How do car salesmen get paid?

Salesmen are paid a base "hourly wage." Additionally, they are paid a "commission." (The " " are because it's not really an hourly wage or commission). The "commission" is calculated based on the number of cars they sell AND the value of each car they sell.

It really depends upon the dealership. You might have just one salesman or a team of salesman where one guy takes you out for the test drive and then when you decide to buy the team leader will close the deal. Salesman will always try to sell you that special fabric stain resistant of coating, even an extended warranty because they make more money. Typically though the commission on a car is 20 to 25% of the profit and since the average car only sells for $1,000 over invoice then they make between $200 to $250 for every car sold. In your example, the guy that sells the Tahoe may make less than the guy that sold the Camaro even though the Tahoe was nearly 50% more. The average salesman will only sell 8 to 10 vehicles per month so this is not a job where you can expect to get rich.

Salesman earn a % of the gross profit on a deal after a certain "pack". The % is often 25% but can be higher if a salesman sells a lot of cars in a month. Basically, the more they get the customer to pay, the more they earn. If a salesman fails to earn minimum wage in commissions for a month, he is supposed to be paid the difference but in the real world, dealers don't pay that. Or if they do, it will mean the salesman is no longer employed.

its base pay plus commission but if you dont sell very many cars your not considered productive. dealerships dont like that thats y if a car salesman is not buisy on the lot he better be buisy on the internet drumming up buisness for the food he wants to eat for the week. depending on how many vehicles he sells determines if hes eating raman noodles or steak n potato

Commission times cars sold.

Car salesman get paid a base salary plus commisions.

Only by how many cars they sell.

It really depends upon the dealership. You might have just one salesman or a team of salesman where one guy takes you out for the test drive and then when you decide to buy the team leader will close the deal. Salesman will always try to sell you that special fabric stain resistant of coating, even an extended warranty because they make more money. Typically though the commission on a car is 20 to 25% of the profit and since the average car only sells for $1,000 over invoice then they make between $200 to $250 for every car sold. In your example, the guy that sells the Tahoe may make less than the guy that sold the Camaro even though the Tahoe was nearly 50% more. The average salesman will only sell 8 to 10 vehicles per month so this is not a job where you can expect to get rich.

Salesman earn a % of the gross profit on a deal after a certain "pack". The % is often 25% but can be higher if a salesman sells a lot of cars in a month. Basically, the more they get the customer to pay, the more they earn. If a salesman fails to earn minimum wage in commissions for a month, he is supposed to be paid the difference but in the real world, dealers don't pay that. Or if they do, it will mean the salesman is no longer employed.