Good post.
What is happening to sales people? That’s usually a commission job.
With few cars to sell they must be hurting badly.
What is happening to sales people? That’s usually a commission job.
With few cars to sell they must be hurting badly.
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They sell the used cars and make far more money then on new. The average new car in a super competitive area like NY, NJ metropolitan area will be sold at dealer invoice plus or minus $2-300. The money is made on the back end or dealer after sell of items such as extended warranties, protective paint treatments, pinstripe packages all of which have truly enormous markups. Also financing brings in a bunch of money from the banks with the dealers able to mark up the interest rate to whatever the traffic will bear.
Used cars generally carry a $2-4000 profit because it is impossible for the customer to shop around for the exact car they are looking at on a dealers lot unlike new cars which are the same no matter which dealer you go to. This allows the customer to play one dealer against another if they want to get the best deal. Salesmen will get paid 20-25% of the net sale price of the car which can be around $500. They also get a small salary of about $200-250.