You would think that this was an easy question. But when the answer is in the context of calculating salesman commissions you might be amazed at how the dealer calculates the answer. The answer should be simple: what is the cost at which the dealer acquires the car? The dealership…
Guess what? In the car business dealer stake as many liberties with their employees as they do with the customers. There are two basic profit centers: the front end and the back end. The salesmen get paid on the front end only. This is the “cost” of the car, as…
Many car salesmen are also victim of dealership fraud. They have a pay plan that is in writing. Despite the simplicity of the pay plan (commissions as a percentage of profit), the dealership inflates the cost of vehicles to reduce their pay. They will add on various questionable costs to…