car dealer commission

Why Buying From A Non Commissioned Car Dealer Make Sense

Updated 8/31/20

A non commissioned sales person or car dealer is someone who does not earn any money just by having to sell used cars or brand new vehicles to a customer. This means that they are not obligated to receiving any kind of variable compensation which is how a car dealership usually pays their salesmen. With every car sales that a commissioned dealer makes he or she gets a percentage of the sales price or the revenue earned in the transaction with the customer as a form of payment. While it’s normal for most people to make a car purchase from a commissioned salesperson many however are starting to discover why buying from a non commissioned car dealer make more sense.

Many non commissioned car sales people find benefits of non commissioned car sales to be worth it though they may not be able to make as much as the ordinary commissioned dealers since their pay is on a fixed salary. On the other hand they never have to worry about not being paid if they do not make a sale. Some organizations pay their dealers only commission while other might also include a fixed rate salary in addition to commission. Usually the commission’s they receive is less than what the dealers who receive straight commission get. The point of commission is to motivate the sales person to perform better. Sell more to receive more.

the car dealer

When asked the question, “why buying from a non commissioned car dealer make more sense?” many customers feel as though it takes the pressure off the dealer to make a sale, therefore, allowing them to be more honest in regards to the purchase. Since several dealers can only make money if they make a sale, they are willing to do and say anything to finalize the sale that includes making false statements or promises that are not feasible. Often times this is the biggest reason why customers try their best to avoid an auto dealer who’s purely on commission. When a customer knows that the dealer they are compromising with is not doing it just for the commission it puts their mind at ease. A customer may feel more comfortable asking to speak with the dealer knowing that they’re not motivated by extra money.

Even organizations or company acknowledge why buying from a non commissioned car dealer make more sense. When it comes to the company’s finances it makes more sense not to hire commissioned salesmen because they can retain much more on their revenue by offering dealers a fixed salary. Paying commission adds to their labor costs which makes sense only if those costs are going towards sales. Other companies want to focus more on helping customers find the right product so they steer clear of hiring salesmen who may be motivated for the wrong reasons. Those who are not motivated by a commission tend to be less likely to try to push a defective product on a customer thus creating more issues for the company.

Setting up a payment system or commission system that the customer and the dealer can benefit form can be a challenge at times. That?s why it?s very important to know exactly why buying from a non commissioned car dealer makes more sense for both parties involved in the sales process. While the dealer might be more motivated to perform better it might discourage the customer from buying knowing that their motivation is based on earning more of a salary for the sale. It’s considered best at times to try to build a long-lasting relationship with customers for the opportunity of repeat business or a positive review, which can also result in more business.

Buying a Car

buy a car today

If you’re looking to buy a car today or sometime in the near future, you’ll want to do some research first. To start, know how much money you have to spend, what kind of car you may want, consider whether it will be a new or used car, and if used, how much wear and tear you’re willing to deal with.

Buying a car from a dealership is a great way to see the most options. If you’re not sure where to buy vehicles, there are many car dealership locations all over. Be sure to look online or drive around your town to find dealerships you can shop around in before buying a car.

The car dealer is going to try and tell you everything you want to hear, especially if they’re commissioned. Like mentioned before, the commission dealers make money off their sale. So even though the car may not actually be a good fit for you, that’s not their main concern. Be sure to do a thorough evaluation of each car and test drive it before you commit to buying.

While buying a car is a fun and exciting time, it also requires a certain amount of responsibility to make sure you make the right choice.

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