# Do car salesman get paid hourly

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## How do car salesmen make money?

Most dealerships pay salesmen a paltry base salary of roughly minimum wage. Salesmen then typically earn commissions of 25% of the dealership’s gross profit on the car. That gross profit, by the way, is more than you might think.

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According to CareerExplorer, entry-level car salesmen can expect to earn around \$28,000 per year. Mid-level car salespeople will average around \$35,000 annually while senior-level car sellers earn around \$46,000 per year. Fewer than 10% of car salesmen will earn \$65,000 annually or more.

## Do car salesmen make a lot of money?

The short answer is that most car salespeople don’t earn a whole hell of a lot of money. Dealership salespeople average about 10 car sales per month, and earn an average of about \$40k per year. If you do the math, that’s about \$330 per car.

## Is being a car salesman worth it?

Earning potential for car salesmen is all over the board, with PayScale estimating pay ranges from \$19,000 to \$84,000, with an average income landing at just under \$40,000 per year.

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So if you’re an average salesman and you sell 10-12 cars a month, which is the national average, and each car you sell is a \$550 commission, what have you made? \$6600. Or \$79,200 a year before taxes.

## Is selling a car hard?

While selling cars isn’t as labor intensive as it used to be, pursuing a car sales career may still come with long hours and challenging responsibilities. Most car salespeople work an average of 40 hours a week with a lot of potential for overtime.

## How are car salesman paid 2021?

Car salesmen are not entitled to an hourly wage if they are exempt employees. Most of them are paid on a commission basis or at a “piece rate,” though some of these workers also make an hourly wage in addition to their commissioned earnings.

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1. Rhode Island
Total Auto Sales Consultant Jobs: 172
Average Annual Salary: \$80,729
Lowest 10 Percent Earn: \$47,000
Highest 10 Percent Earn: \$137,000

## What sales jobs pay the most?

The highest-paying sales job in the US pays as much as \$185,000 a year—here are the other 6
• Sales engineer. Glassdoor salary range: \$68,000-\$185,000. …
• Software sales rep. Glassdoor salary range: \$50,000-\$141,000. …
• Realtor. …
• Pharmaceutical sales. …
• Medical device sales rep. …
• Recruiter.

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About 23 percent of employees will look for a new job in 2022, according to a recent poll of American workers by ResumeBuilder.com.

## How much a dealer makes on a new car?

Average dealer margin of a automobile dealer in India is 4-5% on vehicles cost & 15-20% on spare parts cost. Internationally, the margins are nearly 7-8% on vehicle cost & 30-40% on spare parts cost.

## How are car salesman paid 2021?

Car salesmen are not entitled to an hourly wage if they are exempt employees. Most of them are paid on a commission basis or at a “piece rate,” though some of these workers also make an hourly wage in addition to their commissioned earnings.

## Is selling a car hard?

While selling cars isn’t as labor intensive as it used to be, pursuing a car sales career may still come with long hours and challenging responsibilities. Most car salespeople work an average of 40 hours a week with a lot of potential for overtime.

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Average profit per new or used car

On average, how much do dealers make on used cars? The National Automobile Dealers Association (NADA) reports that the average gross profit for a used car is \$2,337. That same data set puts the average gross profit for new cars at \$1,959.

## Who wins and who loses when a car is financed?

When a car is financed, the dealership wins and the buyer loses because interest rates are much higher for the buyer through financing a car.
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