Pay plans
Car sales pay plans explained
7 min read
A pay plan is the math contract between you and the store: it decides what every deal is worth before you ever greet a customer. They're famously confusing — half the terms are dealership slang — so here's every common term, in plain English, with the money attached.
The two sides of gross
Front-end gross is the profit in the vehicle itself: sale price minus the store's cost. Back-end gross (F&I) is the profit from the finance office — finance reserve, service contracts, GAP, protection products. Pay plans usually give each its own rate, because you influence the front directly and the back only by sending a well-qualified customer to the box.
The pack
A fixed deduction from front-end gross before your percentage applies — typically a few hundred dollars to $1,000+. It covers reconditioning and overhead, and it's the single most misunderstood line on a pay plan. $2,400 of gross with an $800 pack means your 25% applies to $1,600, not $2,400. Always ask: “What's the pack, and is it different for used?”
Minis and flats
A mini is the floor for a thin deal: if your percentage of the gross comes out below the mini — commonly $100–$300 — you get the mini instead. A flat is a fixed amount per deal regardless of gross, common on used units and powersports. Some plans are entirely flat until you hit a unit count, then switch to percentages.
Tiers (the escalator)
A tiered plan raises your rate as your unit count climbs: for example 22% to 8 units, 25% from 9–12, 28% at 13+. The critical detail is whether the plan is retroactive — on a retro plan, hitting the next tier re-prices every deal that month at the higher rate; on a non-retro plan, only deals after the threshold get it. Retro tiers make the last week of the month worth real money.
Splits and half deals
When two salespeople share a deal, each takes half credit — half a unit toward your count and, on most plans, half the commission. Many plans add a floor here too: if half the commission would be less than half the mini, you get half the mini.
Spiffs and bonuses
Spiffs are one-off cash incentives: $100 for a Saturday close, money on an aged unit, manufacturer incentive cash. Volume bonuses pay at unit milestones — say $500 at 10 units, $1,000 at 15. Neither shows up in per-deal math, which is exactly why they're the first thing to get lost at payday if you don't track them.
Draws and caps
A draw is an advance against your commission — you're paid a set amount mid-month and it's deducted from your month-end commission. A cap is the opposite: a ceiling on what any single deal can pay, common on big-gross used or RV deals. Both change your cash flow without changing the underlying math.
A sample pay plan, annotated
| Line | Example | What it means |
|---|---|---|
| Front rate | 25% | Of front gross after pack |
| Back rate | 5% | Of F&I gross |
| Pack | $800 | Off the top of every deal |
| Mini | $200 | Floor on thin deals |
| Tiers | 8 → 28% · 12 → 30% | Rate steps up with units |
| Retro | Yes | Top rate re-prices all deals |
| Bonus | $500 at 10 units | Flat volume bonus |
Questions to ask before you sign a pay plan
- What's the pack — and is it the same on new, used and leases?
- Are tiers retroactive to deal one?
- How do split deals pay, and is there a half-mini?
- What happens on a negative-gross deal — flat, mini, or nothing?
- Which spiffs and bonuses are active this month, and how are they paid out?
Once you know your plan, the easy part is the math. Run your plan through the free calculator or let CommissionDesk track it all month.