Car Salesman's commission?

stevo2, Apr 16, 6:39am
Have been working at a new dealership a lot lately and am surprised by the quantity of new and even more pre owned cars they turn over.
This has got me wondering if anyone knows what sort of retainer and commission they would receive on each car sold?
2nd hand the same as new or not?
Kaz, westwyn, tgray, carstauranga001 and others
stevo2, Apr 17, 7:55am
Any ideas?
gunhand, Apr 17, 8:00am
You really think they will tell you what they make?
Some say they make bugger all, some say they do very well, all I know is that all the ones I know and know of down this way certainly don't live in cardboard boxes and eat out of dumpsters. In fact i'd say they seem to be doing very well.
stevo2, Apr 17, 8:08am
Not actually asking about them, Im more interested in a salesperson working for a large dealership.
gunhand, Apr 17, 8:10am
Oh I was referring to workers as well i:e, salesman.
tony9, Apr 17, 8:23am
tgray, Apr 17, 8:58am
Well , having never worked on a car lot I can only speak for myself.
Having no staff or commercial premises, I work on a minimum of $500 gross, less tax, advertising and ownership changes. Might get $300 nett per car if I am lucky. yes, it's that small!
As for my USA imports, well it's a wee bit more than that.
no1holdenfan, Apr 17, 11:29am
I'm work at a multi franchise dealership that sells 250+ cars a month ( in Australia ), minimum commission is $75 a car. Including Volume bonuses you can earn some serious coin.
westwyn, Apr 17, 11:38am
It's a "how long is this bit of string in my pocket" type of question, since there are SO many variables from dealership to dealership. As a rough guide though, the average yearly gross for a salesperson is around $50,000 or so- some earn less, some earn more. Some earn a LOT more- there are a number in the 100K club- but you need to be within a dealership that has the volume and systems in place to enable this, plus be the car equivalent of a top-earning rear estate salesperson- probably long established with a thick "black book" of contacts and previous clients. Most dealerships pay a retainer plus commission, the retainer could be anything from $20,000 to $30,000PA. Some- it's commission only (with a shared percentage of any F&I profit), while some run on a flat retainer only.

Basically- a really good salesperson (one who has a lot of existing previous clients, is well established with good product to sell) can make really good money. Most are in the "middle" income bracket. And some- either crap at selling, or on a crap dealership, earn not very much at all.
kazbanz, Apr 17, 10:15pm
Im sorry mate there is no answer to that one.
There are about 2500 dealers in NZ and about as many variations as to commission/retainer/wage structure.
Straight commission,Retainer/commission-
and straight wages with all the variables in between.
I have only worked at four dealerships in the last 20 odd years and every structure was different.
Last dealership I worked for I was duty manager/salesman.
The structure I arranged was commission only paid at end of month but a weekly "advance" paid to cover living expenses.This was then subtracted from my end of month payment.
stevo2, Apr 18, 4:55am
Thanks all for your replies.
One of the salesmen sold 4 cars in one day a week or two back so he was over the moon.
carstauranga001, Apr 18, 6:37am
stevo mate just seen this thread so sorry for delay, Hey kaz and westwyn pretty much sum it up. Yes some are no retainer and then higher commission. The more common scenario in Tauranga is 25-30K retainer and hey the sky's the limit depending on numbers sold of course. Good money for the right person who puts in the effort. Bear in mind the highest paid probably work every weekend and have a day off during the week. I know one guy who's just given away the big bucks for a better life style.
stevo2, Apr 18, 6:52am
Cheers Bryce.
ksam, Mar 7, 10:16am
Many years ago I worked for Jones Locke Holden Henderson, in the used car sales. $230.00 retainer per week, and 10% of the gross profit, (averaged out around $400.00 per car),.and obviously a car. That was early 90s, no idea what you'd get now.