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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.

Good:
1) Dealer initially increases net profit

Bad:
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…

Gifting a Vehicle

 Can I give me child my car to use as a trade-in and save on taxes?

Yes and No. This all depends on your state's tax rules. But typically in most state's you can gift your vehicle to immediate family, which they can trade-in and lower the tax liability. Please see your local tax office for more information.

Now, if you do live in an area where this is allowed by law, you have every right to do so, even if the dealer does not want to fill out the extra paperwork.