In the automotive retail sector in the United States, employees face a clear tradeoff: longer hours translate to significantly higher earnings. According to the recent Automotive News Dealership Salary Survey, professionals in the automobile retail industry earned an impressive average annual salary of $200,200 last year.
This figure is nearly three times higher than the average income of the typical American in 2022.
However, there’s a catch, as revealed by the survey: achieving this substantial income necessitates committing to a workweek of 50 hours or more.
The survey also highlighted a notable disparity in pay between male and female professionals in the same field. On average, men earned close to $219,000, whereas women earned only 66 percent of that amount, resulting in a yearly difference of $74,300.
It’s important to note that the survey’s methodology and findings have raised some questions about its scientific validity.
Automotive News, an industry trade journal, pointed out that the survey may not comprehensively represent all dealership employee pay. The respondents skewed towards managers with more than 27 years of industry experience, indicating higher pay levels.
Moreover, the survey’s participant demographics were skewed, with 85 percent of respondents being male and only 13 percent female.
The survey, conducted by Automotive News and partner firm Research + Knowledge = Insights, gathered responses from over 1,000 franchised dealership professionals between August 1 and October 26 the previous year.
In terms of working hours, the survey found that men reported an average of 52.2 hours per week, while women reported 49.7 hours.
This stands in stark contrast to the average U.S. employee, who spent 38.6 hours at work in 2022, according to Census Bureau data shared by the U.S. Bureau of Labor Statistics.
The survey also highlighted the challenges faced by younger generations in dealing with long hours, pressure, and goals.
Despite these challenges, some benefits compensated for the demanding work environment.
Almost two-thirds of surveyed retail employees reported employer contributions to retirement plans, and at least half mentioned having workers’ compensation, paid sick leave, family discounts on vehicles, and life insurance.
Around a third of respondents expressed belief in good career prospects within the industry. Interestingly, some participants acknowledged that their entry into the business was primarily motivated by the pursuit of higher income.
For example, an urban Florida dealer principal at a retailer selling Hyundai, Genesis, Chrysler, Jeep, and Subaru vehicles mentioned, “I needed a job that paid better than McDonald’s, and that was that.”
The survey also shed light on salary differentials among different types of dealerships, with luxury vehicle dealerships expected to pay the highest average salaries, reaching $222,600 for their workers in 2023, according to the survey.
