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Old 03-11-2007, 02:47 AM
omegadan omegadan is offline
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Join Date: Nov 2005
Location: Cobra Kai Dojo
Posts: 223
Default Re: Ask a Car Salesman

billie, I have sales experience but not a ton. I worked retail at a luggage store, I worked at Office depot in electronics. I had never worked serious comission before.
When I was an assistant, my boss was out of the office a lot so I was basically doing all of the work to sell the customer the car. Talking about the car itself, quoting prices, doing test drives, etc.
Comissions are higher on used cars for a few reasons. The primary one is that the cost on a new car is fixed (invoice) and on a used car the cost is whatever we can buy it for. The ideal way for us to get used cars is from trade-in because we get to buy it for as cheap as possible.
Also for new cars there are 'packs' which is money taken from the gross profit to pay for detailing and for certain cars it is higher because it goes to the dealership.
This is getting long, but heres an example.
Say you sell an RX350, and the gross is $3000. There is a $500 detail pack and maybe a $200 new car pack so the profit they calculate comission from is $2300.
For an LS460 in addition to the regular packs there is a $3000 pack on the car.
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