Car Salesman Getting Ripped Off? Part I

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 compared to the selling price. Some people think the cost is the invoice of the car, better known as tissue. The higher level employees get paid on the overall profit of the dealership, which includes all the items considered after market, warranties, etc.

The problem occurs when calculating the cost for calculation of the gross commisionable proceeds for the employees.The dealers add costs to the acquisition price of the car. Some dealers call them “ups.” The dealers increase the cost by the amount of the ups to reduce the commissions.

Usually the pay plans are based on the costs of the products. The dealers take liberties with increasing the cost of the vehicles without disclosing this to the staff, because they exclusively control access to this information.

If you are a car salesman and you think that the dealership is improperly calculating your pay or improperly increasing the cost of the vehicles, feel free to call The Law Office of Jonathan Rudnick for a free consultation.