Car Dealer Commissions

>>16755180
>redpill me
kill you are self

>>16755181
epic

>>16755180
essentially, the salesPERSON gets an amount (usually 10 to 15%) commission. That 10-15% is not of the final sale price, but of whatever profit is made off the car. In all honestly, there's little to no profit made on new car sales.
For example. Say you buy a car from a dealership for $23,000. Let's say the car cost the dealership $20,000 to get. That means the dealer made $3,000 profit. Say the commission for salespeople there is 10%. The salesman only makes $300 off that sale.

Keep in mind, the average profit a dealer sees is generally around $1,000 or less per vehicle.

This is before taking into account the confusing world of bonuses and incentives.

>>16755249
Thanks anon

>>16755249
>Keep in mind, the average profit a dealer sees is generally around $1,000 or less per vehicle.

Yeah Nah. Maybe for high end vehicles. The dealer cost on a Dodge Dart is around $8k. There's a reason why dealership owners are rich as fuck, aside from the financing aspect.

>>16755297
Sales people generally get a bad rap because of a small number who screw people over in order to line their pockets. Most salespeople will work with you.

>>16755304
>The dealer cost on a Dodge Dart is around $8k.
I call BS. FCA has reported virtually no profit whatsoever on the Dodge Dart and Chrysler 200. It's why they're being killed off.

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43KB, 585x720px

>>16755249
You can hardly get $1000 per vehicle nowadays. Most salesman give the car away just to get he $100 flat because TrueCar price killed the industry so all they could do now is sell accessories, the actual money maker is in the used cars.

>>16755327
VERY true.

And used cars are the money makers for salespeople, not dealerships. Dealerships make most of their money in service

>>16755327
The funny part is 99% of /o/ are poorfags and praise the idea of buying used pieces of shit to bathe in 80k+ miles of ass sweat and farts.

>>16755180
they make their money on selling trades ins that they raped people on.

a car salesman will come in on literally Christmas day to sell you car.

>>16755180
How does salesman commision has anything to do with your purchase ?

Salesman will make percentage of profit on the new car. Just like other has said soon as you get some discounts salesman will get flat rate or something shitty.

When I was salesman long time ago, some Asian lady asked me how much commission will I make on her 50k car.
I told her "with the discount of 3000 dallor under the invoice, I will make flat of 100dallors." And then she demanded that I gave her another 100dallor off since that is profit I will make.

Fuck you you cheap piece of shit

>>16755437
>How does salesman commision has anything to do with your purchase
I didn't know how much it was or how it worked. There's a salesman trying to get me in when he works and if him getting a commission is enough to try and get the sale lower, I'll use that as leverage. If they got nothing off a high discount then that wouldn't work though.

These are leftover 2016s that they're advertising with $3500 dealer discount (and it's a 20k msrp car to begin with)

>>16755492
>If they got nothing off a high discount then that wouldn't work though.
it's generally a flat rate + commission. If no profit is made on the car, they get the flat rate, usually $100. If there is a profit, they get the flat rate plus whatever the commission was. It's generally not a lot. Manufacturer rebates and incentives don't hurt the salepeople's pay, but dealer incentives do. Something to remember. Make sure rebated you get are MANUFACTURER rebates and not dealer. It's just generally being a decent human being. If salespeople commission sales on cars worked the way a majority of people think they do, you'd see much wealthier salespeople.

>>16755327
I had a buddy who worked for a longtime as a car salesman and he told us you can walk into any regular dealer, ask to speak to a manager, and then offer to pay $1k over the invoice price of the car