Anyone in automotive sales??..curious about comissions

As stated in the title I am curious to know what the commissions salespeople receive would normally be for "typical" and/or exotic vehicles.

Up until recently Ferrari commissions on second hand vehicles in Europe have been severely capped. So much so until the change came about the dealers had a severe problem with staff retention despite the perks.

 

Of course usual caveats apply for North America as I imagine the trips to the factory would be limited when compared to European counterparts.

In short BMW sales staff earn more off optional extra sales than the ultra premium market.

It usually depends from dealership to dealership, at the BMW dealer I worked at I received 25% off of what the dealership made on the front end of the deal. Some dealerships will give you a bit off of the back end but that is pretty rare.

 

BMW has tons of incentives for Client Advisors for selling new and CPO cars. I made about $1,300 dollars on the last 7 series I sold, I made $800 commission and BMW sent me another $500.

It usually depends from dealership to dealership, at the BMW dealer I worked at I received 25% off of what the dealership made on the front end of the deal. Some dealerships will give you a bit off of the back end but that is pretty rare.

 

BMW has tons of incentives for Client Advisors for selling new and CPO cars. I made about $1,300 dollars on the last 7 series I sold, I made $800 commission and BMW sent me another $500.

 

 

Most exotic car sales pay a flat fee per car sold. Inmo good salespeople at BMW/Mercedes/Porsche and others make much more cash.

Most exotic car sales pay a flat fee per car sold. Inmo good salespeople at BMW/Mercedes/Porsche and others make much more cash.

 

I worked at a small multi-franchise dealership (BMW Ford and GM) and my senior co-workers made about $80,000 to $100,000 per year.

Commissions are paid on the delta between invoice and sales price, or on a used car the delta between what they paid for the car and what it sold for. This is all minus a "pack" (guaranteed dealer profit that is not calculated in the gross margin) and anything that was billed back to the car (if a car needed tires, service work, shipping, buy fees et al). Pretty simple actually...

 

 

I worked at a small multi-franchise dealership (BMW Ford and GM) and my senior co-workers made about $80,000 to $100,000 per year.

I knew several sales people making quite abit more than that.

I knew several sales people making quite abit more than that.

 

I was at a Toyota dealership in Dallas. I'd fluctuate between $150 and $250K. Very much a function of how many hours you want to work.

 

I negotiated a special pay plan, where I would absorb my operating costs but share the staff expense with the people who worked with me.

 

Commission for sales was this:

Sales Price

 

=== front end profit. I made 25% of the first $1000 per unit and 35% on every dollar over $1000.

Average profit was around $825 and I sold 120 units a month. I had one full time girl and a sales assistant for the 15 minutes a week I wasn't chained down to the office.

 

Commission for finance was this:

Contract Rate (what the consumer paid)

+ 10% of the flat fee contracts (credit unions, drafts, etc)

===back end profit

My average finance commission was about $25 per car sold. The F&I guys were so snakey, I know they skated my F&I customers about 50% of the time.

 

Biggest commission ever was a 1999 Land Cruiser. Total front end profit was $28,000. Total back end profit was $11,000.

 

Dennis Rodman looked good a motherfucker driving around that Crusher with black and white rabbit fur interior.

 

I was at a Toyota dealership in Dallas. I'd fluctuate between $150 and $250K. Very much a function of how many hours you want to work.

 

I negotiated a special pay plan, where I would absorb my operating costs but share the staff expense with the people who worked with me.

 

Commission for sales was this:

Sales Price

<invoice>

<holdback>

<1%>

 

=== front end profit. I made 25% of the first $1000 per unit and 35% on every dollar over $1000.

Average profit was around $825 and I sold 120 units a month. I had one full time girl and a sales assistant for the 15 minutes a week I wasn't chained down to the office.

 

Commission for finance was this:

Contract Rate (what the consumer paid)

<buy rate average for the entire department>

+ 10% of the flat fee contracts (credit unions, drafts, etc)

===back end profit

My average finance commission was about $25 per car sold. The F&I guys were so snakey, I know they skated my F&I customers about 50% of the time.

 

Biggest commission ever was a 1999 Land Cruiser. Total front end profit was $28,000. Total back end profit was $11,000.

 

Dennis Rodman looked good a motherfucker driving around that Crusher with black and white rabbit fur interior.

 

Damn, that is very impressive! The dealership I worked at sold 150 cars a month but we were not in a very populated area. The dealership had a bad reputation and had some truly unsavory characters working there but I did the best I could and made OK money. I offered some advice to help increase our advertising area but they never did listen to me, they tried to keep covering the same area with the same shitty sales scheme. In fact a lot of the same people came every time because they wanted to collect their prize and when we did get a customer interested in a vehicle about 1 out of 5 of themcould get financed because 1/2 of our lenders were pissed off at our finance manager (coke/meth). On top of all of that they loved to buy high and sell low

 

Sorry for the rant.

 

My first job offer out of school was at Rockville Porsche/Audi about 6 months before they opened their new showroom. I ended up pursuing a different opportunity but this post made me think about it and how different life would have been. Good luck if you are pursuing a career in Auto Sales!

I was at a Toyota dealership in Dallas. I'd fluctuate between $150 and $250K. Very much a function of how many hours you want to work.

 

I negotiated a special pay plan, where I would absorb my operating costs but share the staff expense with the people who worked with me.

 

Commission for sales was this:

Sales Price

<invoice>

<holdback>

<1%>

 

=== front end profit. I made 25% of the first $1000 per unit and 35% on every dollar over $1000.

Average profit was around $825 and I sold 120 units a month. I had one full time girl and a sales assistant for the 15 minutes a week I wasn't chained down to the office.

 

Commission for finance was this:

Contract Rate (what the consumer paid)

<buy rate average for the entire department>

+ 10% of the flat fee contracts (credit unions, drafts, etc)

===back end profit

My average finance commission was about $25 per car sold. The F&I guys were so snakey, I know they skated my F&I customers about 50% of the time.

 

Biggest commission ever was a 1999 Land Cruiser. Total front end profit was $28,000. Total back end profit was $11,000.

 

Dennis Rodman looked good a motherfucker driving around that Crusher with black and white rabbit fur interior.

 

 

What would you consider a good monthly sales volume??

What would you consider a good monthly sales volume??

 

Me? I was pretty content around 60 units a month. 30 was too skinny. 100+ was too stressful. I had a small staff and direct manufacturer support. I would always know about 2 weeks in advance what the rebates and interest rates were going to be for the next 6 weeks, so I could build an inventory strategy and unload stuff or stack up on heavy rebate items, just slightly ahead of my competitors.

 

Having just that small of an inside line made all the difference in the world. I remember when Land Cruisers were selling at sticker price and I traded 100 Corollas for 32 Land Cruisers. My General Manager almost had a heart attack but then Toyota came out with a $10,000 rebate and $1000 direct salesman spiff in December and we sold all 15 of them in 2 days before they ever made it to the lot. Nice little Christmas bonus that year.

 

I think everybody should suffer through a year of selling cars. It's such a humbling experience where you can witness first-hand the psychology of buying decisions.

 

Nothing like selling 4 cars on a Saturday, and making $50 a piece on commissions.

 

Hard living that forces you to work smart. I owe a debt of gratitude to Brandt Geyser for firing me, forcing me to rebuild a strategy and hiring me against his better judgment. He retired in two years due to that decision he made to bring me back under his wings.

I think everybody should suffer through a year of selling cars. It's such a humbling experience where you can witness first-hand the psychology of buying decisions.

 

So how long does it take on average to be pretty good?

 

Usually 25% of gross profit.

 

Sales price - cost of vehicle and expenses- $300 pac fee for the dealer

 

 

 

 

So how long does it take on average to be pretty good?

 

 

That video made me cringe, I know it's a show but I was embarrassed for him lol.

 

Usually 25% of gross profit.

 

Sales price - cost of vehicle and expenses- $300 pac fee for the dealer

 

+1

oops.

So how long does it take on average to be pretty good?

 

 

I don't know any retired car salesmen. I know a lot of retired car dealers.

 

As far as being pretty good goes, I would say that within about 12 hours you know if you're going to sink or swim. $300-$500 PAC is a normal amount, and 25% of gross is normal.

I worked at a small multi-franchise dealership (BMW Ford and GM) and my senior co-workers made about $80,000 to $100,000 per year.

 

How many units were they moving monthly??

 

 

May start with the Honda product line. My goal is to make at least $120k my first year. I estimate I will need to do min 6 units/week. Does this sound unreasonable??

May start with the Honda product line. My goal is to make at least $120k my first year. I estimate I will need to do min 6 units/week. Does this sound unreasonable??

 

 

120k at a Honda store first year will be VERY difficult

120k at a Honda store first year will be VERY difficult

120k at a Honda store first year will be VERY difficult

 

Even flipping Hondas with a $200K ball of cash it would be hard to make $120K. You're dealing with selling Hondas at invoice, pretty much all dealers are near invoice or at cost (including pac)

 

I haven't paid over invoice for a Honda in years. Last one was 2001 S2000 I paid $500 over invoice I think and that was "a deal."