How much do new car sales managers make?

Answer 1

It depends on the number of cars sold each month as well as the way the cars are sold. There are many items that have to be factored. One car lot manager (sales mgr or GM) can earn $10,000 to $30,000 per month. They are given either a straight salary or part of the gross receipts for their department (new cars or used cars). If we assume a used car lot, then you have to also put in some "dummy" figures to come up with a typical pay plan for a used car lot manager. Lets say they buy cars from wholesalers or auctions and mark them up $4,000 to sell to the public (after cleaning them and fixing minor things). Then each car would have $4,000 markup (minus costs) that would equal about $3,000 gross profit. If you sell 30 cars per month, the dealership makes $90,000 gross profit...($3,000 times 30 cars). The manager could make 20% of the gross or $18,000 per month. The rest goes to the salesman and owner of the lot...etc...

If your lot is selling 100 cars, then you can see how much the income could be. It all depends on selling the car for as much as possible and selling as many as possible. In other words...high gross and high units. If you use the 100-car sales month, then you would have $300,000 in gross for the month. OBVIOUSLY not all cars make $3,000 gross. The average is about $1,500 per used car and even less for new cars. BUT sometimes a dealer can "steal" away a car (a term used for getting such a great deal) from someone and really mark it up. For example, a Mercedes that is bought after a death in a family or an elderly person that didn't use it much may not be as savvy and sell it to the dealer for $10,000 but it is worth $20,000. This is a $10,000 profit unit that could be even marked up more if the market allowed it. It all depends on buying cars low and selling high like any other sales entity. The GM or manager is usually the best salesman and comes in to close the deal when a sale isn't going quickly enough with the junior salesman. They have a vested interest in getting all of the units out the door or "over the curb' as they say in the business.

Answer 2

The average annual income is $82,000 for a new car sales manager in the United States. The average annual salary for a new car sales manager in Atlanta, Georgia is $103,000.