How Much Money Do Car Salespeople Make?

How Much Money Do Car Salespeople Make?

People who have a love and passion for automobiles may want to begin careers as car salespeople. If you’re one of these folks, then you might find this path enjoyable in the long run.

With this profession, you get to highlight all of the features of vehicles to interested buyers. Many people have found such jobs to be quite rewarding and have truly experienced success with them.

To set yourself up towards achieving your goals, you’ll need to first understand how much money does a car salesman makes and what the average car salesman’s income is.

What is the Standard Salary of Car Salespeople?

Based on a report by, the average salary that a car salesman made in 2018 was approximately $41,539. Those earning in the 90th percentile had about $83,000 and about $19,000 for the ones in the 10th.

There are definitely those who earn higher than the average car salesman income mentioned above. However, given that this is a relatively tough and competitive industry, one should expect to earn around this range even for the used car salesman salary.

What Are the Main Responsibilities of Car Salespeople?

As you may already know, the main priority in the day of a car salesman is to sell vehicles to interested customers. However, there are also other responsibilities that one needs to consider as these factors play a crucial role in the success or failure of a salesman’s operations.

As a vehicle salesperson goes through the process of selling a car, they also typically perform the following duties:

  • Sharing the in-depth features of a wide range of models to help customers choose which one is right for their needs and budget.
  • Providing details of the various trim varieties and options available for the different models. This should also include the after-market features such as repair, warranties, and service options.
  • Negotiation of the lease or sales price of a vehicle and arranging potential trade-ins.
  • Setting up prospects to test drive the vehicle models they are interested in.
  • Once a sale or lease has been decided, the car salesman prepares the necessary documents for approval.

How are Commissions Earned and How Much Are They?

Although some car salespeople earn a regular car dealership salesman salary, most of them make their money through commissions. The amount will depend on how many vehicles they were able to sell within a given time.

Commissions are usually calculated based on the total price of the vehicle that has been sold including the profit margin of their dealership concerning its sale.

For instance, on top of the car salesman’s annual salary, these professionals can also earn 25% of the gross profit of the dealer for each sale that they make. It’s also possible that their dealership may incentivize them whenever they convince buyers to purchase high-margin add-ons such as warranties. This will add up to their vehicle salesman salary.

What Affects How Much Car Salespeople Make?

The main factor that affects how much the new car salesman’s salary is going to largely depend on their dealership.

Establishments that sell luxury vehicles will result in the luxury car salesman’s salary being higher than those selling standard models. The catch here is that selling high-priced cars will be much more difficult. In some cases, an entry-level car salesman’s salary might be higher than that of a luxury seller.

Additionally, a dealership could also set incentives for each sale on specific vehicles. This can include certain options or addons that are bought or by selling the highest number of vehicles within a set time.

When any of these are achieved, a car salesperson can earn extra compensation for their efforts.


The car sales industry will remain a competitive sector for the coming years. This is primarily because many are looking to earn a high compensation to add on top of their car salesman salary.

That’s why for aspiring and current car salespeople, it’s important to learn the fundamentals of being a professional salesman and how you can earn more in the long run. One of the best ways of doing this is by taking part in a car salesman training course.

At the College of Automotive Management, we provide car salespeople with a wide range of courses they can sign up for to get the education they need to succeed. One of our most recommended programs is found under the automotive sales management category. Visit our website to learn more!