Need some help on the car sales industry......

[bigbet1234]

Need to know if this payment plan is fair. It's a small dealership. He has a inventory of 40-60 cars and can sell 20-50 cars a month. It is ran by 3 people. Small mom and pop place, great leads and great location.

Dealer Profits and commission.

$500=$100
$501-$1000= $150
$1001-$1500= $200
$1501-$2000=$250
$2001+++=$350

Total cars sold per week

5= $200
6-9=$300
10+=$500

 

[SECplayer]

Never been in car industry but seems like you'd have to sell a ton of cars to make any real money.

Assuming you sold a dozen cars and averaged a dealer profit of $1,250 (middle of the road based on your chart), that would only be 12 x $200 + $500 bonus = 2,900 GROSS.

 

[PigskinArmor]

Never been in car industry but seems like you'd have to sell a ton of cars to make any real money.

Assuming you sold a dozen cars and averaged a dealer profit of $1,250 (middle of the road based on your chart), that would only be 12 x $200 + $500 bonus = 2,900 GROSS.

$2,900 gross per week is not a small amount.

 

[SECplayer]

$2,900 gross per week is not a small amount.

Agreed. But he said the entire dealership only sells 20-50 cars per MONTH. So I was thinking a dozen cars as just his share was pretty realistic and maybe even optimistic. So my calculations yielded $2,900 gross for the month.

 

[irishcapper]

thats fair. actually pretty good for what i am assuming is a used car dealership

 

[boss415]

You need to find out how much they pack each car. Thats $ money the dealers takes off the top before gross is added up.

 

[basesAREloaded]

Big rake.

Look elsewhere.

This commission plan leaves a lot of benjamins on the table for the dealership.

Zero profit incentive for front line people.

Big difference between selling cars and making money. Seen it first hand.

 

[Betallsports]

New Car is 6% on sales. not sure what used cars are

 

[loomis41973]

New or used?

 

[bigbet1234]

New or used?

Used

 

[loomis41973]

Dealer profits on used cars are HUGE....if they are honest with what they paid. Much more profitable than new.

I know a couple guys who run small used lots and really only need to sell 2-3 cars a month
to be profitable.

 

[wilbur]

New Car is 6% on sales.

not sure what used cars are

Used cars are what people own before you buy them, some call them predriven.
Are you slow?

 

[Betallsports]

Used cars are what people own before you buy them, some call them predriven.
Are you slow?

:hammerit

 

[PigskinArmor]

Used cars are what people own before you buy them, some call them predriven.
Are you slow?

The mind of a sociopath on display for everyone.