Anyone know how much car salesmen make per year? To be more exact - Saturn salesmen? I would like to get out of this job i’m in, but, i do get paid well, so pay is a big factor.
I’m on the outside looking in, that it wouldn’t be that bad of job - YES? NO?
thanks
Scott
This is second hand and not specific to Saturn, but … a co-worker of mine is a former car salesman, who got out of that life so that he could get a life (more or less his words). He sold Toyota (his favorite), BMW, Saab, GM and Ford. In a good year, he was making in the neighborhood of $100k, but he was also working 6 days a week, 10-12 hours per day. He liked the money, hated the hours and actually liked the job. But, he’s an honest guy who isn’t your typical cliche car salesman. He now works 4 days per week, 10 hours per day and makes 3/4 the money. And is infinitely happier.
For what it’s worth.
Thanks - i’m sure there are ups and downs to it. With young kids, time is always a necessity. Thanks again.
Everyone’s favorite answer: It depends…
Many different factors to consider - pay structure of the dealership, negotiable margin, drawing power of the brand, etc. Here in Canada, an average for a car salesman is probably around $50K - your top performers can definitely pull in 6 figures, though…
I found the biggest barrier to entry is getting through the first lean months - you’re green, not sure what you’re doing, and so don’t pull in enough money. Since most are commission based, any down-time, vacation, etc. is right out of pocket. You can’t afford to have a bad day…lol…
Saturn has a no-haggle procong policy, right? Makes it better.
No haggle pricing? I believe so. I only picked Saturn cause i own one. And for the most part it’s a good car and I would/will buy another. Money is the barrier, at this point i can’t go backward, at least not right now.
Thanks
Scott
The reason I pointed out the no haggle pricing is that most dealerships will pay you a combination of draw plus commission - you’ll get a base of $325 a week or whatever, and then 22-25% of the gross margin in the car - if the brands negotiable margin is 16%, then you’re starting anywhere from 3.5-4% of gross…until you start negotiating, and you cut the price to close the deal. As the profit goes down, so does your pay… if your brand’s negotiable margin is 12% or 8%, then your starting point is lower…
With no haggling, at least you can do the math… either way, the first months will be lean…
Since we always seem to be on the fence of recession, I would worry about deciding to feed my family on something with such inherent risk. Plus, I wonder if commission incomes will decrease as the population shifts back to smaller/cheaper cars with smaller profit margins. I’ve alway been under the assumption that the large SUVs and other excessive vehicles have the largest profit margins with higher commissions so if the Toyota guy is selling corollas over tundras the income will reflect such. There will be geographical variations as well I’d bet. I live in a county with an average household income around 30K, you do the math. I’m just speculating as I’ve never sold cars.
" Since we always seem to be on the fence of recession"
Exactly my thought. Although I do not have experience in the auto industry, I wouldn’t look for a job within this sector at the current time in this economic cycle. Just my 2cts.
That was true, SUV’s had huge margins, but now the rebates and sales and other desperate measures to get them off the lot has taken away the profit margin. For example the new Explorer we bought in 2004 had a sticker of $33,000, we paid 20,500 for it. Car dealers don’t make squat off of new cars. They make money when they get your trade in for dirt cheap, and sell it for a big profit. I sold cars as a college summer job. I made about $50-$200 commission on new cars. On used cars it was about $200-$700 commission.
Just a quick note, I have spent the past 12+ years in the car business and it is very rare for a saleperson to make 100K a year. There are a few that do it but for the most part, your average sales person is going to pull down anywhere from 35000.00 to 50000.00. the key is to move into management, now your talking 120000.00 plus a year and alot easier job. Know this before you decide to get into a business that does not care about its employees and where money is the bottom line…you will spend 6 days a week, 10 to 12 hours a day working…there is no life and a high divorce rate. the car business is not what it used to be and the money is not worth your health and family. Find something else. don’t walk but run away from the very thought of doing that job and you can forget training, they will not give you the time to get any in.
(yes I am still in that business so I am not speaking from a 10 year ago prespective)
Thanks Everyone! Like I said, i don’t want to go backward. This seems like that direction.
Just a thought, and i’ll leave it that way.
Scott