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Ward's Annual Compensation Survey

The second annual Ward's Dealer Business dealership compensation survey reveals pay scales for dealership management across the country. Our second annual look at what dealerships across the country pay provides a fascinating look at what really goes on in dealerships across the country, from which brands have the highest personnel turnover to which pay their general managers the best. You'll find out which regions offer the best pay scales, what the most common perks and benefits dealerships offer.

The accompanying tables cover the key points of the survey. Here some highlights of this year's survey, including information not apparent in the published tables:

  • Respondents were fairly uniform, geographically, with somewhat more coming from the Midwest than elsewhere.
  • Fifty-one percent of respondents operated more than one franchise. Of these, 33.6 percent had two franchises, 24.6 percent had three, and 21.3 percent had four or five. Those with six or more franchises represented 14.8 percent of respondents.
  • General Motors franchises made up 38.9 percent of the sample, Ford Motor Co. franchises 26.4 percent and Chrysler Corp. franchises 16.3 percent.
  • Dealerships selling Japanese brands comprised 13.8 percent of those surveyed.
  • More than half of the dealerships - 57.7 percent - sold 500 or fewer new units annually. Ten percent sold more than 1,500 new units every year.
  • Some 53.1 percent sold 500 or fewer used units annually, and just 5.4 percent sold more than 1,500 used traits every year.
  • The greatest number of dealerships -41 percent - had annual revenues of between $5 million and $20 million. On the lower side, 5.4 percent of the dealerships generated less than $1 million in revenue, and on the upper side, 4.6 percent produced $100 million or more in revenue annually.
  • While 63.2 percent of the dealerships had a dedicated new-car manager and 56.5 percent had a dedicated used-car manager, only 8.8 percent had a dedicated lease manager and 15.1 percent a dedicated fleet manager.
  • Employee turnover was highest in the West at 15 percent. Elsewhere it was around 10 percent. Japanese brand dealerships had the highest annual personnel turnover, 20 percent. Ford Motor Co. dealerships had a 15 percent annual turnover and GM and Chrysler both had 10 percent. Turnover was highest - 21 percent - for dealerships selling more than 1,000 new cars and trucks annually, and lowest for those selling fewer than 250 new units a year-5 percent.
  • Some 76.2 percent of dealerships offer spiffs to increase employee performance. Sales personnel are the most likely to receive spiffs, with 86.8 percent of dealerships reporting they offer them. But only 53.3 percent of sales managers get spiffs. The used-car manager is least likely to be awarded spiffs, with only 39.6 percent of dealerships offering them.
  • Spiffs are most likely cash payments -68.7 percent. But they also could be dinners (41.2 percent), plaques (31.9 percent) or paid vacation trips (30.8 percent).

Pay by region and franchise

General managers in the Southeast and West were paid the highest - a median of more than $105,000. General managers in the Northeast were paid the lowest - a median of less than $85,000. Japanese and Ford Motor Co. franchises both paid general managers a median salary of over $105,000 annually, while GM and Chrysler franchise general managers got less than $75,000.

New-car managers were paid the most in the West - a median of $91,666 - and the least in the Northeast - $67,000. Ford Motor Co. franchises paid their new-car managers the most - a median of $84,999, while Chrysler Corp. franchise dealerships paid the least - $68,333.

Used-car managers were paid the most in the Central states - a median of $81,666 - and paid the least in the Midwest - $62,142. Japanese brand dealerships paid used car managers the most - $81,666 - and GM franchisees the least - $64,999.

F&I managers were paid the most in the West - $66,667 - and the least in the Northeast and Southeast, both regions providing a median of less than $55,000. Japanese franchisees paid their F&I managers the most - $70,000 - while Chrysler Corp. dealerships paid the least - $49,000. Fleet and lease managers were paid about the same regardless of region or franchise.

Controllers were paid the most in the West - $48,636 - and the least in the Central states - $40,000. Ford Motor Co. franchisees paid their controllers the most - a median $48,077, while GM franchisees paid the lowest - $39,400. Service managers were paid the most in the West - $58,333 - and the least in the Northeast - $48,333. Japanese brand dealerships paid their service managers the most - $58,333 - while Chrysler Corp. dealerships paid the least - $41,666.

Parts managers earned the most in the Midwest - $46,538 - and the least in the Southeast - $43,888. Parts managers were also paid the most in the West$50,000, but the least in the central states - $40,714. Ford Motor Co. dealers paid parts managers the most - $46,765 - and GM dealers paid the least - $40,161. Body shop managers were paid the most in the Midwest - $46,538 - and the least in the southeast - $43,888. Ford Motor Co. dealerships paid the most - $46,000, while GM dealerships paid the least - $42,499.

The dealerships

The majority of the Ford Motor Co. dealerships we surveyed - 30.2 percent - were in the Midwest. Most GM dealerships - 31.2 percent - also were in the Midwest, as were the Chrysler Corp. dealerships - 35.9 percent. Most of the Japanese brand dealerships - 33.3 percent - were in the Southeast. The greatest number of Ford Motor Co. dealerships - 25.4 percent - sold more than 1,500 new units annually. Most GM dealerships on the survey - 32.3 percent - sold between 100 and 250 new vehicles annually. The greatest number of Chrysler Corp. dealerships - 35.9 percent - sold between 250 and 500 new units annually. The greatest number of Japanese brand dealerships - 27.3 percent - also sold between 250 and 500 new units every year. Most Ford Motor Co. dealerships surveyed - 28.6 percent - generated annual revenue of between $20 million and $50 million. Most GM dealerships surveyed -45.2 percent - produced between $5 million and $20 million. Most Chrysler Corp. dealerships - 59.0 percent - also produced between $5 million and $20 million annually. Most Japanese brand dealerships - 45.5 percent - generated between $20 million and $50 million annually.
 
Geographic Distribution Base = all respondents
Northeast 19.2%
Southeast 17.6%
Midwest 28.0%
Central 20.9%
West 14.2%
 
Number of New Vehicles Sold Base = all respondents
Under 100 5.9%
101-250 23.8%
251-500 28.0%
501-750 15.5%
751-1000 7.9%
1001-1250 6.3%
1251-1500 2.5%
1501 - or more 10.0%

Dealership Franchise Base = all respondents
Ford Motor Co. 26.4%
General Motors 38.9%
Chrysler Corp. 16.3%
Japanese Brands 13.8%
Other 4.6%

Annual Dealership Revenue Base = all respondents
Less than $1,000,000 5.4%
$1,000,000-$4,999,999 7.9%
$5,000,000-$19,999,999 41.0%
$20,000,000-$49,999,999 28.9%
$50,000,000-$99,999,999 7.5%
$100,000,000 or more 4.6%
No Answer 4.6%

The F&I manager earns $57,222 plus a bonus of $4,625. The fleet manager earns $56,111 and earns no performance bonus. The lease manager earns $70,000 annually and receives no bonus. The controller earns $41,862 and receives a performance bonus of $4,000.

The service manager is paid $49,091 and gets a $4,000 bonus. The parts manager earns $42,535 and receives a bonus of $3,250. The body shop manager earns $43,529 and gets a $4,410 performance bonus.

In the previous 12 months, the general manager received a 10 percent raise, the new car manager a 6 percent raise and the used car manager a 10 percent raise, as did the F&I manager.

Neither the fleet or lease managers received raises. The controller received a 5 percent raise, the service manager a 6 percent boost, the parts manager and body shop manager both received a 5 percent increase.

This median dealership provides health insurance, paid holidays and paid vacation. It more than likely pays for life insurance for its employees as well, and offers paid sick days. It probably does not offer dental insurance, disability pay, personal days off or profit-sharing.

The complete survey, including breakdowns by region, size and franchise is made available at wardsauto.com.

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