How much do car salesmen make?
To put it simply, the average car salesman salary in the US is $55,811 per annum.
However, the salary of a car salesman depends on several factors, especially one’s skills as a sales representative.
Your salary will largely depend on how you pitch the sale to the customers and the number of cars you can sell in a month. The more cars you sell, the higher your income.
How much commission does a car salesman make?
Depending on the dealership, your car salesman commission is generally up to 25% of the commission on front-end profit for every car they sell.
Besides your skills as a salesman and the dealership company that you work for, location is another factor that comes into play while determining your salary.
Read on to learn more about the following FAQs related to car salesman salary:
- How do car salesmen get paid?
- What is the average car salesman's salary based on car dealership companies?
- Which US cities pay the highest salaries for car salesman jobs?
- What are some car salesman requirements?
- What are some must-have car salesman skills?
- How can you improve your car salesman skills?
- What are some of the common car salesman salary FAQs?
How Do Car Salesmen Make Money?
Unlike other job profiles, a car salesman may or may not earn a fixed wage (depending on the dealership).
Rather, your car salesman's salary is directly dependent on your sales skills and the ability to persuade customers.
They generally earn through commission rates which depending on the dealership company, can range between 20% to 40%.
So how much money do car salesmen make per car?
If you sell about 10 cars in a month and on average you make about $40k per year, you will be earning $330 per car.
But, that’s just a rough estimate. Other factors such as back-end income and car sale quotas also come to play when determining a car salesman salary.
Every dealership has different set quotas that car salesmen have to meet every month.
Likewise, if you manage to sell more than the number of cars the monthly quota calls for, you may get awarded a higher commission rate for the following sales.
However, this scenario can also be reversed. If you fall short of meeting the monthly sales quota, you will earn less commission and there’s a chance that you might even lose your job.
Other than that, the dealership might offer their sales representatives bonuses under various conditions like if they sell x number of cars in 6 months or so.
Also read: How to draft an impeccable sales representative resume?
Car Salesman Salary Based on Different Dealership Companies
Since the commission rate is based on the net profit that car dealership companies make on a given car, a luxury car salesman's salary is naturally higher than that of a used car salesman's salary.
To put it in perspective, a luxury car salesman's salary averages about $84,823 per annum, a used car salesman's salary is $38,100 per annum in the US.
Take a look at the following table showcasing the average salaries of luxury car salesmen based on different automobile companies:
| AUTOMOBILE COMPANY | AVERAGE SALARY |
|---|---|
| BMW Car Salesman Salary | $79,073 |
| Mercedes Car Salesman Salary | $96,611 |
| Audi Car Salesman Salary | $66,431 |
| Porsche Car Salesman Salary | $136,527 |
| Jaguar Car Salesman Salary | $35,000 |
Meanwhile, here’s a list of highest paying dealership companies in the US for car salesman salary:
| DEALERSHIP COMPANY | AVERAGE SALARY |
|---|---|
| DriveTime Automotive Group | $54,124 |
| Enterprise | $81,554 |
| Mazda | $59,042 |
| Nissan | $74,398 |
| Kia Motors America | $50,582 |
| Lithia Motors | $136,752 |
| Toyota North America | $78,668 |
| AutoNation | $85,129 |
| Ford Motor Company | $139,533 |
| CarMax | $34,379 |
| Honda | $59,173 |
Also, the following are some of the highest-paying US cities for car salesman jobs salary:
| US CITIES | AVERAGE SALARY |
|---|---|
| New York, NY | $55,389 |
| Austin, TX | $81,573 |
| Detroit, MI | $47,753 |
| Houston, TX | $64,070 |
| Scottsdale, AZ | $59,142 |
| Columbus, OH | $46,373 |
| Miami, FL | $73,481 |
| San Antonio, TX | $45,462 |
| Orlando, FL | $56,415 |
Also read: What are the top interview Q&As for sales representatives?
Cars Salesman Requirements
The minimum education requirement to become a car salesman is a high school diploma or GED equivalent.
But, if you wish to grow professionally and get promoted to higher positions like sales manager, or a senior-level sales executive profile you need to get a bachelor’s degree in finance or business.
Also, some states in the US like California require car salesmen to pay a certain fee and submit an application to the Motor Vehicles Department before they begin selling cars in the state.
These requirements are likely to vary in different states so it’s best to check the requirements with your potential employers.
Apart from these requirements, possessing the right skill set is crucial if you want to succeed as a car salesman.
Skills such as active listening, communication, interpersonal skills, and persuasive skills are a must for an aspiring car salesman.
Also read: How to make product management resumes with sales or marketing background?
Car Salesman Skills To Help You Earn More
The following are some of the must-have skills that can also affect your car salesman salary:
| Customer Relationship Management | Rapport Building |
| Sales Negotiation | Paperwork Processing |
| Product Knowledge | Customer Service |
| Sales Record & Reports | Inventory Management |
| Time Management | Information Gathering |
| Sales Presentation | Business Communication |
| Critical Thinking | Social Selling |
Depending on what stands true to you, you can include these skills in your car salesman resume to increase your chances of getting shortlisted while applying for car salesman jobs.
To keep up with the grueling needs and the competitive nature of work, you must always try to work on your sales strategies and sales techniques.
Assess your customer’s needs and analyze the changing expectations of the demographic you are catering, to effectively increase your car sales.
You can also take up certification courses to acquire or polish your car salesman skills.
The following is a list of some of the certification courses you can consider taking:
- Automotive Sales Professional
- Commercial Driver License (CDL)
- Certified Sales Professional (CSP)
- Sales Management
- Certified IT Consultant (CITC)
- Certified Professional, Life and Health Insurance Program (CPLHI)
Also read: How to draft a kickass sales manager resume?
Car Salesman Salary FAQs
We have covered a few frequently asked questions regarding car salesman salary in this section:
Do Car Salesmen Make Good Money?
Yes, car salesmen can make a decent amount of money provided they are on top of their sales game. The more cars they sell, the higher the income of a car salesman.
Can a Car Salesman Make Six Figures?
Yes, a skilled car salesman can make six figures per annum. If your goal is to make 100k in a year, you must be able to make 8,333 per month selling cars.
How Much Do Car Salesmen Make in Texas?
The salary of a car salesman in Texas can range from $28237 to $75692 while the average annual salary of a car salesman in Texas is $36544.
Do Car Salesman Get Paid Hourly?
No, car salesmen do not get paid on an hourly basis. They get paid based on a fixed rate of commission on every car they sell.
Also read: What are the top soft skills that you need to advance in your career?
Key Takeaways
- The car salesman's salary largely depends on the number of cars you can sell in a month. The more cars you sell, the higher your income.
- If you manage to sell more than the number of cars the monthly quota calls for, you may get awarded a higher commission rate for the following sales, therefore increasing your monthly salary.
- The minimum education requirement to become a car salesman is a high school diploma or GED equivalent.
- The requirements to become a car salesman varies in different states so it’s best to check the requirements with your potential employers.
- Active listening, great communication, interpersonal skills, and persuasive skills are some of the crucial skills to succeed as a car salesman.
- You must consider taking up sales certification courses to polish your sales skills and techniques.
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