Car Salesman Salary

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Car Salesman Salary

The remuneration of a car salesman depends on a number of factors, prominent among them being personal traits and selling strategies. The CareerStint article below enlists the salary of a car salesman.

Fast Fact:
According to the Bureau of Labor Statistics, jobs in the automotive industry, in the arenas of sales and retail, are expected to increase by more than 10% in the next decade.

A car salesperson works for a car dealership company, in which he or she is the inter-mediator between the prospective buyer and the dealer. It is the duty of the salesman to describe the features of the vehicle and take the customer for a test drive (if required). In short, having product knowledge is just a basic step towards becoming a successful salesperson. Believe it or not, a car salesperson earns a hefty income, if he has good convincing skills. Nevertheless, determining car salesman salary is very tricky, as the total earning per year depends on several factors.

Job Profile

  • Depending on the company he works for, a car salesman handles exclusively new cars, old cars, and sometimes, both.
  • He has certain obligations to come up with a resultant outcome, which should suit both the customer and dealer.
  • He needs to maintain a good rapport with the dealer, as well as compete with fellow sales persons.
  • He needs to convince the customer to the best of his ability. And of course, he will need to be equipped with the required skills for the same – good listening power and customer interaction skills.
  • He needs to assess the needs of the buyer and keep the appropriate car model ready for the customer.
  • It is also important that he understands the budget constraints of the customer. The car salesman should also try to understand the budget limit of the prospective buyer. This way, he or she will succeed in placing the right vehicle before the buyer.
  • A novice salesman should analyze the selling techniques of other successful sales persons.
  • The negotiation between him/her and the customer is of extreme importance. He needs give complete assurance to the customer after the deal has been finalized and complete the required paperwork. He also needs to assure his boss of the success of the deal.


  • Ideally, you will not need mandatory education for this field.
  • However, education is never wasted, therefore if you intend to carve out a career in sales, you may go in for an associate’s degree or a bachelor’s degree in sales, marketing, advertising, business communications, etc., post high school.
  • More than a degree, however, what you need for this profession is excellent communication and people skills, a convincing nature, patience, and an assuring personality.
  • Since you will be specializing in car sales, you need to have complete technical knowledge about the product. Therefore, even a degree in automotive technology or related subjects will do.
  • Every car sales company provides on-the-job training. Therefore, you will be learning most of the job duties in the training period itself.


  • A major factor in estimating the salary for this designation is the negotiable price of a car.
  • Remember that most dealers do not pay a fixed salary; it is more of a commission-based job. The candidate is paid a commission based on the percentage of profit made in that particular deal.
  • In short, the higher the price and profit earned in the car deal, the more will be the commission given to the car salesman.
  • In such a case, the average salary of a salesman and total number of cars sold in that particular month or year are correlated.

Salary by State

  • As mentioned before, the salary of a car salesman varies heavily as per different factors.
  • Ideally, the median annual salary is between USD 40,000 to USD 70,000.
  • In heavily-populated, metropolitan states, where car companies and dealerships are in abundance, the salary is obviously higher. For instance, in New York, California, Connecticut, Washington, etc., the salary starts from USD 75,000 and goes up to as high as USD 85,000.
  • In states, like Colorado, Wisconsin, West Virginia, Delaware, Nevada, New Hampshire, etc., the salary deviates between USD 60,000 to USD 72,000.
  • In Hawaii, Idaho, Florida, etc., the salary is between USD 40,000 to USD 55,000.

Salary by Experience

  • This is quite obvious, especially in the field of sales.
  • An experience salesman obviously knows the tricks of the trade, unlike a fresher. He knows how to gauge the customer’s reaction and expressions, how to convince him, etc.
  • Another important point is the education. As mentioned earlier, you need not have compulsory education, but you need essential skills.
  • However, if you possess the expertise as well as a good degree, you will obviously be given more prominence than your peers.
  • During and after on-the-job training, a freshman is paid between USD 40,000 to USD 45,000.
  • A few years experience in the job will fetch you more than USD 55,000.
  • With a decade of experience under your belt, you will rise up to more than USD 70,000.
  • Generally, people progress up to the designations of sales managers or even higher positions after 10 years. At such high designations, you may be paid more than USD 75,000.

Salary by Employment Sector

  • As the name suggests, car salespersons are obviously hired by car dealerships.
  • However, the salary also depends a great deal on the car model, its features, the company, and the popularity among the masses.
  • A highly popular car will have a good impression already; therefore, sales persons in such companies will be paid considerably higher.
  • Slightly less popular models will have a considerably lower pay check, and so on.

On the concluding note, the average car salesman salary may be low or high, based on personal skills. In fact, the salary scale is highly unpredictable. Hence, do not wonder if an experienced car salesman makes moderate low money, while a fresher earns a much higher income. Likewise, some people may find it a lucrative and challenging job option, while others may consider it a stressful job.

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