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Discussion Starter · #1 ·
Just curious, how much are you guys in car sales(or sales period) making on average?? I know it varies month to month, but I was curious because I've been in mortgage sales for 3 yrs now, and getting so fucking tired of it.. I was making 6 figures until the company I worked for closed most of it's offices, and now I have rebuild my pipeline, and I just need to do something else now.. I dont know what direction to go into, but I need a change...
 

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There's so much variation there it's really hard to put an estimate on it. Most new car sales folks make a retardedly low salary (that varies by dealership and location) supplimented by commission. And I know of many used car salespeople that make strictly commission.
 

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I have sold cars for the past 16 years. I worked at a Ford dealer for 12 years and have worked at a used car dealer the last 4 years. As the gentleman said the is a lot of variation. Most car salespeople make in the $30th to $60th range with a few getting close to $100th but they are usually the consistant top sellers at the dealership. Finding a good place to work is the hardest part. If you can get into selling just used cars thats the way to go. Selling new cars is a pain. Its a lot of work and a lot of follow up. Most of the time you will end up getting a 'mini deal' which is usually only $100 or even less at some dealers. You will never make it on new cars alone. You have to get some used sales in there also. A bit of advice to everyone. Be nice to your salesperson they are NOT getting rich off your new car purchase.
 

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So what's really going on when you guys have to go "run this by the manager?" Dice games against the wall? You've got to know, at least on new cars, what the manager will and will not approve. Why the multiple trips back and forth?
 

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dean said:
So what's really going on when you guys have to go "run this by the manager?" Dice games against the wall? You've got to know, at least on new cars, what the manager will and will not approve. Why the multiple trips back and forth?
Unfortunately we (the salesperson) are not allowed to give the final yes or no. Yes any experienced salesperson has a good idea what will offer fly and what won't. A experienced salesperson with any sense will tell you straight up without even going back to the manager if your offer is reasonable or you might as well re think your offer because it won't be accepted. But even then we (salesperson) HAVE to go back to the sales manager to present your offer and see if it is acceptable. Usually the customer offers are so low we (salespersons) have to go back and forth between you and the manager trying to raise your sights on price to what is an acceptable figure. Its usually not a issue of 'how much profit can we get outta this guy' Its an issue of we gotta get this customers offer up or we can't even sell this car... period. No sale and both sides lose.
 

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i don't understand why everyone doesnt ask to speak to the sales manager the minute they walk in the door? I always do, even if im just looking.
 

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10bv01 said:
i don't understand why everyone doesnt ask to speak to the sales manager the minute they walk in the door? I always do, even if im just looking.
This is a good point. I know you may have a conflict of interest answering this, but what would happen if people immediately requested to negotiate with a manager? Is there a potential downside to the consumer?
 

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dean said:
So what's really going on when you guys have to go "run this by the manager?" Dice games against the wall? You've got to know, at least on new cars, what the manager will and will not approve. Why the multiple trips back and forth?
Most of the time it's a negotiating tactic. I can't speak specifically for car salespeople, but myself I'm in banking and usually when negotiating a rate (ie: for a mortgage) and the customer asks for a rate lower than I want to go (though still in my descretionary power) I'll say that I need to take it to my manager. I'll go up to the manager's office, chit-chat a little, talk about last night's hockey game, then return to the customer with a compromise rate and the customer thinks they won.
 

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dean said:
10bv01 said:
i don't understand why everyone doesnt ask to speak to the sales manager the minute they walk in the door? I always do, even if im just looking.
This is a good point. I know you may have a conflict of interest answering this, but what would happen if people immediately requested to negotiate with a manager? Is there a potential downside to the consumer?
Actually that does happen on occasion. Not often but once in awhile. Usually the manager will speak to you at first then turn you back to a salesman to show you cars, test drive etc. The manager will not cut the salesperson out of the deal totally. Then the manager will be the one to quote you the best sale price. This actually makes it a bit easier for the salesperson because the manager will normally give you the lowest sale price he can do on the first shot. So the saleperson doesn't have to spend time with you negotiating and trying to raise your sights on price.
 

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Thalo said:
dean said:
So what's really going on when you guys have to go "run this by the manager?" Dice games against the wall? You've got to know, at least on new cars, what the manager will and will not approve. Why the multiple trips back and forth?
Most of the time it's a negotiating tactic. I can't speak specifically for car salespeople, but myself I'm in banking and usually when negotiating a rate (ie: for a mortgage) and the customer asks for a rate lower than I want to go (though still in my descretionary power) I'll say that I need to take it to my manager. I'll go up to the manager's office, chit-chat a little, talk about last night's hockey game, then return to the customer with a compromise rate and the customer thinks they won.
Here is a big difference. I have never known a car dealership to give a salesperson discretionary power to quote you a final sale price without a managers knowledge and approval. I guess if someone walked in and said, hey I'll pay sticker for that car! Then sure I could accept that offer without checikng with a manager first. But thats about the only case.
 

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Well, as far as what we make....... At Honda I made a pretty good living because we sold a lot of cars and I had 4yrs of repeat customers. I took a huge pay cut leaving honda and going to vw. I believe the vw is the best car and If you know me personally, you know I'm a pretty straight shooter. I'm just not one to sell a product I don't believe in and/or work for a dealership I don't think is fair. I get both at Herzog-Meier. The owner's are great. I'm expecting to be out of car sales by the end of the year. Hopefully I'll have enough sites up by then to pay the bills and I can do it full time. As for how much I made last month. Ha... just a little over minimum wage. Luckily, I'm already making money on my sites to suplement. I really suggest you look for another occupation other than car sales. After a while you're branded by the stereotype and unless you're in internet or have a client base, you may have a hard time making it. I've had a cut in pay every year for the last 5 years. It is getting worse, not better.
 

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Discussion Starter · #12 ·
I was thinking if that was the way I would go, it would have to be Mercedes, BMW, or some other higher end dealership, I have 3 years as a top producer in mortgages, so I could probably make the switch easily. I'm just in that "I want to do what I can enjoy" mode. unfortunetly I need to make at min. $5K/ month doing it, and can't picture myself selling timesshares...(I have ethics too).. I guess when you do something so long it's hard to picture yourself doing something else...
 

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What about Internet sales? That's how I bought mine. You can work more dealers in the time it takes you to drive to the dealership and get a good deal.

The money is in the incentives from the manufacturer on the number sold. Hence the end of the month deals made. If you go to a high volume dealer you are more likely to drive away with a better deal. Anything you leave on the table is icing on the cake for the dealer.
 

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I'm in the Detroit area and I dont really want to travel out of state to purchase a car. So how can I benefit from the internet? Isn't it basically going to be the same cars that are on the lots near me? Or is there a website that will deliver it to me? I really dont know how internet auto buying works. Any good references out there?
 
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