General Question

srmorgan's avatar

What is the commission on the sale of a new car?

Asked by srmorgan (6094 points ) July 11th, 2012

I bought a new Honda this weekend.
How much did the salesman earn in commission on this sale?

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5 Answers

SpatzieLover's avatar

It truly depends on how the dealership treats their sales people. It could be as low as $20 or as high as $200.

zenvelo's avatar

Unless they sold it close to sticker, then it might be higher.

Often a salesman may bargain more at the end of the month because they might be getting a bonus for hitting a total number for the month, so they’ll sell a car for hardly any commission to get the bonus.

funkdaddy's avatar

A buddy used to sell cars. He had all kinds of sliding scales and spiffs but essentially got 25% of the dealer’s profit on each car. Accessories tend to be more profitable than the cars themselves. He also got bonuses for hitting certain milestones.

So it’s hard to say for your car in particular, but probably somewhere between $100 and $500.

You have to remember 20 cars would be a big month for most sales people, and good sales people in all industries tend to be well paid.

jca's avatar

I wonder what a good salesman in a popular dealership on a middle of the road car, such as Honda, would make as an annual salary, roughly? 100 thousand a year? More? Less?

jgoose's avatar

It depends on how much you paid vs. what the dealer paid, plus whatever his per-unit incentive is. New cars are rarely where salespeople or the dealership make their money unless it’s a hot new model they are selling at or above sticker. Watch out for used cars though. That’s where they really make bank.

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