined to «fight» for every sale. However, the downside of being paid on commission is that you never have guaranteed income. In addition, you might not be paid as much as you thought.

However, the spiffs earned by used car salesmen are taxable. While a car salesman may make up to $500 per sale, the money is still taxable. You’ll have to add your commission to your fixed salary and subtract the taxes in order to get your net salary. This is not an unreasonable compensation if you’re making a decent living in your chosen industry.

The car salesman’s income depends on his ability to persuade people to buy a particular model. His job also requires him to keep his cool while negotiating with customers. He must be persuasive, yet not offend the customers. In order to earn the highest salary, a car salesman should be good at people-management skills. So, what are the benefits of a used car salesman on commission?

Perception of a used car salesman

The perception of a used car salesman on commission is a common topic. It’s not a new one; used car salespeople have become notorious for using unethical tactics such as over-promising, under-delivering, and hiding fine print. Yet despite these criticisms, the profession still commands a high level of trust in our society. In a recent Ipsos survey, people worldwide rated different professions on their level of trust. The least trusted professions included bankers, government ministers, pollsters, and advertisers.

The perception of a used car salesman on commission is based on a simple fact: customers lie more than their stereotypical car salespersons. And even if they were honest and upfront, customers would probably never buy from a used car salesperson on commission. They’d rather shop elsewhere. However, some would be willing to deal with a different salesperson. This is a result of the stereotype that has become engrained in our culture.

There are a few important differences between new and used cars. In general, used cars sell for more than two times the price of new ones. Therefore, salesmen on commission earn more money if they sell more used cars. Luxury cars sell for more money but have far fewer sales opportunities. Still, the same percentage commission is paid to luxury car salesmen. It’s easy to see why people are more satisfied with used cars than with luxury cars.

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Is it really that difficult to become a car salesman? This article will examine the job’s pros and cons. The benefits, earning potential, and character traits that make a car salesman successful are listed below. You might find this job appealing if you like helping people and making them happy. However, before you embark on a car sales career, you must know a few things about the job.

Stressful job

Whether you’re a new or veteran car salesman, there are many ways to reduce your stress levels. First, save up some money. Keeping a stash of cash will help you in the slow months. Sales are generally lower during the warmer months, but if you’re a newbie, save up three months’ worth of expenses. Similarly, you should prepare yourself mentally by taking up a hobby or sport.

Being a car salesman is also known for its long working hours. It is not uncommon for a car salesman to work forty to fifty hours a week. In addition to long work hours, many car salespeople report a good work-life balance. Most of them come home on time and have plenty of time for leisure activities. Furthermore, they’re not always under the pressure of a high quota.

Car salesmen are generally outgoing and extroverted. As a result, they don’t have much contact with clients. However, this doesn’t mean they don’t get bored. After a while, selling cars doesn’t feel as exciting. Some car salesmen would love to leave the job. It doesn’t matter if you’re extroverted or reserved; both have their own advantages and disadvantages.

A car salesman’s schedule is extremely demanding. They are required to follow up leads, deal with endless paperwork and handle customer enquires. In addition to the demanding hours, a car salesman is often paid on a commission basis, which means that their pay depends on the success of their sales. This requires a lot of self-motivation. Furthermore, they need to be able to deal with pressure from their boss and customers.

Despite the high level of income, car salesmen may still experience a high level of stress. The typical working week is about five days, and many workers have to work weekends, evenings and holidays. The hours are usually eight to six, although many sales executives are required to work longer hours to be successful. This can put a strain on their social lives and family. In addition, they may not be able to take breaks for themselves.


Whether you want to be a salesman in the automotive industry or you just love meeting new people, there are many benefits of becoming a car salesman. In addition to making money, you don’t have to spend a lot of time on your feet. In fact, you can stay as a car salesman for decades without noticing any major changes. You don’t have to worry about getting tired, either — car salespeople spend several hours each day talking to customers. Oftentimes, people will even lie to car salesmen to try to sell them a car. But once you’ve won over a customer, you’re on the right track to success.

While being a car salesman is a stressful and time-consuming job, it’s also an excellent career choice. You can earn more money than a doctor and meet new people. Additionally, you’ll be part of a fun and rewarding industry where you can make friends and connections. So, what are the benefits of being a car salesman? Here are some of the most popular ones:

Car salesmen must constantly learn about the automotive industry. The average consumer spends 13 hours researching a vehicle before purchasing it. It’s important for car salesmen to acknowledge this and guide them toward the sale. While price negotiations aren’t as stressful as they were in the past, there are still some difficult conversations that car salesmen will need to have. In addition, there’s the added benefit of interacting with customers on a more personal level.

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In addition to the financial benefits of being a car salesman, the job is also incredibly flexible. Working 40 hours or more per week means a full schedule, sometimes even weekends. The average car salesman is expected to sell eight to twelve cars a month — depending on the size of the dealership’s inventory and their expectations. In addition to selling cars, you’ll be contacting leads, working with walk-in prospects, and closing deals.

While car salesman jobs aren’t physically demanding, they do have their share of challenges. They often require strong communication skills to persuade customers to buy a car, fill out paperwork, and spend time in a relaxed manner. Plus, many car salespeople report that they have a good work-life balance and enjoy their free time. The benefits of becoming a car salesman are well worth the challenge.

Character traits

As a car salesman, you will need to be competent and trustworthy, and this can be accomplished with a few key character traits. While a college degree may be helpful, your character will ultimately be seen by the car buyer. That means you don’t have to get an expensive degree to sell cars. By learning these traits, you can avoid racking up student loan debt in the process. In today’s world, student loan debt is a common issue.

People outside the car industry often assume they know the characteristics of a good salesman. However, they aren’t as important as people think. A car salesman doesn’t have to be the life of the party, have the gift of gab, or know how to start a conversation with a doorknob. Instead, he or she should have the following traits. Listed below are the traits of a successful car salesman.

Earning potential

While there are no specific college degrees needed to become a car salesman, it is highly recommended that you complete a training course to build a strong foundation in the automotive industry. Most dealerships will also offer professional development courses for car salespeople to help them succeed in the field. Listed below are some tips for aspiring car salesmen. Once you’ve completed the course, you’ll be well on your way to becoming a car salesman.

The earnings potential of being a car salesman can be quite high. However, it is important to note that not all sales are profitable. While you might be able to earn a substantial amount of money, if you’re not careful, you might never reach your goals. For example, if you are a car salesman who is looking to sell cars, you might not make enough money to afford to buy a new car. Depending on the type of car you’re selling, you may be able to earn anywhere from $5 to $20,000 per month.

A good car salesman should have a high level of extroversion. As a car salesman, you will need to work in a fast-paced environment with many competitors. If you’re an introvert, you might find it difficult to build relationships with customers and overcome objections. Generally, introverted people tend to lose more sales than aggressive ones. You can also work as a roadside used car salesman.

Being a car salesman is a highly rewarding career. A car salesman can create a great day for a lot of people in their community. Working flexible hours is an excellent way to earn a living and provide for your family. And it’s also important to note that a car salesman is able to build relationships with people from different walks of life. It’s also very rewarding to have a successful career that will help you build a network of relationships.

While many people believe that it’s impossible to earn much money as a car salesman, the reality is much different. In order to maximize your income potential, you should focus on developing your skills and observing your colleagues’ success. Identify a successful car salesperson and try to build a rapport with them. It is important to approach salespeople with an open mind and genuine interest in learning. They’ll be more than happy to help you become a better salesman.

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