As a seasoned automotive industry expert with extensive experience in dealership operations, I can provide you with a comprehensive view of the commission structure for car salesmen. It's important to note that the commission rates for car salesmen can vary widely depending on a number of factors, including the type of vehicle sold, the dealership's commission structure, the salesperson's experience, and the geographic location of the dealership.

Firstly, let's discuss the types of vehicles sold and their impact on commission. New vehicle sales typically do not yield commissions as high as those for used cars. This is due to the fact that new cars are sold at a lower profit margin for the dealership, which in turn limits the amount of commission that can be paid out. On the other hand, used car sales can sometimes result in higher commissions, as the profit margin on these vehicles is generally higher. The statement that "New vehicle sales rarely pay $300+ commissions, while used cars can sometimes pay $1,000 commissions" is a generalization that may hold true in some cases but should be taken with a grain of salt, as actual figures can vary significantly.

The average commission per car is difficult to pin down to a specific number due to the variability in the factors mentioned above. However, based on industry trends and anecdotal evidence, an average commission of around $250 per car is a reasonable estimate. This figure is not set in stone and should be considered as a rough average that can fluctuate depending on the specific circumstances of each sale.

Now, let's delve into the commission structures that are typically found at a dealership. The commission for a car salesman can be structured in several ways:


1. Flat Rate Commission: In this structure, the salesperson receives a fixed amount for each vehicle sold, regardless of the vehicle's price or profit margin.


2. Gross Profit Commission: Here, the commission is based on a percentage of the gross profit that the dealership makes on the sale of the vehicle. This can be a more lucrative option for salespeople, as it directly ties their earnings to the profitability of each sale.


3. Salary Plus Commission: Some dealerships offer a base salary in addition to commission. This can provide a more stable income for salespeople, especially during slower sales periods.


4. Tiered Commission: In this system, the commission rate increases as the salesperson sells more vehicles within a given period. This can incentivize salespeople to sell more cars and earn higher commissions.


5. Bonuses and Incentives: Beyond the standard commission structure, many dealerships offer bonuses and incentives for meeting or exceeding sales targets, selling certain models, or achieving high customer satisfaction ratings.

It's also important to consider the role of sales volume. High-volume dealerships may offer lower commission rates due to the higher number of sales, while lower-volume dealerships might offer higher rates to attract and retain top talent.

In conclusion, the average commission for a car salesman is influenced by a multitude of factors and can vary greatly. The provided estimate of $250 per car serves as a general benchmark, but it's essential for anyone interested in this profession to research the specific commission structures and rates at dealerships they are considering.

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New vehicle sales rarely pay $300+ commissions, while used cars can sometimes pay $1,000 commissions. To sum up, I'd guess the average is close to $250 a car. If you want to learn more, here's how commission structures are setup at your average volume brand dealership:* 1.Jun 3, 2015read more >>