|Quote, originally posted by PDing »|
When I ask my friends who sale cars for a living, my friends at BMW dealerships make $80k a year easy, while my friend at VW tells me he tops out around $80-90k a year. The top salesperson at the BMW dealer that I go to makes somewhere around $200k a year and pushes around 18-35 cars a month.
Ask to see those pay stubs.
It's rare for a car salesman to make more than $40K/year. Some markets pay a little better because rent/expenses are high (e.g. San Francisco) but make no mistake, there is not a dealer in the country who will pay somebody that kind of money unless they have extremely significant community connections.
Keep in mind that lying about one's income is virtually mandatory in the business. I remember my GM telling me, in the most sanctimonious voice possible, "I don't get out of bed for low six figures." Later that year I saw his W-2 as they were prepping it in the office; he had earned $71,000 the year before.
I'll do a writeup this week about some of the more common dealer myths and realities and post it.
The most important thing to understand about modern auto dealers is that the majority of them lose money selling cars and break even servicing them. The profit engine is the parts department, because there is an insane little deal going on between the dealers and manufacturers.
Manufacturers sell dealers parts at a certain cost. Then they repurchase those parts at near retail to be used in warranty service. The more warranty churn you do, the better.