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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…

Do you hate going to buy a car?

When it comes time to purchase a new vehicle a lot of stress can come into your life.

Its hard to deal with the whole process. First you have to spend a ton of time narrowing down your options, then you research prices, and then you go to the dreaded dealership to test drive a car.

This can be a very stressful process; especially the going to the dealership to take a test drive. Now, there are site that you can buy a car online and they deliver it to you, but you still need to know how it rides.

When it comes to price, there are dealerships that have 1 price shopping, but did you know they are still making money and a lot of times you can get a better deal at a dealership that you can negotiate at.

So how do you relieve the stress of buying a car? Know what your doing. This means, know your budget, know your credit score range, know the vehicle you what, have a rough idea of your trade-in value, and understand the finance products you will be offer and may what to purchase.

What are Finance products? They are GAP, extended service plans, maintenance plans, tire and wheel, and others. These are very beneficial products and we suggest you understand the benefits before you say "no".

Follow the CarRights process to lower the stress of buying a car:

  • Do your online vehicle research
  • Submit inquiry to dealership
  • Set an appointment with the dealership's internet department
  • Drive to the dealership ask for the manager and let them know you have an appointment
  • Meet designated salesperson who will be handling your transaction
  • View the vehicle and take test drive
  • Ask to view the service drive
  • Meet Used Car Manager and walk around your trade-in with them
  • Ask for your keys back before, salesperson comes back with numbers to negotiate
  • Ask to see all your finance options when reviewing numbers
  • Negotiate numbers directly with the Manager
  • When you have agreed on numbers, ask to meet the Business Manager
  • Only discuss credit with the Business Manager
  • Have salesperson go over and set up any special electronic options the vehicle may have
  • Business Manager comes out to get you to process your paperwork
  • Review your finance product options with the Business Manager
  • Business Manager processes your paperwork
  • Business Manager pages salesperson to the office
  • Salesperson walks you to your new vehicle
  • Salesperson "once again" reviews features on the new vehicle
  • You drive away in your new vehicle