6 free templates by dealer type: general, used-car independent, entry-level, internet/BDC, RV/powersports, and sales manager, with the FLSA motor vehicle dealer overtime exemption, commission structure, and pay guidance generic templates skip. Download as DOCX.
A car salesman is one of the most important hires a dealership makes, and the job description that brings one in does more than list duties. It sets the pay plan, screens for a real closer, and gets the trickiest detail right: car salespeople sit in a special overtime category that most templates online never mention. For an independent used-car lot or a small franchise store, getting both the commission structure and the classification right is what separates a posting that works from one that creates problems later.
At FirstHR, we build for small businesses that hire without an HR department, where the owner or sales manager writes the posting and the salesperson often wears several hats. The six templates below cover the role across dealer types: general, independent used-car, entry-level, internet/BDC, RV/powersports, and sales manager. Each is ready to use. Fill in the bracketed fields and post, and the guide to writing a job description covers the fundamentals behind any posting.
TL;DR
Six free car salesman job description templates by dealer type: General, Used-Car Independent, Entry-Level, Internet/BDC, RV/Powersports, and Sales Manager. A car salesman is overtime-exempt federally under the motor vehicle dealer exemption but still owed minimum wage, and several states (notably California) do not follow it. The closest federal occupation reports a median near $34,580 a year before commission. Be specific about the commission plan, and download as DOCX.
What a Car Salesman Does
A car salesman sells vehicles at a dealership and guides customers from the first greeting through the close. The core work is qualifying customers, presenting and demonstrating vehicles, running test drives, negotiating price and trade-in, presenting financing, and closing the sale, then following up to build repeat business. It is a commission-driven, customer-facing role with evening and weekend hours.
The closest federal occupation is retail salespersons, which the Bureau of Labor Statistics defines to include selling motor vehicles to consumers; there is no separate car-salesperson occupation code. What changes by dealer is the breadth: at a large franchise store the role is narrowly selling, while at an independent used-car lot the same person also photographs and lists inventory and works online leads. For scoping any role before posting, the guide to defining job responsibilities walks through the process.
Which Template Should You Use?
Pick the template by dealer type and role. The selling core runs through all six, but each one emphasizes the duties, pay plan, and classification that fit a specific kind of dealership sales role. Use this guide to choose.
General Dealership
Franchise or general lot
The universal version: greet, present, test drive, negotiate, and close. Base or draw plus commission. Start here for most dealership sales roles.
Used Car (Independent)
Small or family-owned lot
For an independent used-car dealer where one person does it all: sell, photograph and list inventory, handle paperwork, and work online leads. The SMB version generic templates skip.
Entry-Level
First sales hire, will train
No-experience-required language with a training and ramp plan. Built to attract motivated, coachable first-time car salespeople.
Internet / BDC Rep
Leads and appointments
For an internet or business development center rep who works online and phone leads and books appointments. Note the classification differs from a floor salesperson.
RV / Powersports / Boat
Recreational dealers
For RV, motorcycle, powersports, or boat dealers. Same selling core with product-specific knowledge and seasonal demand. The federal exemption extends here too.
Sales Manager
Leads the sales team
For an automotive sales manager who leads the floor, sets goals, desks deals, and owns the numbers. Different classification analysis from a salesperson.
Match the Template to the Dealer
A franchise or general lot: General Dealership. A small or family-owned used lot: Used Car (Independent). A first hire with no experience: Entry-Level. An online and phone lead role: Internet/BDC. An RV, motorcycle, powersports, or boat dealer: RV/Powersports. Leading the sales team: Sales Manager. When in doubt at a small independent lot, the Used Car version matches the wear-many-hats reality better than a franchise template.
6 Free Car Salesman Job Description Templates
Download all six as a single Word document or copy individual templates. Each one follows the same structure: dealership overview, job summary, key responsibilities, qualifications, compensation, and how to apply. Fill in the brackets before you post.
Download All 6 Job Description Templates
General, used-car independent, entry-level, internet/BDC, RV/powersports, and sales manager. All in one DOCX.
Template 1: Car Salesman (General Dealership)
The universal version: greet, present, test drive, negotiate, and close, on a base or draw plus commission. Use this for most franchise or general dealership sales roles and adapt it.
Car Salesman Job Description (General Dealership)
CAR SALESMAN / AUTOMOTIVE SALES CONSULTANT JOB DESCRIPTION
Company: __ (Dealership)
Location: __
Reports to: Sales Manager / General Manager
Employment type: [ ] Full-time [ ] Part-time
Schedule (incl. evenings/weekends): __
Compensation: $_____ base or draw + commission
ABOUT [DEALERSHIP NAME]
[One or two sentences about your dealership, the brands or inventory you sell,
and what makes it a good place to sell cars.]
JOB SUMMARY
[Dealership Name] is hiring a Car Salesperson to sell vehicles and deliver a
great buying experience. You will greet customers, understand their needs,
present and demonstrate vehicles, conduct test drives, negotiate, and close
deals. This is a commission-driven role for a motivated, customer-first seller
who wants strong earning potential.
KEY RESPONSIBILITIES
•Greet customers on the lot and in the showroom
•Understand customer needs, budget, and trade-in situation
•Present and demonstrate vehicles and features
•Conduct test drives and explain financing options
•Negotiate price and close sales to meet monthly targets
•Complete paperwork accurately and hand off to F&I
•Follow up with leads and past customers to build repeat business
•Keep current on inventory, pricing, and promotions
REQUIRED SKILLS AND QUALIFICATIONS
•Strong communication, people, and negotiation skills
•Self-motivated and comfortable with commission and targets
•Customer-first attitude and a professional appearance
•Valid driver's license and clean driving record
•High school diploma or equivalent
PREFERRED QUALIFICATIONS
•Previous sales, retail, or automotive experience
•A track record of meeting sales goals
COMPENSATION AND BENEFITS
Compensation: $_____ base or draw plus commission (realistic OTE $______)
Benefits: __ (health, PTO, demo vehicle, etc.)
HOW TO APPLY
To apply, send your resume to __ by _.
[Dealership Name] is an equal opportunity employer.
Template 2: Used Car Salesman (Independent Dealer)
For an independent or family-owned used-car lot where one person does it all: sell, photograph and list inventory, handle paperwork, and work online leads. The version generic templates leave out.
Used Car Salesman Job Description (Independent Dealer)
USED CAR SALESMAN JOB DESCRIPTION (INDEPENDENT DEALER)
Company: __ (Independent used-car dealer)
Location: __
Reports to: Owner / Sales Manager
Employment type: [ ] Full-time [ ] Part-time
Schedule (incl. evenings/weekends): __
Compensation: $_____ draw + commission
JOB SUMMARY
[Dealer Name] is a [independent / family-owned] used-car dealer hiring a
Salesperson to sell vehicles and help run the sales floor. On a small lot you
will do a bit of everything: greet customers, sell cars, handle paperwork, take
photos and post inventory, and follow up on leads. This is a hands-on,
commission-driven role for someone who wants to own their results.
KEY RESPONSIBILITIES
•Greet and work with walk-in and online customers
•Sell vehicles from the lot and close deals
•Take trade-in information and present financing options
•Complete sales paperwork accurately
•Photograph and list inventory online (marketplace, social, website)
•Respond quickly to phone, text, and online leads
•Help keep the lot, vehicles, and showroom presentable
REQUIRED SKILLS AND QUALIFICATIONS
•Strong people and selling skills; comfortable closing
•Self-directed and reliable on a small team
•Comfort with online listings and basic computer tools
•Valid driver's license and clean driving record
•High school diploma or equivalent
PREFERRED QUALIFICATIONS
•Previous car sales or retail experience
•Familiarity with a dealer management system or online marketplaces
COMPENSATION AND HOW TO APPLY
Compensation: $_____ draw plus commission (realistic OTE $______)
Benefits: __
To apply, email __ with your resume by _.
[Dealer Name] is an equal opportunity employer.
Still Using Spreadsheets for Onboarding?
Automate documents, training assignments, task management, and track onboarding progress in real time.
Built for a first sales hire with no experience required. Uses motivating, coachable-first language and emphasizes training and a ramp plan to attract new salespeople.
Entry-Level Car Salesman Job Description
ENTRY-LEVEL CAR SALESPERSON JOB DESCRIPTION
Company: __ (Dealership)
Location: __
Reports to: Sales Manager
Employment type: [ ] Full-time [ ] Part-time
Schedule (incl. evenings/weekends): __
Compensation: $_____ training pay / draw + commission
JOB SUMMARY
[Dealership Name] is hiring an Entry-Level Car Salesperson. No car sales
experience is required. We provide training and a ramp plan. We are looking for
someone motivated, friendly, and coachable who wants to start a high-earning
career in automotive sales. If you are driven and good with people, we will
teach you the rest.
KEY RESPONSIBILITIES
•Learn our inventory, sales process, and CRM (training provided)
•Greet customers and start the sales conversation
•Shadow senior salespeople and assist on deals
•Conduct test drives and present vehicle features
•Follow up with leads by phone, text, and email
•Work toward a gradually increasing sales target
REQUIRED SKILLS AND QUALIFICATIONS
•Motivated, coachable, and eager to learn
•Friendly, outgoing, and good with people
•Reliable and professional
•Valid driver's license and clean driving record
•No car sales experience required
PREFERRED (NICE TO HAVE)
•Any retail, customer service, or sales experience
•Interest in cars or the automotive industry
WHAT WE OFFER
•Paid training and a clear ramp plan
•Mentorship from top salespeople
•Compensation: $____________ training pay / draw plus commission
•[Growth path, benefits, etc.]
HOW TO APPLY
To apply, send a short note about yourself to __.
[Dealership Name] is an equal opportunity employer.
Template 4: Internet / BDC Sales Representative
For an internet or business development center rep who works online and phone leads and books appointments. Note the classification differs from a floor salesperson.
Internet / BDC Sales Representative Job Description
INTERNET / BDC SALES REPRESENTATIVE JOB DESCRIPTION
Company: __ (Dealership)
Location: __ ([ ] On-site [ ] Hybrid)
Reports to: BDC Manager / Sales Manager
Employment type: [ ] Full-time [ ] Part-time
FLSA status: [confirm by duties; often non-exempt, see notes]
Compensation: $_____ base + commission / bonus
JOB SUMMARY
[Dealership Name] is hiring an Internet / Business Development Center (BDC) Sales
Representative to manage online and phone leads and set appointments for the
sales floor. You will respond fast to inquiries, qualify buyers, book
appointments, and follow up to drive showroom traffic. This role suits a
persistent, organized communicator who thrives on response time and follow-up.
KEY RESPONSIBILITIES
•Respond quickly to internet, phone, and text leads
•Qualify buyers and book sales appointments
•Manage a lead pipeline in the CRM
•Follow up persistently on unsold and aged leads
•Hit appointment-set and show-rate targets
•Coordinate handoffs to the sales floor
•Keep accurate notes and lead records
REQUIRED SKILLS AND QUALIFICATIONS
•Strong phone, text, and written communication skills
•Fast, persistent, and organized with follow-up
•Comfort with a CRM and lead tools
•Customer-first, professional tone
•High school diploma or equivalent
PREFERRED QUALIFICATIONS
•Previous BDC, call center, or dealership experience
•Familiarity with dealership CRM and lead sources
A NOTE ON CLASSIFICATION
A BDC rep who sets appointments rather than selling vehicles may not fit the
motor vehicle dealer exemption, which applies to salespeople primarily engaged
in selling vehicles. Confirm classification by actual duties. This is general
information, not legal advice.
COMPENSATION AND HOW TO APPLY
Compensation: $_____ base plus commission / bonus
Benefits: __
To apply, email __ with your resume by _.
[Dealership Name] is an equal opportunity employer.
For RV, motorcycle, powersports, or boat dealers. Same selling core with product-specific knowledge and seasonal demand. The federal exemption extends to these dealers too.
For a sales manager who leads the floor, sets goals, desks deals, and owns the numbers. The classification analysis differs from a salesperson, so confirm it by duties.
Automotive Sales Manager Job Description
AUTOMOTIVE SALES MANAGER JOB DESCRIPTION
Company: __ (Dealership)
Location: __
Reports to: General Manager / Owner
Employment type: [ ] Full-time
FLSA status: [confirm by duties; management roles may be exempt]
[Dealership Name] is hiring an Automotive Sales Manager to lead the sales team,
hit dealership sales and gross targets, and develop salespeople. You will manage
the sales floor, set and coach to goals, work deals, and own the numbers. This
role suits an experienced automotive sales leader who can drive volume and grow
people.
KEY RESPONSIBILITIES
•Lead, coach, and develop the sales team
•Set and manage sales goals, forecasts, and gross targets
•Work and close deals with the team (desking)
•Manage inventory mix, pricing, and aging with management
•Hire, train, and schedule salespeople
•Monitor CRM, lead handling, and follow-up discipline
•Own the dealership sales numbers and reporting
REQUIRED SKILLS AND QUALIFICATIONS
•Proven automotive sales and leadership experience
•Strong desking, negotiation, and coaching skills
•Track record of hitting volume and gross targets
•Comfort with dealership CRM and reporting
•Valid driver's license and clean driving record
PREFERRED QUALIFICATIONS
•Experience managing a sales team at a [franchise / independent] dealer
•Knowledge of F&I, inventory, and digital retailing
A NOTE ON CLASSIFICATION
A sales manager's classification depends on actual duties. The motor vehicle
dealer exemption covers salespeople; a manager may instead be exempt under the
executive exemption if the duties test is met. Confirm classification. This is
general information, not legal advice.
COMPENSATION AND HOW TO APPLY
Compensation: $_____ salary plus bonus / commission override
Benefits: __
To apply, email __ with your resume by _.
[Dealership Name] is an equal opportunity employer.
Car Salesman Duties and Responsibilities
Car salesman duties cluster into four areas: the customer and the sale, the deal and the close, paperwork and process, and follow-up and inventory. A good job description picks the specific duties from each area that match your dealership rather than listing every possible task.
Customer and sale
Greet customers and qualify their needs
Present and demonstrate vehicles
Conduct test drives and explain features
Deal and close
Negotiate price and trade-in value
Present financing and hand off to F&I
Close deals and meet monthly targets
Paperwork and process
Complete sales paperwork accurately
Keep the CRM and lead notes current
Stay current on inventory and pricing
Follow-up and inventory
Follow up with leads and past customers
Build repeat and referral business
Help keep the lot and showroom presentable
The most common short version is greet, qualify, demonstrate, negotiate, and close. At an independent lot, add the inventory and online-lead work the role really covers. Scale the list to your dealer type and the level you are hiring.
Overtime and the Motor Vehicle Dealer Exemption
This is the part the generic templates skip, and it is the most important thing to get right when hiring a car salesman. Dealership salespeople sit in a special federal overtime category, and the rules flip in some states.
Overtime-Exempt Federally, but Minimum Wage Still Owed
Under the FLSA automobile dealership rules, a salesperson primarily engaged in selling vehicles is exempt from overtime under the motor vehicle dealer exemption, but the dealership still owes at least the federal minimum wage for every hour worked. The exemption is duties-based, not title-based, so a BDC rep or F&I manager may not qualify.
The exemption survived a closely watched Supreme Court case, in which the Court held that a service advisor counts as a salesman and rejected the old rule that FLSA exemptions must be read narrowly. The practical takeaway for a dealer is that a floor salesperson selling cars is squarely covered, while internet, BDC, and finance roles depend on what they actually do day to day.
California and Some States Do Not Follow the Federal Exemption
California has no motor-vehicle-dealer overtime exemption. A California car salesperson is overtime-exempt only if, in each pay period, earnings exceed one and a half times the minimum wage for every hour worked and more than half of pay comes from commissions, tested pay period by pay period. As a result, California car salespeople are frequently owed daily and weekly overtime. Check your own state's rule before classifying. This is general information, not legal advice.
For a commission role, the pay plan is the most important part of the posting. Spelling it out clearly attracts stronger salespeople and sets accurate expectations from day one. Here is how dealership pay typically works.
Pay element
What it means
Base or draw
A small fixed salary, or an advance against future commission reconciled at settlement
Front-end commission
A percentage of gross profit on the vehicle, often around 20 to 30 percent after pack
Pack
An amount the dealership deducts from gross before commission is calculated
Mini
A small flat amount paid on a low-profit or no-profit deal
Bonuses / spiffs
Extra pay for hitting volume targets or moving specific units
Be specific in the posting about the base or draw, the commission percentage, how minis work, and a realistic on-target earnings figure. Several states now require disclosing the commission structure or range in the posting itself for commission roles, so check your state's pay-transparency rule before you publish.
Car Salesman Pay
Because the role is commission-driven, earnings vary widely. Use government data for the occupational baseline, then build your commission plan and realistic on-target earnings on top.
Occupational Median Near $34,580 Before Commission (BLS)
The closest federal occupation, retail salespersons (which the BLS defines to include selling motor vehicles), had a median wage of about $16.62 an hour, roughly $34,580 a year, in May 2024, with the lowest 10 percent under $12.31 and the highest 10 percent over $23.05 an hour, on employment of about 3.9 million (U.S. Bureau of Labor Statistics). Automobile dealers are among the higher-paying industries for the occupation.
Salary aggregators report much higher numbers, sometimes well into six figures, because they capture commissions and a manager-skewed, self-reported sample rather than clean occupational base-wage data. Treat those as total-compensation ranges, not base pay. For a posting, set a realistic base or draw and on-target earnings for your market and commission plan, and publish what your state requires for commission roles.
How to Write a Car Salesman Job Description
A strong car salesman posting takes about twenty minutes once you have settled the dealer type, the pay plan, and the classification. Here is the process the templates are built around. If this is among your first hires, the guide to hiring your first employee covers the surrounding steps.
1
Pick the template by dealer type
General dealership, independent used-car, entry-level, internet/BDC, RV/powersports, or sales manager. The type shapes the duties, the pay plan, and the classification.
2
Write a clear title and summary
Use a searchable title like Car Salesperson or Automotive Sales Consultant. Open with two or three sentences on the dealership and the commission-driven, customer-facing role.
3
List the real responsibilities
Group them around the customer and sale, the deal and close, paperwork, and follow-up. At an independent lot, include the inventory and online-lead work the role covers.
4
Be specific about the pay plan
State the base or draw, the commission structure, and realistic on-target earnings, and disclose the commission arrangement where your state requires it.
5
Classify, then add EEO and apply steps
Note the overtime treatment under the dealer exemption and your state's rules, include an equal opportunity statement, and give clear application instructions.
Hiring a Salesperson for an Independent Lot
A large franchise store hires salespeople into a structured team with a sales manager, an F&I office, and a marketing department. An independent used-car lot, which averages a handful of employees, has none of that. The owner writes the posting, the salesperson wears several hats, and the pay is almost entirely commission. Here is how to write it for that reality.
At an independent lot, the salesperson does far more than sell
Most published car-salesman templates are written for large franchise stores with a sales manager, an F&I office, a BDC team, and a marketing department. The typical independent used-car dealer averages around two employees, so the salesperson also photographs and lists inventory, answers online leads, handles paperwork, and helps keep the lot presentable. Pick the responsibilities that match your actual operation. The independent used-car template above is built for exactly this, rather than a franchise job copied down to your size.
Get the overtime classification right, because dealers are an FLSA special case
This is the part every competitor template skips, and it is the one most likely to cost a dealer. A salesperson primarily engaged in selling vehicles at a dealership is exempt from federal overtime under the motor vehicle dealer exemption, but is still owed at least the federal minimum wage for every hour worked. The exemption is duties-based, not title-based, so a BDC rep who sets appointments or an F&I manager may not qualify. And several states, California most notably, do not follow the federal exemption, so a salesperson there can still be owed overtime. Confirm against the rules for your state. This is general information, not legal advice.
The commission plan is the real job posting
For a commission role, the pay plan is what attracts strong salespeople, and vague phrases like unlimited earning potential get ignored. Be specific about the structure: a base or a draw against commission, the commission percentage of front-end gross, any mini or flat amounts on low-profit deals, and a realistic on-target earnings figure. A clear, honest pay plan pulls better applicants than a long requirements list, and several states now require you to disclose the commission structure or range in the posting itself for commission roles.
Onboarding a commission salesperson is where pay, licensing, and process get set
Whichever template you use, the work after hiring is ordinary people operations: a signed offer letter that spells out the pay plan in writing, the I-9 and tax forms, a clear explanation of the commission structure and draw, any state dealer or salesperson licensing, and CRM and process training before they start selling. FirstHR fits this people side for a small dealer: send the offer for e-signature, store the signed offer and pay-plan acknowledgment, and run a structured onboarding checklist. To be clear about scope, FirstHR is an onboarding and HR platform, not a dealer management or payroll system, and it does not run payroll or administer benefits, so pair it with those providers. Applicant tracking is coming soon.
From Hiring to Onboarding
The job description is step one. Once a candidate accepts, the same document becomes the basis for the offer letter and onboarding. For a commission role, the offer should spell out the pay plan in writing, base or draw, commission, and how minis work, alongside the usual new hire paperwork and any state dealer or salesperson license.
Send the offer
Confirm the pay plan, base or draw, commission, and start date in writing. An offer letter template makes a commission role clear from day one.
Explain the pay plan
Walk through the commission structure, draw, and how minis work, with a signed acknowledgment so there are no surprises on the first paycheck.
Run the onboarding checklist
Form I-9 and tax forms, any state dealer or salesperson license, and CRM, process, and inventory training before the first sale.
Store the records
Keep the signed offer, pay-plan acknowledgment, and license records organized and current in one place.
A clear first weeks gets a salesperson productive faster, which matters in a high-turnover trade, so a structured 30-60-90 day plan works well for the ramp. Once terms are agreed, the offer letter template handles the core terms and an onboarding template structures the first weeks. FirstHR connects the offer, signed paperwork, pay-plan acknowledgment, and onboarding workflow in one place so a small dealer can manage the full process. FirstHR is an onboarding and HR platform, not a dealer management or payroll system, and it does not run payroll or administer benefits, so pair it with those tools. Applicant tracking is coming soon to FirstHR.
Key Takeaways
A car salesman sells vehicles and guides customers from greeting to close: qualify, demonstrate, test drive, negotiate, and follow up.
Pick the template by dealer type: general, used-car independent, entry-level, internet/BDC, RV/powersports, or sales manager.
A car salesman is overtime-exempt federally under the motor vehicle dealer exemption but is still owed minimum wage; the exemption is duties-based, not title-based.
Several states, notably California, do not follow the federal exemption, so a salesperson there can still be owed daily and weekly overtime.
The commission plan is the real posting: state the base or draw, the percentage of front-end gross, how minis work, and realistic on-target earnings.
Use BLS data as a baseline: retail salespersons report a median near $34,580 a year before commission, and automobile dealers pay above the occupational median.
Frequently Asked Questions
What does a car salesman do?
A car salesman sells vehicles at a dealership and guides customers through the buying process. The core work is greeting customers, understanding their needs and budget, presenting and demonstrating vehicles, conducting test drives, explaining financing options, negotiating price and trade-in value, and closing the sale. After the deal, they complete paperwork, hand off to the finance and insurance office, and follow up to build repeat and referral business. Salespeople also keep current on inventory, pricing, and promotions and manage their leads in the dealership CRM. The work is commission-driven and customer-facing, with evening and weekend hours common. At a small independent lot, the same person often also photographs and lists inventory online and answers internet leads.
What is the difference between a car salesman, a BDC rep, and a sales manager?
They are distinct roles at a dealership. A car salesman, also called a sales consultant or automotive salesperson, works the floor and the lot to sell vehicles and close deals, paid mostly on commission. An internet or business development center (BDC) representative manages online and phone leads and books appointments to drive showroom traffic, rather than closing vehicle sales directly. A sales manager leads the sales team, sets and coaches to goals, desks and works deals, and owns the dealership's sales numbers. The distinction matters beyond duties: it affects overtime classification. The federal motor vehicle dealer exemption covers salespeople primarily selling vehicles, but a BDC rep or a manager may fall under a different analysis, so confirm classification by actual duties.
Is a car salesman exempt or non-exempt from overtime?
Under federal law, a car salesman primarily engaged in selling vehicles at a dealership is exempt from overtime under the motor vehicle dealer exemption in the Fair Labor Standards Act. This means the dealership does not owe time-and-a-half for hours over 40 in a week, but it still must pay at least the federal minimum wage for every hour worked. Two important caveats: the exemption is duties-based, not title-based, so a BDC rep who sets appointments or an F&I manager may not qualify, and several states do not follow the federal rule. California, for example, has no motor-vehicle-dealer overtime exemption, so a salesperson there is exempt only if, in each pay period, earnings exceed one and a half times minimum wage for every hour worked and more than half of pay comes from commissions. The result is that California car salespeople are often owed daily and weekly overtime. Confirm the rules for your state. This is general information, not legal advice.
How are car salesmen paid?
Car salesmen are paid mostly on commission, usually with a small base salary or a draw against commission rather than a flat wage. A typical structure pays a percentage of the front-end gross profit on each vehicle, often in the range of 20 to 30 percent after the dealership's pack is deducted, plus a smaller flat amount, called a mini, on low-profit deals. A draw is an advance against future commissions that gets reconciled at settlement. Because pay is commission-driven, total earnings vary widely by volume, gross, and the individual dealer's plan. When writing the posting, be specific about the base or draw, the commission structure, and a realistic on-target earnings figure, since a clear pay plan attracts stronger salespeople than vague promises of high income.
How much does a car salesman make?
Earnings vary widely because the role is commission-driven. As an occupational baseline, the U.S. Bureau of Labor Statistics groups car salespeople under retail salespersons, which had a median wage of about $16.62 an hour, or roughly $34,580 a year, in May 2024, with the lowest 10 percent under $12.31 an hour and the highest 10 percent over $23.05. Automobile dealers are among the higher-paying industries for the occupation. Salary aggregators report much higher figures, sometimes well into six figures, because they capture commissions and a manager-skewed, self-reported sample rather than clean occupational base-wage data. Treat those as total-compensation ranges, not base pay. For a posting, set a realistic base or draw and on-target earnings for your market and your commission plan.
Do I need a license to hire a car salesman?
It depends on your state. Many states require car salespeople to hold a salesperson license or to be registered with the state through the dealership, and the dealership itself must hold a dealer license. Requirements, fees, and training vary significantly from state to state, and some states have no individual salesperson license at all. Because the rules differ, confirm your state's requirements with your state motor vehicle department or dealer licensing authority before hiring, and build any required license or registration into the onboarding checklist so a new salesperson is properly credentialed before they start selling. This is general information, not legal advice.
What should a car salesman job description include?
A strong car salesman job description names the dealer type up front, whether franchise, independent used-car, or recreational, since that shapes the duties and the pay. Include a short dealership summary, a job summary that makes the commission-driven, customer-facing nature clear, and responsibilities grouped around the customer and sale, the deal and close, paperwork and process, and follow-up. State the schedule honestly, including evenings and weekends, and be specific about the pay plan: base or draw, commission structure, and realistic on-target earnings. The two things generic templates skip, which add real value, are the overtime classification under the motor vehicle dealer exemption and a clear commission structure, plus disclosing the commission arrangement where your state requires it. Close with an equal opportunity statement and clear apply instructions. This is general information, not legal advice.
What happens after I hire a car salesman?
Once a candidate accepts, the job description becomes the basis for the offer letter and onboarding. For a commission role, the offer should spell out the pay plan in writing, base or draw, commission structure, and how minis work, so there are no surprises on the first paycheck. Onboarding also includes Form I-9 and tax forms, any state dealer or salesperson license or registration, and training on the CRM, the sales process, and the inventory before the new hire starts selling. A clear first weeks gets a salesperson productive faster, which matters in a high-turnover trade. FirstHR handles the offer letter, e-signature, document collection, and onboarding workflow in one place, so a small dealer can move a new salesperson from offer to selling without an HR department. FirstHR is an onboarding and HR platform, not a dealer management or payroll system, so pair it with those tools.
