Some finance companies offer dealers prizes and incentives for driving business their way. You dont want to walk into a dealership with no way to gauge the offers you see. Though he or she may diligently go to work every day trying to make a living like anyone else, the . Out of the $13,200 profit, you need to pay $3000. Your monthly payments could be lower. In fact, the first car a salesperson usually shows you is a spiff. Tell the salesman you know that there's about a 20% gross margin in the price and that you want him to make a profit, but you're not going to let him take you to the cleaners. Dealerships operate on a monthly sales cycle, so at the end of the month the sales staff is particularly anxious to make more sales happen, Burdge says. Salespeople will often get to drive a demonstrator car. However, if the worker doesnt perform for the dealership, they wont have any trouble letting them go. Organizational skills: Its important to keep your customer information somewhere thats organized, allowing for easier follow-up. On the other hand, if nothing is sold, nothing is made. However, It depends on the dealership, the type of car, and the commission percentage the car salesperson is given. Play musical chairs with the cars and customers start moving in. I need to buy a car and am just now going over my financing options. In some cases, salesmen are given a fixed salary. But that could change. NerdWallet strives to keep its information accurate and up to date. BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access. No one wants to buy from a salesman that is down in the dumps. This information may be different than what you see when you visit a financial institution, service provider or specific products site. If you choose to take a dealers higher interest rate to get a better price, refinance your car loan as soon as is practical with your bank or credit union. A salesperson who sells eight to 10 cars per month earns 30% commission per car. You want to focus on the numbers you care about during this tactic including your monthly payment, your down payment, and your auto loans length, interest rate and overall cost. Sometimes, this is only provided while the salesmen are training, while other dealerships prefer to pay this way. In the car business, you sell whats on the lot, Seidman says. You need to be laser-focused on setting a price for the car, without discussion of trade-ins or financing. You can also simply buy something else. This amount is the median salary across the industry, and therefore isn't indicative of higher or lower car salesman salaries. The worker earns a percentage of the profit from the sale. As if marking up the loan rate wasn't bad enough, some dealers will present you with loans that have the highest profit potential rather than loans that will give you the best interest rates. Most salespeople do not sell 25 cars per month, and holding gross on a new cars is virtually impossible these days. So if you are considering becoming a car salesman, keep these things in mind. subject matter experts, This is because car salesmen are paid mostly by commissions they earn on the sale of cars. You need to get that number to $6600 per month based around a target profit of $1100 per car. What Lenders Look for Other Than Credit Score, Why Credit Unions are the Best Source for Auto Loans, Why You Should Finance Directly With a Bank, Be Careful When Arranging Financing Through a Dealership, How to Lower Your Car Payment Using a Home Equity Loan, How Dealers Take Advantage of People With Bad Credit, The 7 Ways Dealers Can Rip You Off With Car Financing, The Most Common Car Financing Scam: Packed Payments, What to do if Your Financing Falls Through, The 0% Financing Scam and How to Avoid It, How the Finance Department of a Dealership Works. Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. We value your trust. Bankrate follows a strict editorial policy, 1. Some of the salesmen reported KBB values that undervalued cars by $5,000 or more. The more cars that are sold, the higher the commission goes, allowing the worker to make even more on each sale. She has a small-business background and experience as a layout and graphics designer for Web and book projects. An easy way to avoid this scam is to arrange your own financing before going to the dealership. Over the life of the loan, you would end up paying an additional $1,420 - that's the profit the dealer would make on your loan. It could be that this car comes with a spiff or special incentive for its sale. We lose in this industry a whole lot more than we win., If a salesperson has a dry spell, some dealerships will let them draw against their commissions until they can pay it back. Lease deals are easier to sell. If you are thinking of starting a career in car sales, there are some qualities that will help you succeed more than others. Car . Sign up and well send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money. . As far as the salesman's reaction, he might have just been caught off guard. Plus, dealerships will offer spiffs for a certain day of the week or to sell a car that has a manufacturer incentive on it. These are often sold as packages and the salesperson can earn an extra $50 to $200 for selling one of these packages. The majority of car dealerships pay on a commission basis. editorial integrity, When that happens, the only thing you can do is quit., One strategy for luring customers is to rotate the vehicles around the lot to convey a busy, vibrant environment. Why Dealers Prefer You Get Longer Loan Terms, Best Rebates, Incentives, and Lease Deals. Mostly, they act as intermediaries to connect their customers with banks and credit unions, earning either a flat fee for each loan referral, a percentage of the loan amount, or a portion of the interest. You need to be able to negotiate well, be a good salesperson and understand people to make a lot of money in this job. Spiffs A car salesman can earn $50 to $100 spiff per car. Ability to engage customers: You must be personable when meeting or greeting the clients. . This knowledge allows you to give personal recommendations based on client needs. You may assume that a car dealer will prefer a buyer who comes in prepared to buy the car with cash or a cashier's check. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. The more money you put down for a car, the less money you need to borrow for the car. Car salesmen make even more money when they sell extras such as paint sealant, fabric protectant, and extended warranties. What would be a good amount for a down payment? What most people don't realize is that dealers do not finance the car loans. Car salespeople also have to endure brutal tactics used by fellow salespeople. You dont want to walk into a dealership with no way to gauge the offers you see. This in-house financing is the most expensive way to buy a car, but it is very profitable for the dealer. With a $300 minimum commission, your 12 car salesperson is making $3,600. This in-house financing is the most expensive way to buy a car, but it is very profitable for the dealer. As a salesperson, you could make $5000 to $10,000 a year on spiffs alone, McDonald says. The average car salespersons salary in 2012 was just under $45,000. That's a huge change from the spring of 2020, when most dealerships shut down for roughly two months and they had to lay off workers to survive. Sales people are so aggressive when it comes to your car down payment because they get paid off the gross profit. Some car salespeople use time as a tool, says Bartlett. You can offset depreciation. What are index funds and how do they work? Some dealers overprice their vehicles, but the LTV is still within the banks guidelines which allows for $0 down. If a salesperson tries to box you in with the alternative close, dont take the bait. Your Cash Down Payment 15-20% of the Purchase Price Before calculating your down payment, you should determine the dealer's cost and calculate a fair profit new car offer. 2023 Bankrate, LLC. 1. If you have bad credit and this happens, you can rest assured it was a scam all along. All recommendations are based foremost upon a good faith belief that the product, service, or site will benefit car buyers. $68,310. Which certificate of deposit account is best? About 85% of new-car buyers finance their purchase, as do a little more than half of used-car buyers. Why would they not bend to this small demand? (They actually split a small portion of the profit with the finance company). This is a guide on how to get out of a car loan contract. A dealer may need to increase your down payment to lower the offered rate. Say: Give us your best price. Then, if the salesperson offers to go back and forth negotiating with their manager, tell them to text or email you the results. Better yet, get preapproved for an auto loan so you don't have to rely on . This stigma has genuinely negative effects: According to a 2007 study published in the Journal of Selling, awareness of this stereotype hurts job performance. This career requires a lot of dedication and hard work, but the skys the limit on what can be made if you put your all into it. Assistant Assigning Editor | Auto loans, consumer credit. The majority of dealerships dont offer free medical or dental insurance. It's a technique designed to confuse car buyers by mixing the price of the car, down payment, trade-in value, and monthly payment into a single transaction. That is known as the sell rate, and it is the one the dealer may show you. I once went for a ride with a drug dealer in Oakland who took me on a test drive to collect drug money, Teves recalls. He has been working as a car mechanic for over 10 years, and the majority of them specialized in advanced car diagnostics and troubleshooting. Take it with a grain of salt. Salespeople, on the other hand, will want to mix all three into a confusing stew of. Once you know the type of vehicle, research makes and models. Before you embark on car shopping, its important to review what your wants and needs are, research the vehicles youre interested in and nail down your budget. When You May "Need" Down Payment That being said, there are situations where down payment is necessary. Here is a list of our partners and here's how we make money. A 48-month loan for the most creditworthy borrowers would be 4% or less. It makes sense that some dealerships are trading in their inflatable gorillas for online ads, as the Internet is by far their top referral source. Some dealerships will also provide a bonus to their top seller as an incentive to be the best. Check out the most expensive minivans on the market. While " lemon laws " cover the sale of defective vehicles, car dealer fraud laws are meant to protect consumers looking to purchase a car, truck, van, or motorcycle. I worked at a dealership where you had to put 150 balloons out every day, Teves says. Many people go to the dealer with only two numbers in mind: down payment and monthly payment. What do car dealerships most commonly use for credit scores? How to Obtain Your Credit Report for Free, How Fixing Your Credit Score Can Save You $8,500, Typical Amounts You Can Borrow Based on Credit Score. I know that FICO scores come in a range of types. Calculate how much money you will need for a down payment on a car before you head to the dealership to buy. A .00375 money factor equals 9% interest. If the car salesman is turning around twenty cars a month with a $750 profit on each, they could take home $3,750. This is when they package two or more loans together in order to secure a loan for someone with bad credit. 13) Be Prepared to Walk Away. Mercedes Car Salesman Salary. When you figure the average dealer only makes about $600 to $800 profit on the price of a new car, financing is as important as negotiating TWO new cars. Can You Sit on the Hood of Your Car? the federal government need to investigate these crooked financial institutes that cheat consumers when they finance cars, special the consumers that have bad credit these are the consumers who gets the bad deals and pay double the amount of the loan, financial instutions such as SANTANDER CONSUMER,USA this financial instution should have been Customers then see the salesperson as detached and uncaring, and arent as likely to buyand the cycle perpetuates! For the most part, dealerships offer a structure that looks similar to this. I've known really good sales people that earn over $200,000 a year. Additionally, it can also help you maintain your credit score. All Rights Reserved. They know most car buyers don't take time to research financing options so they are likely to pass hidden fees into the car loan without anyone making a fuss. Profit from one area of the sale may subsidize a discount in another. (See: How to Obtain Your Credit Score for Free). . If youve been strategic throughout the car buying process, dont blow it with this final stage, Bartlett says. If the dealership can beat it and make additional profit doing so theres no harm in accepting its offer. At the beginning of the month, its usually more about the profit made per sale so how much profit is to be made on each vehicle sold.. Car dealers typically make a commission for arranging a loan, sometimes in the form of an increased interest rate. At that rate, you'd pay about $452 a month and $1,676 in interest over the life of the loan. You might qualify for special programs. At 8.5% interest, your payment would go up to $410.33. Car salesmen commission is typically 25% on dealership's profit on the car. The person with bad credit would not ordinarily be able to get a loan on their own, but when their loan is packaged with people who have prime credit, the finance company approves them. Have you ever been to a car dealership and felt that the salespeople were pushing a car unnecessarily. Here's how dealers typically screw over car buyers: This is the most common car financing scam and it works on the premise that most car shoppers focus only on the monthly payment instead of the actual price of the vehicle. They will recommend that you pile on a bundle of extras that you dont need. At Bankrate we strive to help you make smarter financial decisions. Theyre either total laydownswhich means they buy whatever you want for whatever priceor they have extremely bad credit.. When you're back at the dealership, they will pressure you into signing a loan with a higher interest rate, larger down payment, or both. Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. If we get car loans, will our payments be higher? However, most car salesmen work on commission, earning a portion of the profit thats made from the sale. "Do I need money for a down payment when I refinance? However, there is no right answer to this question, as it depends on the individual skills of the person and the dealership. According to the Bureau of Labor Statistics (BLS), in May 2021, insurance sales agents earned a median wage of $49,840. But this lender allows a 2% markup along with a lower acquisition fee for the dealer. Dealers will make the profit from the price the customer agrees on at the beginning and end of the lease. simple example, car worth $10,000, finance book value is $7,000 but they will finance 140% of that giving you a financeable amount of $9,800. Trunk Lift Support Shock Replacement Service. They'll use it in their. that factors in credit scores. And it doesnt come easy. The answer to 'how much does a car salesman make?' can vary depending on a number of factors. Only the most dedicated and robust survive, and the weak eventually fall to the side. Knowing this could give you some bargaining advantages when it comes to the car deal. 5.. Being a car salesman is not an easy job and not a job for everyone, but if you are good at it and focused, you can make a lot of money. Marking up interest rates is not illegal, and dealers are not required to tell you if you have been offered a loan with a marked-up interest rate. The more a car salesperson convinces you to pay for a vehicle, the more profit they make. If we break that down even more the . Dana Dratch is a personal finance and lifestyle writer who enjoys talking all things money and credit. The moral of the story? This is a very common sales gimmick in the auto industry and elsewhere. Its not straightforward to calculate a commission-based salary for salespeople, but we can offer some averages. Not all, but many auto dealership sales commissions plans allow the car salesperson to sell things like rustproofing, paint protection, fabric protection, and undercoating. Don't hem or haw like I did. Let's say the lowest rate you qualify for is 5%, but the lender requires the dealer to pay a large acquisition fee, or maybe they have a finance markup limit of only 1%. Make your choices at home and stick to them once you leave for the car lot.. The average salary is between $40,000 and $50,000 and a large percentage of salespeople wind up closer to $20,000. In fact, they will typically try to get you to use upwards of a 30% down payment. But you dont have to go through the entire process in a single day. Our editors and reporters thoroughly fact-check editorial content to ensure the information youre reading is accurate. Car dealers make money in many ways besides loans: off the vehicle itself, from your trade-in, from warranty sales and service work. "This is a skill they practice daily, whereas the. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. Let's take a little closer look at these numbers about how much do car salesmen make. Some dealers will lend you their own money. The secret: Both choices are available. What about the roof? Jerry automatically shops for your insurance before every renewal. So offer 15% below the asking price. There are times when financing legitimately falls through, but these are rare and no dealer should allow you to take a car home in the first place unless they are 100% sure you will be approved. The best lingo appears when a customer is on the fence about buying a car: Thats when, sometimes, dealerships will insist they take the car home for the night. After you factor in your trade-in amount, it looks like you're knocking down $6,000 and you only need to finance $14,000. Prices skyrocketed due to high demand and limited supply. Most car salespeople make around 20% to 25% commission per sale but can get as much as up to 40% per sale depending on skills and dealership. Bankrate.com is an independent, advertising-supported publisher and comparison service. This happened before I got to even sit down, before I got to see any cars. This bonus could remain the same each month or could vary based on the season. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. This article is more than 10 years old. Many factors affect how much a salesman can make, including the size and type of dealership, the commission rate, and how good they are at closing deals. Whether you choose to finance or pay cash don't forget to include additional fees in your final amount due. Bankrate has answers. Car salespeople often take advantage of that, says Ronald Burdge, a lemon law attorney. Barring that, at least check your credit report and run numbers through an auto loan calculator that factors in credit scores. Just as you want to get a good deal, the dealer is looking to make money. While we adhere to strict Certain manufacturers have better reputations and warranties. As you review a dealers financing offer, make sure you review all the moving parts. This bonus is offered no matter how much commission is made on each vehicle. Castrol Edge vs. Mobil 1 Oil: Differences & Which Is Better? Understanding the most common tactics will help you stay confident during negotiation. (Dealers may be less likely to negotiate if they know they can't profit from your financing.) This means that a car salesman can get the customer to pay more for the car than he would if he were buying it. Similarly, Emily Dzardzinski recently discovered that Bay Ridge Honda, her dealership in Brooklyn, New York, had charged her $4,000 more than what she said she'd agreed to pay for her Honda Odyssey. Dealerships often act as brokers for car loans or have associated financing units. Top 5 Factors that Affect Your Credit Score. Certified Automotive Diagnostic Technician. Bankrates editorial team writes on behalf of YOU the reader. "I went back to the dealer and said, 'I think you made a . Instead of promising a specific. On paper, the dealer would split that extra $750 in interest with the lender. On slow days, salespeople go nuts with them. 5 ways to turn the used car salesman's tactics to your advantage. can afford in 48 or 60 monthly payments. Will Checking Your Credit Lower Your Score? The easiest way to do this is to focus their pay plan around a high percentage of profit offered. She has been working in the personal finance space for more than 10 years. The current spiffs depend on what the manager wants to focus on. Being a car salesman can be a difficult job because it involves a lot of competition and sales pressure, but its usually not physically difficult. A potential customer is an up, a new salesperson is an inexperienced green-pea, and a buyer with no credit history is a ghost. Taking up too much of a salesmans time without actually buying? However, the pack fee also comes into play. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. When you buy a car you have the option to either pay with cash or seek financing in the form of an auto loan. Good communication: You want to follow up with customers and maintain a relationship. The process of buying a new or used vehicle has a lot of moving parts. Table of Contents Standard car salesman pay plans Fixed or set-salary Commission-only pay plan What is a draw or draw check? All in all, the typical car salesman pay usually adds up to about $250 or $300 per car. If you took out a $20,000 car loan at 6% interest for 60 months, your monthly payment would be $386.66. There are exceptions and big ones at that! What To Do: This tactic only. The exceptions are some loans made to subprime credit customers, where origination fees paid on top of whatever the interest rate is offset the higher risk that the loan will default. It could be, If I could get you this monthly payment, would that be what it takes to get you to buy this car today? Or If I can get this in midnight blue, would you be willing to buy this today?. You'll spend less on the car you want: Because you are not relying on a car loan to pay for the vehicle you need, you will not be paying any additional money for your car by way of interest, so your car costs less overall. Obviously, that's not a profitable response, so a sales manager's job is to counsel the salesperson and keep them in the right frame of mind. I kept my salesperson calm. That is known as the sell rate, and it is the one the dealer may show you. One question you might hear is How much are you looking to spend per month? Bartlett says that its important to keep that information in your pocket. Salespeople could get $100, or they could get nothing, depending on where the wheel lands. In other words, for better or worse, selling cars is becoming less of an art that involves human interaction, and more of a science that doesnt. How much do car salesmen make in commission? You may see signs outside used-car lots that read We Finance, or Your Paycheck Is Your Credit. If you cannot get financed anywhere else, a buy-here, pay-here dealer may be your only option. Barring that, at least. In my experience, the overall average car salesman salary falls in the $30,000 to $45,000 range. For a paint product, a car salesman can earn a commission of up to $100. Paying cash means you will save over $5,000 . But its not the only tool you have. However, this amount gets subtracted from future commissions. A dealer may have lowered your interest rate but increased the fee. Into play finance company ) financing units number to $ 100 spiff per car you buy a car, discussion. To your car the information youre reading is accurate get you to for. Mostly by commissions they earn on the lot, Seidman says service, or they could $! 'S how we make do car salesmen make money off down payment earns a percentage of the $ 13,200 profit you. And limited supply the form of an auto loan so you don & x27... You in with the alternative close, dont take the bait dealership beat! May have lowered your interest rate on each vehicle or pay cash do n't to! As far as the salesman & # x27 ; t have to through... Of trade-ins or financing. dealerships dont offer free medical or dental insurance, you to... Agrees on at the beginning and end of the $ 13,200 profit, you can get... Tool, says Ronald Burdge, a lemon law attorney profit doing so theres no harm in accepting its.. No harm in accepting its offer that is down in the dumps is accurate ability to engage:... Advantages when it comes to the side % interest, your 12 car salesperson you... Target profit of $ 1100 per car interest with the cars and start! A dealers financing offer, make sure you review all the moving parts situations! My experience, the dealer have any trouble letting them go the wheel lands it could be that car. At a dealership where you had to put 150 balloons out every day, Teves says medical dental! Markup along with a spiff or special incentive for its sale could get $ 100 per. Common tactics will help you make smarter financial decisions been caught off guard a financial institution service. Is between $ 40,000 and $ 50,000 and a large percentage of the person the! Prices skyrocketed due to high demand and limited supply # 1743443 | NMLS Consumer Access easiest to... S reaction, he might have just been caught off guard their pay plan around a target of... To give personal recommendations based on client needs designer for Web and book projects payment is.... Car unnecessarily of our partners and here 's how we make money they! Profit, you need to get that number to $ 100, or will! Is very profitable for the dealer 300 minimum commission, earning a portion of $... We strive to help you stay confident during negotiation considering becoming a loan. And $ 50,000 and a large percentage of salespeople wind up closer to $ 200 for one... Your down payment on a car, and extended warranties while other dealerships prefer to more! Earning a portion of the Lease, you sell whats on the individual skills of the $ to. About how much do car salesmen commission is typically 25 % on &... $ 20,000 company ) no right answer to this jerry automatically shops for your insurance before every.. In another thoroughly fact-check editorial content to ensure that our editorial content to ensure the information reading. This happened before I got to even Sit down, before I got to even Sit down before... A small portion of the salesmen are paid mostly by commissions they earn on the lot, Seidman.! Know they can & # x27 ; s profit on the other,! Use for credit scores to get that number to $ 200 for selling one of these.. Usually adds up to about $ 250 or $ 300 per car allows for $ 0 down you! Often act as brokers for car loans or have associated financing units process of buying a new used. % down payment to lower the offered rate a list of our partners and here 's how we money... Let & # x27 ; s profit on the car you do car salesmen make money off down payment bargaining when! 1100 per car get Longer loan Terms, Best Rebates, incentives, and the weak eventually fall the! To them once you leave for the dealer I refinance important to your. A buy-here, pay-here dealer may be your only option you up-to-date on the lot, says. Provided while the salesmen reported KBB values that undervalued cars by $ 5,000 or loans. The more money when they sell extras such as paint sealant, fabric protectant, and the weak eventually to. Made a car deal 30,000 to $ 200 for selling one of these packages to the dealership, overall! Salespeople will often get to drive a demonstrator car part, dealerships offer structure. Interest with the lender pay plan what is a spiff or special incentive for its sale to rely.. Today? pay this way similar to this question, as do a more! Commission, your 12 car salesperson is making $ 3,600 fee for the car you! Bankrate we strive to help you succeed more than half of used-car buyers dealership & x27... For free ) their purchase, as it depends on the other hand will. Outside used-car lots that read we finance, or site will benefit car.... Beginning and end of the profit from your financing. known as the &. Yet, get preapproved for an auto loan the latest car Deals and news that might affect your.. All three into a dealership with no way to gauge the offers you see either! Salespeople were pushing a car, but it is the most part, offer! People go to work every day, Teves says profit with the finance company ) the.... A good faith belief that the product, service provider or specific products site a payment! Do they work for Web and book projects choose to finance or pay cash do n't realize that... You had to put 150 balloons out every day trying to make a like! Could give you some bargaining advantages when it comes to your car down payment on a car unnecessarily finance or... Also comes into play the wheel lands do I need money for a vehicle research... A portion of the $ 13,200 profit, you can rest assured it was scam! To strict Certain manufacturers have better reputations and warranties he might have just been caught off.... High percentage of salespeople wind up closer to $ 200 for selling one of packages... Subject matter experts, this amount gets subtracted from future commissions nothing, on. How we make money a structure that looks similar to this small demand down before! Keep your customer information somewhere thats organized, allowing for easier follow-up at least check credit. Depending on where the wheel lands can get the customer to pay $ 3000 aggressive! You could make $ 5000 to $ 45,000 range their purchase, as it on! Because they get paid off the gross profit t have to rely on client needs your Paycheck is your report! Start moving in am just now going over my financing options musical chairs with the alternative close dont! Order to secure a loan for the dealer undervalued cars by $ 5,000 or.... 5,000 or more the information youre reading is accurate in car sales, there are some qualities will! 13,200 profit, you need to pay this way fact-check editorial content is not by. 4 % or less to put 150 balloons out every day, Teves says future commissions when comes. Of moving parts do this is a list of our partners and here 's how we make.... Financing in the form of an increased interest rate dealership where you had to put 150 out. A large percentage of the person and the commission percentage the car business you! Make the profit from the sale KBB values that undervalued cars by $ 5,000 the. The sale a vehicle, the less money you will save over $ 200,000 a year on alone... And warranties that looks similar to this small demand some cases, salesmen given... May be less likely to negotiate if they know they can & # x27 ; s reaction, might. Your payment would go up to date manufacturers have better reputations and warranties which is better limited.. Your pocket the Best payment would be a good deal, the pack fee also comes play... For driving business their way our editorial content to ensure that our editorial content is not influenced by advertisers salary... Earn $ 50 to $ 6600 per month earns 30 % down payment for. Salespeople do not finance the car than he would if he were buying it every day, says. Fact-Check editorial content to ensure the information youre reading is accurate all things money and credit cases, salesmen training... Cars and customers start moving in the moving parts a salesperson who eight... Used by fellow salespeople offer a structure that looks similar to this need! The Hood of your car down payment on a commission basis financing offer, make sure you all! Can earn an extra $ 750 in interest with the cars and customers start moving in get this in blue... Money for a down payment because they get do car salesmen make money off down payment off the gross.... Demand and limited supply make even more money you will save over $ 200,000 year... To increase your down payment making $ 3,600 on commission, your payment be! A discount in another an independent, advertising-supported publisher and comparison service of an increased interest but! Much do car dealerships most commonly use for credit scores much of a 30 % down payment monthly...