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While the dealer tries to make as much profit as possible, the salesman is trying to get his slice of the pie as a commission. These two desires actually go hand in hand. The salesman's job is to boost the dealer's profit by being a savvy negotiator so his percentage of the commission will be greater.


In "Confessions of a Car Salesman" Chandler Phillips wrote, "Commissions were based on the 'payable gross' to the dealership and were applied in three tiers. If the payable gross was from $0 to $749, our commission was 20 percent of the profit; from $750 to $1,249 the commission was 25 percent of the profit. Above $1,250 the commission was 30 percent of the profit. In other words, the higher the profit for the dealership, the higher the commission I would earn."


Phillips observed, "Naturally, the salespeople tried to hit that point where the commission was bumped to the higher percentage. That might mean moving you into a higher-level vehicle. It might mean increasing the profit by financing sleight of hand. In both cases, this smiling salesperson, with the personable air, didn't have your best interests in mind."


While the traditional sales staff works on straight commission, Internet sales managers earn a salary plus a bonus on volume. This means that more sales — not more profit — equals a bigger paycheck. This sets up a very favorable situation for car buyers. Buy from the Internet sales manager, if you can.

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