How much do car salesmen make?

To put it simply, the average car salesman salary in the US is $40,192 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 is your income.

And depending on the dealership you are working for, a car salesman generally earns 25% of 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 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.

As stated earlier, they generally earn through commission rates which depending on the dealership company, can range between 15% 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 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 impeccablesales 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 $65,128 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 $68,310
Mercedes Car Salesman Salary $83,795
Audi Car Salesman Salary $70,000
Porsche Car Salesman Salary $56,132
Jaguar Car Salesman Salary $40178

Meanwhile, here’s a list of highest paying dealership companies in the US for car salesman salary:

DEALERSHIP COMPANY AVERAGE SALARY
DriveTime Automotive Group $51,050
Enterprise $48,973
Mazda $45,554
Nissan $40,955
Kia Motors America $39,124
Lithia Motors $38,019
Toyota North America $39,689
AutoNation $39,555
Ford Motor Company $37,354
CarMax $35,638
Honda $35,461

Also, the following are some of the highest paying US cities for car salesman jobs salary:

US CITIES AVERAGE SALARY
New York, NY $78,831
Austin, TX $71,392
Detroit, MI $70,906
Houston, TX $69,940
Scottsdale, AZ $68,626
Columbus, OH $68,596
Miami, FL $67,548
San Antonio, TX $66,630
Orlando, FL $66,448

Also read: 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.

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:

Also read: How to draft a kickass sales manager resume

Key Points from the Blog

  • Although the average car salesman's salary in the US is $40,192, your salary will depend on your sales skills, location, commission rate, and the dealership company you are working for.
  • 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 is 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.
  • A luxury car salesman's salary averages about $65,128 per annum, while a used car salesman's salary is $38,100 per annum in the US.
  • 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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