Becoming a car salesman is certainly not a career for everyone. Individuals successful in their work must not only have good sales techniques and strategies, but also a charismatic and attractive personality and demeanor. Making money is possible, in fact making a tremendous amount of money is possible, but is something that should not be expected immediately.
To become a car salesman a person usually needs only their high school diploma, a smile and an attractive personality. How much a car salesman makes in a month will depend highly upon his personality in addition to his eagerness to make a sale. New car salesmen, often called “green peas” by their employers, are usually paid in two different ways:
1. Commission Only – This is the most brutal and unreliable method of payment. Car salesmen who are paid solely on commission collect money only when they finalize a sale. Usually the commission is a small percentage of the total value. Unfortunately for salesmen, the commission on a car is not based from the total price; this is usually the popular misconception that draws people to the career. Commission is based on a small percentage of the total profit earned in a sale. For example if a car was sold for $20,000 with a profit of $5,000, then the salesman would earn approximately $1,250 in commission if his rate were 25%. Rates vary, usually ranging between 10% and 30%. The average commission is $250 per car, with the average sale number at about 2 cars per month.
2. Base + Commission – A more generous and reliable option, the base and commission pay scale is one that usually denotes a reputable car dealer. Car salesmen are paid a base salary every month, usually between $2,000 and $5,000 in addition to the commission collected from any car sales. Unfortunately for the car salesman, jobs with a base salary are also attached to a strict quota. With this quota, each month a car salesman is required to sell a certain number of vehicles; anything less could put him in the spotlight to be fired or punished.
Rates of pay vary greatly for a car salesman. Demographic location, the car dealer and the types of cars being sold are contributing factors to a car salesman’s salary. Brand-new luxury car dealers will usually offer a more generous base salary than a car dealer selling certified pre-owned economy cars. Also when commission is computed on a basis of percentage, the commission to be gained on a luxury car will far exceed any number earned on an economy car.
The most important thing for a person seeking a career as a car salesman to remember is that getting rich will not happen quickly; in fact it likely will not happen at all. Most car salesmen live comfortably but modestly, but those who have a special talent and gift for selling just may find their niche.
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