How much should I give commision for a car dealer?
 

Hello,
I am buying a car from a dealer who buys from auctions. Because he is a friends of ours, he won't tell us how much commision he usually takes. However, I want to give him commision for all the trouble he took to buy it from an auction. He bought it for $5,300. How much should I give him for the trouble he took to get it for me?
Thank you for any suggestions and help in advance.

Did he tell you that he's not taking any comission at all? If he didn't, then it should already be built in.

Assuming he told you he's not taking anything (which seems pretty reasonable), then I would just tell him that you're paying him 5% and that that's the end. If it's too much he'll tell you if he's a friend.

You may have a battle on your hands to get him to take it.

Thank you, Jazz, for the quick reply.
Yes, he told us that he will not take any commision and that we should consider his trouble and time as a gift.
So, $600 would be fair as a commision? too little? Too much?

I'm just making a guess based on what I anticipate the number of cars being versus what I perceive his income being. I would say $600 being 11+% is too much. These guys I think deal in volume, so $250 is closer to what my uneducated guess is. Give him the $600 if that's what his services were worth for you. It's entirely possible he won't take it, though.

Thanks, Jazz. You're the best!

sounds like you got it worked out, but I would think it also depends on whether or not the car was a great deal, a good deal, or an okay deal.

if the car is worth (selling for) $8.5k on the free market and he snagged one for $5300, then a $600 commission might be in order. just use your judgement.