The TRUTH About Selling Cars

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[jamesbasic-]

Still waiting for the commission structure…

[pneuma]

Why does this guy look like a skinny rob gronkowski 😅

[keatonmoore]

I sell cars currently. (Leaving the industry very soon.) I make 30% of front end gross which means if we sell a car for $10, 000 and we only have $8, 000 into it, that leaves 20% in profit (assuming all work is done and labor is paid to get that car ready for the lot. My commission on $2, 000 will be $600. If I sell a car that we did not make profit on, I’ll get what’s called a “mini”. I’ll make about $200 flat. Every dealership has different commission structures but I hope this answers everyone’s questions

[Nicks_Garagee]

I used to sell cars and our commission was at 30% of the profit.After about 2 months making around $100-500 per car and selling around 15 cars a month. I got used to it and never got hyped about selling a car or checking how much we got it in for.

Ended up selling a car to a super cool guy who didnt even haggle on the first price i gave him. Even I thought it was a good deal so i figured my commission wasnt going to be good on that car. My sales manager called me up to my desk and asked me why I didnt seem excited to get that deal done. He had me step around the desk to look at his screen and my commission check for that deal was a little over $3k. Had a couple $1k deals but it didnt happen often.

[mbjackson]

That wasn’t the question that was asked. Lmao

[runnaforever]

1, 500 on one car sold is nuts! The dealership I did finance for last year paid $250 + $75-$150 for added service contracts and accessories

[robf]

2007 was a wild year, I worked for a CJD dealer. Buy a Ram 1500, get an Avenger or Caliber for free. So around $40k OTD. Very minimal kickbacks and profit margins. Customer came in looking for a Ram 1500, and my manager told me to put him on a pre-owned Laramie vs. a new SLT. Finance added the extended warranty for "free" to sweeten the deal. That was a $2800 pay day for me. Also the day I realized I'm not fit to do that shit.

[devilman]

Yeah you’re not doing that anymore and haven’t for years unless you’re at a high gross dealer. Or you get paid on the back end too. Most dealers are volume based now and have a bonus for certain number of units sold spiffs are a thing and then like I said you might get paid a percentage if you sell back end products too

[Welldunn]

The dirty little secret is dealerships are adding packs upon packs to new and used cars so it’s impossible for salespeople to make $$$ at a lot of dealerships. I was in management at a corporate dealership group and I had a salesperson ask me after the customer signed how much $$$ did he make. I looked it up and told him it was a mini($150 for those not in the car business). He told me there’s no way he sold a $45, 000 vehicle and didn’t discount the car. I told him we probably gave too much for the trade and he said there was no trade and then I started digging and realized the dealership was taking the holdback and counting it as a cost against the gross profit so it was literally impossible for a salesperson to make anything above $150 selling a new car unless there was a trade involved and they held on the trade. There were so many packs on the used and new cars when I really started digging that I told a few of the veteran salespeople that I knew could keep a secret to dealer trade a new vehicle that we didn’t have in stock so they could make more than $150 when selling a new car. Nothing more depressing than selling a new $60, 000 vehicle without discounting it only to be told you made $150

[masonsimmons]

In 2024 you can expect to make about 15% of the gross profit of the car sale in states like Texas. There are minimums, so even if the car sale loses money, you can still expect to make $150. A lot of dealerships will incentivize volume & want more units sold so there are bonus packages the more cars you sell.

[Derly]

As a former auto salesman you get 15% of the money made. I sold a Jeep Gladiator Texas Trail and made the dealership $5000, therefore, I got $750 from that sale.

[eduardochavez]

Commission structures in car dealerships have been decreasing throughout time since the internet was introduced. The average sales rep can not longer rip off their customer. If I were a sales rep I would quit today because the new technology coming up will destroy them for good. Same goes to realtors

[reallynotmuffin]

if youre gonna add on videos n photos, atleast make it exact. Tyler said 2007, and brand new silverado... how hard is it to fucking get a picture or video of a 2007 silverado.

[CowboyStag]

Old slippery Dave Ramsey loves these stories

[msoldate]

There was a guy at my old work in the 2010’s who was exactly like this, he had this very strong belief that none of us could change his mind. He went to great lengths to try to convince everyone how smart he was and he’d trade in a car for another car every six months. I could only imagine how much negative equity he’s rolled over into car after car over the years.

[dstrong]

It aint like that no more Buddy. I remember those days too. 2008 they were doing that before the Housing crisis. Now they only pay you $100 for a new vehicle and only get bonuses after you sell 11 plus cars. Thats what they do now.

[kevinmelanson]

You can't buy a gm without discounts. In o7 you probably had 1500 even if your trade is worth one dollar. That's gms entire game. You have nothing to your name and get 7500 off sticker because they like you thinking your saving

[timjudshore]

This is the customer you will never get

[Coke_Hogan]

Big reason I got out of it years ago. If you're not taking in at least 10 to 12% commission off anything high ticket, fkn get out of there. AND working around the clock and off with clients blowing up your phone. NOPE.

[MelonHead]

That’s crazy and the mechanic in the back made $600 working all day