Car Salesman
Inevitably, you will come in contact with a salesman when you visit a car dealership. It is not uncommon for a car salesman to greet you before you even get out of your car and look around. They greet you warmly, shake your hand, exchange friendly conversation. Sounds nice right? While some salesmen may be genuine in their warmth, this behaviour is meant to get you off your guard.
The majority of car salesmen are paid soley on commission, meaning they don't get a dime if you don't buy a car. Often times they receive higher commissions for the amount of profit they make on a car. For example, if the overall profit on the car was from $0-500, the commission percentage may be 15%. Profit of $500-1,000 raises the salesman's slice of the pie to 20%, and over $1,000 may increase the commission to 25%. Although I made those numbers up, this type of tiered commission structure is very common for car dealerships. Obviously the salesman wants to make as much profit on the car as possible so they make more money and get the higher commission percentage.
We strongly suggest reading Confessions
of a Car Salesman
for an excellent insight into the inner workings of a car dealership.
Knowing what to expect before you take a trip to a local car dealership
will put your mind at ease and you won't be quick to fall for
any gimmicks they may throw at you.
Return to Car Dealerships
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