what does a car salesperson make – bonus

July 15, 2015

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How does a car salesperson make a living? We have seen that they make a commission. What other avenues are available to them?

• Bonus & Incentives – salespersons can also be compensated through dealership bonus programs and manufacturer’s incentives.

1. Monthly Car Count Bonus – the amount varies and not all dealers have them.
• sell 10 cars – $300 bonus
• sell 15 cars – $600 bonus
• sell 20 cars – $1,000 bonus

2. Designated Cars Bonus – Certain cars may be aged, have been sitting on the lot a while, or otherwise hard to sell.  There could be extra bonus of $100 – $200, above the standard commissions, for selling these cars.

3. Sliding Scale Commission – to motivate selling, commission percentage could be increased, for example
• sell 5 cars – 25% commission
• sell 10 cars – 30% commission
• sell 15 cars – 35% commission

4. Miscellaneous Bonus – extra bonus for selling on particular holidays or special promotions.

5. Manufacturer’s Incentives – some manufacturers have incentives that are paid to the salespersons directly. This may involves additional training, certification & license. In summary, a car salesperson has various means of being compensated. It all boils down to selling cars. If they don’t sell cars, they don’t get paid. There are salesperson making over $100,000 a year, but that’s exception rather than the rule.

How about the dealerships? How do they make money? We’ll look at that in future posts.

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2 Responses to “what does a car salesperson make – bonus”

  1. annalice said

    whoa, how did you you find out all this information?

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