Anyone Trade-in yet -

[robwbright]

Originally Posted by torqdork

This also highlights that, unless well established through referrals, most salespeople are effectively making near minimum wage when considering their typical 60 hour work week and 15 new vehicles sold per month. It's no wonder that the average Toyota salesperson's career lasts about 18 months.

It's much easier to make money (at least on the front side) selling used.

Winter months are terrible if you live in an area that gets snow... I only sold for about 18 months, but there was a February where I made about $400 - we were a small dealership with 6 salesmen (5 working each day we were open), but we only sold about 15 cars that whole month - down from an average of about 60 per month (of course, the dealer was supposed to pay minimum wage no matter how many you sold or didn't sell... and he refused to do so... when he found out that I knew that and was complaining about it, he kindly asked me to leave... well that and I started lightly objecting to his starting to require us to use the unethical "4 square" method of selling where you basically refuse to tell the buyer the actual total price they're paying for the car... but I digress).

The job itself was often ridiculously boring. We'd have maybe 30 potential buyers come on the lot per day on a good day. On a bad day in winter, there might be 5. That's somewhere between 1 and 6 customers per salesman per day (we usually rotated on "ups", so on even a decent day, it might be 1-2 hours before your next "up" came on the lot). Sometimes it would be mind-numbing... and the boss didn't want you reading or surfing the internet or doing anything other than sitting there watching the lot - even if you just finished your "up" and it was likely to be 2+ hours before your next one.

All our salesmen sold both new and used, so there was some money to be made. The good guys who had a lot of personal contacts and referrals made around $50,000 to $60,000 per year. A decent living - especially in small town SE Ohio, but it's not pleasant. I didn't have a lot in the way of personal contacts in the area, so let's just say I didn't make that much...

On the other hand, I once made more than $4100 on a dually diesel truck sale - the guy was buying for his business and didn't negotiate at all because he was going to write it off... just under $4000 profit, bonus from the dealership for highest gross of the month and small bonus from Dodge.

It is what it is... it requires very little schooling/training and a personable individual who is willing to work can make a living at it. I have no interest in doing it again.

[Dadhawk]

Originally Posted by robwbright

...Dealers are happy to do $500 deals all day long - especially if lots of cars are being sold. The salesmen... not so much, since they only made $125 on the deal. Everyone would prefer the $2000 deal, of course.

And I'm happy for the dealers to make a fair profit, that is what they are in the business to do. On the bright side for the sales guy, I took up less than an hour of his time, so I think he did OK. Plus, it added to his numbers towards any unit count bonuses he was eligible for. The finance guy is the one that wasn't happy. I don't borrow money, so writing a check robbed him a bit that month.

[Dadhawk]

Originally Posted by torqdork

This also highlights that, unless well established through referrals, most salespeople are effectively making near minimum wage when considering their typical 60 hour work week and 15 new vehicles sold per month. It's no wonder that the average Toyota salesperson's career lasts about 18 months.

I think that goes into how good you are at it. You are right about the typical career and pay, but my father-in-law has been a car salesman for probably 30 years. He makes low 6 figures (and sometimes higher) because he knows how to do it right. He has repeat customers that have followed him from dealerships in other states when he as moved from Maryland to Florida to Georgia.

And before anyone asks, he has sold GM and Honda, not Ferrari and Bentley.

[torqdork]

Originally Posted by robwbright

It's much easier to make money (at least on the front side) selling used...

All our salesmen sold both new and used...

It is what it is... it requires very little schooling/training and a personable individual who is willing to work can make a living at it...

No doubt the money is in used. Most Toyota and Lexus dealers learned that the hard way post earthquake/tsunami that decimated the worldwide supply chain, forcing them to focus on used.

You're fortunate that both new/used inventories were available. Often, sales are restricted to only one side.

Working hard, yes. Young and coming from a large extended family is also preferred.