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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…

Understanding vehicle insurance

Do you know how to read your insurance coverage just by looking at the 100/300/100 numbers on your insurance car.

Knowing this information is vital to understanding coverage for yourself or when reviewing someone's coverage in an accident.

The first set of numbers represents the amount of coverage you have for each individual involved in an accident.

The second set of numbers represents the maximum amount of coverage you have for an accident.

And the third set of numbers represents the amount of coverage you have for property damage.

Learn more at CarRights.

Understanding typical insurance coverage's:
  • Liability coverage - This provides protection on claims against the insured when the insured vehicle causes property damage or bodily injury to someone else.
  • Collision coverage - This provides coverage for losses the insured incurs as a result of damage to their insured vehicle from a collision.
  • Comprehensive coverage - This provides coverage for losses the insured incurs which are not the result of a collision (for i.e., vandalism, theft, falling objects).
  • Uninsured Motorist coverage - This provides coverage for losses the insured incurs from damages of an uninsured motorist or unknown motorist (hit and run).
  • Medical coverage - This provides coverage for medical expenses the insured incurs for the insured and others from an accident.
  • Your insurance company may offer other coverage's and higher limits; please visit your insurance provider.