The automobile salesperson (or salesman) is one of many sales professions. The automobile salesperson is a retail salesperson, who sells new and/or used cars. Unlike traditional retail sales, car sales are usually negotiable. This article pertains mostly to salespeople who are employed by new car dealerships. Other salespeople can be found at used car lots, where the sales dynamics, career outlook, and terminology may be different.
The price of a car, unlike many retail sales, is often negotiable. New cars will have a factory window sticker called a "Monroney" listing equipment and options, and the suggested retail price. A second window sticker is sometimes used which lists dealer-added equipment and any additional markup. Some scarce popular models may readily sell for prices above suggested retail, while some dealers claim that they are friendly by not having any second stickers. Few buyers will pay the asking price without negotiation. The dealer will rarely sell a car at a price near or below the cost charged by the manufacturer, or paid for the used vehicle. The salesman is paid a commission, rarely a fixed salary but usually based a percentage of profit, so a deeply discounted price results in a very low commission for the salesman, some of whom may sell fewer than a dozen cars a month. Some buyers are limited by the monthly payment they can afford, others are limited by the total price of the vehicle. Depending on circumstances, a lease arrangement will provide a better car for a given monthly payment, or may provide tax advantages compared to paying interest on a loan and taking depreciation into consideration. In such a case, the salesperson proceeds to explain the leasing options to the customer. |
