How Many Cars Should a Car Salesman Sell a Month?
Many people have asked this question many times, ranging from GM, GSM to car salesmen and even the prospective car salesperson. It isn’t easy to find a definitive answer to how many cars a car salesman should sell monthly. Because of the various ways the car buying process is handled at a particular dealership. Someone considering a car sales career always wonders what is expected of him or her. On the other hand, the GM or GSM is trying to set a requirement for the sales staff. This is to ensure they are employing quality salespeople and not slackers. They don’t want salespeople that do nothing more than burn through quality Fresh Ups.
I have visited and worked with many automobile dealerships and talked to many about how they sell and deliver cars. I have found that there are as many or more variations to the car sales process as there are pay plans. The dealership’s car sales steps and selling process directly affect how many cars a car salesman should sell monthly. I will share with you some of the different methods that car dealerships nationwide use to sell and deliver vehicles and get into the number of cars sold per salesperson.
The Number of Cars Depends on the Process
Some dealerships have the car salesman start with the Meet and Greet and move on to the next customer when the deal is closed, or the sales manager takes over. Then the sales manager, accessory manager, finance manager, and a delivery person or porter handle the rest of the car buying process. This process will get the car salesman back on the lot quickly. The car salesman will typically spend an hour or less per customer. This allows them to spend more time selling cars. On average, the number of cars sold by a car salesman per month when the staff is proportionate to their traffic should be 30 to 36 for a good/top salesperson.
The number will go up and down slightly from month to month, depending on the season. But on average, the top/good car salesman should sell 30 to 36 cars, and 40 or more is not unrealistic. All of this also depends on the number of hours worked. When you work more hours, you can sell more cars. In this environment, the average car salesman may sell between 15 and 25 cars per month.
The salesperson that sells less than 12 cars a month on average at a dealership with this type of sales process may be considered sub-standard and, depending on management, might be let go for poor performance. Again this depends on the requirements of management, the dealership, and the expectations they have for their sales staff, and in no way is this rule set in stone.
Full Service and Car Salesman Cars Sold
Now let’s go to the other end of the car buying process and how many cars a car salesman should sell monthly. The way things work at some dealerships is that the car salesman completes every car sales step, including delivery and follow-up. The salesperson continues with the customer, whether the car salesman or sales manager closes the deal. The salesperson will then gather all the necessary information and present and sell accessories and other add-ons. These may include paint, fabric protection, and rustproofing. The salesman will provide the Finance/Business Manager with information to prep the paperwork. Then when the Finance Manager is ready, the car salesman will escort the car buyer into the F&I office.
While the customer is with the finance manager. The salesperson will ensure the car gets filled with fuel, cleaned up inside and out, and license plates installed or transferred. Whether the salesman does any part of this or has a porter take care of it, the salesperson must ensure it gets completed. The car salesman will then inspect the vehicle after it has been prepped vehicle for delivery. When the customer is finished in the F&I office, the car salesman will take them to their new vehicle and give them a thorough orientation. The car salesman ensures the customer is happy with their new vehicle. Plus sets them up for a CSI questionnaire that will be coming from the automaker. The sales process in the above scenario significantly impacts how many cars a car salesman should sell a month.
It All Comes Down to the Process
The above process could tie up the salesperson for a couple of hours on average and 3 or more hours on busy days. The amount of time spent with each customer differs between the two scenarios. So when it comes to how many cars a car salesman should sell a month with this type of car sales process, the numbers come in very differently. The number sold by a good/top car salesman is somewhere between 15 to 20 cars a month. A consistent top producer may range from 18 to 25 a month and sometimes a few more in prime months. On average, the sub-standard car salesman in this dealership would probably be less than nine cars a month. However, I have seen many dealers with salespeople selling for years, only selling 7 or 8 cars a month on average.
Car Salesman Number of Cars a Month
Don’t think a car salesman’s income directly reflects how many cars a salesman sells monthly. Car sales commission and pay plans can make all the difference. The commission rate, spiffs, bonuses, manufacturer spiffs, and contests can have a considerable impact. Remember the first scenario where I told you about the car salesman moving on to the next customer after closing the sale the car salesman? The salespeople selling between 30 and 35 cars a month made 65-70K a year. Salespeople at dealerships that were full service, like the example above. They sold 18 to 25 cars a month and earned 95K to 120K a year. As you can see, the pay plan and commission structure are more important. The number of cars sold does not necessarily reflect how much a car salesman makes yearly.
So when it comes to answering how many cars a car salesman should sell a month, it depends on many factors, including car sales skills. Would you rather sell 30 cars a month and make 70K, or would you prefer to sell 20 cars monthly and make a six-figure income? The simple answer is that you should sell as many cars as possible. But I didn’t think that would help answer the question. We entered the car business to make money, so pay more attention to your income. It’s more important than trying to sell more cars for the sake of the number of cars a month.
Later, Fresh Up on the Lot