Car Dealership Employees Averaged Over $100,000 In 2021

Automotive News used the percentage increase figure and data from last year’s study covering 2020 to calculate estimated average annual earnings for dealership employees in 2021. Last year’s study, which was obtained by Automotive News, showed average weekly earnings for all positions in all dealerships at $1,554 in 2020.

Applying the 27 percent increase to that and annualizing it calculates out to estimated earnings of about $103,000 for the typical dealership employee in 2021, Automotive News estimated. It’s the first time that average dealership employee earnings have crossed the $100,000 threshold.

Inventory constraints going back to mid-2020 but worsening in 2021 because of microchip shortages meant that dealerships gained vehicle pricing power and saw profits soar to record levels last year. Selling new vehicles at sticker price or higher became commonplace, leading to big gains in per-vehicle gross profits, on which sales employees’ commissions are often based.