Do Car Salesmen Get Paid for Training?

The car sales industry is often associated with high-energy showrooms, commission-based earnings, and the thrill of closing a deal. But before a car salesman can hit the showroom floor and start earning those commissions, they typically undergo training. A common question arises: Do car salesmen get paid for training? The answer depends on several factors, including the dealership’s policies, the type of training, and even local labor laws. Let’s break it down.

 

Training in the Car Sales Industry

 

When someone starts a job as a car salesman, they don’t usually step into the role with all the necessary skills. Most dealerships provide some form of training to new hires. This can range from informal shadowing of experienced salespeople to structured programs covering product knowledge (e.g., car features, financing options), sales techniques, and customer service skills. Training might last a few days, a week, or even longer for larger dealerships with comprehensive onboarding processes.

 

For many, this training period is a critical stepping stone to success in a commission-heavy job. But whether salespeople are compensated during this time varies widely.

 

Paid Training: What’s Common?

 

In many cases, car salesmen do get paid for training, but the structure of that pay differs from their regular compensation. Here are the typical scenarios:

 

1. 1. Hourly Wage During Training
      Some dealerships offer new hires an hourly wage during the training period. This could be the state’s minimum wage or a slightly higher rate, depending on the employer. For example, a new salesman might earn $12-$15 per hour while learning the ropes, ensuring they have some income before they can start selling and earning commissions. This is more common in larger dealerships or chains with standardized hiring practices.

 

1. 1. Training as Part of a Draw System
      Many car sales jobs operate on a “draw against commission” model. In this setup, salespeople receive a set amount of money upfront—say, $500 or $1,000 per month—that acts as an advance on future commissions. Training might be covered under this draw, meaning the salesman gets paid during training, but that amount is later deducted from their commission earnings once they start selling. If sales don’t cover the draw, they might owe the dealership (though this debt is often forgiven if they leave).

 

1. 1. No Pay for Training
      In some cases, particularly at smaller dealerships or in highly competitive markets, training might be unpaid. New hires are expected to invest their time upfront with the promise of big commissions later. This is less common, though, as it can deter candidates and may even skirt labor laws depending on the jurisdiction (more on that below).

 

1. 1. Bonuses or Stipends
      Occasionally, dealerships offer a one-time stipend or bonus to cover the training period. This might not be a regular wage but rather a small lump sum (e.g., $200-$500) to help new salespeople get by until they’re earning commissions.

 

Factors That Influence Training Pay

 

Several variables determine whether and how car salesmen are paid for training:

 

• • Dealership Size and Policy
    Large dealerships or corporate chains (like AutoNation or Penske) are more likely to have formal, paid training programs. Smaller, family-owned lots might lean toward unpaid or commission-only models from day one.

 

• • Experience Level
    A seasoned salesman switching dealerships might not need extensive training and could negotiate to skip it or start earning commissions immediately. Newbies, however, are more likely to go through a paid or unpaid training phase.

 

• • Location and Labor Laws
    In the United States, federal and state labor laws play a role. The Fair Labor Standards Act (FLSA) generally requires employers to pay employees for time spent in mandatory training, unless it’s voluntary or outside working hours. If a dealership requires attendance at training sessions, they’re legally obligated to compensate employees, typically at least minimum wage. States like California, with stricter labor protections, reinforce this requirement.

 

• • Job Market Competition
    In areas with a tight labor market, dealerships might sweeten the deal with paid training to attract talent. In oversaturated markets, they might expect candidates to accept unpaid training as a trade-off for the job opportunity.

 

What Happens After Training?

 

Once training ends, most car salesmen transition to a commission-based pay structure. This could be 100% commission—where all earnings come from sales—or a hybrid model with a small base salary plus commission. The training period’s pay (or lack thereof) is often a short-term consideration compared to the potential long-term earnings, which can range from $30,000 to over $100,000 annually, depending on sales performance.

 

Real-World Insights

 

Anecdotes from car salesmen reveal a mixed bag. On forums like Reddit or job review sites like Glassdoor, some report starting with a modest hourly wage during their first week or two, while others say they received nothing until their first sale. One former salesman noted, “I got $10 an hour for a week of training, but after that, it was sink or swim on commission.” Another mentioned a dealership that offered a $1,000 draw for the first month, covering training and initial sales attempts.

 

Should Training Pay Matter to You?

 

If you’re considering a car sales job, whether training is paid might not be the ultimate deciding factor. The real question is the earning potential once you’re selling. That said, paid training can ease the financial strain of starting a commission-based gig, especially if you’re new to the industry. It’s worth asking during the interview: “How does compensation work during training?” The answer could reveal a lot about the dealership’s culture and support for new hires.

 

Conclusion

 

So, do car salesmen get paid for training? Often, yes—through hourly wages, a draw system, or stipends—but it’s not universal. The specifics depend on the dealership, the local market, and legal requirements. If you’re eyeing a career in car sales, dig into the details upfront. A little clarity on training pay could make the difference between a smooth start and a rocky one in this fast-paced, high-reward field.