anybody sell cars for commission?
|anybody sell cars for commission?|
Ok guys. I have been looking at jobs and there are a couple positions open to sell cars. they say no experience is required. it's not a small dealership. they say potential first year earnings is 40-80k. i have a DEAD END physically demanding LOW PAYING job. so obviously i am interested. once i make money, i want to invest in other things but anyways.
i have a few questions for you guys who sell cars for a living(if there is any on boxden)
1. if i decide to go for this job and get it, what the heck did i just get myself into?
2. is there a base pay even if i dont sell cars? how much might it be if there is? i dont wanna have a slow month and oops im evicted or starving because of 0 income.
3. what kind of hours do you put in?
tell me the downsides, the upsides, anything i need to know before i venture into selling cars. that way i can find out if this job is right for me.
|05-25-2012, 05:34 PM||away - #2|
They will hire way more people than they need, fire the losers.
|05-25-2012, 08:25 PM||away - #3|
My brother used to for a while, he made a lot as long as he was selling...but of course during the slow times he didn't.
He's currently a service writer at another dealership, also on commission and the same thing goes for that.
There normally is a base pay, but it's very little. Like $1,000 a month.
|05-25-2012, 09:44 PM||away - #4|
We made 1500 a month base pay (called a draw). You got it as long as you were employed. You got payed our draw on the 1st and 15th.
With regards to commission... You got a minimum amount for each car sold. At my dealership it was $200 per Chevy, Buick and GMC and $350 for every Cadillac. These were called minis. If your sale made more than $800 gross profit you get %25 percent. I had a friend gross $8000 on a deal... So he made $2000 just on that car deal only. They subtracted the 1500 draw from how much your commission was... and payed the "extra" on the tenth... So it basically looked like this...
You sell 20 cars... You made at least $4000. You got paid $750 on the 1st of the next month, $2500 on the 10th of the next month and another $750 on the $15th of the next month.
I know of some big money cats that end up making $100k a year in the car business... But there are some that only make 20 or 30k. It's a hustle... and the harder your hustle (and the thinner your conscience) the more you made
As far as hours go... I worked from 9-7 Mon through Sat with one day off. Sundays off. On the last week of the month... No one got their days off. A dealership down the road was open 7-7 but their salesmen got to work in shifts. So a lot of it depends on your dealership. I know some of the bigger spots do a completely different pay plan... Where they give you a base pay... and then use a profit percentage scale to raise or lower your base pay accordingly.
Just know that when you walk into a car dealership... You're going to meet some nice folks... and some SNAKES. It's hard to survive in the car business unless you have some form of shady gene lol... In fact... The higher up you go... The more "skilled" the folks.. Because the best salesmen are the ones that get the promotions
Last edited by Optimus Crime; 05-25-2012 at 09:48 PM..
|06-08-2012, 07:34 PM||away - #5|
I am going to tell you what I have experienced and by no means am I discouraging you. i rather you know and see things before walking in blind like i did.
1. low end dealerships hire all the time because of high turnover ratio. (what I mean by low end is american made and foreign vehicles cheaper then $40,000) more tire kickers than buyers unfortunately because they are the most affordable. you will have insane customers who will go to 3-5 stores in a day of the same manufacturer to get the best deal and spend a month or two going to 10 manufacturer dealerships trying to get a car at a certain price on the dot.
2. high end dealerships hire very rare and turnover ratio is alot lower. ($40,000+)
3. working at a low end car store, you will have alot more salesman working there, you have to sell more units than high end luxury cars, commission is also lower which is why you have to sell more. anywhere from 10-30 salesman. high end luxury stores keep less than 10 salesman.
4. if you choose to pursue it, you will need to learn the lingo.
gross= profit from car between invoice and msrp price
front/back end gross= front end is sales department profit back end is finance department profit. some stores have salesman who make front and back in gross profit on cars i.e. your profit plus profit on warranty, accessories etc sold in finance department before the car is delivered to the customer.
invoice= dealership cost for the car.
mini= minicommission ...this is paid to you when you do not make any gross on a car like being sold at invoice price. ($50-$200).
spiff= cash bonus paid to you for the day a sales manager or general manger picks the oldest car sitting on the lot to get rid and sold. GM's have to pay taxes for every car every month sitting on the lot, which is why the cars need to be sold as often as new inventory comes or the dealership loses money.
pack= inhouse money automatically taken out the sale of ever car before its sold. this is money is used to pay store expenses(water, lights, food, supplies, inventory, etc....)
pounders= 1=1,000 2=2,000 3=3.000 4=4,000 5=5,000 referred to a customers down payment...
ex. a salesman says they have a 10 pounder then they have a customer who is willing to put down 10 grand on a car to buy and the higher your commission will be on the car.
driveout= msrp plus tax title, licensing cost...... usually $1,500-$2,000 more than msrp or whatever the price the car is sold for..
upside down= a customer wants to trade their current vehicle for a new one. they owe more on the car than the car is worth..benefit to dealership and not customer. sometimes a customer may have to put money down on a new car if the trade in value applied to the cost of the car is not enough. in this case, more commission made on the car deal for you and no customer benefit..dealerships low ball every customer's trade in and they can get a better appraisal at a place like carmax. the difference is that sales staff at carmax are paid hourly and not commission so they make money less than a manufacturer dealership salesman
5. low end stores pay you a commission draw for 3 months(grace period) to start. most cases its between $1,000-$3,000 a month depending on the dealership. you do not get both salary and commission, but whichever is higher. if your store pays a $2,000 monthly draw and you do not sell more than $2,000 in commissions, they will pay you $1,000 before taxes every 2 weeks. after your grace period you are 100% commission and if you do not sell more than the draw you will be fired, regardless of what blood sweat and tears you put into the job. high end stores do not pay a draw salary..you are commissioned from day 1. (audi, mercedes, bmw, jaguar, porsche, ferrari, lamborghini, maserati, aston martin, etc).
5. new salesman are required to work bell to bell(open to close) for 5-6 days a week for the first month or two they are employed.
6. you are required to work every saturday of the weekend..no one has saturday off. you do not get holidays off either because most of corporate world is off on holidays and people are car shopping on holidays. only holiday dealerships are closed for is thanksgiving and christmas...you will be working on new years day easter, july 4, etc....typically work days is 10-12 hrs a day...not typical 8 hrs...closeout is last week of the month, you have no days off that week.
7. cars listed in the newspapers and over radio are the least wanted and that marketing is used to drive traffic to the dealership..usually its a manual base model car with manual locks or windows and you have to sell the customer a car on the lot whether its something they really want or not.
8. commission= 20-30% gross on car
if you sold a car with 2,000 gross profit above invoice price, you get 20-30% of that depending on that store and thats what you make on that car.
car sales is paid on volume- units sold
stores have different bonus brackets that you get.
ex. 10 cars= 200 bonus 15 cars= 400 bous 18 cars= 700 bonus...
this is added to your commission check in addition to your current commissions on cars. the key is to sell in volume. you make more money when you do..some stores give you a
company debit card for your commissions and bonuses for direct deposit.
9 downfall of car industry is internet..
customers can find out how much a car costs before coming to the store and will low ball you based on that price..internet price is usually a grand or maybe 2 grand more than invoice price but cheaper than msrp. if you come down off internet price you are taking money out of your pockets. most dealers will not sell a car cheaper than internet price...and sometimes you will lose customers because of that.. internet pricing is more benefit to the customer and less the salesperson.
10. if you cant sell a new car to a customer, you are required to sell them a preowned car verses letting them walk out of the door. the motto in car sales is "no customer walks, sell them something."
you have meetings every saturday about mostly b.s. and same stuff sometimes meetings every day before you start your shift.
11. customers not willing to fill out credit applications or take test drives before talking numbers are not the serious customers to spend alot of time with. managers will blow them out for you so that you can get another customer and sell them.
12. dealerships will not let customers test drive cars alone anymore due to lawsuits filed against them in the past by customers driving alone and getting into car accidents.
13. working at a car dealership, you have alot of downtime, the day is spent phone calling prospects to get them in the door if you are in the internet department or outside waiting for a customer to arrive and be sold if you are showroom floor sales.
14. very few salesman make over 70k a year at a dealership....usually 1 or 2 out of however many salesman total at a low end store. they are the superstars and will get away with murk.
15. if you cant close the deal on your own, a manager will send another salesman to close your deal for you and the commission is split regardless if they worked hard for the sale or not.
16. american stores tend to hire way too many sales staff like ford, chevy, dodge, buick, chrystler, cadillac, jeep..i would stay away from those..they have the largest dealerships..some toyota, honda, and nissan stores hire too many people as well but most of them dont...I would advice you work at a small store over a large store...you are very replaceable and they will make you aware of it. if you could get in at a mid range vehicle dealership, i would recommend that...(lexus, infiniti, acura, etc.) money is better, less sales staff, better clientel coming in the door, potential to advance is higher, and turnover is lower as well.
CAR SALES IS NOT FOR EVERYBODY..ONLY THE STRONG HEARTED SURVIVE AND I DONT NECESSARILY MEAN THE MOST COMMITTED EITHER..SOME SALESMAN WILL STEAL SALES FROM YOU WHEN YOU ARE OFF FROM WORK OR WHILE YOU ARE THERE IF YOU ARE NOT OBSERVANT OF EVERYTHING. YOU WILL HAVE TEMPTATIONS TO QUIT AND TAKE THINGS PERSONALLY, LORD KNOWS I DID. IT CAN BE VERY REWARDING AS WELL IF YOU STICK WITH IT AND GROW A Pa##ION FOR IT..I HAVE SOLD TOYOTAS AND HYUNDAIS BEFORE...TOYOTAS SELL MORE THAN HYUNDAIS SO COMMISSIONS ARE LOWER ON THOSE VERSUS HYUNDAIS. IF YOUR STORE DOESNT HAVE UNIFORM SHIRTS TO WEAR THEN YOU WILL HAVE TO DRESS PROFESSIONAL EVERYDAY...BUTTON UP COLLAR SHIRT, TIE, SLACKS, AND DRESS SHOES...YOU ARE STRONGLY ENCOURAGED TO KEEP YOUR SHOES SHINED BECAUSE CUSTOMERS BASED THEIR BUYING DECISION ON A SALESMAN'S APPEARANCE. NO EARRINGS, VISIBLE TATTOOS, ETC. YOU WILL HAVE A DRUG TEST AND BACKGROUND CHECK RAN BEFORE BEING HIRED! BE PREPARED TO HAVE CUSTOMER NO SHOWS, WALK OUT ON YOU WHILE YOU ARE IN THE MIDDLE OF PUTTING A CAR DEAL TOGETHER, RACIST CUSTOMERS WHO WILL SEE YOU FIRST AND TURN AROUND AND BUY A CAR FROM SOMEONE ELSE AT YOUR STORE, RUDE CUSTOMERS WHO WILL CURSE YOU OUT. ITS PART OF CAR BUSINESS!
AT MY STORE THE WHITES, BLACKS, AND HISPANICS DID NOT DEAL WITH INDIAN AND ASIAN CUSTOMERS BECAUSE THEY ARE THE WORST LOW BALLERS...WE USE TO CALL THEM "TOO HIGHS" BECAUSE THATS WHAT THEY WOULD SAY AFTER YOU FIND THE CAR WITH EVERYTHING THEY WANT IN IT, BUT THEY DONT WANT A BASE MODEL CAR. THEY WANT A FULLY LOADED CAR FOR A BASE MODEL PRICE LOL!!! IT HAPPENS ALL THE TIME. THE ASIAN SALESMAN AT MY STORE TOOK ALL THE ASIAN CUSTOMERS SINCE HE SPOKE VIETNAMESE, JAPANESE, AND CHINESE. THE CUSTOMERS WOULD BYPa## US AND GO TO DUY TO TALK TO HIM ABOUT BUYING A CAR. IT USE TO DRIVE ME CRAZY AND WHEN I WORKED THERE LONG ENOUGH, I KNEW WHY AND REALIZED IT WAS ONLY A HEADACHE FOR ME. THE BEST DEALS ARE ALWAYS MSRP DEALS, I CAN REMEMBER SELLING A RAV4 AT 24,000 MSRP AND MAKING 800 COMMISSION FROM IT AS WELL AS AN AVALON LIMITED(FULLY LOADED) AT 39,000 AND MAKING $1350 COMMISSION..AS FAR AS HYUNDAI I HAVE SOLD LIMITED SONATAS MAKING $700 COMMISSION, FULLY LOADED ELANTRAS FOR $500, AND SANTA FE'S FOR $800
*******HOPEFULLY THIS HELPS ...IF YOU HAVE ANY MORE CONCERNS THEN SEND ME PRIVATE MESSAGE AND I WILL GET BACK AT YOU********
Last edited by DwRecKeR77053; 06-08-2012 at 08:29 PM..
|06-13-2012, 07:28 PM||away - #6|
If you don't have a friendly appearance don't even apply. The key to being good at selling car is being having a very approachable appearance, being very knowledge about the product, lastly being able to manipulate people, and being very down to earth (you should be able to relate with people and make them feel like your not even selling them a product).
Everything DwRecKeR77053 said is on point. Acura/Infiniti is probably the best especially with the recession (great price point, great features, they sell themselves basically). Also you weed out most of the people, who aren't about !!. When you go into any sales ALWAYS LOOK AT THE MAKE UP OF THE WHOLE COMPANY (what resources do they have, how good is there product, how do they stand out). If you fall in love with the product it makes it 100 times easier to sell.
|06-16-2012, 12:43 PM||away - #7|
Last edited by DwRecKeR77053; 06-19-2012 at 03:10 PM..
|06-18-2012, 03:01 AM||away - #8|
|06-18-2012, 05:26 PM||away - #9|
Last edited by DwRecKeR77053; 06-18-2012 at 05:36 PM..
|06-18-2012, 10:56 PM||away - #10|
|06-19-2012, 10:07 AM||online - #11|
I was a car dealer for 3 months at a Chrysler dealership... I would never do that !! again... !! you autoland
|06-19-2012, 03:04 PM||away - #12|
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