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 $83,497 per year in 2024, according to Indeed.
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
| Dealership Type | Estimated Average Salary (2025–26) | Basis / Notes |
|---|---|---|
| Luxury Car Dealerships | $100,000 – $130,000+ | Higher potential due to larger profit margins & commission; senior sellers often exceed six figures. |
| New Car Dealerships | $75,000 – $95,000 | Mid-range pay with moderate commissions and volume sales. |
| Used Car Dealerships | $60,000 – $85,000 | Lower average due to smaller profit margins, though top performers may earn more. |
| High-Volume / Big-Box Dealers | $70,000 – $100,000 | Often average or above average pay due to sales volume and bonuses. |
Average Salary by Dealership Brand
| Dealership Brand | Average Salary (2025–26) |
|---|---|
| Porsche | $110,018 per year |
| Nissan | $100,597 per year |
| Ford Motor Company | $96,509 per year |
| Mercedes-Benz | $95,760 per year |
| Lithia & Driveway (Lithia Motors) | $98,672 per year |
| Toyota North America | $70,231 per year |
| BMW | $65,000 per year |
| Honda | $51,697 per year |
| CarMax | $43,605 per year |
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 (2025–26) |
|---|---|
| Edmonds, WA | $155,585 per year |
| Waterford, MI | $119,187 per year |
| Omaha, NE | $82,857 per year |
| Peoria, IL | $82,584 per year |
| Bloomington, IL | $82,245 per year |
📍 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 - Invest in automotive sales coaching, negotiation workshops, and OEM brand certifications. Training in F&I (Finance & Insurance) can also increase your commissionable opportunities.
- Track Your Sales - Maintain a personal dashboard of units sold, close rates, profit per vehicle, and CSI (Customer Satisfaction Index) scores. High CSI scores often unlock bonuses and make it easier to negotiate better commission splits.
- Specialize in Luxury Cars - High-end brands have larger front-end profit margins. Even selling fewer luxury cars per month can out-earn high-volume entry-level sales roles. Build expertise in premium trims, financing options, and trade-in valuations.
- Hit Your Quotas - Many dealerships offer tiered commission structures. Hitting 12-15 or more units per month often triggers higher pay plans, retroactive bonuses, or spiffs from manufacturers.
- Build a Referral Network - Staying in touch with previous customers, local businesses, and online groups can create a steady stream of warm leads. Referrals often close faster and lead to higher customer satisfaction scores.
- Master Digital Selling - Use social media platforms to showcase inventory through walkaround videos, feature breakdowns, and customer delivery celebrations. Salespeople who build a personal brand often generate a much higher share of self-sourced leads.
- Learn the F&I Basics - Understanding financing terms, warranties, GAP coverage, and add-on products helps you support F&I managers and may open opportunities for additional bonuses.
- Respond Faster - Internet leads go cold quickly. Fast responders dramatically improve close ratios and can increase monthly unit sales without additional lead volume.
- Improve Product Knowledge - Customers trust salespeople who clearly explain trims, safety technology, warranties, hybrid systems, and competitor comparisons. Higher trust leads directly to higher close rates and better commissions.
- Upsell Trade-Ins Effectively - Strong trade-in evaluations and transparent explanations help close deals with price- or payment-sensitive customers. Effective trade-in management can significantly increase total monthly sales.
- Participate in OEM Incentive Programs - Manufacturers frequently offer bonuses for selling certain trims or hitting monthly and quarterly goals. These programs can add notable supplementary income.
- Follow Up Consistently - Many buyers choose the salesperson who follows up most reliably. Consistent CRM usage and structured follow-up sequences can increase delivered units by 20-30 percent.
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 salesperson salary in the U.S. is $83,497 per year, based on the latest Indeed data.
- Earnings vary widely because most car sales roles are commission-based, with pay plans typically offering 20%-30% of front-end profit per sale.
- Luxury dealerships consistently offer the highest income potential due to larger profit margins and higher commissions.
- Verified high-paying dealership brands include Porsche, Nissan, Mercedes-Benz, Ford, Lithia Motors, and other luxury or high-volume groups.
- The highest-paying U.S. cities (based on published averages) include Edmonds (WA), Waterford (MI), Omaha (NE), Peoria (IL), and Bloomington (IL) - driven by strong commissions and dealership mix.
- Major metro areas like Chicago, New York, and Los Angeles also report strong average salaries, though not always at the very top of national rankings due to varying sample sizes.
- Your income is heavily influenced by dealership type (luxury vs. new vs. used), brand reputation, local demand, and your personal sales performance.
- Skills such as negotiation, product knowledge, digital selling, fast lead response, and customer relationship management have a direct measurable impact on monthly commissions.
If you're planning your next move in automotive sales, Hiration can help you refine your resume, craft a clear cover letter, optimize your LinkedIn profile, and prepare confidently for interviews.
