Business & Marketing

What’s a Typical Car Dealer Salary?

Did you know that there are over 139,000 used car dealerships in America? So, there are plenty of job opportunities even when new vehicle inventory is low.

Have you considered starting on a car dealer career path? Are you wondering what an average car dealer salary looks like?

The following guide will explore what benefits and pay to expect in a car salesman career. Read on and discover if selling vehicles is the right option for you.

Car Dealer Salary

The average yearly car salesman salary in America is around $40,000. Although, the salary greatly depends on factors such as sales rep skills.

Car dealer salaries often rely on sales commission. The number of sales you lock down each month depends on your ability to pitch cars to customers. The more vehicles you sell each year adds money to your base salary.

Dealerships tend to offer around 25% commission out of the profit for every car they sell. However, each dealership is different and commission rates vary based on location.

Education Requirements

Becoming a car salesman doesn’t require any formal education requirements. In fact, many car dealers start their careers with only a high school diploma or their GED.

A good work ethic and the ability to interact with a diverse customer base are most important. Being tech savvy enough to use integrated dealer systems (ids) is a close second these days. Some dealerships prefer experienced sales representatives. Other dealerships offer to train new dealers on the job.

It’s helpful to have an associate degree in business or marketing, but not necessary. Having automobile repair knowledge is another advantage that could help land promotions in the field.

Work Environment

Car dealers typically work traditional business hours that include weekends and holidays. But specific scheduling varies from location to location. Some dealerships offer overtime pay opportunities during busy periods.

A salesman spends the majority of their workday at the dealership. They also take customers out on brief test drives from time to time.

It can be a physically strenuous job because of bending and stooping to show cars. Dealers also spend most of their day standing on their feet.

A car salesman usually spends time studying and learning about the cars on their lot. Customers ask a lot of questions and sales reps must be prepared. Dealers make more sales if they can detail a car’s benefits correctly.

Modern dealerships typically use updated computers, software, and phone services. Visit for an example of VoIP phone services used at dealerships.

Car Dealer Benefits

The biggest benefit of being a car salesman is determining your own salary. The more work they choose to put in, the more commissions and bonuses they receive.

Dealers often have very flexible work schedules. It’s a great perk and helps sales reps balance their work-life with their home life.

It’s an exciting position and dealers are never stuck behind their desks all day. You’ll meet tons of new people and even get to test drive a variety of vehicles each week.

Ready to Become a Car Dealer?

Now you know how a car dealer salary gets determined and what the position involves. It might be the perfect position for you if you’re a great communicator and highly motivated.

Check out the rest of our blog for more fascinating business and finance articles.


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