Average dealer employee salary up nine per cent

The average car dealer staff salary has increased across all job roles, according to BDO's annual motor salary survey.

The recently published survey revealed that the average base salary in 2016 within the car dealership sector was £35,000 compared to £32,000 the previous year, with a further £14,000 available through commission and benefits. The latter is up from £11,000 12 months earlier.

On average, excluding key executives, the average salary of staff at car dealer businesses with less than £100 million turnover is £37,000. On average, almost 30 per cent of total earnings is commission driven, up from 25 per cent in 2015.

Of course, there is a significant difference between the level of salary earned by part time and full time car dealer workers, with each type of worker requiring a different level of legal cover. Make sure you keep your motor trade insurance policy up to date to ensure your employees are always covered, regardless of their pay or hours.

Commenting on the newly released figures, Steve Le Bas, BDO partner, stated that many car dealers are now reporting increased levels of profitability and rising registrations, which is leading to salaries increasing by around eight per cent.

"Excluding management positions the average remuneration package increased from £35,000 to £38,000 year-on-year in 2016," Le Bas said. "Much of this increase appears to be a slightly delayed response to the recent impressive growth in the sector. This is also supported by the large increase in incentives paid compared to the increase in base pay."

According to Le Bas, the sector is expecting further increases to salaries in the coming year, although perhaps at a lower rate than is currently being seen due to slowing registrations.

"It will also be interesting to see further development of the anticipated shift towards higher basic pay lower commission structures as groups try to innovate with packages and recruit new individuals into the industry," Le Bas added.