DealersEdge Professional Forums

We are currently looking to hire a used car manager/wholesaler. we stock 1.3m in used between our two stores and need to turn it into a money maker. Can anyone provide effective pay plans and information on what I need to watch out for?

Larry Durocher
lpdurocher@hotmail.com

I've always felt the manager and wholesaler are two different people. They have different objectives, for one and a wholesaler doesn't have to be much of a motivating leader.

However, with 1.3M between two stores you may have not have the luxury of having two people. I'd compensate on used car retail gross and inventory turn with an expense component.

If you compensate for w/s gross, you may hurt your retail operation.

A Good pay plan depends on your number of retail sales not your inventory level. How many units are you turning per month? What is your average gross per unit? How many units groth are you looking for?

The best plan provides compensation from all areas in the sales Dept. The bulk comming from used cars, but some from new cars and some from finance.

We pay our Used Car Manager A base of $500 per week and 3 1/2% of the used car gross, 1% of the New Car gross and 1 1/2% of the Finance Dept. We are curently doing about 100 used cars per month. The reaso we pay huim on the new cars is to keep the groses in line for each dept.