How Much Does an Average Car Salesman Make?
The take-home pay for a car salesman can vary significantly based on a multitude of factors. These factors include the type of car being sold, the brand, the specific dealership's pay scale, the number of customers a dealership sees each day, and the individual salesperson's performance. Understanding these elements is crucial for anyone considering a career in this demanding field.
The Role of a Car Salesman
Car salesmen, often known as salespeople or automotive dealers, are compensated based on a commission generated by the sales they close. Many dealerships offer various plans, but the commission-based structure is the most common. This means that salespeople are incentivized to sell as many vehicles as possible within a given period to maximize their earnings.
Compensation Strategies and Common Practices
Some salespeople find that they do not generate enough sales to achieve a satisfactory income, while others excel and make a living primarily through car sales. This often leads to a high turnover rate, with many salespeople staying in the role for less than a year.
Real Industry Experiences
Based on personal experiences at two very different dealerships, the earning potential is quite varied. At a quieter dealership, a salesman like myself, with average skills, could make around 30-40K per year on full commission. In contrast, a busy dealership might see up to 100 customers daily, leading to significantly higher earnings. Over 20 years, I have known about 120 car salespeople, and their earnings ranged from a low of 36K to a high of 40K, with very few making more.
A Personal Journey
My career as a car salesman has shown consistent growth over the years. After starting with no sales experience, I started at around 40K in the first year, increased to 60K in the second, and am projected to earn over 90K to 100K this year. This includes commission-based income, as well as the excellent dealership I work for, which has 24 salespeople, sells around 300 cars monthly, and I average over 20 sales per month.
Global Perspective
USA: Car salespeople in the United States typically earn a base salary, which is often around minimum wage. This base is supplemented by commission on car sales, making the average income around 40K per year. Some salespeople manage to earn more, especially those who sell a large volume of cars. The success rate for long-term employment in this role is not high, and very few car salespeople stay in the job more than a year.
UK: Car sales in the UK are structured somewhat differently. A car salesperson selling between 12 to 16 cars per month can earn approximately ￡25K, while those selling 16 to 24 cars per month can earn up to ￡40K. At this level, their earnings are comparable to those of a sales manager or business manager within the dealership. The income, along with the company car, can be attractive, but the working hours are notoriously long. Typical work hours are from 8:30 AM to 7:00 PM, and there may be additional hours required during sales events. A typical car salesperson works two to three Sundays per month and usually takes one day off during the week. Prospecting previous clients and visiting new ones can extend hours beyond the standard workday.
Conclusion
The role of a car salesman is demanding but can be highly rewarding for those who excel. It is crucial to understand the various compensation structures and the factors that can influence earnings. Whether you are considering a career in this field or curious about the earnings potential, it is important to research thoroughly and consider your personal goals and lifestyle needs.
Related Keywords: car salesman salary, car sales compensation, car dealership jobs