car salesmen - commission rates?

[sellickbhoy]

Hi

just out of curiosity, how much of a % do car salesmen get paid?

I'm buying a new car just now, and i was wondering how much car salesmen get paid - do they generally get a low basic plus commission on sales?

it's at a franchised dealership if that makes any odds

also, any good tips for how i can get a reduction on the price when buying a car - or how much can i push for off the list price?

car is on at £11750, i'm paying for it in cash - no trade in.

 

[KDMINX]

The industry works on 15% markup, so look to knock that in half. Obviously some dealers / cars make more, some break even or make a loss...

Salesmen will usually have a very small basic and will need commission to feed their children plus the dealership rent, rates, heat, light, coffee needs to be paid for somehow...

First rule of business: Never be afraid to make margin
First rule of being a consumer: If you can't see where the suplier makes their money run a mile!

PS. SAY NO TO ADD-ONS!

I bought a car recently, they "quoted with" wax coating: £200, 3 year warrantee £300, 6 months tax disk £222, tank of fuel £70 all on top of the sticker price!

Knocked all that lot off / told them they had to give it for free then started to negotiate...

Also at the end they brought up gap insurance, (covers the difference between what you paid for the car and what your insurance company pay out if it's written off) which I thought was very worthwhile cover to have. He quoted £999 then when I said I wanted to compare a few quotes first he went down to £750 "cost price govner, today only" I declined and looked on 'tinterweb got it for £200!

 

[QuickHomeBuyers]

The industry works on 15% markup, so look to knock that in half. Obviously some dealers / cars make more, some break even or make a loss...

Salesmen will usually have a very small basic and will need commission to feed their children plus the dealership rent, rates, heat, light, coffee needs to be paid for somehow...

First rule of business: Never be afraid to make margin
First rule of being a consumer: If you can't see where the suplier makes their money run a mile!

PS. SAY NO TO ADD-ONS!

I bought a car recently, they "quoted with" wax coating: £200, 3 year warrantee £300, 6 months tax disk £222, tank of fuel £70 all on top of the sticker price!

Knocked all that lot off / told them they had to give it for free then started to negotiate...

Also at the end they brought up gap insurance, (covers the difference between what you paid for the car and what your insurance company pay out if it's written off) which I thought was very worthwhile cover to have. He quoted £999 then when I said I wanted to compare a few quotes first he went down to £750 "cost price govner, today only" I declined and looked on 'tinterweb got it for £200!

Out of interest, which car did you get ?

Got it on companys name or personally ?

 

Hi

just out of curiosity, how much of a % do car salesmen get paid?

I'm buying a new car just now, and i was wondering how much car salesmen get paid - do they generally get a low basic plus commission on sales?

it's at a franchised dealership if that makes any odds

also, any good tips for how i can get a reduction on the price when buying a car - or how much can i push for off the list price?

car is on at £11750, i'm paying for it in cash - no trade in.

Very much depends on the make of car.

Earl

 

[sellickbhoy]

its a toyota verso 2.2D-4D SR 57 plate

going by the parkers guide i'm getting it at more than £1100 less already - car is only 30k on the clock as well - so only just run in for a diesel!!!

 

[QuickHomeBuyers]

its a toyota verso 2.2D-4D SR 57 plate

going by the parkers guide i'm getting it at more than £1100 less already - car is only 30k on the clock as well - so only just run in for a diesel!!!

My 2p worth, I d get something like a 520d or 525d for that sort of money.

Does the car comes with any warranty ?

 

[sellickbhoy]

thanks Batra - but the BMW 5 series wouldn't be at all suitable for my needs.

also, to your earlier question, it's a private purchase not a business purchase

 

[KDMINX]

Out of interest, which car did you get ?

Got it on companys name or personally ?

I got an amg merc 2nd hand, cost me £50k.

Getting a car on the comapny just doesn't add up unless you want a 1.0 ford fiesta!

 

[QuickHomeBuyers]

I got an amg merc 2nd hand, cost me £50k.

Getting a car on the comapny just doesn't add up unless you want a 1.0 ford fiesta!

Even if I could afford spending £50k on an amg, there is no chance on this planet a person of my age would get insurance for an acceptable price.

And thank you for clearing up the fact that I should stick to 40p/mile.

 

[KDMINX]

Even if I could afford spending £50k on an amg, there is no chance on this planet a person of my age would get insurance for an acceptable price.

And thank you for clearing up the fact that I should stick to 40p/mile.

Insurance is only £500 and I'm 29.

40/25p is by *FAR* the best way of doing it. It's just a shame the rate has stayed the same for years and years.

 

[Lee Jones Jnr]

I wish my insurance was £500.
How old are you Batra?

It seems to depend on brand as well. Some dealerships are not allowed to discount as such, the price is the price, but can throw in tyres, a couple of free services etc.
I think on the car in question you wouldn't be shocking anyone asking for a 10% discount and maybe ending up with 5-6%.

 

[KDMINX]

Discounting depends more on supply and demand than anything else. Particulally new cars.

If there's an airfield somewhere that has hundreds (or even thousands) of cars all lined up then you can get a good discount. If they're waiting for stock from Germany or Japan then you'll get nothing.

Traditionally discounting on new cars lined up as follows:

- German Cars - No discount, not a penny
- Jap Cars - Depends on model, but will discount a bit
- French Cars - 50% off, 0% finiance, free moon

All that said it's the depreciation you want to be worried about and not so much the sticker price.

Example:

French Car German Car
Sticker Price £20000 £20000
Discount £ 5000 £0
Buy Price £15000 £20000

Value After
3 years £ 5000 £10000

 

Discounting depends more on supply and demand than anything else. Particulally new cars.

If there's an airfield somewhere that has hundreds (or even thousands) of cars all lined up then you can get a good discount. If they're waiting for stock from Germany or Japan then you'll get nothing.

Traditionally discounting on new cars lined up as follows:

- German Cars - No discount, not a penny
- Jap Cars - Depends on model, but will discount a bit
- French Cars - 50% off, 0% finiance, free moon

All that said it's the depreciation you want to be worried about and not so much the sticker price.

Example:

French Car German Car
Sticker Price £20000 £20000
Discount £ 5000 £0
Buy Price £15000 £20000

Value After
3 years £ 5000 £10000

Not true you can get big discounts off any car at present.

http://www.broadspeed.com/new_cars/.../26861/C180_CGI_BlueEFFICIENCY_SE_Auto_4_door

Earl

 

[Lee Jones Jnr]

Not true you can get big discounts off any car at present.

http://www.broadspeed.com/new_cars/.../26861/C180_CGI_BlueEFFICIENCY_SE_Auto_4_door

Earl

also not true.
You can get discounts off MOST new cars, but certainly not all.

 

also not true.
You can get discounts off MOST new cars, but certainly not all.

OK 99% then.

Like to name the mass market cars you can't get a discount on.?

Earl

 

[Lee Jones Jnr]

OK 99% then.

Like to name the mass market cars you can't get a discount on.?

Earl

Nobody mentioned mass market sweetie pie! You said ALL!
Most mass market cars you can get a BIG saving on. The only non-supercar maker that springs to mind that you'd struggle to get a discount from a main dealer is Porsche.

 

[KDMINX]

Not true you can get big discounts off any car at present.

http://www.broadspeed.com/new_cars/.../26861/C180_CGI_BlueEFFICIENCY_SE_Auto_4_door

Earl

I did say:

"Traditionally discounting on new cars lined up as follows:"

The Germans are feeling the pinch like everyone else and even they have had some oversupply on a few models. Particularly "Executive Fleet" cars such as low spec C-class Diesels, where cancelled orders have lead to a glut.

If you intend to keep a car for 3 years look up on What Car and choose the one that will cost you the least over your ownership.

The largest cost will be depreciation. Servicing costs are only significant if you do very high miles. Insurance is pretty much the same whatever you drive (unless your 17 or live in a high crime area). Tax Disc band is important if you do very few miles. MPG is only important if you do a *LOT* of miles (if you pay £5k more for a diesel how long will it take for you to make that back? Will you ever make it back).

Purchase price isn’t as significant as people make out.