Driven PF16 - · PDF filethe National Automobile Dealers Association ... National Compensation data

NADA Compensation Study 2009

New SeCtioN oN LegALLy-SouND PAy PLANS

RegioNAL ComPeNSAtioN AND beNefitS foR AutomobiLe AND tRuCk DeALeRShiPS iN 2008

PF16PF16

DrivenNADA MANAgeMeNt ser ies

the National Automobile Dealers Association (NADA) has prepared this

management guide to assist its dealer members in being as efficient as

possible in the operation of their dealerships. the presentation of this

information is not intended to encourage concerted action among competitors

or any other action on the part of dealers that would in any manner fix or

stabilize the price or any element of the price of any good or service.

Table of ConTenTs

The Need To have Clear-CuT WriTTeN Pay PlaNs.................................................................. i

iNTroduCTioN aNd BaCkgrouNd .......................................................................................... 1

regioN 1 – NeW eNglaNd .................................................................................................... 4

region 1a: Connecticut / Massachusetts / rhode island .......................................................... 7

region 1b: Maine / New hampshire / vermont ....................................................................... 10

regioN 2 – Mid-aTlaNTiC ..................................................................................................... 11

regioN 3 – easT NorTh CeNTral .......................................................................................... 14

regioN 4 – WesT NorTh CeNTral ......................................................................................... 17

regioN 5 – souTh aTlaNTiC ................................................................................................. 20

regioN 6 – easT souTh CeNTral .......................................................................................... 23

regioN 7 – WesT souTh CeNTral ......................................................................................... 26

regioN 8 – MouNTaiN .......................................................................................................... 29

regioN 9 – PaCifiC .............................................................................................................. 32

auToMoBile dealershiPs friNge BeNefiTs, 2008 .................................................................. 36

Regions 1–5 .................................................................................................................. 36

regions 6–9 ................................................................................................................... 37

By units ......................................................................................................................... 38

MediuM- aNd heavy-duTy TruCk daTa .................................................................................. 39

introduction .................................................................................................................... 39

National Compensation data .............................................................................................. 41

fringe Benefits 2008 ........................................................................................................ 43

Driven NADA Compensation Study 2009

The compensation statistics presented in this guide are intended to represent trends in the in-dustry and do not serve as recommended compensation levels for any dealership. Dealers should determine appropriate compensation levels and plans for their own dealerships. NADA neither endorses nor has an opinion on compensation levels of specific pay plans.

PF16 NADA Management Series Driven i

INTRODUCTION

For purposes of avoiding misunderstandings with

employees, the importance of legally-sound pay

plans cannot be overstated. Moreover, dealers must

pay close attention to the rules relating to wage

and hour law, which can be deceptively complex.

The Fair Labor Standards Act is the primary federal

law in this area but some states have rules that are

different from or stricter than the federal.

A typical dealership uses a variety of pay plans.

Some of these, such as those for employees

primarily compensated on commission, revolve

around complex accounting concepts involving a

defi ned “gross” or “profi t.” In part, dealers use

pay plans to motivate employees to exert their

greatest efforts—and subsequently to reward them

for doing so. For example, salespeople paid on a

commission basis receive a portion of the “gross”

or “profi t” on each vehicle sold. Most dealership

salespeople clearly understand that they are be-

ing paid on a commission basis and that their

compensation is tied directly to their production.

However, unless key details are spelled out with

well-defi ned terms in a legally-sound pay plan,

salespeople may not fully understand all of the

parameters of their compensation.

This an overview of the basic concepts that should

be covered when drafting pay plans. This overview,

however, cannot cover all of the details needed

to craft a legally-compliant pay plan and it does

not constitute legal advice. Dealers are strongly

encouraged to have their compensation plans

reviewed by competent counsel for compliance

with federal, state, and local law.

OVERTIME AND MINIMUM WAGE REQUIREMENTS

A. Overtime Exemptions

Generally, federal law requires that all employees

be paid overtime at one-and-a-half times their

regular rate of pay (which must be at least equal

to minimum wage) for all hours worked in excess

of 40 hours per seven-day week. However, deal-

ers may avoid paying overtime for employees who

qualify for an exemption.

Numerous overtime exemptions exist. Some “white

collar exemptions” apply primarily to salaried

managers. A signifi cant exemption also exists for

dealership salespeople, parts people, and mechan-

ics. In addition, other dealership employees are

exempt from overtime since they are: 1) employed

by a retail establishment; 2) have earnings that

exceed one-and-a-half times minimum wage for

every actual hour they work; and 3) earn more

than half of their total earnings in the period from

commissions on goods or services.

To see if an overtime exemption applies, dealers

must establish a representative period for determin-

ing if an employee’s earnings and duties meet the

conditions of the exemption. Dealers typically do

The Need to Have Clear-Cut Written Pay Plans

ii Driven NADA Management Series PF16

this on a weekly, bi-weekly, or monthly basis. The

burden is always on the dealership to prove that

an exemption applies, so it is critical that accurate

records of both compensation and hours worked

be maintained. Note: this is one area where state

laws can be different and deserve close attention.

Please contact your state or metro dealer associa-

tion for more information.

B. Minimum Wage Requirements

Salespeople exempt from overtime under federal

law are still entitled to at least minimum wage for

all hours worked. As of July 24, 2009, the federal

minimum wage was $7.25 per hour. If you are

located in one of the several states that have a

minimum wage higher than the federal, you must

pay that higher rate.

For most employees, the minimum wage require-

ment must be met on a pay period basis. In the

case of commission employees, the minimum wage

requirement can be met on a “settlement period”

basis. This means if you pay commissions (“settle”)

weekly, you must pay the applicable minimum

wage due for that week, but if you settle monthly,

you may pay minimum wages owed monthly. Thus

you cannot settle weekly, but only check minimum

wage compliance monthly.

Issues can arise if a commission employee does not

earn enough to meet the minimum wage due. If the

total compensation for the period (commissions,

bonuses, spiffs, etc.) does not meet or exceed the

minimum wages due for all hours worked during

the settlement period, the dealer must advance

an amount suffi cient to make up the defi ciency.

For example, assume a salesperson’s commis-

sions total $200 for week one, a 55-hour week.

At the current federal minimum wage of $7.25/

hour, she would be entitled to at least $398.75

for the week. Since she only earned $200 in com-

missions, an advance would need to be made for

at least $198.75 to satisfy the federal minimum

wage requirement. Calculating the minimum wage

obligation for commission employees is an admin-

istrative burden but is critical in situations where

such employees may not have earned commissions

meeting or exceeding the minimum wages due

to them (e.g., new employees, poor performing

employees, or poor economic conditions).

Dealers may recoup minimum wage advances

paid to commission employees in a subsequent

settlement period if their compensation is suf-

fi ciently in excess of the minimum due for that

subsequent settlement period. You should detail

this procedure in the written pay plans for all

commission employees. For example, assume that

the salesperson described above earns $1,500 in

commissions in week two, also a 55-hour week.

The dealer may deduct the $198.75 advance

paid for week one and then pay the remaining

$1,301.25, since the amount is well in excess of

the minimum wage. If in week two, however, her

commissions were only $250, she would have to

be advanced another $148.75 to bring her up to

minimum wage ($7.25 x 55 hrs. minus the $250

received from commissions). At that point, she

would be indebted to the dealership for $347.50

($198.75 + $148.75), which could be recouped

in a subsequent settlement period. But if she

leaves the dealership while indebted in this way,

the dealer may not recoup the advances from her

fi nal check; she must have received minimum

wage for all hours worked.

The federal wage and hour law does not require

dealers who use biweekly, semi-monthly, or monthly

pay plans to pay “draws” or advances, nor does

it dictate when wages must be paid, but dealers

must establish a regular pay period (such as weekly,

biweekly or monthly). Some state laws do require

that employees be paid weekly or biweekly. Dealers

often choose to pay draws based on minimum

wage, as a lump sum, or even on a percentage of

commissions earned. Draws are deducted from

commissions earned at the end of the settlement

period. Note that it is in no way inconsistent to

have a longer settlement period (i.e., monthly)

with a weekly or biweekly “pay period.”

Some dealers pay new commission employees, such

PF16 NADA Management Series Driven iii

as salespeople, a “guarantee” for a set period (e.g.,

60 or 90 days). Guarantees are intended to help

new employees make the transition into auto sales

by reducing the pressure to achieve quick results.

New employees who receive guarantees must still

receive at least the minimum wage for all hours

worked. If a guarantee is suffi ciently high, then a

new employee will earn more than minimum wage

without any adjustments. If instead the minimum

wage due exceeds the guarantee plus any com-

missions earned, the dealer must advance the

difference. Always spell out in writing exactly how

long the guarantee will be in effect and include the

following: “This ‘guarantee’ is not a guarantee of

employment for the full guarantee period. Rather,

it is a guarantee of the amount we will pay you

if you continue to be employed for that period.”

Including this language in written pay plans for

commission employees should prevent them from

later claiming they had a contract to be employed

and paid a guarantee for the entire period.

C. Wage Records

Federal law requires that dealers maintain records

for all employees including accurate records of

hours worked. Ensure especially that commis-

sion employees keep timecards, time sheets, or

other accurate records of hours worked. “Hours

worked” include any time an employee must be on

the employer’s premises or is permitted to work,

including attendance at mandatory lectures, meet-

ings, or training. Training, lectures, or meetings do

not count as hours worked if they occur outside

normal working hours, if they are voluntary or not

job-related, and if no other work is performed.

“Hours worked” also include rest periods of short

duration – 20 minutes or less – but not bona fi de

meal periods (usually 30 minutes or more), in which

employees are completely relieved from duties.

If an employee is performing any duties during a

meal period, then that time must be counted toward

hours worked. Maintain a policy that the employees

clock in and out for bona fi de meal periods. Be

aware that some states require employers to provide

mandatory meal and/or rest breaks.

One record-keeping option is to have employees

sign timecards or sheets for each pay period,

acknowledging that the timecard or time sheet ac-

curately refl ects all hours worked. Such records can

prove critical should a minimum wage or overtime

dispute arise. Note that employees seeking to col-

lect back pay for improperly paid wages can look

back for up to two years, three years if a violation

is found to be willful.

Dealers also must maintain records of employee

rates of pay, deductions from or additions to wages,

dates of payment, and pay periods covered. Federal

law requires dealers to maintain payroll records for

at least three years, and the records upon which

wage computations are based (timecards, etc.) for

at least two years. As statutes of limitations may

allow contract or fraud claims to be made after a

longer period of time, maintain wage records for

at least as long as the longest applicable state

statute of limitations.

Employees covered by a collective bargaining

agreement are still protected by federal, state, and

local wage and hour laws. A union’s agreement to a

pay plan does not protect a dealer from back wage

claims by employees or the government if that pay

plan does not comply with all applicable laws.

CONTRA CT, FRA UD, AND OTHER WAGE CONCERNS

Ensuring that employee pay plans are in compli-

ance with applicable state and federal wage-hour

laws may not protect you from all claims. Lawsuits

may also involve breach of contract and fraud

claims. Often, salespeople allege that they were

promised a percentage of the “gross profi t “ on

each sale, but that by deducting “packs” and

other undisclosed charges, the dealer failed to pay

them all that was due. They also often claim that

dealers must include all payments received from

manufacturers, lenders, and other vendors when

calculating the actual “profi t” on a deal.

iv Driven NADA Management Series PF16

These cases are diffi cult to defend because, even

if there was a written pay plan, it may have been

loaded with dealership jargon and subject to a

number of different interpretations. If a contract

such as a sales pay plan is ambiguous or unclear,

the court normally will construe it against the party

who drafted it. Therefore, always clearly defi ne

terms like “gross profi t,” especially with respect

to what deductions may be made and when.

In addition to breach of contract claims, sales-

people may also fi le fraud claims alleging that the

dealership made misrepresentations or omissions

by failing to fully disclose all of the deductions it

made or by artifi cially infl ating costs and charges.

Fraud claims allow claims for punitive damages

in addition to “lost wages.” Also, a salesperson

can allege violations of state wage payment laws,

claiming that when the dealership made a deduc-

tion, it failed to pay “all wages due.” In a number

of states, such a claim may involve liquidated

damages and attorney’s fees. Bottom line: even a

dispute over a small amount of commissions can

easily become a very expensive case.

To avoid these kinds of claims, dealers should have

detailed, written commission schedules explain-

ing in plain English how compensation will be

calculated. Clearly defi ne industry-specifi c terms

such as “commissionable gross profi t,” “pack,”

“spiff,” etc., and use examples to show how ac-

tual calculations will be made. Carefully review

methods used to calculate commissions to ensure

that all potential deductions or adjustments are

listed or explained in the pay plan itself. Pay plans

also should address issues such as the potential

for additional charges against the vehicle, and

who has the authority to determine when to split

a commission.

Claims may arise when an employee leaves a

dealership and receives a fi nal paycheck that

does not show commissions for all deals worked

because some vehicles had not yet been funded

or delivered. Pay plans should always defi ne when

commissions are considered earned, and how they

will be paid if an employee leaves the dealership.

Pay plans also should indicate if a salesperson

must be a current employee when a bonus or

contest award is paid.

Weekly or monthly bonuses can make up a sig-

nifi cant amount of many employees’ overall com-

pensation and should be clearly addressed in their

pay plans. Explain exactly how bonuses are to be

calculated, when they are to be paid, and what

employees must do to qualify for them.

Sales managers often change pay plans or add

special bonus programs in order to motivate sales-

people. Too often these changes and programs are

announced at a sales meeting but never put into

writing. In order to avoid misunderstandings, all

such changes should be put in writing. Ideally,

have each employee acknowledge receipt of a

copy of their pay plan when hired and provide ac-

knowledged copies each time the plan is changed

in any way.

Only make pay plan changes prospectively, even

temporary or minor ones involving special incentive

or bonus programs. Detail in writing all eligibility

requirements and effective dates. Taking steps to

ensure that details are spelled out and understood

by applicable employees will avoid future misun-

derstandings or legal issues.

Tailor your pay plan to your specifi c dealership and

to your state’s minimum wage if it is higher than

the federal minimum. Because a poorly drafted

pay plan—or the lack of a written pay plan—can

subject a dealership to signifi cant back wage li-

ability, dealers should have all sales pay plans

reviewed by counsel experienced in dealership

wage and hour matters.

—Christopher C. Hoffman

PF16 NADA Management Series Driven 1

NADA Compensation Study 2009 A DEALER GUIDE TO

INTRODUCTION AND BACKGROUND

As the economy began to come out of recession

during the third quarter of 2009, the need for good

comparative data for compensation became ever

more important. In 2009, the national debate on

health care focused attention on this important

segment of fringe benefi ts, which are also covered

in these pages by region.

The regional differences in economic activity were

great during the recession and the pattern of cor-

rection in the real estate market is a key element,

along with economic growth, contributing to the

outlook for light-vehicle sales region by region. As

long as home equity was falling, many consumers

would be reluctant to commit to a new light-vehicle

purchase.

A sign of future improvement in business, and thus

future needs to stay of top of compensation policy,

can be found in the pent-up demand revealed in

the “Cash for Clunkers” program during the sum-

mer of 2009. That program was very effective at

converting prospective used-car buyers into new-car

buyers. As the recovery proceeds, new-car dealers

must stay attuned to compensation trends in their

regional marketplace, with the NADA survey data as

their baseline. In setting compensation, managers

must be aware of how much, if any, wage decline

occurred at franchised new-car dealers in their

region. They must also judge how fast recovery

will occur during the last months of 2009 and the

initial months of 2010. Therefore, the regional ap-

proach to NADA’s compensation measurements is

essential for new-car dealerships to stay current

on compensation.

During mid-2010, unemployment, which surged

over 10 percent late in 2009, will peak, and then

start to moderate in the last half of 2010. Falling

unemployment will assist new light-vehicle pur-

chases and service work, as consumers start to relax

about the stability of their own jobs. Rehiring by

major corporations will begin late in 2010—a slow

pattern of rehiring fi rst seen in the recovery from

the 2001-2002 recession, a recession in which

the damage to retail automotive activity was com-

paratively slight. Currently, with about 6.5 million

fewer new cars and light trucks sold in 2009, and

fewer trades of used cars as a result, used cars will

remain in tight supply during 2010, assisting the

demand by households for new light-vehicles.

Enhanced new-car sales will help franchised

dealers restock used-car operations gradually as

2010 unfolds. All of this will have varying regional

patterns that infl uence the wage trends and pres-

sures that start to develop in compensation at the

dealership.

Look at important indicators of economic activ-

ity such as monthly new-car registrations in your

immediate sales area, the drawdown of unsold

existing and new housing for your market area,

2 Driven NADA Management Series PF16

and indications of adequate credit availability for

your customers. Look at local employment and

announcements of layoffs and hiring by major

employers of your customers. Look for measures of

the business climate produced by local Chambers

of Commerce and professional organizations.

In addition, get out of the dealership at least once

a week and talk to merchants and bankers about

the market conditions for other durable and non-

durable goods and services in your area. All of these

economic measures should be showing some signs

of improvement in nearly all regions during the

initial quarters of 2010, but at different regional

rates of recovery.

This 2009 dealership compensation publication

updates the data presented in NADA Management

Guide PF.15, Paying to Motivate: Update ’07. The

National Automobile Dealers Association collected

the data in the current publication on behalf of

60 independent state and local associations that

commissioned NADA to conduct a compensation

study for their members.

All fi gures presented are for the calendar year

2008.

Of the 16,528 surveys mailed, 2,120 (12.8 percent)

were returned. Maine had the highest response rate

at 43 percent, and Nevada had the lowest response

rate at 2 percent.

For the purpose of this study, the nation has been

divided into nine geographic regions based on the

Bureau of Labor Statistics divisions.

The compensation statistics for each region are

examined in relation to the average number of

new units sold per dealership and the per capita

personal income for that area. Salary* averages are

based on full-year 2008 W-2 form information plus

any elected salary deferrals for 39 dealership posi-

tions. Not included in the averages are earnings for

employees who worked in a position less than the

full calendar year. Also excluded are the earnings of

dealer principals who perform the duties of one or

more of the positions listed. Dealer compensation

is not addressed in this survey.

For each region, column one shows the average

salary for each dealership position without regard

to sales volume. Column two shows that salary as

a percentage of the U.S. average. Columns three

and four show the regional averages broken down

by unit sales volume. Column fi ve shows the aver-

age for all dealers in the U.S.

According to NADA Industry Analysis Division,

NADA DATA 2009, major expenses for the average

dealership in 2008 were:

• Payroll $2,658,000

• Advertising $341,285

• Rent and Equivalent $376,578

The survey also included questions about various

fringe benefi ts. That data follows the regional

compensation data.

* The term “salary” in this survey refers to total W-2 compensa-

tion plus any salary deferrals. Total W-2 compensation averages,

as reported on the W-2, include wages, salaries, cash bonuses,

and other reported income.

—Paul Taylor


Average Management Salary$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0

Regio

n 1

Regio

n 2

Regio

n 3

Regio

n 4

Regio

n 5

Regio

n 6

Regio

n 7

Regio

n 8

Regio

n 9

National Ave

rage

% of Dealerships OfferingEmployee/Dependent Health Plans

100%

80%

60%

40%

20%

0%

Regio

n 1

Regio

n 2

Regio

n 3

Regio

n 4

Regio

n 5

Regio

n 6

Regio

n 7

Regio

n 8

Regio

n 9

National Ave

rage

% of Dealerships Offering 401(k) Plans100%

95%

90%

85%

80%

75%

70%

Regio

n 1

Regio

n 2

Regio

n 3

Regio

n 4

Regio

n 5

Regio

n 6

Regio

n 7

Regio

n 8

Regio

n 9

National Ave

rage

Per Capita Income$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

Regio

n 1

Regio

n 2

Regio

n 3

Regio

n 4

Regio

n 5

Regio

n 6

Regio

n 7

Regio

n 8

Regio

n 9

National Ave

rage

Average New Units Sold1400

1200

1000

800

600

400

200

0

Regio

n 1

Regio

n 2

Regio

n 3

Regio

n 4

Regio

n 5

Regio

n 6

Regio

n 7

Regio

n 8

Regio

n 9

National Ave

rage

% of Dealerships Offering Paid Sick Leave90%80%70%60%50%40%30%20%10%0%

Regio

n 1

Regio

n 2

Regio

n 3

Regio

n 4

Regio

n 5

Regio

n 6

Regio

n 7

Regio

n 8

Regio

n 9

National Ave

rage

Comparative Statistics At-A-Glance


Survey ResponseState Surveys Surveys Response Rate % of Regional Sent Received (%) Response

Connecticut 268 34 12.69% 17.44%

Maine 138 59 42.75% 30.25%

Massachusetts 386 17 4.40% 8.72%

New Hampshire 158 46 29.11% 23.59%

Rhode Island 59 8 13.56% 4.10%

Vermont 87 31 35.63% 15.90%

1,096 195

In 2008, the per capita personal income for the

New England region was $48,715, a full 23 per-

cent higher than the national average. Just 14 of

39 dealership positions surveyed, however, had

salaries at or above the national average in 2008.

More than any other region, New England dealers

continued to rely on fi xed operations for profi tabil-

ity. Fixed operations in 2008 still accounted for

a 61 percent absorption rate and, at 15 percent

of total sales, remained the highest percentage of

total dealership revenue in the nation.

Of the dealership positions with below-average sala-

ries, the most striking were the upper management

positions. The average general manager’s salary

in the region was 16 percent below the national

average, and compensation for new-vehicle sales

managers was 5 percent below the national average.

Salaries for management positions in the service

and parts operations were generally below the

national average. The average service technician

salary was 5 percent below the national average;

offi ce workers’ salaries were 5 percent higher than

the national average.

Employees of New England dealerships arguably

had the best fringe benefi ts in the nation. The region

ranked second in providing two weeks paid vacation,

fi rst in paid sick leave, and fourth in providing six

to ten annual paid holidays. Ninety-two percent

of the region’s dealerships offered 401(k) plans.

Nearly 97 percent of dealerships extended a health

plan to both employees and dependents, although

44 percent required employees to pay half.

Following the statistics for the New England region

as a whole, we have broken out the compensation

fi gures by group, for ease of comparison. Since

Connecticut, Massachusetts, and Rhode Island are

signifi cantly more urban and higher wage states,

we have grouped them together; we have grouped

Maine, New Hampshire, and Vermont as well.

Region 1—New England

Benefi t Offered Rank among the nine regions

Paid Sick Leave 1st

6-10 Paid Holidays 4th

Paid Maternity/Paternity Leave Plan 3rd

401(k) Plan 6th

Health Plan for Employee and Dependents 1st


Region 1: New England

2008 Regional Compensation DataRegion 1: New England

MANAGER COMPENSATIONBelow are listed average total compensation fi gures for managers who were in their positions for all of

2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals

made by the employee not identifi ed on the W-2 were included. Includes dealers who did not provide

unit sales and employee count information.

General Manager $136,724 84% $106,492 $163,993 $163,034

Business Manager/Comptroller $78,006 95% $59,182 $95,409 $82,192

IT / Network Manager $60,458 99% $41,447 $65,890 $60,854

Human Resources Director/Manager $51,734 99% $41,919 $55,005 $52,032

BDC Manager $61,989 105% $38,050 $66,153 $59,282

General Sales Manager $101,517 89% $85,726 $116,651 $113,578

New-Vehicle Sales Manager $89,489 95% $75,704 $96,744 $94,470

Used-Vehicle Sales Manager $86,489 93% $75,219 $93,250 $93,063

Truck Sales Manager $84,488 107% $65,188 $100,571 $79,223

Fleet Sales Manager $64,965 79% $39,631 $74,465 $82,256

Sales Training Manager $68,648 93% $60,495 $76,800 $74,096

Lease and Rental Manager $31,276 50% $31,276 ** $62,361

Internet Sales Manager $56,483 84% $46,187 $61,631 $67,128

Website Manager / Webmaster $49,152 105% $32,202 $100,000 $46,776

Marketing Manager $57,773 92% $47,167 $61,750 $62,989

Finance and Insurance Manager $82,020 92% $63,267 $96,530 $89,497

Service and Parts Director $102,013 94% $92,242 $108,297 $108,730

Service Manager $74,420 93% $62,095 $92,133 $80,291

Parts Manager $61,799 89% $52,864 $72,899 $69,412

Body Shop Manager $70,005 96% $52,683 $84,350 $72,638

Service Advisor/Writer $54,687 96% $47,617 $61,880 $57,056

Offi ce Manager $53,863 105% $48,043 $59,851 $51,437

* Rounded to the nearest whole percentage point.

** Insuffi cient data. Smaller dealerships may not have this position.

Volume

EMPLOYEE OverallRegion 1 % of U.S.* 0-400 Units

Over 400Units

All DealersTotal U.S.


NON-MANAGEMENT COMPENSATIONShown are 2008 W-2 compensation averages for the non-management employees who were in their positions for

all of 2008.

Clerical and Offi ce Worker:

Highest Paid Worker $37,927 104% $34,508 $41,667 $36,504

Average Paid Worker $30,384 105% $28,605 $32,163 $29,049

Lowest Paid Worker $25,098 108% $24,793 $25,464 $23,223

Service Mechanical Technician:




Body Shop Technician/Painter:




New- & Used-Vehicle Salesperson:




Internet Salesperson:




Other Positions: (per hour)

Body Shop Foreman $21.04 95% $17.22 $23.50 $22.04

Parts Counterperson $15.21 98% $14.32 $16.20 $15.51

Telephone Switchboard Operator $11.91 108% $11.45 $12.24 $11.03

Warranty Clerk $16.83 107% $15.59 $17.83 $15.71

General Cashier $11.51 104% $10.84 $11.87 $11.11

Showroom Receptionist/Greeter $12.68 113% $12.64 $12.70 $11.18

Title Clerk $14.54 101% $13.63 $15.17 $14.43

Bookkeeper $15.40 99% $15.18 $15.71 $15.52

AR/AP Clerk $14.87 105% $13.79 $15.67 $14.16

Courtesy/Shuttle Driver $9.81 101% $9.98 $9.67 $9.76

Car Washer $10.92 112% $11.02 $10.84 $9.73

Detailer $12.80 110% $12.86 $12.73 $11.63

Per Capita Personal Income $48,715 123% $39,751

Avg. # New Units Sold 528 74% 711


Volume


Over 400Units





General Manager $174,448 107% $120,252 $201,546 $163,034


IT / Network Manager $66,640 110% ** $66,640 $60,854


BDC Manager $84,465 142% ** $84,465 $59,282





Fleet Sales Manager $82,325 100% ** $82,325 $82,256

Sales Training Manager $76,800 104% ** $76,800 $74,096

Lease and Rental Manager $31,276 50% $31,276 ** $62,361


Website Manager / Webmaster $100,000 214% ** $100,000 $46,776




Service Manager $96,465 120% $75,321 $109,998 $80,291

Parts Manager $74,392 107% $62,436 $83,616 $69,412



Offi ce Manager $65,500 127% $61,258 $68,669 $51,437



Volume

EMPLOYEE OverallRegion 1a % of U.S.* 0-400 Units

Over 400Units


2008 Regional Compensation Data Region 1a: Connecticut / Massachusetts / Rhode Island































Warranty Clerk $17.00 108% $16.18 $17.43 $15.71

General Cashier $12.00 108% $11.29 $12.26 $11.11


Title Clerk $15.97 111% $15.88 $16.00 $14.43

Bookkeeper $16.48 106% $16.14 $16.61 $15.52

AR/AP Clerk $16.57 117% $15.00 $17.00 $14.16


Car Washer $11.38 117% $10.93 $11.76 $9.73

Detailer $13.32 115% $13.50 $13.19 $11.63

Per Capita Personal Income,

New England $48,715 123% $39,751



Volume

EMPLOYEE OverallRegion 1a % of U.S.* 0-400 Units

Over 400Units


NON-MANAGEMENT COMPENSATIONShown are 2008 W-2 compensation averages for the non-management employees who were in their

positions for all of 2008.



2008 Regional Compensation DataRegion 1b: Maine / New Hampshire / Vermont





General Manager $119,833 74% $102,669 $139,765 $163,034




BDC Manager $50,751 86% $38,050 $54,381 $59,282






Sales Training Manager $60,495 82% $60,495 ** $74,096

Lease and Rental Manager ** ** ** ** $62,361


Website Manager / Webmaster $32,202 69% $32,202 ** $46,776




Service Manager $65,730 82% $58,983 $79,373 $80,291

Parts Manager $55,390 80% $49,627 $64,674 $69,412



Offi ce Manager $48,404 94% $43,838 $54,218 $51,437



Volume

EMPLOYEE OverallRegion 1b % of U.S.* 0-400 Units

Over 400Units





positions for all of 2008

























Warranty Clerk $16.70 106% $15.30 $18.24 $15.71

General Cashier $11.12 100% $10.58 $11.50 $11.11


Title Clerk $13.54 94% $12.88 $14.27 $14.43

Bookkeeper $14.80 95% $14.93 $14.76 $15.52

AR/AP Clerk $13.77 97% $13.45 $14.20 $14.16


Car Washer $10.68 110% $11.06 $10.23 $9.73

Detailer $12.62 109% $12.71 $12.50 $11.63

Per Capita Personal Income

Maine, New Hampshire, Vermont $27,364 69% $39,751



Volume

EMPLOYEE OverallRegion 1b % of U.S.* 0-400 Units

Over 400Units



Region 2—Mid-Atlantic


New Jersey 480 56 11.67% 20.22%

New York 572 133 23.25% 48.01%

Pennsylvania 949 88 9.27% 31.77%

2,001 277

The Mid-Atlantic region per capita personal income

for 2008 was $46,290—16 percent above the

national average. From 2006 to 2008, the number

of dealerships in the region shrank by 243. New

vehicle registrations in the region declined 12.8

percent. The typical Mid-Atlantic dealership sold

an average of 926 new vehicles in 2008.

Thirty-two of the 39 positions surveyed at Mid-

Atlantic dealerships had salaries that met or

exceeded the national average. Among those, the

typical marketing manager earned a sizable 17

percent more than his or her counterparts in the

nation as a whole, a refl ection of the highly com-

petitive and changing retail market in the region.

Salaries for clerical and offi ce employees were 9

percent higher than the national average and most

fi xed operations positions also paid higher than

average. Managerial positions, with fi ve exceptions,

came in higher or at the national average. Service

technicians were paid an average of 6 percent

above the national average.

Mid-Atlantic dealers offered an above-average

benefi ts package relative to the rest of the nation.

The region ranked fi rst in the nation in the share

of dealers offering demos to managers.

After the New England region, the Mid-Atlantic

also ranked highest in the percentage of dealers

providing paid sick leave. They also ranked second

in the nation for maternity/paternity leave; over 9

percent of dealerships surveyed offered a leave plan

to their employees. The percentage of dealerships

offering 401(k) plans ranked seventh nationally,

and the region ranked third for dental plans, with

80 percent of dealerships offering dental plans to

full-time employees.


Paid Sick Leave 2nd


Paid Maternity/Paternity Leave Plan 2nd

401(k) Plan 7th

Health Plan for Employee and Dependents 3rd


2008 Regional Compensation DataRegion 2: Mid-Atlantic





General Manager $171,044 105% $98,937 $200,863 $163,034




BDC Manager $65,555 111% $43,444 $67,359 $59,282







Lease and Rental Manager $64,748 104% $67,250 $63,785 $62,361






Service Manager $86,036 107% $62,851 $96,857 $80,291

Parts Manager $71,162 103% $53,216 $79,417 $69,412



Offi ce Manager $53,023 103% $42,029 $58,013 $51,437



Volume


Over 400Units


Region 2: Mid-Atlantic




























Warranty Clerk $16.65 106% $14.23 $17.30 $15.71

General Cashier $11.57 104% $11.30 $11.63 $11.11


Title Clerk $14.97 104% $13.85 $15.31 $14.43

Bookkeeper $16.88 109% $17.00 $16.87 $15.52

AR/AP Clerk $14.81 105% $12.47 $15.21 $14.16


Car Washer $10.14 104% $10.12 $10.21 $9.73

Detailer $12.21 105% $11.92 $12.43 $11.63



Volume


Over 400Units



Region 2: Mid-Atlantic



Illinois 452 96 21.24% 29.45%

Indiana 405 15 3.70% 4.60%

Michigan 432 37 8.56% 11.35%

Ohio 704 130 18.47% 39.88%

Wisconsin 537 48 8.94% 14.72%

2,530 326

Per capita personal income in the East North

Central region in 2008 was 5.9 percent below the

national average. Salaries for just two management

positions exceeded the national average, with com-

pensation for the marketing manager coming in a

full 11 percent higher than average. Compensation

for non-managers was generally closer to average,

and service and body shop technicians’ pay often

met or exceeded the average. The average dealer-

ship sold 661 units.

The region, like many in the nation, experienced a

decline in new light-vehicle registrations in 2008.

Nationwide, vehicle registrations decreased by 2

percent.

Service and parts absorption was 56 percent for

the region, and service and parts sales were 14.1

percent of total dealership sales, both above na-

tional average in 2008.

The positions of IT manager, website manager,

and truck sales manager paid the least, compared

to the national average, coming in at 15 to 23

percent below average.

The results were mixed with regard to benefi ts

packages. The region ranked third nationally in

the share of dealerships offering one week of paid

vacation and seventh among the regions surveyed

offering paid sick leave. Over 94 percent of deal-

erships surveyed in the region reported offering

401(k) plans to employees, ranking second in the

nation. But the region came in eighth nationwide

for offering a dental plan for employees and their

dependents. And though less than half of the

region’s dealerships surveyed reported paying 50

percent of the cost of the health and dental plans

offered to their employees, the region came in fi rst

in that category.


Paid Sick Leave 7th


Paid Maternity/Paternity Leave Plan 1st

401(k) Plan 2nd

Health Plan for Employee and Dependents 4th

Region 3—East North Central


Region 3: East North Central

2008 Regional Compensation DataRegion 3: East North Central





General Manager $154,780 95% $99,283 $188,590 $163,034




BDC Manager $54,220 91% $54,768 $53,999 $59,282













Service Manager $73,104 91% $56,934 $88,188 $80,291

Parts Manager $65,772 95% $57,307 $72,049 $69,412



Offi ce Manager $48,533 94% $42,492 $53,346 $51,437



Volume


Over 400Units



Region 3: East North Central



























Warranty Clerk $14.48 92% $13.63 $14.84 $15.71

General Cashier $10.75 97% $10.68 $10.80 $11.11


Title Clerk $13.48 93% $12.97 $13.73 $14.43

Bookkeeper $15.21 98% $14.31 $15.57 $15.52

AR/AP Clerk $13.70 97% $13.03 $13.91 $14.16


Car Washer $9.45 97% $9.13 $9.66 $9.73

Detailer $11.41 98% $10.72 $11.88 $11.63




Volume


Over 400Units



Region 4—West North Central


Iowa 353 68 19.26% 21.05%

Kansas 234 43 18.38% 13.31%

Minnesota 362 102 28.18% 31.59%

Missouri 367 43 11.72% 13.31%

Nebraska 188 41 21.81% 12.69%

North Dakota 94 4 4.26% 1.24%

South Dakota 114 22 19.30% 6.81%

1,712 323

The West North Central region’s per capita per-

sonal income was 3.9 percent below the national

average. The region’s relatively large number of

small, rural dealerships translated into the nation’s

lowest average new units sold per dealership—455.

The region’s dealerships relied heavily on their

used-vehicle departments for profi tability. Used-

vehicle departments accounted for 33 percent of

the region’s total dealership sales in 2008; the

national average was 30 percent. New-vehicle

sales were 54 percent of total sales in 2008; the

national average, according to NADA DATA 2009,

was 57 percent.

Of the 39 dealership positions surveyed, just six,

including Internet sales manager and HR direc-

tor, surpassed the average salary for the nation.

Salaries for top management positions, including

the general manager, marketing manager, and

general sales manager, remained the lowest in the

nation. The general manager came in at just 73

percent of the national average and general sales

manager at 80 percent of national average. Service

technicians and body shop technicians came in at

7 and 4 percent below average, respectively. The

average employee count was 45 per dealership in

Minnesota and 43 in Missouri; Kansas and North

Dakota had 40 each and the rest of the region had

fewer than 37 employees per dealership. Nationally,

the average dealership employed 53 people, ac-

cording to the 2009 NADA DATA report.

In the West North Central region, over 99 percent

of dealerships surveyed offered paid vacation to

their employees but less than half offered paid

sick leave. The region was fi rst nationwide in the

share of dealers offering six to ten days of paid

holidays. In most other benefi t categories, the

region’s dealerships were around the national

average. The region ranked sixth in the percent-

age of dealerships offering demos to managers

and third in the percentage offering demos to

salespeople. Dealerships in the region placed fi fth

among those offering 401(k) plans and came in

last for providing dental plans to employees and

their dependents.


Paid Sick Leave 4th

6-10 Paid Holidays 1st

Paid Maternity/Paternity Leave Plan 4th

401(k) Plan 5th



2008 Regional Compensation DataRegion 4: West North Central





General Manager $119,122 73% $91,243 $159,073 $163,034




BDC Manager $58,277 98% $56,283 $58,847 $59,282













Service Manager $67,266 84% $56,873 $85,608 $80,291

Parts Manager $57,813 83% $48,195 $73,583 $69,412



Offi ce Manager $44,387 86% $39,219 $53,514 $51,437


Volume


Over 400Units


Region 4: West North Central
















New- and Used-Vehicle Salesperson:












Warranty Clerk $14.95 95% $13.79 $15.84 $15.71

General Cashier $11.45 103% $10.54 $12.07 $11.11


Title Clerk $13.92 96% $12.52 $15.11 $14.43

Bookkeeper $14.51 93% $13.72 $15.43 $15.52

AR/AP Clerk $13.86 98% $12.64 $14.68 $14.16


Car Washer $9.45 97% $8.85 $10.26 $9.73

Detailer $11.02 95% $10.47 $11.90 $11.63



Volume


Over 400Units



Region 4: West North Central



Delaware 59 15 25.42% 4.86%

Florida 854 96 11.24% 31.07%

Georgia 490 11 2.24% 3.56%

Maryland 307 18 5.86% 5.83%

North Carolina 571 34 5.95% 11.00%

South Carolina 252 67 26.59% 21.68%

Virginia 524 62 11.83% 20.06%

West Virginia 160 6 3.75% 1.94%

3,217 309

Per capita personal income in the South Atlantic

region at $38,352 was fourth among the nine

regions in 2008, still 3.5 percent below national

average. The average number of new vehicles

sold per dealership surpassed the national average

by 14 percent—808 per dealership. Financially,

South Atlantic dealerships performed better than

the national average in most categories. Total dol-

lar sales were lower in 2008 compared to 2007,

but total service and parts sales ranked third in

the nation and total dealership gross (both as a

percent of total sales) tied for third.

Many positions—16 of the 39 surveyed—met or

exceeded the national average. General manager

salaries were 6 percent above average, F&I man-

agers’ salaries were 4 percent higher, and service

manager salaries were 10 percent higher. In

general, salaries for both management and other

positions were near or above the nation’s average.

Thirteen positions had salaries above the national

average. The body shop manager had the highest

relative salary at 17 percent above the national

average and the truck sales manager the lowest

at 8 percent below national average.

Eighty-fi ve percent of the dealerships in the South

Atlantic region surveyed reported offering a dental

plan to employees and their dependents, ranking

second nationally. Sixty percent offered one to

fi ve paid holidays annually, ranking third nation-

ally. This region again ranked third nationally in

2008 for paid sick leave, which was offered at 63

percent of dealerships. The region’s dealerships

ranked fi rst nationwide for offering 401(k) plans;

96 percent of dealerships surveyed reported offer-

ing pension plans and nearly 50 percent offered

a 1-2 percent matching company contribution to

their employees.


Paid Sick Leave 3rd



401(k) Plan 1st

Health Plan for Employee and Dependents 2nd

Region 5—South Atlantic


Region 5: South Atlantic

2008 Regional Compensation DataRegion 5: South Atlantic





General Manager $172,587 106% $120,751 $209,489 $163,034




BDC Manager $61,829 104% $43,514 $67,190 $59,282













Service Manager $88,074 110% $64,977 $103,845 $80,291

Parts Manager $71,761 103% $56,559 $81,604 $69,412



Offi ce Manager $50,133 97% $45,185 $53,398 $51,437


Volume


Over 400Units



Region 5: South Atlantic



























Warranty Clerk $15.14 96% $13.53 $15.90 $15.71

General Cashier $10.58 95% $10.36 $10.69 $11.11


Title Clerk $14.09 98% $13.25 $14.45 $14.43

Bookkeeper $15.28 98% $14.77 $15.46 $15.52

AR/AP Clerk $13.70 97% $12.85 $13.99 $14.16


Car Washer $9.47 97% $9.08 $9.71 $9.73

Detailer $11.63 100% $10.75 $12.10 $11.63




Volume


Over 400Units



Region 6—East South Central


Alabama 292 47 16.10% 34.56%

Kentucky 255 10 3.92% 7.35%

Mississippi 208 20 9.62% 14.71%

Tennessee 333 59 17.72% 43.38%

1,088 136

In 2008, the typical East South Central dealer-

ship sold 567 new vehicles, 20 percent below

the national average of 711. Per capita personal

income in the region at $32,788 was 17.5 per-

cent lower than the national average and lowest

among the nine regions in data updated by the

new census. However, parts and service income as

a percentage of total sales ranked in the middle

of the regions.

Of the 39 positions surveyed in the East South

Central region, only two met or surpassed the na-

tional average. The salaries for fl eet sales manager

and truck sales manager were highest at 2 percent

and 6 percent above the national average, respec-

tively. Service technicians earned 14 percent below

national average; body shop technicians earned 9

percent below average. Excluding the fl eet sales

and truck sales manager, management positions

in the region’s dealerships earned 3 to 26 percent

below the national average. Salespeople in the

region earned, on average, 13 percent below the

national average.

Dealerships in the region were among the worst

at offering benefi ts to dealership personnel. The

region ranked last nationally in the percentage

offering six to ten days of paid annual holidays,

and fi fth for offering a week of vacation per year.

The percentage of dealerships providing paid ma-

ternity/paternity leave was seventh in the nation;

the region ranked fi fth in paid sick leave, and last

in offering 401(k) plans. The region was not any

better in terms of health benefi ts, coming in last

in terms of offering health care benefi ts to both

employees and dependents.


Paid Sick Leave 5th



401(k) Plan 9th



2008 Regional Compensation DataRegion 6: East South Central





General Manager $138,111 85% $89,976 $186,245 $163,034




BDC Manager $47,486 80% $22,052 $50,312 $59,282













Service Manager $67,480 84% $54,098 $84,279 $80,291

Parts Manager $63,772 92% $48,298 $81,370 $69,412



Offi ce Manager $45,239 88% $41,520 $48,756 $51,437


Volume


Over 400Units


Region 6: East South Central


Region 6: East South Central

Volume


Over 400Units




























Warranty Clerk $14.21 90% $13.70 $14.56 $15.71

General Cashier $10.57 95% $10.00 $10.86 $11.11


Title Clerk $12.59 87% $12.43 $12.69 $14.43

Bookkeeper $14.48 93% $13.44 $14.77 $15.52

AR/AP Clerk $12.66 89% $13.16 $12.35 $14.16


Car Washer $8.94 92% $8.88 $9.00 $9.73

Detailer $10.26 88% $9.77 $10.73 $11.63






Arkansas 252 5 1.98% 4.42%

Louisiana 280 17 6.07% 15.04%

Oklahoma 270 10 3.70% 8.85%

Texas 1,003 81 8.08% 71.69%

1,805 113

The West South Central region’s per capita personal

income of $37,521 was 5.6 percent below the

national average in 2008. The average number of

new units sold per dealership (1,216 units) was

71 percent above average.

Of the 39 dealership positions surveyed in the

region, 26 met or exceeded the national average.

Most notable were the average salaries for general

managers and website managers, which were 46

and 45 percent above average, respectively, but

salaries for a great many positions, particularly in

management but also in Internet sales, signifi cantly

exceeded the national average.

Benefi ts in the region were low. Although the per-

centage of dealerships offering two weeks’ paid

vacation ranked fi rst in the nation, the region was

next to last in offering 401(k) plans. The region

ranked eighth in offering employee-dependent

health plans, and ranked last in paid maternity/

paternity leave.


Paid Sick Leave 6th



401(k) Plan 8th


Region 7—West South Central


Region 7: West South Central

2008 Regional Compensation DataRegion 7: West South Central





General Manager $237,498 146% $139,218 $261,637 $163,034




BDC Manager $55,799 94% ** $55,799 $59,282





Fleet Sales Manager $81,856 100% ** $81,856 $82,256




Website Manager / Webmaster $67,790 145% ** $67,790 $46,776




Service Manager $90,586 113% $65,225 $99,733 $80,291

Parts Manager $81,961 118% $57,170 $88,572 $69,412



Offi ce Manager $51,517 100% $38,025 $55,514 $51,437



Volume


Over 400Units



Region 7: West South Central
























Body Shop Foreman $25.20 114% ** $25.20 $22.04



Warranty Clerk $16.27 104% $16.06 $16.32 $15.71

General Cashier $10.72 96% $10.15 $10.83 $11.11


Title Clerk $14.39 100% $13.47 $14.59 $14.43

Bookkeeper $15.05 97% $14.20 $15.17 $15.52

AR/AP Clerk $13.88 98% $14.00 $13.86 $14.16


Car Washer $9.14 94% $8.45 $9.30 $9.73

Detailer $11.21 96% $10.64 $11.35 $11.63


Avg. # New Units Sold 1,216 171% 711


** Insuffi cient data. Smaller dealerships may not

have this position.

Volume


Over 400Units



Region 8—Mountain


Arizona 161 5 3.11% 2.38%

Colorado 265 85 32.08% 40.47%

Idaho 107 27 25.23% 12.86%

Montana 122 18 14.75% 8.57%

Nevada 111 2 1.80% 0.95%

New Mexico 119 27 22.69% 12.86%

Utah 146 30 20.55% 14.29%

Wyoming 67 16 23.88% 7.62%

1,098 210

Although the average number of new units sold

per dealership in the Mountain region was 548

units, a considerable 23 percent below average,

the region tied for second in the nation for the

percentage of net profi t before tax in 2008.

The per capita personal income for the region at

$35,971 was 9.5 percent below the national aver-

age, yet 23 of 39 dealership positions that were

surveyed had salaries that met or surpassed the

national average. General managers in the region

earned 9 percent above average, refl ecting the

size and productivity of the region’s larger opera-

tions. Indeed, all but six of the 22 management

positions met or exceeded the national average.

Other dealership personnel, including salespeople,

technicians, and offi ce staff generally earned

salaries above the national average.

As for benefi ts, with more than 69 percent of

dealerships offering six to ten paid holidays, the

region ranked second nationally. With nearly 84

percent offering one week paid vacation, the region

ranked sixth nationally. The region was next to last

among the regions for dealerships offering paid sick

leave (36.5 percent) and paid maternity/paternity

leave (5.3 percent). The region ranked fourth in

the percentage of dealerships offering 401(k) plans

and fi fth among the share of dealerships providing

both health and dental benefi ts.


Paid Sick Leave 8th

6-10 Paid Holidays 2nd


401(k) Plan 4th



2008 Regional Compensation DataRegion 8: Mountain





General Manager $177,080 109% $128,886 $223,266 $163,034




BDC Manager $57,931 98% $45,975 $59,069 $59,282










Marketing Manager $75,540 120% ** $71,130 $62,989



Service Manager $81,637 102% $68,257 $96,283 $80,291

Parts Manager $69,695 100% $56,632 $82,614 $69,412



Offi ce Manager $52,788 103% $50,080 $54,853 $51,437



Volume


Over 400Units


Region 8: Mountain


Region 8: Mountain















New & Used Vehicle Salesperson:












Warranty Clerk $14.98 95% $13.49 $16.10 $15.71

General Cashier $10.69 96% $10.19 $11.08 $11.11


Title Clerk $14.06 97% $13.42 $14.49 $14.43

Bookkeeper $14.46 93% $14.25 $14.57 $15.52

AR/AP Clerk $13.92 98% $13.27 $14.26 $14.16


Car Washer $9.50 98% $9.12 $9.83 $9.73

Detailer $11.05 95% $10.39 $11.68 $11.63




Volume


Over 400Units




Alaska 29 1 3.45% 0.42%

California 1210 154 12.73% 65.26%

Hawaii 62 3 4.84% 1.27%

Oregon 241 66 27.39% 27.97%

Washington 339 12 3.54% 5.08%

1,881 236

Based on this survey, the Pacifi c region had the

third-highest new-unit sales in 2008, an average

of 873 per dealership. The typical number of new

units sold was 23 percent higher compared to the

rest of the nation. However, new-vehicle sales

for 2008 were down signifi cantly from 2007.

According to NADA DATA 2009, registrations of

new light vehicles were down by more than 24

percent in 2008 compared to 2007.

Among large states, in California dealership

employees as a percentage of total retail employ-

ment—at 8.2 percent—ranked second, behind

only Arizona’s 9.1 percent and just ahead of Texas

at 8 percent. Salaries for all dealership positions

with the exception of BDC manager surpassed the

average national salary. The typical general sales

manager in the region earned 10 percent more

than the national average, while salaries for F&I

managers were 9 percent higher. Not surprisingly,

website managers and marketing managers at the

region’s dealerships also earned more than average,

with salaries that were 16 percent and 15 percent

higher, respectively.

Dealerships in the region ranked second highest

in the nation in offering both health and dental

plans and third in offering retirement plans to em-

ployees. The Pacifi c region ranked fi rst nationwide

in providing one week paid vacation and third in

providing six to ten paid annual holidays. Demo

vehicles, however, were offered less frequently

to this region’s managers and staff. The Pacifi c

region ranked last nationwide in providing paid

sick leave and fi fth in providing paid maternity/

paternity leave.

Despite ongoing corrections in residential real

estate values, the region ranked third in per capita

personal income—averaging 6 percent above the

national average.


Paid Sick Leave 9th

6-10 Paid Holidays 3rd


401(k) Plan 3rd


Region 9—Pacifi c


2008 Regional Compensation DataRegion 9: Pacifi c





General Manager $186,358 114% $127,938 $225,292 $163,034




BDC Manager $56,770 96% $40,973 $59,437 $59,282




Truck Sales Manager $91,309 115% ** $91,309 $79,223



Lease and Rental Manager $84,819 136% ** $84,819 $62,361






Service Manager $97,970 122% $81,348 $110,509 $80,291

Parts Manager $86,301 124% $63,552 $102,639 $69,412



Offi ce Manager $64,614 126% $52,683 $71,912 $51,437



Volume


Over 400Units


Region 9: Pacifi c


Region 9: Pacifi c



























Warranty Clerk $17.96 114% $17.40 $18.24 $15.71

General Cashier $12.06 109% $11.69 $12.22 $11.11


Title Clerk $17.28 120% $17.71 $17.07 $14.43

Bookkeeper $17.35 112% $15.68 $17.71 $15.52

AR/AP Clerk $15.36 108% $14.48 $15.71 $14.16


Car Washer $10.29 106% $10.49 $10.17 $9.73

Detailer $12.47 107% $12.73 $12.29 $11.63




Volume


Over 400Units



Automobile Dealerships: Fringe Benefi ts, 2008Benefi t Region 1 Region 2 Region 3 Region 4 Region 5Company Car Dealer Principal 82.56% 92.78% 87.42% 86.07% 88.03%

Managers 64.62% 74.01% 63.19% 58.20% 70.55%

Sales Personnel 29.23% 32.13% 38.34% 29.41% 17.15%

Offi ce Personnel 5.13% 12.27% 12.88% 7.12% 9.71%

Other 12.82% 15.88% 18.10% 13.93% 18.12%

Paid Vacation 0 Weeks 1.03% 1.82% 0.31% 0.62% 0.00%

1 Week 80.93% 88.73% 89.20% 83.80% 89.29%

2 Weeks 16.49% 8.00% 10.19% 12.46% 10.71%

3 Weeks 0.52% 0.00% 0.31% 0.62% 0.00%

Varies 1.03% 1.45% 0.00% 2.49% 0.00%

Paid Sick Leave 76.80% 74.09% 37.12% 47.35% 62.99%

Paid Annual Holidays 0 1.03% 0.74% 1.23% 1.90% 1.31%

1-5 30.41% 31.99% 36.31% 25.95% 60.00%

6-10 68.56% 65.07% 62.15% 72.15% 38.36%

More than 10 0.00% 2.21% 0.31% 0.00% 0.33%

Calculations of Paid Time Off Based on average fl at rate

hours worked 10.11% 15.65% 19.23% 20.27% 18.00%

Based on average wage earned 30.85% 45.04% 42.31% 33.89% 53.00%

Based on a fi xed amount 35.11% 24.81% 24.13% 33.89% 14.67%

Other 23.94% 14.50% 14.34% 11.96% 14.33%

Paid Maternity/Paternity 7.29% 9.19% 10.49% 6.60% 6.19%

401(k) or Other Qualifi ed Retirement Plan 91.71% 91.27% 94.48% 91.90% 96.10%

Matching Company Contribution 1-2% 45.24% 50.00% 54.95% 48.76% 49.30%

3-4% 27.38% 19.83% 26.96% 25.80% 19.37%

5-6% 2.98% 6.47% 4.44% 3.89% 1.76%

Other 24.40% 23.71% 13.65% 21.55% 29.58%

Health Plan Employee and dependents 96.91% 91.34% 86.73% 81.99% 94.16%

Employee only 3.09% 8.30% 12.65% 16.15% 5.84%

None 0.00% 0.36% 0.62% 1.86% 0.00%

Portion of Health Plan Paid by Dealership 0% 2.06% 1.82% 1.24% 0.95% 1.94%

50% 44.33% 31.02% 45.51% 37.54% 35.92%

80% 8.76% 14.60% 10.84% 11.36% 13.59%

100% 10.82% 12.41% 10.53% 21.14% 8.09%

Other 34.02% 40.15% 31.89% 29.02% 40.45%

Other (avg. percentage) 58% 57% 51% 59% 56%

Dental Plan Employee and dependents 86.08% 80.14% 66.15% 60.06% 85.11%

Employee only 2.58% 5.05% 5.23% 4.64% 5.18%

None 11.34% 14.80% 28.62% 35.29% 9.71%

Portion of Dental Plan Paid by Dealership 0% 62.79% 47.66% 54.55% 55.50% 72.66%

50% 20.93% 14.89% 23.81% 20.57% 10.07%

80% 2.91% 7.23% 4.76% 1.44% 2.52%

100% 2.91% 11.91% 5.63% 9.57% 5.76%

Other 10.47% 18.30% 11.26% 12.92% 8.99%

Other (avg. percentage) 51% 54% 44% 49% 55%

Both Health and Dental Plans 88.66% 85.20% 71.38% 64.71% 90.29%


Automobile Dealerships: Fringe Benefi ts, 2008Benefi t Region 6 Region 7 Region 8 Region 9

Company Car Dealer Principal 86.03% 98.23% 83.81% 91.10%

Managers 61.03% 61.95% 56.67% 51.69%

Sales Personnel 20.59% 19.47% 9.52% 3.81%

Offi ce Personnel 8.82% 5.31% 3.33% 1.69%

Other 21.32% 19.47% 15.71% 16.10%

Paid Vacation 0 Weeks 0.00% 0.00% 3.40% 1.27%

1 Week 85.07% 81.42% 83.98% 89.41%

2 Weeks 11.94% 17.70% 12.14% 9.32%

3 Weeks 0.00% 0.00% 0.00% 0.00%

Varies 2.99% 0.88% 0.49% 0.00%

Paid Sick Leave 46.27% 41.07% 36.54% 33.47%

Paid Annual Holidays

0 0.75% 0.00% 2.46% 2.13%

1-5 75.94% 73.45% 28.08% 28.51%

6-10 23.31% 26.55% 69.46% 68.94%

More than 10 0.00% 0.00% 0.00% 0.43%

Calculations of Paid Time Off

Based on average fl at rate hours worked 22.13% 13.89% 18.85% 17.27%

Based on average wage earned 45.90% 58.33% 52.36% 40.91%

Based on a fi xed amount 22.95% 23.15% 15.18% 25.91%

Other 9.02% 4.63% 13.61% 15.91%

Paid Maternity/Paternity 6.02% 3.54% 5.34% 6.36%

401(k) or Other Qualifi ed Retirement Plan 77.44% 86.73% 92.79% 93.22%

Matching Company Contribution 1-2% 43.62% 61.62% 38.33% 39.59%

3-4% 26.60% 24.24% 33.89% 35.03%

5-6% 2.13% 3.03% 3.33% 2.54%

Other 27.66% 11.11% 24.44% 22.84%

Health Plan Employee and dependents 78.52% 78.76% 86.67% 80.51%

Employee only 20.00% 15.93% 11.90% 17.37%

None 1.48% 5.31% 1.43% 2.12%

Portion of Health Plan Paid by Dealership 0% 1.61% 0.93% 1.94% 2.16%

50% 29.03% 30.84% 36.89% 19.91%

80% 10.48% 18.69% 14.08% 20.35%

100% 13.71% 23.36% 12.14% 22.94%

Other 45.16% 26.17% 34.95% 34.63%

Other (avg. percentage) 50% 65% 57% 61%

Dental Plan

Employee and dependents 71.11% 76.99% 78.47% 75.85%

Employee only 8.15% 6.19% 6.22% 13.98%

None 20.74% 16.81% 15.31% 10.17%

Portion of Dental Plan Paid by Dealership 0% 70.48% 82.98% 59.55% 36.49%

50% 11.43% 3.19% 19.66% 10.90%

80% 0.95% 1.06% 4.49% 11.85%

100% 5.71% 6.38% 4.49% 20.38%

Other 11.43% 6.38% 11.80% 20.38%

Other (avg. percentage) 38% 57% 56% 65%

Both Health and Dental Plans 79.26% 83.19% 84.69% 89.83%


Company Car Dealer Principal 88.21% 85.01% 91.16%

Managers 62.88% 53.22% 71.60%

Sales Personnel 23.49% 25.55% 21.37%

Offi ce Personnel 7.92% 6.14% 9.56%

Other 16.56% 16.30% 16.77%

Paid Vacation 0 Weeks 0.95% 1.02% 0.82%

1 Week 86.42% 83.45% 89.31%

2 Weeks 11.49% 13.81% 9.24%

3 Weeks 0.19% 0.20% 0.18%

Varies 0.95% 1.52% 0.45%

Paid Sick Leave 51.19% 49.95% 52.09%

Paid Annual Holidays 0 1.39% 1.62% 1.19%

1-5 40.03% 35.70% 43.67%

6-10 58.15% 62.37% 54.59%

More than 10 0.43% 0.30% 0.55%

Calculations of Paid Time Off Based on average fl at rate hours worked 17.48% 16.58% 18.23%

Based on average wage earned 43.87% 39.80% 47.50%

Based on a fi xed amount 24.47% 29.66% 19.67%

Other 14.18% 13.96% 14.59%

Paid Maternity/Paternity 7.11% 6.31% 7.94%

401(k) or Other Qualifi ed Retirement Plan 91.89% 87.06% 96.37%

Matching Company Contribution 1-2% 48.00% 46.29% 49.24%

3-4% 26.14% 30.69% 22.60%

5-6% 3.56% 3.53% 3.63%

Other 22.30% 19.49% 24.52%

Overall Average 0-50 Employees 51+ EmployessHealth Plan Employee and dependents 86.94% 82.84% 91.93%

Employee only 11.87% 15.30% 7.52%

None 1.18% 1.86% 0.55%

Portion of Health Plan Paid by Dealership 0% 1.63% 1.99% 1.20%

50% 35.53% 36.74% 34.06%

80% 13.37% 12.13% 15.12%

100% 14.38% 18.89% 8.87%

Other 35.10% 30.24% 40.53%

Other (avg. percentage) 57% 58% 56%

Dental Plan Employee and dependents 74.76% 65.63% 86.60%

Employee only 6.14% 6.50% 5.56%

None 19.09% 27.87% 7.84%

Portion of Dental Plan Paid by Dealership 0% 58.52% 59.65% 57.63%

50% 15.70% 16.47% 14.67%

80% 4.51% 4.00% 5.09%

100% 8.32% 8.59% 7.93%

Other 12.95% 11.29% 14.67%


Both Health and Dental Plans 80.91% 72.13% 92.16%

Benefi t All Dealers 0-400 Units Over 400 Units Total U.S. Total U.S. Total U.S.

Automobile Fringe Benefi ts 2008 By Units


Medium- and Heavy-Duty Truck Data

INTRODUCTION

This section is based on data from the responses of

the 109 surveyed dealers who identifi ed themselves

as sellers of medium- and heavy-duty trucks, class

5-8 dealerships.

The results are shown by the number of new units

sold, either 0–400 or more than 400 units. If an

insuffi cient number of responses were received for

a specifi c question, then only overall averages are

provided. Dealers who did not provide unit sales

and employee count information are included in

“Overall Averages.”

Here is a thumbnail profi le of the dealers who

responded:

Of the responding dealerships, 72.9 percent

sold 400 or fewer new units in 2008, and 27.1

percent sold more than 400 new units. Charts

providing an overview of total dealership sales

and new-unit sales are provided on the next page.

The compensation fi gures listed are for employees

who were in their positions for all of calendar year

2008. Manager compensation refers to average

total compensation fi gures; responses were taken

directly from 2008 W-2 forms. Any elected salary

deferrals made by the employee and not identifi ed

on the W-2 are included. For non-management

employees, listed are 2008 W-2 compensation

averages. Part-time employees were not included

in the survey. Dealers who are curious about the

variance between the average dollar sales published

here and the average dollar sales published in the

2009 ATD Performance Measurement Update

($42,189,348 for 2008, representing average

month sales of $3,515,779) –are reminded that

the ATD Performance Measurement Update is based

on data provided by ATD 20 Group members only,

whereas this survey measures responses from the

entire ATD membership base.

Average number of new units sold in 2008 323

Average dealership dollar

sales for 2008 $29,112,832

Average number of employees per dealership 60


Medium- and Heavy-Duty Truck Dealerships

New Unit Sales 1990–2008600

500

400

300

200

100

0

Year

1990

Year

1992

Year

1994

Year

1996

Year

1998

Year

20

00

Year

20

02

Year

20

04

Year

20

06

Year

20

08

Total Dealership Dollar Sales

1990–2008 (in millions)$45$40$35$30$25$20$15$10$5$0

Year

1990

Year

1992

Year

1994

Year

1996

Year

1998

Year

20

00

Year

20

02

Year

20

04

Year

20

06

Year

20

08


General Manager $126,479 $118,810 $142,194

Business Manager/Comptroller $78,223 $75,167 $85,075

IT / Network Manager $59,678 $58,647 $54,566

Human Resources Director/Manager $57,742 $53,916 $59,507

BDC Manager $69,114 ** $69,114

General Sales Manager $109,840 $95,548 $127,504

New-Vehicle Sales Manager $93,331 $82,063 $101,924

Used-Vehicle Sales Manager $90,885 $81,545 $96,667

Fleet Sales Manager $85,530 $79,442 $86,883

Sales Training Manager ** ** **

Lease and Rental Manager $78,238 $77,074 $83,073

Internet Sales Manager $58,801 $24,000 $70,401

Website Manager / Webmaster $40,080 $40,080 **

Marketing Manager $50,885 $50,122 $52,667

Finance and Insurance Manager $88,751 $59,140 $114,017

Service and Parts Director $102,582 $101,529 $104,161

Service Manager $79,319 $74,194 $92,186

Parts Manager $75,523 $70,994 $87,146

Body Shop Manager $61,107 $55,759 $71,318

Service Advisor/Writer $54,304 $47,860 $66,797

Offi ce Manager $58,128 $49,933 $73,226


EMPLOYEE All Dealers 0-400 Units Over 400 Units U.S. Average Total U.S. Total U.S.

2008 National Compensation DataMedium- and Heavy-Duty Truck Dealerships








NON-MANAGEMENT COMPENSATION


Highest Paid Worker $39,589 $38,776 $41,254

Average Paid Worker $32,586 $32,580 $32,530

Lowest Paid Worker $25,922 $26,177 $25,249

















Other Positions:

Body Shop Foreman $23.47 $23.33 $23.67

Parts Counterperson $18.07 $17.40 $19.32

Telephone Switchboard Operator $12.12 $12.11 $12.08

Warranty Clerk $17.64 $17.73 $17.33

General Cashier $12.50 $12.81 $12.00

Showroom Receptionist/Greeter $11.72 $12.63 $10.56

Title Clerk $16.22 $16.00 $16.43

Bookkeeper $16.05 $17.33 $14.91

AR/AP Clerk $15.60 $15.29 $15.96

Courtesy/Shuttle Driver $11.06 $11.60 $10.33

Car Washer $10.91 $10.69 $11.00

Detailer $12.62 $12.21 $13.05

EMPLOYEE All Dealerships 0-400 Units Over 400 Units U.S. Average Total U.S. Total U.S.


Benefi t All Dealers 0-400 Units Over 400 Units Total U.S. Total U.S. Total U.S.

Medium- and Heavy-Duty Truck Dealerships: Fringe Benefi ts 2008Company Car Dealer Principal 79.82% 75.64% 89.66%

Managers 53.21% 43.59% 79.31%

Sales Personnel 30.28% 32.05% 24.14%

Offi ce Personnel 7.34% 1.28% 24.14%

Other 19.27% 19.23% 20.69%

Paid Vacation 0 Weeks 0.00% 0.00% 0.00%

1 Week 88.99% 87.18% 93.10%

2 Weeks 10.09% 11.54% 6.90%

3 Weeks 0.00% 0.00% 0.00%

Varies 0.92% 1.28% 0.00%

Paid Sick Leave 62.96% 61.04% 65.52%

Paid Annual Holidays

0 1.83% 1.28% 3.45%

1-5 20.18% 12.82% 41.38%

6-10 77.06% 84.62% 55.17%

More than 10 0.92% 1.28% 0.00%

Calculations of Paid Time Off

Based on average fl at rate hours worked 10.28% 10.53% 10.34%

Based on average wage earned 24.30% 14.47% 51.72%

Based on a fi xed amount 49.53% 57.89% 24.14%

Other 15.89% 17.11% 13.79%

Paid Maternity/Paternity 7.34% 6.41% 10.34%

401(k) or Other Qualifi ed Retirement Plan 96.33% 94.87% 100.00%

Matching Company Contribution

1-2% 57.58% 58.33% 60.00%

3-4% 22.22% 25.00% 16.00%

5-6% 1.01% 1.39% 0.00%

Other 19.19% 15.28% 24.00%

Overall Average 0-50 Employees 51+ EmployessHealth Plan Employee and dependents 90.83% 87.50% 95.45%

Employee only 8.26% 10.94% 4.55%

None 0.92% 1.56% 0.00%

Portion of Health Plan Paid by Dealership 0% 0.93% 1.59% 0.00%

50% 25.00% 20.63% 31.82%

80% 12.96% 11.11% 15.91%

100% 21.30% 28.57% 11.36%

Other 39.81% 38.10% 40.91%


Dental Plan Employee and dependents 72.48% 60.94% 88.64%

Employee only 5.50% 6.25% 4.55%

None 22.02% 32.81% 6.82%

Portion of Dental Plan Paid by Dealership 0% 48.24% 45.45% 53.66%

50% 15.29% 13.64% 17.07%

80% 3.53% 4.55% 2.44%

100% 15.29% 11.36% 17.07%

Other 17.65% 25.00% 9.76%


Both Health and Dental Plans 77.98% 67.19% 93.18%


NOTES


NOTES


NOTES

ACkNowLeDgmeNtS

“the Need to Have Clear-Cut Written Pay Plans” was written for NADA by

Christopher C. Hoffman, esq.Fisher & Phillips LLPsuite 9504225 executive squareLa Jolla, CA 92037(858) 597-9610www.laborlawyers.com

scott Harmon, NADA University, compiled the data in this publication.

We thank Paul taylor, Ph.D., Chief economist, NADA industry Analysis, for his analysis of the compensation survey data, and Douglas i. greenhaus, esq., Director environment, Health and safety, NADA Legal and regulatory Affairs group, for his legal expertise.

National Automobile Dealers Association8400 Westpark DriveMcLean, Virginia 22102-3591

http://www.nadauniversity.com

© NADA 2010. All rights reserved.

Documents

Driven PF16 - · PDF filethe National Automobile Dealers Association ... National Compensation data