OK guys, got a question for you. I am serving in the military and am seperating in a few months. I am interested in becoming a car salesman and would like any insight you could give on this.

How does the pay usally work? is it all commision? Also, what kind of hours do most sales people work?

How much training is involved? I imagine they teach you how to do everything you need to do right? Do you need to have a lot of experience before you can get decent pay?

Thanks

 

First of all, if you're going to be living anywhere near Boring, OR, or Rochester, NY, this is a really BAD idea, and you should just go do something else.

Seriously, here are some basics you need to consider:

1) The hours are horrendous. You'll work nearly every weekend and 3-5 nights a week. Get involved in selling on some website and you'll spend half your day picking up customers at the airport, then taking them out for cocktails and dinner (oh, wait- that's the good part! ).

2) Pay plans vary greatly from dealer to dealer, but I think you'll find most pay on what's called the "commissionable gross." For example, XYZ Ford adds a $200 "pac" to the invoice of each vehicle in stock, which they consider to be their "cost" figure, and they pay you 25% commission. You sell a truck for $500 over invoice, which means they'll pay you 25% of $300, or $75. If they sell the truck for next to nothing, there's a minimum commission (a "minny") so you at least get something, maybe $50-$75. Over-age units often have a "spiff" or bonus to help sell them.

3) Training varies from intensive, month-long courses with training salary to "okay kid, you're hired. See that guy on the lot looking at a Ranger? Go sell him!" I'm not kidding. Always ask in the interview exactly what their training covers

Most important advice I can offer: Have enough money in the bank to start to get you through your first year. If you treat people right, it will take that long to establish a customer base. The vast majority (90-95%?) of new salespeople drop out before they've completed 12 months in this industry, and that's too bad. Get through the first year, and pretty much everything gets a lot easier.

Okay, now hit us with the 20 questions!

 

Jeff covered the high points, I think. the best advice I could give anyone considering entering the business is to pick your store carefully. A good store with a sterling reputation probably got that way because the help believes in who they work for- it makes a huge difference.

The hours are awful, but the traditional 9-5 job is rapidly vanishing from the landscape (at least the ones that pay anything). My bro-in-law is a VP for a really big bank, and along with his job title and fabulous pay plan comes a 60 hour work week and more stress than I would consider taking on.

 

thanks guys, the hours thing really kinda kills it for me. I don't mind working nights, but the weekend thing is kind of bad for me. I am going to give a few dealerships a call and see what they say anyway though. I really like cars and usually like talking to people so I think I would do alright at it. However the pay sounds like it takes quite some time before you make enought to live off of.

Thanks again for the help, and don't be surprised if I have a few questions as I think of them.

Thanks,
Brad