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Car Salesman makes $200,000 a year

In today's world the title of this post doesn't really happen anymore. The day's of car salesmen or women making big money are pretty much gone.

According to the Bureau of Labor the average car salesman makes $42,150 a year.

There is a trend in the car business to attempt to increase profit by lowering employee expenses (i.e. payroll). A lot of dealers are turning to a salary program. On this program sales people get paid a weekly salary and have to chase unit sales over profit. And, at the end of the month the salesperson will get paid a bonus on the number of units he/she sold.

Here is the good and bad of what we see in the industry at dealerships that utilize a salary program.

1) Dealer initially increases net profit

1) After a few months the dealer's employee turn over rate goes up
2) Total profits go down
3) Unit sales go down (related to turn over)

That's right there is typically only 1 good factor for a dealer when utilizing a salary program for s…

Arbitration Agreements and Car Buying

Why do you have to sign an Arbitration Agreement?
If you are purchasing a car at a dealership that uses an Arbitration Agreement, then if they make one customer sign it, then all customers have to sign one. 

A dealership does have the right to refuse you the right to purchase a vehicle from them if you do not sign the Arbitration Agreement. And, in some states an Arbitration Agreement is a requirement by state law.

Now with that being said, you are NOT truly giving up your rights. All you are doing is agreeing that you will go to Arbitration first, if an issue arises between you and the dealership in regards to your purchase.

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