As an expert in the automotive industry, I can provide you with a detailed breakdown of how much commission a car salesman might earn. The compensation structure for car salesmen can vary widely depending on the dealership, the region, and the specific sales strategies employed. However, there are some general trends and figures that can give you a good idea of what to expect.

Firstly, it's important to understand that most dealerships operate on a base salary plus commission model. The base salary is typically set at or near the minimum wage, which serves as a safety net for the salesperson. This base pay is relatively low, so the real money comes from the commissions earned on the vehicles sold.

Commission Structure: The commission earned by a car salesman is usually a percentage of the dealership's gross profit on the sale of the vehicle. This gross profit is not the same as the total sale price; it's the difference between what the dealership paid for the car and what they sold it for. The percentage of this gross profit that a salesman can earn as commission can vary, but a common figure is around 25%.

Average Commission: Based on the 25% commission rate, if a dealership makes a gross profit of $1,200 on a car sale, the salesman would earn $300 in commission. This can vary significantly depending on the make and model of the car, as well as the negotiation skills of the salesman. Luxury and high-end vehicles, for example, can yield higher commissions due to the larger profit margins.

Additional Incentives: Besides the base commission, many dealerships offer additional incentives and bonuses. These can include bonuses for meeting sales targets, selling a certain number of vehicles within a month, or achieving high customer satisfaction ratings. These incentives can significantly boost a salesman's earnings.

Average Sales: The average number of cars sold per month by a salesman can also impact their earnings. According to the figures you provided, an average salesman sells about ten cars per month. If we use the earlier example of a $300 commission per car, this would mean an additional $3,000 in commission per month, on top of their base salary.

Total Earnings: When you combine the base salary with the commission from car sales and any additional bonuses or incentives, you can get a clearer picture of a car salesman's total earnings. It's not uncommon for a successful salesman to earn a comfortable income, especially in dealerships with high sales volumes and favorable commission structures.

Factors Affecting Earnings: It's also important to note that several factors can affect a salesman's earnings. These include the economic climate, the competitiveness of the local car market, the specific dealership's policies, and the individual salesman's skills and performance.

In conclusion, while the base salary for a car salesman is typically low, the potential to earn a substantial income through commissions and incentives is quite high. The exact amount a salesman can earn will depend on a variety of factors, but with skill, hard work, and a bit of luck, it's possible to have a lucrative career in car sales.

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Most dealerships pay salesmen a paltry base salary of roughly minimum wage. Salesmen then typically earn commissions of 25% of the dealership's gross profit on the car. ... The commission can put an extra $300 to $400 in a salesman's pocket per car sold, and the average salesman sells ten cars per month.Apr 14, 2003read more >>