Auto retail professionals can achieve substantial earnings, but there exists a notable disparity in bonuses, with men receiving an average of $74,300 more. This gap widens to as much as 65 percent for variable operations employees, including salespeople, sales managers, new- and used-vehicle managers, business development center workers, and F&I staff.
Conducted online from August to October by Research + Knowledge = Insights, a study collected responses from over 1,000 U.S. dealership employees, with managers representing 78 percent of respondents. Among the respondents, 85 percent were men, 13 percent were women, and 2.2 percent chose not to disclose their gender. On average, participants had 27.2 years of industry experience.
In terms of earnings expectations, managers anticipated an average of $225,000 in the previous year, while non-managers expected around half of that at $110,700. Male respondents reported anticipated incomes $74,300 higher on average than their female counterparts.
The majority of respondents expressed optimism about future salary increases, with 53 percent projecting higher pay in the next three years. Higher gross vehicle profits resulting from reduced inventory post-COVID-19 boosted dealership employee income in 2021 and 2022, according to the National Automobile Dealers Association.
In 2022, sales consultant earnings increased by 37 percent, sales manager income by 48 percent, and general manager pay by 49 percent, with the average dealership employee making $103,313. Despite exceeding the average U.S. worker's income of $71,730 in 2022, 65 percent of survey respondents considered the auto retail industry well-paying.
Respondents with only a high school education expected an average salary of $207,100 in 2023, and those with less than 10 years of industry experience anticipated an average of $127,300. Forty-four percent viewed auto retail as growth-oriented, and 36 percent saw good career prospects.
Privately held companies reported higher expected average 2023 pay ($211,000) compared to publicly traded dealership groups ($177,900). Luxury vehicle retailers offered the highest average salaries, with $222,600 expected in 2023.
Besides health benefits, 60 percent reported employer contributions to retirement plans, and at least half had workers' compensation, paid sick leave, family vehicle discounts, and life insurance. Less common benefits included over three weeks of vacation (28 percent), at least five personal days (24 percent), and employer-provided trips or vacations (16 percent). Fifteen percent received paid maternity and paternity leave.
Surveyed dealership employees worked an average of 51.9 hours per week, with managers spending 52.9 hours and non-managers working 48 hours. Men averaged 52.2 hours, women 49.7, while the average U.S. employee worked 38.6 hours in 2022. The survey revealed that two-thirds of respondents left or considered leaving their jobs, citing work-life balance (38 percent), an unmanageable workload (18 percent), or increased workload without higher pay (27 percent).
Despite challenges, some workers embraced longer hours, citing unprecedented earnings during exceptional times in the industry.