On the sale of a new car, dealerships typically generate a profit of 2–3%. This might not seem like much, but when you take into account the number of vehicles that many dealerships sell, the sum can add up very rapidly. For instance, a dealership would earn $100,000 in profit from the sale of 100 cars in a single month at a profit of $1,000 per vehicle.
Naturally, not every dealership is the same. Some may experience lower profit margins due to having higher overhead expenses or being unable to secure advantageous contracts with manufacturers. Dealerships may also profit more from other steps in the car-buying process, such financing and servicing agreements.
How much does a great auto salesperson earn then? The dealership they work for, their level of expertise, and their sales volume are just a few of the variables that can affect this. Top salesmen do, however, frequently make six-figure wages, and some even make more than that.
A CEO or other high-level executive at a significant vehicle manufacturer would have the best paying job in the automotive sector. These people may receive annual salaries, bonuses, and stock options worth millions of dollars.
Who is the world’s top auto salesperson, to sum up? Given the abundance of highly qualified and effective salesmen in the field, it is challenging to provide a solid answer to that question. However, Joe Girard is frequently regarded as one of the greatest automobile salesperson of all time and now owns the Guinness World Record for the most cars sold in a calendar year (1,425 in 1973).
What about automakers, then? How much money do they make from each vehicle? Once more, this fluctuates based on a variety of elements, such as the price of production, marketing, and distribution. However, the average profit made by automakers every vehicle sold is around 10%.
In conclusion, dealership profits on new automobiles might vary in size, although they typically range from 2-3%. High-level executives at auto manufacturers can make millions of dollars, while top salespeople can earn six figures. Joe Girard is frequently regarded as the best in the business, despite the fact that there are many competent salespeople. The profit margin for automakers is roughly 10% for each vehicle sold.