The Average Salary of a Car Dealer
Car dealers provide assistance to millions of motorists who are in search of a vehicle to get them from point A to point B and back to point A again. A variety of factors go into a car dealer's salary, including commissions, quotas, factory car price and concessions, all leading to the "drive" for salary success.
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Facts
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Due to most car dealer salaries being based on commission and the number of cars bought per month varying widely, it's difficult to estimate the average salesman salary. The Insider Car Buying Tips website breaks down the expected averages into five blocks: up to $15,000 per year; $15,000 to $30,000; $30,000 to $45,000; $45,000 to $80,000 and $80,000 on up. Some car dealers also earn an actual salary along with their commissions, similar to how people in the service industry earn a base pay along with their tips.
Types
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The type of car being sold has an effect on the car dealer's salary. According to the Insider Car Tips website, dealers selling high end vehicles such as luxury cars may take in over $200,000 per year because the commissions on the vehicle prices will be much higher than a standard sedan or budget-priced car.
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Considerations
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Car dealers have much to consider when brainstorming their business. Selling new cars usually means buying into a franchise of a specific car maker. Selling used cars offers more room for variety, with previously owned, rented or leased vehicles. A car dealer's typical day requires much more than the usual behind-the-desk eight hours to earn a salary. According to the U.S. Department of Labor Bureau of Labor Statistics, most auto dealers work far more than 40 hours per week, including nights and weekends, in order to accommodate buyers shopping on their non-work hours.
Outlook
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According to the BLS, car dealer ownership is expected to decline 6 percent through 2018, due to dealer consolidation, longer-lasting cars and consumers doing their own research online before entering a dealership.
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References
- Photo Credit full parking lot image by Aaron Kohr from Fotolia.com
