how much commission does a car salesman make

A car salesman typically earns a commission ranging from 20% to 40% of the gross profit made on the sale of each vehicle. On average, the commission per car sold tends to be between $400 and $500, but this can vary widely depending on factors such as the dealership, location, type of car (new, used, luxury), and the salesperson's experience and negotiation skills. For example, if a dealership makes a profit of $1,600 on a vehicle, the car salesman might earn around $400 as commission (25% of the profit). Many car salespeople also earn bonuses and commissions on add-ons such as extended warranties and service packages, which can increase their total earnings substantially. Monthly earnings from commission can vary, with average salespeople making around $3,000 per month and top performers earning $12,000 to $15,000 or more with bonuses. Commission structures can be flat-rate, tiered, or percentage-based, often with additional incentives for hitting sales targets.