Originally Posted by
sinthetiq
I hate how salesmen approach me on the lot. How can I get rid of them without being overly rude.
How much do they REALLY make? Does the income justify their need to wear a suit and tie and stand in the middle of a car lot for hours and hours looking for helpless prey?
Actually the shirt and tie are to portray a professional image. It isn't cheap to dress well every day, and to go to the dry cleaners so we'd probably rather not have to dress that nicely.
You might be surprised at the pay plan. It is very complicated but let me sum it up:
I get paid on 20% to 30% gross profit (front-end) and unit count. Front end gross is sale price - invoice + holdback + incentives. In the internet department it averages around $1000, so basically you can dumb it down to about $200 a car. That is if we sell the car at a profit. If we make 0 front end gross or even negative, I make $50.
Often in the internet department we are moving old stock or we are taking a loss to hit unit count. More than half of my deals in a month are usually "mini deals", or $50 deals for me.
This varies from dealership to dealership but that's the basic way it works at many of them.