The paper should be folded over making the original payment visible. This will allow the customer the impression that you have worked really hard to get them the deal they were looking to receive. Even better than that the payment is even lower than they anticipated. Not only that but you have included a three year warranty in the payment . You should have a happy customer and you should also have just sold a car.
How Is The Commission Calculated
The commission is based on the profit made on the vehicle. for this example let us say that the salesman receives 20% commission.
The dealer buys the car for $8,200 but spends $800.00 dollars to repair the car and get it ready for sale. The cost of the vehicle is now $9000.00 dollars.
You sold the car for $11000.00 plus their trade. The manager actually determined the trade to actually be worth $500.00 dollars and only discounted the vehicle being purchased by $500.00 dollars to show the customer $1000.00 for their trade on paper.
The warranty cost the dealer $900.00 which was sold for $1500.00, making another $600.00 profit on the warranty.
So total cost to the dealer, adding the cost of the warranty is $9,900.00 dollars.
You are going to get the customer to pay $13000. for the vehicle with the warranty. Subtracting the cost of the vehicle and the cost of the warranty leaves you with a $3100.00 profit of which the salesman receives 20% or a $620.00 Commission.
commission. Not a bad days work.
Auction cost = $8200
Repairs = $800
warranty cost = $900.00
Total cost = $9900
Selling price $11,000.00 + $500.00 Trade + $1500.00 warranty = $13,000 Sale Price.
Dealer receives $13000.00 dollars - Cost of vehicle of $9,900 = $3100.00 Profit from which the salesman receives 20% or $620.00 Cha Cha Ching.