NADA Report Shows Sales Compensation Soar
Earnings eclipse $100K for first time as low inventory, higher sticker prices pad wallets.
Padded compensation probably won't last.
IMAGE: Getty Images/DuxX
Employee turnover at U.S. car dealerships dropped steeply last year, reports the National Automobile Dealers Association, which credits dramatically increased compensation.
Turnover across all departments fell from 46% in 2020 to 34%, its lowest level in the 11 years that NADA has produced its Dealership Workforce Study.
Average earnings at participating dealerships exceeded $100,000 for the first time. Average weekly earnings rose 27% over 2020 compensation.
The study also collects data on employee demographics, hiring trends, operating hours and other metrics.
The compensation gains reflect market conditions of low inventory and higher vehicle price tags, resulting in higher sales commissions. As inventory thaws and prices follow, compensation and turnover could revert to prepandemic levels.
Originally posted on Auto Dealer Today
More Industry
World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →