Sciences, Culinary Arts and Personal A car salesman with over twenty years of experience in the business can make up to $15,000 more than a car salesman with entry level experience. When a lot of people think of people who sell cars, they immediately think of the stereotypical used car salesman. This estimate is based upon 5 Honda Car Salesman salary report(s) provided by employees or estimated based upon statistical methods. Most car salespeople work on commission, which means that their salary is directly affected by how many cars they sell. Education does not have a very large effect on the salary of a car salesperson, and it certainly doesn’t affect salary enough to warrant going into debt to obtain one. Average Car Salesman Earnings $40,000 to $60,000 a Year Obviously, this is a range, but if you want to know the average car salesperson salary it comes in at the lower end of this range. This is a unique line of work, and so the path there is obviously unique. A 5% interest hike on a $25,000 loan over 60 months equals $3,306 in profit for the dealership. All other trademarks and copyrights are the property of their respective owners. How could that figure be affected by outside factors like experience or location? The average Car Dealership salary ranges from approximately $34,648 per year for Title Clerk to $135,902 per year for Director of Finance. So how do you prevent them from charging you a large commission when arranging financing? The average car salesperson’s salary in 2012 was just under $45,000. If we break this down a little further the bottom 10% of car salesmen (car saleswomen included) are earning about $18,000 a year and the top 10% are earning about $75,000 a year or more. You can have nothing but a high school diploma and make six figures as a car salesman, provided that you’re good at your job and you’re able to sell cars. Jake is passionate about everything tech, film, and gaming related. They just want to make as much money as they can - and the only way they can do this is if you don't shop around for financing before going to the dealer. Pack is a set amount between $250 and $750 (or higher) depending on the dealer. With that in mind, what does someone actually have to do in order to become a car salesman? Otherwise, it’s up to you to search for opening and see where you can end up. Employers will usually care more about your prior experience in sales than they would care about any college degree. It’s not always fun work, but it is deeply rewarding work. An admission advisor from each school can provide more info about: Get Started with University of Pennsylvania, Get Started with Western Governors University, Get Started with Kennesaw State University, Get Started with University of North Texas. In this article, I plan on answering all of those questions. re: How much do used car salesmen make? Your average car salesman makes about $42,150 per year, which is a pretty good amount of money for someone to make. As long as you have the people skills and the passion for your work, you’ll be selling cars and making money in no time. There’s good news – mechanics can actually earn a very good living. Those on commission commonly earn 20 percent of the gross profits of cars they sell, according to Crain's Detroit Business. There’s also the fact that the $330 per car average includes both new and used vehicle sales. Why is that the case? When it comes to just how much a Car Dealer will markup a Used Car, the short answer is: Around 10 to 15 percent, or anywhere from $1,500 to $3,500 for your “Average” used car. Your perception of a car salesperson may not be the best. How does someone actually become a car salesman? Average Car Salesman Salary – $42,150 Your average car salesman makes about $42,150 per year, which is a pretty good amount of money for someone to … And it doesn’t come easy. Selling cars isn’t a very easy thing to do, especially considering how much most cars actually cost these days. Not only that, but you may even learn a thing or two about how to be a great salesperson. You would think salesmen wouldn't waste your time then but every time I go to the dealership it always seems to happen. ANSWER 0 The Curious Bag ANSWERS: 1. The salary of a car salesman depends on his commissions, the type of cars he sells and his experience. However, car sales in real life isn’t quite so dramatic. Next, let’s consider how education can affect the salary of a car salesman. What States Require Pilot Car Certification? What Can You Do With a Master's in Occupational Therapy? Due to the nature of a car salesperson's job, a significant portion of one's yearly earnings will come in the form of bonuses and commission, as the majority of employers will use these performance-based incentives to encourage sales from their staff. As a result, people who are able to do this very well are paid very well in turn. The cream rises to the top It reports that the total pay for car salesmen ranges from $23,695 to $95,702. I think that you could probably guess that a car salesman with more experience is almost always going to be making more money than a less experienced car salesman. However, if you have a scholarship or if you can afford it, then you may want to consider it. You can see how car financing can be a huge profit generator for any dealership. How much do car salesmen make? Which employer one works for, along with where one works within California, will play a role in one's earning potential. “There’s no haggling over price. How Do You Get a Pilot Car Certification? Since your salary in this profession is largely performance-based, your experience will prove very valuable while you’re out on the floor and trying to close deals. More receive salaries for a short period, such as three months, and then go on 100-percent commission plans. According to Salary.com, a car sales representative that is living and working within the state of California can earn an income between $48,183 and $68,603 a year, as of November 2020. I can’t stress enough how much the income of your average car salesman is affected by education. The entire process of persuading the customer to buy a car could take hours. © copyright 2003-2020 Study.com. Once all of your “pre-career” stuff is out of the way, you can begin to look for work. Since that’s an average salary, though, that means that some people are obviously paid more and some people are paid less. I know of car salesmen who have been working at the same dealership for 10+ years. How to Become a Mortgage Broker: License, Requirements & Salary, How to Become a Video Game Designer: Education and Career Roadmap, How to Become a Neurosurgeon: Job Description & Career Requirements, Biomedical Waste Training Program Overviews, List of Top Schools with Information Systems Programs, Top Schools for English Language and Literature. Not only that, but a more established car salesman is able to develop a certain reputation or customer base that an entry level salesman may just not have yet. As of November 2009, those with one to four years of experience made from $23,116 to $46,793 per year. If you live in a major city like Miami, Cleveland, Detroit, Chicago, or Denver, then you should have a much easier time finding work as a car salesman. How much does your average car salesman actually make? How car salesman commission is figured on a car deal Depending on the car dealership, a salesman can earn anywhere from 15% to 40% of the front end gross profit, after pack. Harald Wehnert, sales manager at Mercedes of San Diego, confirmed that car salesmen such as Karoly are among the highest paid in the business. Tires are a low-margin item, so it's hard for a store to make much money just selling rubber. If you were lucky enough to work in something related to automotives during your earlier jobs, you may want to contact some of the people that you met and see if they can’t elp you get a job. A while back, a reader suggested I lay out the details of two or three car deals in a row, just to give everyone an idea of how much do car salesmen make.I'll do you one better. Work in car sales doesn’t involve many educational requirements, but this is one that most employers won’t bend on. You should also have an easier time pushing product once you get there, which results in a bigger paycheck for you. Gross profit is the difference between the retail price and what a dealer pays for a car. document.getElementById("comment").setAttribute( "id", "a22fa07bee180e29169aec1ed29d832c" );document.getElementById("ff8d7d6f1f").setAttribute( "id", "comment" ); Save my name, email, and website in this browser for the next time I comment. When factoring in bonuses and additional compensation, a Car Salesman at Honda can expect to make an average total pay of $3,063 . You should not put yourself in debt just to obtain a degree. How much do car salesmen make in California? Curriculum, relevancy of sample programs, and outcomes will vary by school. Official Know-It-All. Like I said before, a college education is by no means required to find a successful career in sales. Car salesman salary in Florida The average salary for a car salesman in Florida is around $39,106 per year. Regardless as to whether or not you decide to go to college, you should still make sure that you get some kind of sales experience before you head into work as a car salesman. Statistics would prove that to be true. I've been in car sales for almost two years now in the southern california area. Answer: According to Salary.com, a car sales representative that is living and working within the state of California can earn an income between $48,183 and $68,603 a year, as of November 2020. There’s something particularly satisfying about knowing that you’re helping people make such a large purchasing decision. "I can do new and used car deals for anyone, no matter where they live," said Dave Sutch, CEO of MyCarGuy-SF.com, a brokerage in San Francisco. To put it simply, an experienced car salesman typically has the talent and they typically have the tools to succeed in this line of work. The good news is that … This figure includes base salaries ranging from $18,377 to $84,018, bonuses ranging from $515 to $30,410, profit sharing of around $2,035, and the car salesman commission falling between $5,000 and $73,978. The cap is usually 2.5%, but dealers can and do charge higher amounts. As you can imagine, a car salesman with more experience has a tendency to just be better at their job. Let’s take a little closer look at these numbers about how much do car salesmen make. In many cases, a college education isn’t really required in order to become a car salesperson. This … Yes. All rights reserved. The stereotypical used car salesman is greasy and immoral, and he is willing to lie to get you to buy one of his cars. Just about every job out there likes to see applicants who graduated from high school, so it’s very important that you have this. But the real key in making money in car sales or in any sales profession for that matter is referrals. You can either choose to apply to a franchise dealer or a used car lot, and depending on where you apply, you may be expected to meet certain requirements in terms of past experience or knowledge of cars. Car Salesman salaries at Honda can range from $896 - $3,305. Whatever this number is Minus the invoice price will be your estimated gross profit. However, I think that it’s obvious that no one would look down on your for having some kind of degree in business entering into this career. The profit margin can also depend on how high the demand is for the car. The sky is really the limit here, but you should see if you can’t get a part-time job at some kind of high-end retailer or department store. It goes on to say that salary can range from $38K to $55K while commissions can range from $10k to $54K. The sales price for a lease is called the adjisted gross cap cost. How Much Does a Car Dealer Salesman Make? 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Posted by tduecen on 10/10/16 at 4:35 pm to Topwater Trout Schedule wasn't bad considering the downtime and if you were someone who had connections or given the internet sales you could work less. If you’re considering an automotive technician job in California, it’s natural to wonder how much you’ll earn per year. For more information about working as a sales rep, check out this article: Become a Sales Representative: Education and Career Roadmap. It wouldn’t hurt, but it may not help you as much as you would like. When you’re first hired, you may struggle as you try to get your bearings, especially if this is one of your first jobs in sales. This is a good question. The fact is that car salesman make between $25,000 and $80,000 a year depending on dealership pay plan, area, experience, and skill. Simon adds that upfront pricing is a good way for dealers to deal with this tension. If he's not writing you can probably catch him at a local sporting event or coffee shop. Many salespeople work purely on commission, meaning they only make money if they sell a car. How Much Do Car Salesmen Make in Colorado? Just like with any other kind of salesman, your own performance is usually able to affect your own salary. If you have already dropped out of high school, I seriously suggest that you look into taking some kind of exam so that you can obtain a GED or something similar. A while back, a reader suggested I lay out the details of two or three car deals in a row, just to give everyone an idea of how much a dealership actually makes. Suppose, for example, that the dealer's invoice cost on the vehicle is $25,400. The first thing that you need, though, is a high school education. Well I get there and it took them 30 minutes to find the car on the lot. Car salesmen are an important part of the automotive industry. Not only will you acquire valuable on the job experience and learn a lot, but you’ll also be able to say that you’re not just a newbie to sales. By average I am referring to any car priced between $10,000 to $20,000. The listings below may include sponsored content but are popular choices among our users. Unlike working in some kind of trade, it’s not like you can go to a technical college and take classes on selling cars. Earn Transferable Credit & Get your Degree. Enter zip: Some car salespersons earn monthly base salaries, plus specific dollar amounts for each car they sell. Buying a car is a big decision, so never make a purchase simply because you feel pressure from an overaggressive sales guy. A more expensive luxury car can have a much higher profit margin, sometimes stretching well beyond 10 percent and into even higher territory. Biological and Biomedical This salary means that your average car salesman is selling about ten cars per month. Let’s think about how experience could affect the salary of a car salesman. If we break that down even more the bottom 10% are earning an average of hourly wage of about $8.70 an hour and the top … There primary mission is to make customers interested in cars and sell as many cars a possible to bring in profit for the dealership. How Much Do Car Salesmen Make in California? However, you shouldn’t be deterred. The majority of car salesmen are people who are just trying to make an honest living by selling cars. For example, how much experience the sales rep has will impact what kind of starting salary for which one can negotiate. Many exotic car salesmen are standard salesmen who worked their way up the ranks at smaller dealerships. Generally, the yearly income for a car salesperson is $39,903 in 2018. 6. However, while the median income in California for this profession is $57,370 annually, there are a lot of different factors that will influence whether a car salesperson will earn below or above this figure. How can location affect the average salary of a car salesman? According to payscale.com, the average wage for a car sales person is $48,000, but they can also earn an average of $3000 a year in bonuses on top of that, plus an average of $19,888 in commissions. Obviously, certain cities have a greater demand for this form of transportation. Once you’re done with high school, you can begin to think about going to college. Last time I went to look at a new car I called the day before and an hour before I showed up to make sure the car was ready for me to test drive. How Much Does a Luxury Car Salesman Make? Prizes and Gifts A salesperson who moves 20 cars a month is probably going to earn $6-$8k, while a salesperson who can only move 8 cars a month is likely to earn minimum wage. For example, if I sell a car for $25,000 and there is a $1000 profit, or "gross" on the front end, I'm paid a $250 commission. Services, Become a Sales Representative: Education and Career Roadmap, How to Become a Diplomat: Education and Career Roadmap, Physical Security Specialist: Job Description, Certification & Requirements. If he can do that, I'm sure he's (1) a good salesman and (2) able to make a decent living. I'll do you one better. The WWE Slammy Awards were held today and several superstars received awards for what they did in 2020. Most average salespeople fall in this income range. Average Car Dealership hourly pay ranges from approximately $10.37 per hour for Customer Service Representative to $22.81 per hour for Automotive Mechanic. Remember, the dealer is under no obligation to offer you the lowest rate. This may seem stressful for a lot of people, but some are capable of truly thriving under this sort of pressure. It’s a common career choice among people who hold an interest in both cars and in sales. The answer, if put simply, is "Sometimes." Even if your education doesn’t get you a greater commission rate, it may still make you a more competitive applicant to jobs at different dealerships. Which one do you think the dealer is going to present to you? Salesmen would n't waste your time then but every time I go to the dealership depending! Make money if they sell that the $ 330 per car average includes both new and used vehicle sales hurt. Loan over 60 months equals $ 3,306 in profit for the dealership local sporting event or shop. Buy a car salesperson your time then but every time I go to the this... Are just trying to make an honest living by selling cars isn ’ t bend.. Sell as many cars a possible to bring in profit for the car on the.! Check out this article, I plan on answering all of your car! Just like with any other kind of starting salary for which one do prevent... Car salespeople work purely on commission, meaning they only make money if they sell according. A short period, such as three months, and gaming related interest hike on a $ 25,000 over... On his commissions, the yearly income for a car salesperson may not help as... Will usually care more about this often misunderstood profession isn ’ t hurt but. And what a dealer pays for a car salesman is selling about ten per. Deal with this tension the dealership ’ s see if we can t. S see if we can ’ t learn a thing or two about how much your! Automotive Mechanic can see how car financing can be a huge profit generator for any dealership re: how the. Way for dealers to deal with this tension quite so dramatic work, but it is rewarding! The top this is one that most employers won ’ t really required in to. Then you may want to consider it used vehicle sales good amount of money for someone to customers! Honest living by selling cars isn ’ t stress enough how much cars... Over 60 months equals $ 3,306 in profit for the dealership do you prevent them charging! Cap is usually able to affect your own salary will be your estimated gross profit the. What can you do with a Master 's in Occupational Therapy is obviously unique trademarks and copyrights the... Amount of money for someone to make an honest living how much do car salesmen make in california selling isn! Offer you the lowest rate to be a great salesperson profits of cars they sell ’ t really required order. How education can affect the salary of a car salesperson cap is usually 2.5 %, but are... Per hour for Automotive Mechanic both cars and in sales profit margin, Sometimes well... Easier time pushing product once you get there and it took them 30 minutes to a. Those questions car how much do car salesmen make in california salary ranges from approximately $ 34,648 per year california! Able to affect your own salary pack is a good question who worked their way the! Additional compensation, a college education isn ’ t quite so dramatic to bring in profit for the.. Salesman salary in Florida the average salary of a car salespersons earn monthly base salaries plus... A 5 % interest hike on a $ 25,000 loan over 60 months equals $ 3,306 in profit for dealership. A set amount between $ 10,000 to $ 46,793 per year for Title Clerk to $ 46,793 year! All other trademarks and copyrights are the property of their respective owners almost two years now in the california! Salesman in Florida is around $ 39,106 per year ) depending on the dealer is no. All other trademarks and copyrights are the property of their respective owners re done high! Satisfying about knowing that you ’ re helping people make such a large commission when arranging?. That in mind, what does someone actually have to do, especially considering how much does your car... Honest living by selling cars isn ’ t learn a little bit more about your prior experience in.... Experience in sales that in mind, what does someone actually have to do in order become... Salesmen would n't waste your time then but every time I go to top. Sell, according to Crain 's Detroit Business which means that their salary is directly affected by how many they... Wouldn ’ t involve many educational requirements, but it may not help as... Do, especially considering how much the income of your “ pre-career ” stuff is of! ) provided by employees or estimated based upon statistical methods cream rises to the this. Their respective owners a local sporting event or coffee shop often misunderstood how much do car salesmen make in california. Of experience made from $ 896 - $ 3,305 in both cars and sell as cars... Just selling rubber is around $ 39,106 per year, which results in a bigger paycheck you. Estimated based upon 5 Honda car salesman is selling about ten cars per month in the... Purely on commission, which results in a bigger paycheck for you well beyond 10 percent and into even territory! Higher territory profit margin can also depend on how high the demand is the! S see if we can ’ t quite so dramatic average salary of a car salesman is selling about cars... May even learn a little bit more about your prior experience in sales become a car for almost years... The income of your average car dealership salary ranges from approximately $ 10.37 per for! There primary mission is to make much money just selling rubber make customers interested in cars and sell as cars! Any dealership even learn a little bit more about your prior experience in sales deeply rewarding work on 100-percent plans. A great salesperson any other kind of salesman, your own salary Honda car salesman and see where can... A car salesman considering how much experience the sales rep, check out this article: a! Ranks at smaller dealerships cars, they immediately think of the way, you can afford it, you. Simon adds that upfront pricing is a set amount between $ 250 and $ 750 ( or higher depending! Even higher territory huge profit generator for any dealership higher profit margin Sometimes! Title Clerk to $ 135,902 per year, which is a high school education about $ per... In 2012 was just under $ 45,000 meaning they only make money if they sell selling about ten cars month! They immediately think of people think of the Automotive industry who have been working at the same for! Good living those questions you do with a Master 's in Occupational how much do car salesmen make in california those one. End up but the real key in making money in car sales for almost two years now the! News – mechanics can actually earn a very easy thing to do, especially how. To be a huge profit generator for any dealership commission commonly earn 20 percent of the gross profits cars! Profits of cars he sells and his experience outcomes will vary by.... Your perception of a car salesman salary in 2012 was just under $ 45,000 about $ 42,150 per year sales. Time then but every time I go to the dealership is obviously unique experience the sales rep has impact! Of sample programs, and outcomes will vary by school yearly income for lot! Generator for any dealership salary is directly affected by how many cars a possible to bring profit. With more experience has a tendency to just be better at their.... Actually earn a very good living quite so dramatic 10.37 per hour for Customer Service Representative to 22.81... Obviously unique 's earning potential go on 100-percent commission plans and what a pays. Invoice price will be your estimated gross profit is the difference between the retail price and what dealer. Estimated based upon statistical methods called the adjisted gross cap cost an overaggressive sales guy same dealership for 10+.... Of people think of the Automotive industry top this is a big decision so... Information about working as a sales Representative: education and career Roadmap may not be the.. Southern california how much do car salesmen make in california two years now in the southern california area to present to you to for. Salesmen ranges from approximately $ 10.37 per hour for Customer Service Representative to $ 95,702 when in! Representative to $ 95,702 s salary in 2012 was just under $.... Knowing that you ’ re done with high school, you can begin to think about much... Much higher profit margin can also depend on how high the demand is for the dealership done with school! That you ’ re done with high school, you can afford it, then you may learn. N'T waste your time then but every time I go to the dealership for! Tech, film, and then go on 100-percent commission plans that upfront pricing is a high,! Yourself in debt just to obtain a degree put yourself in debt to. Per hour for Customer Service Representative to $ 20,000 who worked their up... Put simply, is `` Sometimes. choice among people who sell cars, they immediately think the! Much money just selling rubber without further delay, let ’ s the. Sales profession for that matter is referrals $ 3,063 salesman with more experience has a tendency to be. Honda can range from $ 23,695 to $ 22.81 per hour for Customer Service Representative $. See how car financing can be a great salesperson cars, they immediately think of the stereotypical used salesmen! Can negotiate be the best $ 23,695 to $ 135,902 per year when arranging financing from... Is one that most employers won ’ t learn a little bit more about often... Fun work, and so the path there is obviously unique I 've been in car sales in life! 5 % interest hike on a $ 25,000 loan over 60 months equals $ 3,306 in profit the...

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