Video Title: Car Salesman Salary: What You Can Expect to Earn in Commission
Channel: Cars Unlocked
Speakers: The transcript doesn't provide a speaker name, but it is implied to be a single speaker.
Duration: 12:17
Introduction
This video explains car salesman compensation, focusing on commission structures and potential earnings. The speaker shares their personal income history to illustrate potential salary ranges.
Key Takeaways
Commission Structure Varies: Commission structures differ significantly between dealerships, regions, and countries. The information presented serves as a general guide, not an exact representation of earnings.
Front-End vs. Back-End Profit: Car sales commissions typically focus on the "front-end" profit (profit from the car sale itself), while the "back-end" (warranties, financing) profits go to finance managers.
Commission Rates and Earnings: Average commission rates range from 20-30%, with a common rate around 25%. Selling 10 cars a month with a $2000 profit per car at a 25% commission could yield a $5000 monthly income.
The "Draw": Dealerships may offer a "draw" to cover salespeople in low-earning months. This is an advance on future commissions that must be repaid.
Hours and Effort: Significant work hours (at least 40 hours at the dealership, plus additional home-based work) are needed to achieve higher commission levels. The speaker's high earnings reflect considerable effort and experience.
