dealers profits

[koss78a]

i was wondering how much dealerships and the sales men them selves make on car sales and leases

for example how much does a sales man make as a comission if they sell a 30000 car etc

anyone out there a car salesman?

hope to hear back from u all

[Katsimbris]

Yeah, I work at a dealership. Try this...I payed sticker on my Corolla xrs (a $20,225 sticker)... The salesman made $300. The of course doesn't count what the finance managers make on the back-end with warranties and insurance.

[Katsimbris]

Oh, and invoices are usually $1,500 lower than sticker. and the dealer also gets a holdback amount for the car, which is for Corolla's, around $300 I think.

[rolla-XRS]

As a matter of auto industry standard...dealer cost and sticker price "usually" vary by not more than 5-10% of the list price. That's $1500 to $3000 on a $30,000 car...not very much considering the expenses.

There's virtually no money made on selling cars. I bet it barely covers the sales commission and dealerships utilities - let alone the mortgage and interest costs, taxes, franchaise expenses, and the salaries of support staff.

The money's made in parts and service.

Good dealers do well. Poor dealers end up selling or bankrupt. I still remember the old days when Chrysler dealers we're going belly up faster than an XRS at lift.