Many people wonder about car salesman earnings. The average yearly pay for this job in the United States is $142,528.
This article will explain what impacts these salaries and how you can understand them better.
Keep reading to learn more!
The Average Salary of a Car Salesman in the United States
A car salesman in the United States earns about $142,528 every year. This includes a base pay of around $99,728 yearly. On top of this, they can make an extra $42,799 per year from different sources like cash bonuses and commissions.
The salary range for these salespeople varies between $117K to $176K annually. Their basic income stretches from $85K to $117K each year. They also get additional money that ranges from $32K to $60K annually.
This shows working as a car salesman can be quite profitable with the right skills and location.
Factors Influencing Car Salesman Salary
Many things can change how much money a car salesman makes. The city they work in, their experience, and the size of the dealership all play big roles.
Experience Level
Experience level greatly affects a car salesman’s income. New salespeople might start at the lower end of the pay scale. They learn about different cars, how to sell them, and how to talk with customers.
As they gain more experience, their ability to earn commission increases. This can lead to higher overall pay.
Experienced sales representatives know how to close deals faster and with bigger profits. They understand the needs of buyers and can match them with the right vehicle quickly. Their knowledge about features, benefits, and financing options helps too.
These skills come from years of selling cars and learning from each sale. Sales veterans often earn much more than newbies because of these skills.
Location
Location plays a big role in how much money car salesmen make. In New York, NY, the average monthly salary is $3,526, which is the highest in the country. There are cities like Westhaven-Moonstone, CA and Bellerose, NY where car salesmen also earn good money.
In places with higher living costs, employers often pay more.
Salaries can change even within 25 miles of New York City. They range from $18 an hour to $90,000 a year based on the area and company size. This shows that where you work as a car salesman affects your paycheck a lot.
Next up is top paying companies for car salesman jobs.
Company Size
Big companies often pay more to car salespeople. This is because they have a lot of cars to sell and can afford to give better salaries and commissions. Big dealers like Napleton Automotive Group and Hendrick Automotive Group are known for their high payouts to employees.
On the other hand, smaller dealers might not offer as much money upfront but may have other benefits. These perks could include flexible hours or a friendly work environment. Each dealer’s size impacts how much car salesmen make per sale and their overall salary.
Top Paying Companies for Car Salesman
Car salesmen make good money, especially when they work for the right companies. These companies offer great pay and benefits.
- Napleton Automotive Group: This company stands out because they pay their car salespeople very well. They focus on making sure employees are happy and motivated.
- Mazda: Known for its innovative vehicles like the Mazda3, this company also provides top-dollar salaries to its sales staff. They value hard work and skill.
- Ken Garff Automotive Group: With a range of brands under their belt, this group rewards its salesmen with high wages and commissions. They believe in recognizing effort.
- Hendrick Automotive Group: A leader in the automotive industry, Hendrick offers exceptional pay packages to its sales force. They deal in popular models like the Chevrolet Silverado EV.
- CarMax: This used vehicle retailer sets itself apart by offering competitive salaries to its car sellers. They have a wide inventory, giving salespeople many chances to earn commissions.
- AutoNation: The largest auto retailer in the U.S., AutoNation pays well above average salaries to its sales personnel. Their large network of dealerships means more opportunities for sales.
- Honda: Famous for reliable models like the Civic, Honda also prides itself on paying their salespeople well above average rates, appreciating their contribution to the brand’s success.
- Toyota North America: With best-sellers like the Camry, Toyota ensures their sales staff are well compensated for their part in keeping the brand at the top.
- Ford Motor Company: An iconic American brand known for trucks and cars like the F-150, Ford believes in rewarding their sales team with very attractive salary packages.
- Hertz: Though primarily known for rentals, Hertz also sells cars and pays their sales staff generously. They tap into a unique market by selling previously rented cars at competitive prices.
These companies know that a happy salesman brings in more business through excellent service and knowledge about vehicles like luxury sedans or durable trucks such as Chevy Silverados EVs.
Car Salesman Salary Based on Different Dealership Companies
Car salesman salaries vary widely depending on where they work. Different dealership companies offer different levels of pay. Below is a table that shows what some of the top companies pay their car sales staff.
| Dealership Company | Average Salary |
|---|---|
| Napleton Automotive Group | $70,000 |
| Mazda | $68,000 |
| Ken Garff Automotive Group | $66,000 |
| Hendrick Automotive Group | $65,000 |
| CarMax | $60,000 |
| AutoNation | $58,000 |
| Honda | $57,000 |
| Toyota North America | $55,000 |
| Ford Motor Company | $53,000 |
| Hertz | $50,000 |
This table shows that salaries can vary by as much as $20,000 between the highest and lowest-paying companies. This difference underlines the importance of the dealership’s brand and size in determining a salesman’s pay.
Workers at larger, more well-known dealerships tend to earn more. These companies often sell more vehicles, which can lead to higher commissions for sales staff.
State-Wise Breakdown of Car Salesman Salaries
Car salesman earnings change from state to state. Texas, for example, shows its own average for what car salespeople make.
Example: Average Car Salesman Salary in Texas
In Texas, the typical yearly pay for a car salesman is $120,000. Some earn as much as $150,000 or as little as $100,000. This places Texas among the top states for car salesman salaries in the country.
The amount of money a car salesperson makes can change depending on where they work within the state.
Car sales professionals in Texas supplement their income with commissions from each vehicle they sell. Whether it’s selling new electric trucks like the Chevy Silverado EV or used sedans, effective sales techniques and understanding customer needs lead to more sales and higher earnings.
Next up: Factors that affect how much car salesmen make across various locations and companies.
Comparison of Car Salesman Salaries in Different Industries
Car salesmen in manufacturing usually earn more than those in retail. This is because car manufacturers like General Motors often pay higher commissions and bonuses.
Manufacturing
In the manufacturing industry, car salesmen can make a good income. The median total pay is $71,408. This high salary comes from both a base wage and commissions on sales. Making money in this field depends on how many cars they sell and the price of each vehicle.
Companies like Mazda, Audi, and General Motors (GM) are top places to work for car salesmen in manufacturing. They offer some of the best pay packages. People who sell cars here use their skills to earn more with every sale they make.
Next up is how much car salesmen make based on where they work at different dealerships.
Retail
In retail, car salesmen can make good money through commissions. This means if they sell more cars, they earn more. The average pay in this sector is $71,247 a year. Car salesmen work hard to meet their targets because their pay depends on how many vehicles they sell.
Retail also offers opportunities to sell different kinds of vehicles like used cars and new models. Selling features like warranties can add more to their earnings. Next, we will look at the realistic earnings of a car salesman.
Realistic Earnings of a Car Salesman
A car salesman’s earnings can vary. On average, they make $142,528 a year. But, they also get about $42,799 in extra pay. This extra money comes from bonuses and commissions for each sale they make.
For instance, if a salesman sells a car worth $30k, their commission can add more to their yearly income.
Many things decide how much a car salesman will earn. Their experience plays a big role. More experienced salesmen usually make more money. Where they work matters too. Some places have higher costs of living, so the pay is better there to match it.
The size of their dealership company also affects their salary. Bigger companies might offer higher salaries or more chances for bonuses and commissions per sale or per car sold by the salesperson.
Conclusion
Car salespeople in the United States have a chance to make good money. Their pay depends on many things like where they work and how much they sell. The top places and certain industries can offer more.
With hard work, some car sellers earn more than just their base salary because of bonuses and commissions.
Understanding these factors can help anyone looking into this job know what to expect from their paycheck.
General Facts
- The average salary for a car salesman in the United States is $142,528 per year, with an average base salary of $99,728 per year.
- The estimated additional pay for a car salesman is $42,799 per year, which may include cash bonuses, commissions, tips, and profit sharing.
- The total pay range for a car salesman is $117K – $176K per year, with a base pay range of $85K – $117K per year and an additional pay range of $32K – $60K per year.
- The top-paying companies for car salesmen in the United States include Napleton Automotive Group, Mazda, Ken Garff Automotive Group, Hendrick Automotive Group, and others.
- The average salary for a car salesman in the United States is $142,528 per year, with the highest salary being $176,436 per year and the lowest being $117,458 per year.
- The top 3 paying industries for a car salesman in the United States are Manufacturing, Retail & Wholesale, and Transportation & Logistics.
- Sales roles are likely to grow as the economy expands, and compensation often includes commissions, allowing high-performing workers to earn more.
- Recent salaries shared for car salesman range from $15 per hour to $122,000 per year, with varying levels of experience and additional pay.
- Successful car salesmen have the potential to earn high pay, and they are typically compensated through a combination of base salary and commission.
- The car salesman’s salary varies greatly based on location, with New York, NY having an average monthly salary of $3,526, which is $303 more than the national average.
FAQs
How do bonuses and commissions work?
Car salesmen can earn an extra $42,799 on average per year through bonuses, commission from each sale, tips, and profit sharing. This means the more they sell, the more they earn.
Do all car salesmen make the same amount of money?
No, their income varies based on experience, location, the dealership's size, and the types of vehicles sold. For example, luxury vehicle dealerships might offer higher commissions.
Can you explain how much a car salesman makes per sale?
The exact amount depends on many factors such as the car's price, dealership policies, and whether it's new or used. A common commission rate is around 20-30% of the dealership's profit per vehicle sold.
How does location affect a car salesman's salary?
In areas with high costs of living or where cars are in high demand, salesmen might earn more due to higher prices or volume of sales compared to places with lower demand or cheaper living costs.
What tax considerations should I know about?
Since many salesmen work partially on commission, understanding deductions for work expenses is crucial to avoid owing taxes at year-end.
See Also: DoorDash Average Pay: The Hard Truth About How Much DoorDashers Really Make
