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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…

Why is your credit score different when buying a car?

When applying for an automobile loan, typically the banks or financial institutions used an enhanced view of your credit which is more focused towards your auto loan history. This is called "Auto Enhanced".

Also, not every bank uses the same credit bureau when determining the credit worthiness of an applicant, and note every lender reports to the exact same bureaus as other lenders. For i.e., you might have checked your TransUnion score before you go to the dealership and then the dealership pulls an Equifax report. The scores can be different. 

Another example, is that Lender A reports your good pay history to Experian, yet does not report it to Equifax and the bank that you are looking at only uses Equifax. Then the scores would be different.