How does a car dealer's commission work? plz read details....?

Question

What is the typical commission that motivates car dealers?
1. Do they get a bigger percentage if they sell a car above x price? (ie: 0-5,000 sold makes 3%commission, and 5,000-10,000 sold per car makes 5% commission), or do they make a flat commission no matter how much they sell?

2. Do dealers prefer to make a cash sale, or a sale where the buyer finances? Does it make a difference in what they get in commission or bonuses?

3. Do car dealers lower their prices substantially for buyers who are willing to pay cash on the spot?

Answer 1

1. No.. on average they get 2% of the bottom line
2. it does not make a differance the dealer is paid in full either way...same 2%
3. NO...all though it's less paper work for them to do. they will not lower the price substantially.....they might make it look that way but the bottom line is the same...same 2%