sportchampps;961621 wrote:My family owned a dealership for over 25 years and your numbers are way way off. But you are right that a $750 dollar car would sell for about $3250 on their lot. Most dealerships though wouldnt even keep the used car they would sell it to a small used car lot for right around that $750 and that dealer would make the profit. They do this because they want to keep cars who have a value of less then 5k from making their dealerships and other cars not look as nice. Most dealerships dont pay salesman based on their profit but on a per car basis. We closed our dealership a little less then two years ago when my dad passed away but i know right now at Germain dealerships in Columbus most salespeople are only making 250$ per car sold and Carmax (a used car lot) is only like 125$ per car sold.
Not sure how my numbers were way off on that example.
Say Salesman Johnny sells 10 cars in a month. Johnny sells 5 new cars and 5 used. The 5 new cars his average commission was $125 per car. (this is about what i've seen). The 5 used cars he averages $380/car. This is $2525/month. He would get a $250 bonus for 10 cars giving him $2725. Say one of his cars grossed 3000 in profit and he may get a $500 bonus for that. This would be $3275 for the month. It's a hard way to make a living, even selling more than you should if you sell new/used.
Give these guys a break.
