A car salesman salary depends on multiple variable factors including demographic area, experience, regional policies, and prospects. According to mean income report published in payscale.com, a car salesman’s salary can vary between $18,637 per year and $77,368 per year or between $7.71 and $15.61 per hour.
The car salesman salary has been calculated at $39,763 per year or $10.00 per hour. As a car salesperson, you will be required to make knowledge of your employer’s car offer and to be able to recommend a brand to clients.
Car Salesman Salary Influencers
1. Industry
One of the most crucial factors that determine a car salesman salary industry. In this particular case, industry roughly refers to what car dealer you’re currently working with. For instance, car salesperson seeking employment with Kia for a similar position can have the chance of earning between $32,120 and $34,653 per year or an hourly wage between $15.44 and $16.66.
Compared to car salesperson employed by Kia, a Honda sales representative can earn $49,776 per year or $23.93 per hour. A car salesman working for BMW has the opportunity of earning a yearly salary ranging from $31,474 to $34,505 ($15.13 – $16.59 per hour).
Automobile sales representatives currently employed with Mercedes-Benz can earn a total yearly revenue ranging from $57,000 to $73,000 ($27.40 – $35.10 per hour).
2. Geographical Area
According to a report published by salarycomparison.com, a car salesman tends to make the most in Washington D.C., where the highest salary has been calculated at $125,000 per year or $60.10. On the second position as a highest-paying state for this profession is Massachusetts, where a car deal can earn approximately $96,000 per year or $46.15 per hour.
Ranking third on the high-paying states list is California, where a car salesman can earn $90,000 per year or $43.27 per hour.
If you’re currently seeking employment as a car salesman, then you should avoid these states as they have the lowest paying rates:
- South Dakota: $62,000 per year;
- Maine: $72,000 per year;
- Montana: $64,000 per year;
- Mississippi: $62,000 per year.
Car Salesman Salary by State
| State | Annual Mean Wage ($) |
|---|---|
| Alabama | 69,000 |
| Alaska | 50,000 |
| Arizona | 56,000 |
| Arkansas | 70,000 |
| California | 73,000 |
| Colorado | 61,000 |
| Connecticut | 79,000 |
| Delaware | 60,000 |
| Florida | 64,000 |
| Georgia | 78,000 |
| Hawaii | 42,000 |
| Idaho | 45,000 |
| Illinois | 78,000 |
| Indiana | 66,000 |
| Iowa | 67,000 |
| Kansas | 62,000 |
| Kentucky | 59,000 |
| Louisiana | 61,000 |
| Maine | 60,000 |
| Maryland | 70,000 |
| Massachusetts | 82,000 |
| Michigan | 69,000 |
| Minnesota | 68,000 |
| Mississippi | 72,000 |
| Missouri | 67,000 |
| Montana | 57,000 |
| Nebraska | 50,000 |
| Nevada | 52,000 |
| New Hampshire | 67,000 |
| New Jersey | 74,000 |
| New Mexico | 60,000 |
| New York | 83,000 |
| North Carolina | 65,000 |
| North Dakota | 61,000 |
| Ohio | 65,000 |
| Oklahoma | 63,000 |
| Oregon | 66,000 |
| Pennsylvania | 66,000 |
| Rhode Island | 62,000 |
| South Carolina | 67,000 |
| South Dakota | 52,000 |
| Tennessee | 64,000 |
| Texas | 66,000 |
| Utah | 53,000 |
| Vermont | 60,000 |
| Virginia | 69,000 |
| Washington | 71,000 |
| West Virginia | 65,000 |
| Wisconsin | 61,000 |
| Wyoming | 56,000 |
3. Experience
Another crucial factor that influences the median car salesman salary is experience in the field. According to the same income report published by payscale.com, an entry-level car salesman, who has between 0 and five years of experience can earn $41,000 per year or $19.71 per hour.
As you earn more experience, your salary will grow accordingly. For instance, a car salesman during mid-career has a chance of earning $59,000 per year or $28.37 per hour. Surprisingly, a late-career car salesman, who amassed more than 20 years on the job can earn $51,000 per year or $24,52 per hour.
There are not special certification or accreditations for car salespersons. Most of the employers require no prior form of education. However, there are some employers out there like BMW or Mercedes-Benz, who consider that a high-school diploma is mandatory.
Moreover, if the candidate has any prior studies in the economy, business, or retail, his or hers chances of employment will increase tenfold. A good car salesperson must have a good grasp of how product placement works, how to negotiate with the client and how to make a recommendation.
Working Hours
Usually, a car salesman works in the car shop, where he or she is required to care for the company’s products. Most descriptions for this job state that a person employed in automotive retails works a total of 40 hours per week.
Unfortunately, most employers do no leave room for negotiations when it comes to the schedules flexibility. If you seek employment in this field, expect to work over the weekend and during the legal holidays.
There is no rule which says that car salesmen work only in the company’s shop. As a representative of the company, you might be required to various conventions or car shows to present the company’s offer.
Over time, individuals employed as car salesmen can develop back-related issues due to the fact that they tend to spend a lot of time on their feet.
Bonuses & Benefits Packages
Apart from the base car salesman salary, a person occupying such a position is entitled to receive several bonuses and benefits, materialized in the form of commissions. According to payscale.com, a car salesman can amass in yearly bonuses the sum of $15,552.
As far as commissions are concerned, individuals occupying such a position can earn somewhere in between $2,043 and $72,223 per year. If you want to put in for overtime, then you should know that companies pay $15.52 per hour.
Other benefits include a full medical insurance and a discount if buying products from the company.
Job Outlook
Furthermore, if you seek employment as a car salesperson, you will be required to attend various training to understand new products and to develop marketing skills. You will also be required to help a client choose products and to process his payment through various means.
The Bureau of Labor Statistics predicts that the job outlook for car salesman will increase by 10 percent in the 2014-2024 interval. Thus, we can say for certain that job opportunities in this industry won’t fade away in the following decade.
Conclusion
To summarize the article, the median car salesman salary may vary according to multiple variable factors such as geographic area, industry, local policies, and experience. Choosing to become a car salesman can be very rewarding since all individuals looking to occupy such a position must have a high degree of empathy. The base salary may not be as high as other professions, but individuals engaged in automotive retails tend to earn more than other occupations through commissions.
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