Richest Car Dealers and Owners
The title of the richest car dealer is debated. Contenders include Warren Buffett, CEO of Berkshire Hathaway. Penske Motor Group owns Longo Toyota, the largest car dealership in the world. Bill Gates has a stake in AutoNation, making him their third-largest shareholder. Other big names in car dealerships are Ernie Boch Jr. and Rick Hendrick. On average, dealerships make money on selling cars, not through financing.
Earnings at Car Dealerships
The highest paid employee at a car dealership is generally the GM, followed by the top salesperson and the top producing finance manager. A good salesperson can sell 30–40 cars per month. Dealers make money through arranging loans, selling add-ons, and trade-ins. Major car companies’ profit margin is 2-5%. Commissions on new cars vary, ranging from 20-30 percent of profit.
Successful Dealer Strategies
To be a successful dealer, position your dealership for success, understand your market, set clear sales goals, know your inventory, learn effective advertising strategies, and monitor your sales staff.
Richest Car Company Owners
Susanne Klatten, BMW heir, is the richest car company owner with $18.6 billion. She owns 19.2% of BMW. Other notable car industry billionaires include Eric Li with $15.7 billion, Wang Chuanfu with $14.6 billion, and Elon Musk with a reduced worth of $180 billion after acquiring Twitter. Toyota remains a top global seller, followed by Volkswagen Group.