How can a car salesman reach six-figure earnings in 2024?
Focus on high-margin vehicles at top-paying dealerships, consistently hit quotas, and maximize commissions through strong negotiation and referrals. Build skills, track results, and target high-paying markets to raise earnings.
Car sales can be a lucrative career for those who have strong sales skills and a passion for automobiles.
Unlike many traditional jobs, a car salesman's salary is often based on performance, with earnings tied directly to commission from sales. This means the more cars you sell, the higher your income potential.
But how much do car salesmen actually make in 2024?
Let's get into the details.
The average car salesman salary in the US is $82,757 per year in 2024, according to Glassdoor.
However, your earnings as a car salesman depend on several factors, including:
- Your ability to negotiate and close deals
- The dealership you work for
- The type of cars you sell (luxury vs. used cars)
- Your location (some cities pay higher than others)
The more cars you sell, the higher your commission and overall income.
Car Salesman Commission: How Does It Work?
Unlike many professions, car salesmen often do not receive a fixed salary. Instead, their earnings are based on commission rates, which range between 20% to 40% of the front-end profit on each sale.
How Much Commission Does a Car Salesman Make Per Car?
- If you sell 10 cars per month, and your dealership’s commission structure allows you to earn $350 per car, you will make $3,500 monthly in commission.
- Selling luxury cars generally results in higher commissions because of greater profit margins.
- Meeting or exceeding monthly quotas may qualify you for bonus commissions.
💡 Pro Tip: Some dealerships reduce commissions if sales targets aren’t met, making it essential to keep closing deals consistently.
Also read: How to draft an impeccable sales representative resume?
Car Salesman Salary Based on Dealership and Location
A car salesman’s salary varies based on the dealership brand and whether they specialize in new, used, or luxury vehicles.
Average Salary by Dealership Type
| Type of Car Sold | Average Salary (2024) |
|---|---|
| Luxury Car Salesman | $88,923 per year |
| New Car Salesman | $60,457 per year |
| Used Car Salesman | $40,100 per year |
Average Salary by Dealership Brand
| Dealership Company | Average Salary (2024) |
|---|---|
| Ford Motor Company | $141,233 |
| Porsche | $136,827 |
| Lithia Motors | $138,472 |
| AutoNation | $86,229 |
| Mercedes-Benz | $99,611 |
| Toyota North America | $79,338 |
| BMW | $81,073 |
| Nissan | $76,498 |
| Honda | $61,873 |
| CarMax | $35,679 |
Luxury brands like Porsche, Mercedes, and Ford offer the highest salaries due to larger profit margins per vehicle.
Also read: What are the top interview Q&As for sales representatives?
Highest Paying US Cities for Car Salesmen
| City | Average Salary |
|---|---|
| New York, NY | $58,389 |
| Austin, TX | $85,573 |
| Miami, FL | $76,481 |
| Houston, TX | $67,870 |
| Los Angeles, CA | $71,429 |
| Chicago, IL | $68,362 |
| Scottsdale, AZ | $60,742 |
| Detroit, MI | $49,753 |
| Orlando, FL | $58,415 |
📍 Texas and Florida cities tend to have some of the highest-paying car salesman jobs, thanks to strong car demand and low tax rates.
Also read: How to make product management resumes with sales or marketing background?
Car Salesman Job Requirements
The minimum education requirement to become a car salesman is: ✅ A high school diploma or GED equivalent
Do You Need a License?
Some US states, such as California, Ohio, and Michigan, require car salesmen to pay a licensing fee and apply for a permit from the Department of Motor Vehicles (DMV). Check your state’s requirements before applying for jobs.
Additional Certifications That Help Boost Your Career
If you want to move up to senior sales or management roles, consider getting certified in:
- Certified Sales Professional (CSP)
- Automotive Sales Professional
- Sales Management Certification
- Certified IT Consultant (CITC) (for technology-based automotive sales)
Essential Skills for Car Salesmen
Your ability to build relationships and close deals significantly impacts your salary.
Top Skills to Increase Your Earnings
| Soft Skills | Hard Skills |
|---|---|
| Customer Relationship Management | Sales Record & Reporting |
| Negotiation | Product Knowledge |
| Active Listening | Paperwork Processing |
| Time Management | CRM Software |
| Persuasive Communication | Inventory Management |
🏆 Pro Tip: Mastering negotiation tactics and understanding customer psychology can help you close bigger deals and boost commissions.
Also read: How to draft a kickass sales manager resume?
How to Boost Your Car Salesman Salary
- 📝 Keep Learning – Attend sales training programs to improve your techniques.
- 📊 Track Your Sales – Showcasing consistent performance can negotiate higher commissions.
- 🚘 Specialize in Luxury Cars – Selling high-end vehicles can increase your commissions 2X–3X.
- 💰 Hit Your Quotas – Meeting and exceeding quotas often leads to bonus earnings.
- 👥 Build a Referral Network – More leads = more sales = more commissions!
Also read: What are the top soft skills that you need to advance in your career?
Car Salesman Salary FAQs
- Do Car Salesmen Make Good Money?
Yes! If you have strong sales skills, you can earn $60,000 to over $140,000 annually, especially in luxury car sales.
- Can a Car Salesman Make Six Figures?
Yes! Many experienced car salesmen easily cross $100K per year by selling high-end vehicles and meeting quotas.
- How Much Do Car Salesmen Make in Texas?
The average car salesman salary in Texas ranges from $32,237 to $79,692 per year, depending on dealership and experience.
- Do Car Salesmen Get Paid Hourly?
❌ No. Car salesmen usually earn commissions rather than hourly wages.
Key Takeaways
- The average car salesman salary in 2024 is $58,245 per year, but luxury car salesmen can earn $100K+ per year.
- Commission structures vary by dealership, typically 20% to 40% of front-end profit per sale.
- Luxury brands (Porsche, Mercedes, Ford, BMW, etc.) offer the highest salaries.
- Austin, Miami, and Houston are among the best-paying US cities for car sales jobs.
- Strong negotiation and communication skills are key to increasing commissions.
- Consider certifications and specialization in luxury car sales to boost earnings.
🚀 Looking to land a car salesman job? Build your resume in minutes with Hiration’s AI-powered resume builder.
Frequently Asked Questions
-
How does car salesman commission work?
You typically earn a commission, not a fixed salary. Commission rates range between 20% to 40% of the front-end profit on each sale.
-
How much commission does a car salesman make per car?
If you sell 10 cars per month at $350 per car, you will make $3,500 monthly in commission.
-
Do car salesmen get paid hourly?
Car salesmen usually earn commissions rather than hourly wages.
-
Which pays more: luxury, new, or used car sales?
Average salaries are $88,923 per year for luxury, $60,457 per year for new, and $40,100 per year for used.
-
Which dealership brands offer high salaries for car salesmen?
Ford Motor Company, Porsche, and Lithia Motors list high averages: $141,233, $136,827, and $138,472.
-
Which US cities pay car salesmen the most?
Austin, TX, Miami, FL, and Houston, TX show top averages: $85,573, $76,481, and $67,870.
-
What education or license do you need to become a car salesman?
You need a high school diploma or GED equivalent. Some US states, such as California, Ohio, and Michigan, require car salesmen to pay a licensing fee and apply for a permit from the Department of Motor Vehicles (DMV).
-
Which skills help you increase your car salesman earnings?
Build soft skills like negotiation and active listening, and hard skills like product knowledge and CRM software. These skills help you close bigger deals and boost commissions.
-
How can you boost your car salesman salary?
Attend sales training programs, track your sales, specialize in luxury cars, hit your quotas, and build a referral network.
-
Can a car salesman make six figures?
Many experienced car salesmen easily cross $100K per year by selling high-end vehicles and meeting quotas.
