How Much Can Electric Car Dealers Make?

Jalopnik noted that electric car sales are on the rise in China, presenting a promising opportunity for electric car dealers.

Here's how electric car dealers can make money and what to expect if you open your own dealership.

How Car Dealers Make Money？

Traditionally, car dealers make profits by purchasing vehicles from manufacturers at lower prices and selling them at a markup. However, rising costs and declining profit margins have led dealers to seek additional income sources. Electric vehicles present a significant opportunity for dealers to diversify their revenue streams. Here's how: 

Selling Price

As a leading Chinese automotive brand, we offer vehicles to you at prices significantly below the manufacturer's cost. This competitive advantage allows you to gain a higher profit margin when selling cars.

Incentives 

In addition, we provide various incentives for our automotive agents, such as VIP discount coupons for participating in sales events like the BYD Song Plus promotion. These incentives, also known as dealer cash, contribute to increasing your profits.

Services and Parts 

Offering aftersales services and spare parts to your customers is an excellent way to generate recurring income. If you handle the maintenance for all the vehicles you sell, you can establish a stable revenue stream. According to the National Automobile Dealers Association (NADA), repair and maintenance services generated over $137 billion in sales in 2022.

Earnings Potential for Car Dealers

The income for electric car dealers depends on the volume of vehicles sold. As your dealership expands, your salary is expected to grow continuously. If you have additional sales staff, you'll need to pay them a base salary, provide car sales commissions, and possibly offer bonuses. When designing compensation for employees, ensure there is room for you to retain sufficient profits.

Average Profit per Vehicle

The average profit per vehicle for dealerships, according to NADA, is $2,050.

Knowing this figure allows you to estimate your potential earnings.

It's essential to note that several factors influence your income, such as your sales performance, the average selling price, and any bonuses for your staff. While luxury car dealerships may yield higher profits per vehicle, their overall sales volume tends to be lower.

Average Salary for Car Dealers

The average salary for car dealers varies. Ziprecruiter estimates an average salary of $112,891, while Comparably suggests around $97,790. Keep in mind that your location also plays a role in determining your average income.

In conclusion, once you establish a dealership, you can earn a substantial income as an electric car dealer. You may oversee a large sales team, allowing you to focus more on management.

If this piques your interest, explore how to become an automotive agent by taking action now.

Click "Contact Us" to initiate the creation of a thriving car dealership.