Anyone Know What A High End Dealer Salesperson Makes Commission or Salary Wise? | FerrariChat
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Anyone Know What A High End Dealer Salesperson Makes Commission or Salary Wise?

Discussion in 'Ferrari Discussion (not model specific)' started by DodgeViper01, Apr 21, 2008.

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  1. DodgeViper01

    DodgeViper01 F1 Veteran

    Oct 1, 2003
    6,867
    #1 DodgeViper01, Apr 21, 2008
    I am formulating the final parts of a project and needed to know the answer to this. Anyone have any insight? I was looking to see what their salaries generally were and how they were paid. What is their commission rate and how is it calculated? Was thinking of salespeople at say Mercedes, BMW, Ferrari, and or Lamborghini. Examples: $2000 for cars over $50,000 and a $30,000 a year salary, etc.

    Thanking you in advance
     
  2. gsjohnson

    gsjohnson Formula 3

    Feb 25, 2008
    2,291
    Woodland Hills, CA
    Full Name:
    GS Johnson
    #2 gsjohnson, Apr 21, 2008
    I have been in the dealership business for years and the going rate is the saleman receives 20% of the gross profit. There are spiffs and higher percentages given for old units or cars that have been in inventory too long and may have experienced a book drop. Additionally the saleman may get a bonus or percentage increase if he sells a certain number of units in a given month. A good high end saleman can make 10K and up a month, but it's a rough business when your family relys on you to bring home the bacon. The average saleman is lucky to make 5k a month.
     
  3. SDChris

    SDChris Formula 3

    Mar 8, 2006
    1,840
    Sioux Falls, SD
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    Chris
    #3 SDChris, Apr 21, 2008

    normally a % of the gross...like 25% minus the pack..or the cogs...some where around $300-$2000 per car sold..the avg...$500 per car..no real salary
     
  4. DodgeViper01

    DodgeViper01 F1 Veteran

    Oct 1, 2003
    6,867
    #4 DodgeViper01, Apr 22, 2008
    Chris is that how you pay your employees if you do not mind me asking? This professor loves details so first hand experience would be great, especially since you guys are in the high end market.
     
  5. switchcars

    switchcars Formula 3

    Jul 28, 2005
    2,223
    Full Name:
    Doug
    #5 switchcars, Apr 22, 2008
    I used to work at a Land Rover dealer, and I would make $5/hr base and a 25% commission on the gross profit on the sale. There would be a $200 minimum commission that you would make if they broke even or lost money on the sale. The $5/hr was NOT a draw on commission, but at most dealers, you either get no hourly wage, or if you do, it is a draw against commission.
    We would get $500 for selling a car that had been around more than 90 days. Cars sold by the management or off Ebay were house deals, and the salesmen split the commission. Average commission (unless a car sold at MSRP) was around $500.
    Contrary to popular opinion, salesmen are not raking in these huge commissions that everyone thinks.
    (Also, for Ferrari dealers that are making $100k+ over MSRP on a deal, they have caps on the commissions for their salesmen)
     

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