As an industry expert with extensive knowledge in the automotive sector, I can provide you with a detailed insight into the compensation structure for car salesmen. The remuneration for car salesmen is a combination of a base salary and commissions, which can vary significantly depending on the dealership, the region, and the individual's performance.

Base Salary: It is true that many dealerships offer a base salary to their salesmen, which is often close to the minimum wage. This base salary serves as a basic income for the salesperson, providing a small level of financial security. However, it is not the primary source of income for most car salesmen.

Commissions: The real money comes from commissions, which are a percentage of the dealership's gross profit on each vehicle sold. The commission rate can vary, but it is not uncommon for salesmen to earn around 25% of the dealership's gross profit. This commission structure incentivizes salesmen to sell more cars and to negotiate higher prices, as both will directly increase their earnings.

Average Earnings: Based on the commission structure, a salesperson can earn an additional $300 to $400 per car sold. Considering the average salesman sells about ten cars per month, this can lead to a substantial income boost from commissions alone.

Factors Affecting Earnings: It's important to note that several factors can affect a salesperson's earnings. These include the type of vehicles sold, the market demand, the salesperson's negotiation skills, and the dealership's policies. Some dealerships may offer bonuses for reaching certain sales targets or for selling high-margin vehicles.

Challenges and Considerations: The career of a car salesman can be challenging due to the fluctuating nature of commissions. While some months may be highly profitable, others may not be as lucrative, leading to an inconsistent income. Additionally, the pressure to sell can be high, and the job often requires long hours and a deep understanding of the automotive market.

In conclusion, while car salesmen do receive a base salary, their primary source of income comes from commissions earned on the vehicles they sell. The potential for high earnings makes the career attractive to some, but the inherent instability and pressure can be a deterrent for others.

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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 >>