Pay Plans for the
Sales and Administrative
Staff
Jim Muntz
Publisher/CEO
Mike Bowers
Editorial Director
Denise Blain
Layout
10 West 7th Street
PO Box 606
Barnegat Light, NJ 08006
© 2009 Edition, DealersEdge. All rights reserved.
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Introduction
“For the love of money is the root of all evil." From the Bible, Timothy 6:10
“May you live in interesting times.” Origin is unknown, but sometimes referred to as the Chinese Curse.
I included the biblical quotation here both because it is apt for any discussion of dealership compensation
plans and because it is so often misquoted. Most of us know only the second part – Money is the root of
all evil. But as we’ll see, money has no intrinsic value of its own. Money is a proxy, a substitute for the
things that we do value. And each of us would define those things of value differently.
We are living in interesting times, which explains the reference to the second quotation as a curse. Who
but an enemy would wish for an economy such as the “interesting” one we have.
In the four years since WD&S Publishing last published the two-volume set Pay Plans for the Fixed
Operations Staff and Pay Plans for the Sales and Administrative Staff a lot has changed in the thinking
about dealership compensation. Moves that were unheard of a year or two ago, such as cutting pay, are
now commonplace.
This 2009 edition follows a format similar to its predecessors but with a new collection of real pay plans
submitted by franchised new car dealers from across the United States. The submitted pay plans have
been normalized to make for easier comparisons.
Pay plan policy
Sometimes forgotten in the scramble for survival these days, is the need for business planning in
dealerships, especially with regard to the dealers’ largest expense: personnel.
It helps to have a policy in place that can guide the planning process. At the end of this introduction is a
sample dealership compensation policy. It’s a one-page document and it looks deceivingly simple. But
dealers who use this policy to guide their compensation practices tell me that it is the single most valuable
piece of paper in their businesses.
The policy lays out the bases for granting pay increases. In short, they must be earned, either by
promotion or performance. Pay increases should not be given due to an employee’s personal
circumstances. If necessary, employee loans can be arranged to cover short-term problems. Sticking
with this approach can yield tens of thousands of dollars over time.
How much should dealers pay for a particular dealership position or for the same position in multiple
dealership locations? Once the amount has been arrived at, figure out how to achieve the pay target.
The “Dealership Dilemma”
On the next page is a chart to ponder. What’s wrong with this picture?
The graph depicts a phenomenon that is nearly unique to franchised car dealers. As total gross profits
rose steadily from 2001 through 2007, total dealership expenses moved in lockstep. As a result,
dealership net profits, the space between the two lines on the graph, remained essentially constant. On
closer inspection it’s clear that dealership net income has actually declined slightly, despite the increase
in gross.
That’s not how it’s supposed to be. In other industries, the enterprise reaches a breakeven point and the
lines begin to diverge. The expense line flattens out, while gross profits and net profits climb. What’s
different about dealerships? Why is it that the NADA figures show net income declining as dealerships
become “more successful,” as measured by increased gross profits?
5,000
$ in Millions
4,600
4,200
3,800
3,400
3,000
2001
2002
2003
2004
Years
2005
2006
2007
Total Gross Profit
Total Expenses
While some of the added expenses undoubtedly reflect higher rent factors due to facility upgrades, the
answer, obviously, is in the traditional dealership’s cost structure, specifically in the way most car dealers
pay their productive employees, the sales consultants and sales managers.
I have a strong bias against full-commission pay plans for dealership managers. And I hope I’ve been
consistent in expressing that bias over the years. The full-commission plans, more than any other factor,
in my opinion, actually work against dealership profitability.
Full-commission plans for managers are a very bad idea. I use the term full-commission to mean the kind
of compensation that pays a sales or service manager only when gross or net profit is generated. The
manager receives no salary or wage other that the commission. Draws don’t count if they have to be paid
back when a manager gets “into the hole.”
There are a number of reasons for this bias:
First, full-commission pay plans allow for wide swings in total pay for the manager and in payroll
expense for the dealer/owner. When business stinks the manager starves and when business is
great, the dealer ends up overpaying for the results. Remember, the manager hasn’t taken the
risk of ownership. Why should he or she bear the same risks and rewards as the
dealer/owner/investor?
Second, full-commission plans make no provision for the non-production responsibilities that a
dealership manager carries. Managers have supervisory, administrative, and training duties
among others. Full-commission pay plans encourage the manager to neglect the important but
non-revenue-producing aspects of the job.
Third, full-commission pay plans deprive the dealer/owner of the opportunity to benefit from
economies of scale in sales and service. The chart above demonstrates this. If a manager is
always paid 15 percent of the gross, then the dealer’s selling efficiency will always be stuck at
15%. It cannot improve. Shouldn’t investments in technology like lead management systems
and CRM solutions improve sales efficiency and shouldn’t the dealer/investor reap those
rewards?
Fourth, full-commission pay plans reduce the effect of management. When managers get paid
only by commission, they are likely to worry most about the activities that generate those
commissions. A dealer can direct the managers to focus on certain products, customer
satisfaction, anything, but the managers will do what earns them the easiest and fastest
commissions. It’s called “working the pay plan” and it always results in frequent pay plan
changes and increase employee dissatisfaction. Remember: anytime you change a pay plan,
it will be perceived, rightly or wrongly, by the employees as a pay cut.
Fifth, it is a myth that full-commission pay plans motivate people to continually produce more. It
sounds good but it does not hold true in the real world. A financial incentive works as a motivator
only at the margins. It can push a 10-car-a-month salesman to sell 11 or 12 cars, but money
won’t turn 10-car Charlie into a consistent 15-car-a-month producer. That’s a manager’s job.
Comparable pay for comparable work
Each job in a dealership has a value relative to other dealership positions. For example, managers’
responsibilities carry more value than clerical functions. The service director’s job is considered to be on
a par with the general sales manager. Their total compensation doesn’t have to be equal, but they should
be within range of each other.
At the end of this section, there are two questionnaires – one for dealership managers and one for nonmanagers. Ask each dealership employee to complete one. The questionnaires are useful in several
ways.
1. Creating job descriptions. Employees need to know what is expected of them and a written job
description is the place to start. The questionnaires follow the recommended format for job
descriptions.
2. Comparing job values. Within the questionnaire are three areas that are used to calculate a
value for the job: (a) the level of training, education, and/or certification needed to do the job
effectively; (b) the level of decision-making authority associated with the job; (c) the impact of the
job on dealership profitability. I have a proprietary formula for scoring the questionnaires but you
don’t need it. You can devise your own rudimentary scoring system to evaluate and rank jobs
within your companies.
3. Employee performance evaluations. Before each performance evaluation meeting, the
employee and the direct supervisor should complete a questionnaire for the employee’s job. A
comparison of the two, especially in the areas of “purpose of the job” and “list the essential
functions of the job in order of importance,” can provide a great basis for the performance review
meeting.
Golden Rule
The Golden Rule of Pay Plans is “Keep it simple.”
Employees must be able to understand and relate to their pay plans in order for them to be effective. The
goals have to be seen as achievable and within the employee’s control. Dealership employees
repeatedly tell us that don’t feel any “connection” when pay plans get too complex. Unfortunately, as
business for car dealers has worsened in the last few years, we have seen pay plans get more complex.
That won’t help!
Finally, our standard warning: As always in reading through this material, remember that compensation
is one important factor in developing strong organizations. It is the first link in building employee
satisfaction. But compensation is only one tool available to dealership managers. Imaginative,
aggressive recruiting, careful selection, continuous training, and solid organizational support give
managers what they need to do the “whole job.”
Pay plans are not a substitute for hands-on management. Only dedicated dealership managers can
make pay plans “work.”
Mike Bowers
Executive Editor
DealersEdge Publications Group
Sample Dealership Compensation Policy
A. Basis for pay increase:
1. Employees of this dealership will receive increases in compensation for the following reasons
only:
a) Promotion
b) Merited increase within the established range
c) Reclassification of position
2. All increases will comply with our established job classifications and pay ranges. All changes
involving increases in compensation will be one of the foregoing reasons and will be so indicated.
All proposed and actual increase will be fully documented and supported by valid reasons.
B. Control of compensation:
No promise, commitment, or statement will be made to any employee regarding a change in
compensation or the effective date of any increase until notice has been given by his/her
supervisor that such an increase has been approved and authorized. All increases will be
effective at the beginning of the next pay period.
C. Merit increases
1. A merit increase is an increase in an employee’s base compensation made as a reward for
improved job performance.
2. Merit increases will be granted, when earned, to employees on the basis of formal job
performance reviews. Merit increases shall be given only within the compensation range
established for the job. It is recommended that a minimum and maximum percentage of an
employee’s present compensation be a guide when granting a merit increase.
The dealership pay grade sheet gives the compensation range for all jobs in the dealership.
These ranges were established on the basis of:
a) Evaluation of each job within the plan;
b) Analysis of the dealership’s existing compensation practices;
c) External comparisons with the prevailing average salary practices within the surrounding
area.
3. All personnel decisions must be approved by the supervisor of the individual who is
recommending action involving an employee who is under his/her supervision. Merit increase will
be given only within the compensation range established for the job. The compensation range
establishes the minimum compensation, the rate for 100% adequate performance and the rate for
employees performing at exceptional levels.
Questionnaire: Non-managers
Statement of Responsibility
Name: ____________________________________________________________________________
Title: ______________________________________________________________________________
Company: __________________________________________________________________________
Department: _______________________________ Location: ________________________________
Length of time in present job: _________________ Initial date of employment: ___________________
Supervisor’s Name: ___________________________________________________________________
Supervisor’s Title: ____________________________________________________________________
Instructions:
Read this questionnaire before you begin.
Describe your job as accurately as possible. Try not to underestimate or inflate your
responsibilities.
Generally, consider your normal assignments and primary responsibility.
1. Purpose of your position: Briefly state the reason your job exists.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
2. Describe the duties you personally perform in the course of your work.
a. Daily: ________________________________________________________________________
_____________________________________________________________________________
b. Weekly or monthly: _____________________________________________________________
_____________________________________________________________________________
c.
At irregular intervals: ____________________________________________________________
_____________________________________________________________________________
3. Which of your duties do you consider to be the most important?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
4. Who assigns work to you? Give title and name.
Name: __________________________________ Title: _______________________________________
5. Does anyone else perform similar or the same duties which are assigned to you? If yes, who?
____________________________________________________________________________________
____________________________________________________________________________________
6. What reports or records do you personally prepare?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
7a. What percentage of your time is spent operating office or mechanical equipment?
____________________________________________________________________________________
____________________________________________________________________________________
7b. To what extent are you responsible for the maintenance of this equipment?
____________________________________________________________________________________
____________________________________________________________________________________
8. How much education is required for someone filling this job, and are there any specialized courses or
schools which should be required? (This may or may not correspond with your own education.)
____________________________________________________________________________________
____________________________________________________________________________________
9. Are there any special courses necessary to start this position?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
10. What previous experience is necessary for a person starting in your job?
a. Type: ________________________________________________________________________
b. Time required to obtain it: ________________________________________________________
c.
Where obtained: _______________________________________________________________
11. Are there any health or accident hazards connected with your work?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
12. Are there any unfavorable working conditions over which you have no control, ex: irregular hours,
noise, weather?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
13. Are there any physical requirements such as lifting, climbing or reaching which is an essential part of
your job?
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
14. Describe any special features of your work not covered above.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Questionnaire: Managers and Supervisors
Statement of Responsibility
Name: ____________________________________________________________________________
Title: ______________________________________________________________________________
Company: __________________________________________________________________________
Department: _______________________________ Location: ________________________________
Length of time in present job:______________ Initial date of employment with company:_____________
Supervisor’s Name: ___________________________________________________________________
Supervisor’s Title: ____________________________________________________________________
Instructions:
Read this questionnaire before you begin.
Describe your job as accurately as possible. Try not to underestimate or inflate your
responsibilities.
Consider your most normal assignments and activities.
If more space is required, additional sheets may be used.
1. Purpose of your position: Briefly state, in your own words, the reason your job exists.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
2. Principal functions: Carefully think through the activities you regularly perform and those you carry out
on a periodic basis. In order of priority, list the principal activities for which you are primarily accountable.
a. _____________________________________________________________________________
b. _____________________________________________________________________________
c.
_____________________________________________________________________________
d. _____________________________________________________________________________
e. _____________________________________________________________________________
f.
_____________________________________________________________________________
3. General Position Information:
a. What are the most important aspects of the work you do?
________________________________________________________________________________
________________________________________________________________________________
b. What is the most time consuming activity of your position?
________________________________________________________________________________
________________________________________________________________________________
4. Organizational Relationships:
a. What positions (by title) report directly to you?
________________________________________________________________________________
________________________________________________________________________________
b. What positions (by title) report indirectly to you?
________________________________________________________________________________
________________________________________________________________________________
c.
What positions (by title) report to your supervisor?
________________________________________________________________________________
________________________________________________________________________________
5. Responsibility and Authority:
What is the scope of your responsibility for taking action on the following:
a. Company expenditures
________________________________________________________________________________
b. Personnel Actions (Hiring, Firing, Compensation, etc)
________________________________________________________________________________
c.
Changing Company Policy
________________________________________________________________________________
d. Types of Decisions made without reference to higher authority
________________________________________________________________________________
6. Relative Position in Organization:
a. From what positions within the company could employees be promoted to your job?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
b. For what higher positions should your job prepare you?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
7. Education
a. What is the minimal education requirement for this position?
Years
Degree
High School
_________________
_____________________________________________
College
_________________
_____________________________________________
Graduate School
_________________
_____________________________________________
b. What special courses or certifications are required?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
8. Experience
a. What kind of, and how much, previous experience is required?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
b. Where can it be obtained?
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
CTR:
Controller
Controller
1
Base:
$900
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: Company vehicle
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
5
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes – 85% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 week per 1 year, 2 weeks per 3 years, 3 weeks per 10 years
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
Vision Plan
No
____________________________________________________________________________________
Comments:
Smaller store, controller functions more as an office manager. No problem with this approach to pay.
CTR 1
Controller
15
Base:
$140,000
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
6
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
33 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes 401(K)
# Vacation Days:
12
# Paid Sick Days: None
Paid Holidays:
6
Other Benefits:
Short term disability
Yes - Amount: $25,000
____________________________________________________________________________________
Comments:
Big store and a good approach to paying the controller. Maybe a small incentive would be a good
addition.
CTR 2
Controller
16
Base:
$70,000
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Nissan
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
12 - Non-Union - Teams
Benefits:
Health Insurance: Yes – 80% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes – Group RRSP
# Vacation Days:
10
# Paid Sick Days: 2
Paid Holidays:
10
Other Benefits:
N/A
Yes – Amount: Salary
____________________________________________________________________________________
Comments:
See the pattern developing. Straight salary for controllers. That’s OK. Again, maybe a small incentive
based on expense control would be beneficial.
CTR 3
Controller
21
Base:
$65,000 annually
Base pay:
68% of projected income
Commission:
None
Bonus:
.75 % of monthly net profit
Other Compensation:
Company paid cell phone
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford Toyota Scion
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
26
# of Mechanical Technicians:
29 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays flat $200 per month per employee
Life Insurance:
Yes – Any portion of $200 monthly allowance not use on health
Insurance applied to life insurance
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
1 wk after 1 yr / 2 wks after 3 yrs / 3wks after 15 yrs
# Paid Sick Days: 3 per yr
Paid Holidays:
6
Other Benefits:
Vision, short and long disability
____________________________________________________________________________________
Comments:
Projected income is $95,000 - $100,000. That’s where the .75% of the net comes from, but still OK.
CTR 4
Controller
3
Base:
$77,500
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota 7 Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
12 - Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 10
Paid Holidays:
8
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Seems about right. A small incentive based on things this manager can control would be OK too.
CTR 5
Controller
32
Base:
$68,000
Base pay:
80% of projected income
Commission:
None
Bonus:
CSI Bonus $2,400 a year to as low as zero
Other Compensation:
EOY bonus $10,000 to $30,000
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
7 - Non-Union
Tech's work on the full car - not specialized
Benefits:
Health Insurance: Yes – 50% Paid by Dealership:
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, Pension and 401K
# Vacation Days:
5 days after 1 year - 10 days after 2 years
# Paid Sick Days: 5 days after 1 year
Paid Holidays:
5
Other Benefits:
N/A
Yes – Amount: $10,000
____________________________________________________________________________________
Comments:
Good pay plan for a professional manager.
CTR 6
Controller
34
Base:
$132,000
Base pay:
79% of projected income
Commission:
You are eligible to receive bonuses as follows:
***all figures are pulled off the Toyota/Alh1/Alh2 financial statement
You will be paid .25% of the net before the General Managers Bonus.
***all figures are pulled off the Honda of Ocala financial statement
You will be paid .25% of the net before the General Managers Bonus.
***all figures are pulled off the BMW financial statement
You will be paid .10% of the net before the General Managers Bonus.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, BMW, Honda, Pontiac, Buick & GMC
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
42 - Non-Union - Lateral support
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes 401K
# Vacation Days:
4 days after 90 days, 9 days after 1 year, 14 days after 2 years etc
# Paid Sick Days: Vacation and sick are called pto
Paid Holidays:
5 for all but productive on 3 for productive
Other Benefits:
Prepaid legal, HHF, FSA, AFLAC
Yes
____________________________________________________________________________________
Comments:
Multi-store operation and apparently profits from some franchises are worth more than others. How else
to explain the different percentages? But all in all, a good approach.
CTR 7
Controller
36
Base:
$54,000 annual
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick Pontiac GMC
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
15 - Non-Union
Due to the decrease in sales volume, we have created selling manages and administrative
managers
Benefits:
Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
One week paid after first year, two weeks paid thereafter
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
As simple and direct as it gets.
CTR 8
Controller
39
Base:
$8,300 monthly
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford Lincoln Mercury
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
15 - Non-Union
Benefits:
Health Insurance: Yes – 100% paid by the dealership for the employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
5 days for 1 year and 10 days for 2+ years
# Paid Sick Days: 4 per year
Paid Holidays:
5
Other Benefits:
Vision
Yes – Amount: $10,000
____________________________________________________________________________________
Comments:
As we said in the introduction, if the dealer wants the employee to earn $100,000 per year, this is the
most direct way to accomplish the goal. Don’t rely on pay plans to manager employee performance.
CTR 9
Controller
50
Base:
$136,000
Base pay:
75% of projected income
Commission:
None
Bonus:
2 % of net income
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Freightliner
Monthly Sales Vol. (new & used):
<50 - One-Price Store
# of Sales People:
8
# of Mechanical Technicians:
60 - Non-Union
Benefits:
Health Insurance: Yes – 75% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
Up to 3 weeks max based on years of service
# Paid Sick Days: 0
Paid Holidays:
8
Other Benefits:
Match 401K
Yes – Amount: $10,000
____________________________________________________________________________________
Comments:
Perfect. Solid salary plus a bonus based on results that the control has responsibility for.
CTR 10
Controller
62
Base:
$75,000
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chev
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
4
# of Mechanical Technicians:
6 - Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 4
Paid Holidays:
7
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Same as before. Good approach to paying a controller. A small incentive based on expense control or
dealership profits wouldn’t hurt.
CTR 11
Controller
64
Base:
$60,000
Base pay:
85% of projected income
Commission:
None
Bonus:
None
Other Compensation:
401K, company car
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
New RV's forest river
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
2
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: No
Life Insurance:
Prescription Plan: No
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10 at hire 15 after 4 years
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Christmas Bonus
No
____________________________________________________________________________________
Comments:
We weren’t provided with details on the non-salary portion of compensation, but assuming it is profit or
expense related, this is a good pay plan.
CTR 12
Controller
67
Base:
$80,000
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
100
# of Mechanical Technicians:
100 - Non-Union - Sales Teams
Benefits:
Health Insurance: Yes – 65% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401(k)
# Vacation Days:
5
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Supplemental 100% Employee Paid
Yes – Amount 100%
____________________________________________________________________________________
Comments:
Good pay plan for this controller.
CTR 13
Controller
68
Base:
$46,800
Base pay:
90% of projected income
Commission:
None
Bonus:
$5,200
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cheverolet
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
3
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 1 day for every month worked in year
Paid Holidays:
7
Other Benefits:
N/A
Yes - Amount $5,000
____________________________________________________________________________________
Comments:
Not sure what the bonus is for. As long as it is not something wacky, this is still a good way to go.
CTR 14
Controller
92
Base:
$65,000
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
N/A
Monthly Sales Vol. (new & used):
N/A
# of Sales People:
N/A
# of Mechanical Technicians:
N/A
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
Hard to go wrong with straight salary for a dealership controller. Bonus equal to 5% of income would be
appropriate.
CTR 15
Accountant/Bookkeeper
2
Base:
$12.50 per hour $26,000
Base pay:
85% of projected income
Commission:
None
Bonus:
$2.00 per month for each new and used car delivered.
Other Compensation:
Random incentive bonuses for extra tasks - i.e. doing job for absent employee
extra or new project development
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
16 - Non-Union - Combination - some team / some direct report
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year / 2 weeks after 2 years / 3 weeks after 15 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes – 50%
____________________________________________________________________________________
Comments:
No real problem with this, although paying an accountant an incentive based on units sold raises an
eyebrow. Why not base the incentive on something this employee can control?
CTR 16
Accountant/Bookkeeper
34
Base:
$12.55 per hour
Base pay:
80% of projected income
Commission:
You will be paid a quarterly Bonus for each store you process payroll and taxes for of
$300.00 per Quarter if there are NO Tax penalties for the specific store each Quarter.
Also you will be paid a bonus based on the Toyota stores vehicle sales at $5.00 per
vehicle sold per month (does not include fleet deals) divided by the accounting personnel
who have been employed at least 1 year.
• 50% paid at month end if SSI is green
• 75% paid of 50% at month end if SSI is not green
• 50% paid in December if SSI is green for the year end.
You will also earn back all monies not paid due to SSI if the year end score was Green.
***Commissions will be paid monthly by the 10th of the following month. If you are paid a draw or
advance on your commissions, we will deduct that amount from the commissions that you earn,
and pay you the balance.
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, BMW, Honda, Pontiac, Buick & GMC
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
42 - Non-Union – Lateral support
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
4 after 90 days, 9 after 1 year, 14 after 2 years ect
# Paid Sick Days: Vacation and sick are called PTO
Paid Holidays:
5 for all but productive on 3 for productive
Other Benefits:
Prepaid legal, HHF, FSA, AFLAC,
Yes
____________________________________________________________________________________
Comments:
Total pay looks OK. But I question the use of a commission plan for clerical staff. I’d rather see a fixed
dollar bonus paid quarterly based on achievement of specific goals.
CTR 17
Accountant/Bookkeeper
37
Base:
$18.50 per hour
Base pay:
95% of projected income
Commission:
None
Bonus:
.5 % of net profit monthly
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota and Scion
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
9 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k, Safe Harbor
# Vacation Days:
5 after 1 year, 10 after 2 years, 15 after 3 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Birthday off with pay
Yes - One year's gross wage
____________________________________________________________________________________
Comments:
This looks OK to me.
CTR 18
Accountant/Bookkeeper
61
Base:
$17.60 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union
Benefits:
Health Insurance: Yes – 55% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 Max
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Offer Employee Paid Supplemental Insurance, Employee Discounts
Yes - $20,000
____________________________________________________________________________________
Comments:
Straightforward. Good pay plan for this job.
CTR 19
Cashier
21
Base:
$10.25 per hour
Base pay:
85% of projected income
Commission:
None
Bonus:
$50.00 per franchise CSI hit $0.50 per service appt made and kept
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford Toyota Scion
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
26
# of Mechanical Technicians:
29 - Non-Union
Benefits:
Health Insurance: Yes - Dealership pays a flat $200.00 per month per employee
Life Insurance:
Yes - Any portion of the $200 monthly allowance not used on health
insurance is applied to life insurance
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes 401k
# Vacation Days:
1 week after 1 year / 2 weeks after 3 years / 3 weeks after 15 years
# Paid Sick Days: 3 per year
Paid Holidays:
6
Other Benefits:
Vision, short and long disability
____________________________________________________________________________________
Comments:
Not bad. I question paying the cashier for appointments kept. SSI is OK.
CTR 20
Cashier
32
Base:
$9.50 per hour
Base pay:
95% of projected income
Commission:
None
Bonus:
CSI Bonus $2,400 to Zero per year
Other Compensation: Spiffs $100.00 for each referral sold
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
7 - Non-Union - Tech's work on the full car - not specialized
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes – Pension and 401K
# Vacation Days:
5 days after 1 year – 10 days after 2 years
# Paid Sick Days: 5 days after 1 year
Paid Holidays:
5
Other Benefits:
N/A
Yes – $10,000
____________________________________________________________________________________
Comments:
Cashier gets credit for referrals? OK. I can see that.
CTR 21
Cashier
58
Base:
$12.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota Scion
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes - 40% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after one year, 10 days after two years
# Paid Sick Days: 1/2 day a month
Paid Holidays:
7
Other Benefits:
10% above cost on parts, $25.00 hour labor, new and used car
No
employee pricing
____________________________________________________________________________________
Comments:
Straight hourly wage for this job is fine.
CTR 22
Cashier
60
Base:
Cashiers average $9.50 per clock hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
Very little (if any) overtime.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
24 - Non-Union - Lateral Support Groups
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
2 weeks
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
$9.50 an hour seems light considering the importance of the job, but if everyone is OK with it, then we are
too.
CTR 23
Cashier
61
Base:
$13.50 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union
Benefits:
Health Insurance: Yes – 55% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 Max
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Offer Employee Paid Supplemental Insurance, Employee Discounts
Yes - $20,000
____________________________________________________________________________________
Comments:
Straight salary for a cashier is generally the way to go.
CTR 24
Cashier
9
Base:
$14.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation:
Position is part time
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Volkswagen
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
5
# of Mechanical Technicians:
7 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
PTO days 2 to 6 after 1 year, 7 after 2 years, 13 after 3 years,
Yes - $10,000
plus one day per year after with a max of 19
# Paid Sick Days: Part of PTO Days
Paid Holidays:
6: New Year's, Memorial Day, 4th July, Labor Day,
Thanksgiving, Christmas
Other Benefits:
3 days paid bereavement for Full Time employees, direct deposit
____________________________________________________________________________________
Comments:
No problems with this approach.
CTR 25
F&IM:
F&I Manager
F&I Manager
10
Base:
$3,000 draw per month
Base pay:
100% of projected income
Commission:
Used cars - finance reserve 8% x gross profit TLC extended warranty 10% x gross profit
New cars - lease 4% x gross profit; finance reserve 8% x gross profit;
TLC extended warranty x gross profit
special finance GP 10% x gross profit
GAP ___ x ______ $15.00 @ 50%; $18.00 @ 60%; $21.00 @ 70%;
$25.00 @ 80%;$30.00 @ 90% penetration
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Mitsubishi
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
27
# of Mechanical Technicians:
20 - Non-Union – Service Teams
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
7
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
The distinction between draw and salary in this case is not significant. The F & I manager ought to earn
at least $3,000/month. However, as a matter of principle, I’d prefer that the $3,000 be salary and the
commission rates be adjusted accordingly.
F&IM 1
F&I Manager
12
Base:
$0
Base pay:
0% of projected income
Commission:
0.46% per day rate annualized (10% of BO gross based on 5 days per week, 8% on 4
days, etc)
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
17
# of Mechanical Technicians:
15 - Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 yr = 2 weeks, 4 yrs = 3 weeks, 9 yrs = 4 weeks
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
N/A
Yes – Dealership pays 2x annual earnings, maximum benefit $300,000
____________________________________________________________________________________
Comments:
Sorry. I don’t see what this plan is getting at.
F&IM 2
F&I Manager
14
Base:
$1,000/week draw
Base pay:
Ranges from 40-75% of projected income - Depends on performance of manager
Commission:
17% flat of their net F&I production after actual personal chargebacks
Bonus:
Additional 10% if reserve does not exceed 40%
Deduct 5% if reserve exceeds 50%
Deduct 10% if reserve exceeds 60%
Bonus to the F&I mgr with the highest number of deliveries (min 50 to qualify) $500
Bonus to the F&I manager with the highest F&I gross profit delivery $250
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda and Nissan
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
19
# of Mechanical Technicians:
20 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 80% of employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K with 20% match of first 4% saved
# Vacation Days:
1 wk after 1 year; 2 weeks after 3 years; 3 weeks after 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Vision, AFLAC paid by employee, 60% of disability premium
Yes - $237.93/month employee; $312/month if family coverage
____________________________________________________________________________________
Comments:
$1,000 a week draw puts all the risk on the manager. Salary plus commission works out the same in the
end but shares the risk.
F&IM 3
F&I Manager
15
Base:
$0
Base pay:
0% of projected income
Commission:
10% of finance gross, plus addditional 1% of warranty, Gap, Life and A&H penetration is
at least 60-80%, 2% if 81% or higher
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
6
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
33 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Short term disability
Yes - $25,000
____________________________________________________________________________________
Comments:
Commission program is OK. But salary plus commission is more fitting for a dealership manager.
F&IM 4
F&I Manager
16
Base:
$42,000
Base pay:
60% of projected income
Commission:
Commissions will be paid bi-weekly at a rate of 15% of the F&I Gross profit earned on the
sale of F&I products and accessories
Bonus:
A retailer balance scorecard bonus will be paid monthly on the last day of the subsequent
month. This bonus will be based on actual showroom achievments versus employer
forcasted requirements. This bonus will begin to be paid when an achievment level of
80% of forecast is reached and it will pay to a maximium of 140% of forecast. The
maxiumum at 140% in all measurements wo;; pay $15.00 per unit delivered. This bonus
structure may be subject to change basned on retailer balance scorecard requirements.
The chart below lists the measured criteria and weight of importance in the balance
scorecard.
Weight
Strategic Measure
New Unit Target
14%
New Gross Target
20%
CSI
12%
Used Unit Target
19%
Used Gross Targe
15%
New F&I Gross Target 10%
Used F&I Gross Target 10%
TOTAL
100%
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Monthly Sales Vol. (new & used):
# of Sales People:
# of Mechanical Technicians:
Benefits:
NO
51-100 - Negotiated Sale
7
12 - Non-Union, Teams
Health Insurance: Yes – 80% Paid by Dealership
Life Insurance:
Yes - Salary
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan: Yes, Group RRSP
# Vacation Days: 10
# Paid Sick Days: 2
Paid Holidays:
10
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
Basically this a good pay plan for an F & I manager. Right mix of salary and commission. The bonus
program seems a little complicated.
F&IM 5
F&I Manager
19
Base:
$0
Base pay:
0% of projected income
Commission:
4% of front and back-end gross
Bonus:
$50/warranty sold, $25/gap sold
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, GMC, Pontiac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
6 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
up to 3 weeks
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
While there is a lot to like about this pay plan (total income should be OK and the benefit plan is
attractive), I’d be a lot more comfortable with more of a split between salary and commission. The end
result will be what the dealer wants and it’s easier to plan.
F&IM 6
F&I Manager
22
Base:
$2,500 monthly draw
Base pay:
0% of projected income
Commission:
Per car percentage: $500 per car, 4 percent of pot $600 per car, 5 percent of pot, $700
per car, 7.5% of pot, $800 per car, 9.0 percent of pot, $900 per car, 10.5 percent of pot.
$1000 per car, bonus of $1000 and 12 percent of pot. Pots are split in thirds.
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW Porsche Volkswagen Subaru Isuzu
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
3
Other Benefits:
N/A
Yes – $100,000
____________________________________________________________________________________
Comments:
Again, this probably works out OK, but both parties could hit the desired result easier with a salary plus
commission plan. That’s not the same as a draw vs. commission plan.
F&IM 7
F&I Manager
25
Base:
$600 per week
Base pay:
40% of projected income
Commission:
Business manager will be paid 7% of the gross profit of the F& I department minus
charge backs from finance statement.
Bonus:
$500 per month if GAP insurance sales penetration is greater than 50% of the total units
sold for the month.
$500.00 per month if Warranty insurance sales penetration is greater than 40% of the
total units sold for the month.
$500.00 per month if the average PRU generated by the F & I department is over $1,000
Other Compensation:
A monthly car allowance of $300.
The weekly draw up to $600 against commission. The balance will be reviewed at least
monthly and may be adjusted at managements discretion
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
9
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 max
# Paid Sick Days: 5
Paid Holidays:
7
Other Benefits:
Car allowance for managers
Yes
____________________________________________________________________________________
Comments:
Looks like a good pay plan for an F & I manager. Mix of salary plus commission. Commission rate is at
the right level.
F&IM 8
F&I Manager
28
Base:
$2,500 monthly
Base pay:
Approximately 35% of projected income
Commission:
2.5% Total Variable Gross minus chargebacks up to $349,999.
For $350,000 and above it is 3%.
Bonus:
Finance Penetration: 75%=$750; 70%=$500; 65%=$250
Extended Warranties: 50%=$500; 45%=$400; 40%=$300
*Only the largest bonuses for each category will be paid.
Other Compensation:
Annual Christmas bonus of $0.50 for every new and used retail unit will be paid.
$500 monthly vehicle allowance. No demos.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chevrolet
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
13
# of Mechanical Technicians:
8 - Non-Union - Sales teams with alternating schedules
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes
# Vacation Days:
5 days after one year of employment
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments: Something doesn’t add up here. If $2500 per month is about 35% of projected income, then
projected income is about $100,000 per year. But the commission plan will likely pay about twice that.
Possible pay plan change coming soon.
F&IM 9
F&I Manager
3
Base:
$78,000
Base pay:
75% of projected income
Commission:
15 % of back end
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota & Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
12 - Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 10
Paid Holidays:
8
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Someone will be disappointed her and it’s probably the dealer/owner. The $78K salary is fine and 75% of
projected income is OK too. But make sure the math works. 15% of net F & I income will most likely
bring total compensation in a lot higher than planned.
F&IM 10
F&I Manager
34
Base:
Base pay:
Commission:
$0
0% of projected income
You will be paid commissions based on the following formula for your personal
performance on deals that you are the finance closer on:
PVR
Percentage of Gross:
0 - 700
701-775
776-850
851-925
926+
13.0%
13.5%
14.0%
14.5%
15.0%
(A) Gross is defined as total individual gross to include a percentage of one source money but not to
include JMA Management money. (calculated by the number of store deals divided by one source pay
out) less individual charge backs. (B) Total units is total personal deliveries PVR is calculated as total
gross as defined in section (A) divided by total units as defined in section (B) You will be paid
commissions based on the following formula for the stores performance on the profits of the Finance
Department after all income and charge backs to include management money from JMA
You will be paid commissions based on the following formula Calculated from the NCM Statement pg 2
line 2 New and Used Grosses to include F&I (both) and fees (both) + or – wholesale
Gross
Percentage of Gross
0-500,000
.25%
500,001 – 550,000
.35%
550,000 +
.50%
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Monthly Sales Vol. (new & used):
# of Sales People:
# of Mechanical Technicians:
Benefits:
Toyota, BMW, Honda, Pontiac, Buick & GMC
201 - Negotiated Sale
30
42 - Non-Union - Lateral support
Health Insurance: Yes
Life Insurance:
Yes
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan: Yes, 401K
# Vacation Days: 4- after 90 days , 9 after 1 year , 14 after 2 years ect
# Paid Sick Days: vacation and sick are called pto
Paid Holidays:
5 for all but productive on 3 for productive
Other Benefits:
Prepaid legal, HHF, FSA, AFLAC,
____________________________________________________________________________________
Comments:
Too complicated. Intentions are good, but in practice, the managers will focus on selling to the customer
in front of them. They will not be thinking about the various percentages for different products. Keep it
simple. You want F & I profits? Pay on net F & I income.
F&IM 11
F&I Manager
36
Base:
None
Base pay:
0% of projected income
Commission:
7.5% of Gross F&I, less 10% Chargeback reserve
Bonus:
Penetration Bonus on ESC's, Bonus paid on ESC to Service customers
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick Pontiac GMC
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
15 - Non-Union
Due to the decrease in sales volume, we have created selling manages and administrative
managers
Benefits:
Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
One week paid after first year, two weeks paid thereafter
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
The approach is OK, but I’d try to split the F & I manager’s income 50/50 between salary and
commission. That way the manager will earn approximately what the job is worth.
F&IM 12
F&I Manager
39
Base:
None
Commission:
Net F @ I income new 10%
Net F @ I income used 10%
Paid monthly, $3,000 draw against commissions
Bonus:
None
Other Compensation: Demo
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford Lincoln Mercury
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
15 - Non-Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days for 1 year and 10 days for 2+ years
# Paid Sick Days: 4 per year
Paid Holidays:
5
Other Benefits:
Vision
Yes - $10,000
____________________________________________________________________________________
Comments:
This is OK, but you will have better control over the total compensation by splitting the manager’s pay
50/50 salary and commission.
F&IM 13
F&I Manager
42
Base:
$700 per week
Base pay:
52% of projected income
Commission:
None
Bonus:
Verified F&I income per F&I log less chargeback reserve of 7% of finance income earned
for the month X bonus % as follows: dept. income < $52,000 pays 4%; dept. income >
$52,000 pays 5$; dept. income > $62,000 pays 6%. $25.00 per lease generated $25.00
per extended warranty sold
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, Saturn & Hummer
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
41 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after year, 10 days after 2 years
# Paid Sick Days: up to 4 days in the 1st year, 6 days after 1 year, 11 days after 10 years
Paid Holidays:
6
Other Benefits:
N/A
Yes - Company paid $20,000 coverage
____________________________________________________________________________________
Comments:
I had to read the plan a couple of times to fully understand it, but once I did, it looks pretty good to me.
F&IM 14
F&I Manager
45
Base:
$6,000
Base pay:
75% of projected income
Commission:
10% commission on total gross from sales
Bonus:
None
Other Compensation: $400 demo allowance
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
GM
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
34
# of Mechanical Technicians:
11 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Discounts on vehicles, parts & labor
Yes - $15,000
____________________________________________________________________________________
Comments:
Yes and no. The basic concept of this plan is excellent, but once again the math doesn’t work out right.
Total income is projected at about $100,000 +/-. And base pay is $72,000. So far, so good. But if the
bonus is to be 10% of the gross, then total income will likely be far higher than $100K. 10% of the gross
is a good target to keep in the back of your mind, but with the base salary, the commission rate has to be
adjusted downward to get there.
F&IM 15
F&I Manager
49
Base:
None
Base pay:
0% of projected income
Commission:
15% of net F & I income
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Used
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
8
# of Mechanical Technicians:
3 - Non-Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
N/A
# Paid Sick Days: Included
Paid Holidays:
Included
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
A straight commission plan like this is bound to result in wide fluctuations in income for the manager and
expenses for the dealership. The dealer clearly wants to pay 15% of anticipated F & I net income to this
manager. The pay plan sort of guarantees that will happen, but doesn’t address the question of whether
that will be the right $ amount.
F&IM 16
F&I Manager
5
Base:
None
Base pay:
0% of projected income
Commission:
8% of gross profit generated by department
Bonus:
Target penetration bonus for AH&H, additional .5% of department gross profit; bonus for
average gross per vehicle sold is greater the $1200 per unit, additional .5% of
department gross profit
Other Compensation: Group benefits
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chrysler, Dodge, Jeep
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
22 - Non-Union
Benefits:
Health Insurance: Yes – 60% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, Group RRSP
# Vacation Days:
10 days after one year, 15 days after 5 years, 20 days after 10 years
# Paid Sick Days: 0
Paid Holidays:
9
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
As a side observation, why do some dealerships pay 15% of net F & I while others pay varying
percentages. This one pays 8%. Obviously it’s an attempt to bring total compensation in at some
projected level. But it that is the case, scrap the full commission approach and pay a combination of
salary and commission as a more certain path to success.
F&IM 17
F&I Manager
51
Base:
$2,000/month draw against commission
Base pay:
35% of projected income
Commission:
12% Net F & I Income
Bonus:
None
Other Compensation: Demo
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Pontiac & Buick
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
N/A
# of Mechanical Technicians:
Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% for employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 after 1st year, 10 after third year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail
Yes - None paid by employer
____________________________________________________________________________________
Comments:
Nobody will be happy with the results of this plan, especially in light of the franchises..
F&IM 18
F&I Manager
6
Base:
None
Base pay:
0% of projected income
Commission:
20% Net F&I income
Bonus:
$10 per File Prepped
$20 per File Checked
Hit NC GP target = $250
Hit UC GP Target = $250
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
15 - Non-Union - Service Teams
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, RRSP (Canada Specific)
# Vacation Days:
10 - 20 Depends on LoS
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
Purchase Plan, Ed Asst. LoS Awards
Yes – 2 times Gross Earnings
____________________________________________________________________________________
Comments:
See what I mean about the varying percentages? Plans like this are clearly attempts by the dealer to pay
the F & I manager a certain amount of money. But the plan won’t achieve the desired results. It will be
changed frequently as will the manager.
F&IM 19
F&I Manager
62
Base:
$50,000
Base pay:
50% of projected income
Commission:
None
Bonus:
5% of total F&I income including extended warr, less chargebacks, if any.
Utilize 75% / 25% reserve policy.
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chev
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
4
# of Mechanical Technicians:
6 - Union
Benefits:
Health Insurance: Yes – Dealership pays100% employee only
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 4
Paid Holidays:
7
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
This is what I’m talking about! Good pay plan for an F&I Manager.
F&IM 20
F&I Manager
64
Base:
$35,000
Base pay:
50% of projected income
Commission:
20% F&I net
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
New RV's forest river
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
2
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: No
Life Insurance:
Prescription Plan: No
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10 at hire 15 after 4 years
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Christmas Bonus
No
____________________________________________________________________________________
Comments:
This is a small store so I question whether the F&I manager is doing only F&I duties. With only 2 sales
reps, most likely this manager also doubles as the sales manager.
F&IM 21
F&I Manager
67
Base:
Minimum Wage
Base pay:
Should be 0% of projected income
Commission:
Commissions: You are eligible to be paid 2.0% of the “Net F&I Income, plus New
Flooring-FMCC Rebate” as represented on the dealership monthly financial reporting
package.
Commission Rates:
Max. Selling Price/Gross Commission Finance Reserve Gross Profit
10% Service Contract Gross Profit
Max
$1,500 Gross Profit
15% Theft Code $595
15% Paint Protection $695
15% Security Systems $895 (Alarm) $995 (Lo-jack)
15% GAP $750
Bonus:
Sales Penetration Bonus Opportunity: If you achieve a penetration of 50%
or greater on sales of Service Contract products (ESP or JM&A Service Contract &
Maintenance plans), you are eligible for the following monthly bonuses may be earned
based upon performance during the month. Please note that each bonus is paid at the
level earned and is not cumulative. All bonuses are contingent on a minimum of 40 deals
being contracted and you must be an active employee at time of payout for bonus to be
considered earned.
Gross Average per unit Bonus (% of Base Commission earned above)
$900 – 999
12%
$1,000 - $1,099
15%
$1,100+
18%
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Monthly Sales Vol. (new & used):
# of Sales People:
# of Mechanical Technicians:
Benefits:
Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti
201 - Negotiated Sale
100
100 - Non-Union - Sales Teams
Health Insurance: Yes – 65% Paid by Dealership
Life Insurance:
Yes – 100%
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan: Yes, 401K
# Vacation Days: 5
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Supplemental 100% Employee Paid
____________________________________________________________________________________
Comments:
I’m sure this sounded like the perfect pay pan when the general manager concocted it. But it’s far too
complicated. People don’t think like this especially when there are customers waiting to be served. Keep
t simple. Don’t expect the pay plan to manage the employee. That’s the general manager’s job. And
don’t write a pay plan that insinuates that the employee is a crook.
F&IM 22
GC:
Greeter
Greeter
20
Base:
$11.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Lexus
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
14 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Regardless of the dollar amount, an hourly wage is the right way to pay greeters.
GC 1
Greeter
21
Base:
$12.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Toyota, Scion
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
26
# of Mechanical Technicians:
29 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays flat $200 per month per employee
Life Insurance:
Yes - Any portion of $200 monthly allowance not use on health insurance
applied to life insurance
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year / 2 weeks after 3 years / 3weeks after 15 years
# Paid Sick Days: 3 per year
Paid Holidays:
6
Other Benefits:
vision, short and long disability
____________________________________________________________________________________
Comments:
No problems with this approach. Paying an hourly wage is right and the benefit package looks attractive.
GC 2
Greeter
41
Base:
$8.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
CSI up to 200.00
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chevrolet here
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
12 - Non-Union, Service Groups, similar to lat support
Benefits:
Health Insurance: Yes – 20% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 days per year, max of 15 days
# Paid Sick Days: 5
Paid Holidays:
6
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
$8.50 an hour is perilously close to minimum wage, but if that’s OK with all parties then who are we to say
it’s wrong?
GC 3
Greeter
5
Base:
$2,600 per month
Base pay:
90% of projected income
Commission:
N/A
Bonus:
Delivery bonus of $2 per unit delivered, both New and Used
Other Compensation: Group benefits
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chrysler, Dodge, Jeep
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
22 - Non-Union
Benefits:
Health Insurance: Yes - 60% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, Group RRSP
# Vacation Days:
10 after 1 year, 15 after 5 years, 20 after 10 years
# Paid Sick Days: 0
Paid Holidays:
9
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
It’s a pretty good salary for a greeter, but the concept is right.
GC 4
Greeter
53
Base:
$10.00 per hour
Base pay:
60% of projected income
Commission:
5% commission on the upsells from the WalkArounds and the pre-inspections from the
service drive.
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Lincoln-Mercury, Mazda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
24
# of Mechanical Technicians:
41 - Non-Union
Simple Support with a Quick Service team of 18 Techs
Benefits:
Health Insurance: Yes – Dealership pays the first $150 not a %
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days 1st year, 10 days after 3 years, 15 days after 10 years
# Paid Sick Days: 0
Paid Holidays:
7
Other Benefits:
N/A
Yes - $10K Paid by the Company
____________________________________________________________________________________
Comments:
Obviously this greeter does more than just log in service customers. There is a sales production
component to the job and the pay plan. Good approach.
GC 5
Greeter
6
Base:
$11.39 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
15 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, RRSP (Canada Specific)
# Vacation Days:
10 - 20 Depends on LoS
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
Purchase Plan, Ed Asst. LoS Awards.
Yes – 2 times Gross Earnings
____________________________________________________________________________________
Comments:
Good pay plan for a greeter.
GC 6
Greeter
60
Base:
$8.50 per clock hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
24 - Non-Union, Lateral Support Groups
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
2 weeks
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
No problems with this approach except a caution to make sure that the wage rate is competitive in the
market.
GC 7
Greeter
8
Base:
$10.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Porsche, Audi, Infiniti, VW
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
11
# of Mechanical Technicians:
21 - Non-Union, No each department is separate
Benefits:
Health Insurance: Yes – 80% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: None
Paid Holidays:
All State only
Other Benefits:
Demo
Yes - $25,000
____________________________________________________________________________________
Comments:
Good pay plan for a greeter.
GC 8
GM:
General Manager
General Manager
225
Base:
$4,200 per month
Base pay:
50% of projected income
Commission:
N/A
Bonus:
17% of the store's profit
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Mercedes
Monthly Sales Vol. (new & used):
< 50
# of Sales People:
6
# of Mechanical Technicians:
7 – Non-Union
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
Total works out about right. But 17 percent of the net profit is a big slice of the pie. Pay a larger portion in
salary and reduce the bonus percentage.
GM 1
General Manager
226
Base:
$575 a week
Base pay:
22-25% of projected pay
Commission:
3.5% of all departments adjusted selling gross
Bonus:
N/A
Other Compensation: Demo
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
201
# of Sales People:
24
# of Mechanical Technicians:
21– Non-Union, use individual by flat rate
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
Good plan for a general manager. Income potential is strong and it puts accountability for results where it
belongs, on the manager's shoulders.
GM 2
General Manager
230
Base:
$1,000 a week
Base pay:
63% of projected pay
Commission:
10% of dealership profit
Bonus:
N/A
Other Compensation: Demo
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Mercury
Monthly Sales Vol. (new & used):
51-100
# of Sales People:
7
# of Mechanical Technicians:
6 – Union
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
We'd rather see $1,300 a week and 5% of the net to prevent wide swings in total pay.
GM 3
General Manager
232
Base:
$1346.15 per week
Base pay:
50% of projected pay
Commission:
$1,000 per month draw against EOY bonus
Bonus:
EOY bonus 10% of net profit before bonuses and taxes
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Pontiac, Kia
Monthly Sales Vol. (new & used):
101-200
# of Sales People:
9
# of Mechanical Technicians:
16 – Non-Union, Service Teams
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
$70,000 salary plus 10% of the net is an excellent way to pay an experienced general manager. No
problems here.
GM 4
General Manager
235
Base:
$1,400 a week
Base pay:
40% of projected pay
Commission:
N/A
Bonus:
8.5% net profit of dealership
Other Compensation: Two demos and gas
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
201+
# of Sales People:
42
# of Mechanical Technicians:
45 – Non-Union, Sales Teams, Lateral support groups
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
Alright. $72,000 a year plus 8.5% of the net is a good method for paying a general manager, especially in
a larger dealership like this one.
GM 5
General Manager
252
Base:
$1,850.00 per week
Base pay:
100% of projected pay
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Nissan, Mitsubishi, Kia
Monthly Sales Vol. (new & used):
101-200
# of Sales People:
15
# of Mechanical Technicians:
7 – Non-Union
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
Here's an unusual one. A straight salary program for the general manager. I don’t see anything wrong
with it.
GM 6
General Manager
270
Base:
$3,000 per month
Base pay:
30% of projected pay
Commission:
4% of selling gross of new and used vehicles departments. Total variable gross less
direct expenses
Bonus:
10% of net profit of dealership. Paid quarterly (based on calendar year)
$300 - sales CSI exceeds 3 month zone average
$200 - service CSI exceeds 3 month zone average
Other Compensation: Company Car
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
101-200
# of Sales People:
20
# of Mechanical Technicians:
12 – Non-Union
Benefits:
Health Insurance:
Yes – 50% paid by dealership
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
Yes
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
Country club membership
____________________________________________________________________________________
Comments:
Here's another pay plan where I think the actual compensation will come in a lot higher than the target
range of $120,000. If it does, the dealer will be tempted to change the plan and there will be one
disgruntled general manager. Better to raise the base salary and pay a smaller percentage of the net
profit as a bonus.
GM 7
General Manager
281
Base:
$1,800.00 per week
Base pay:
79% of projected pay
Commission:
Based on net profit of store:
Bonus:
0-40,000 5%
40,001-69,999 6%
70,000 & over 7%
N/A
Other Compensation: Demo
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
200+
# of Sales People:
50
# of Mechanical Technicians:
52 – Non-Union
Benefits:
Health Insurance:
Yes – 100% Dealership paid
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
Good combination of base pay and bonus. I like the use of the stair-step bonus approach.
GM 8
GSM:
General Sales Manager
General Sales Manager
1
Base:
$500/week salary
Base pay:
100% of projected income
Commission:
None
Bonus:
$10,000 yearly bonus
Other Compensation: Company Vehicle
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
5
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes - 85% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 week at 1 year, 2 weeks at 3 years, 3 weeks at 10 years
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
Vision Plan
No
____________________________________________________________________________________
Comments:
This is a low-volume dealership, but even so, this seems too low for a general sales manager. In fact,
we’d question why a dealership with only 5 salespeople even needs a GSM.
GSM 1
General Sales Manager
12
Base:
$0
Base pay:
0% of projected income
Commission:
5.9% of GP for new & used retail & fleet sales including Business Office (BO) gross (less
BO commissions).
Bonus:
CSI monthly bonus
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
17
# of Mechanical Technicians:
15 - Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 year gets 2 weeks, 4 years gets 3 weeks, 9 years gets 4 weeks
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
N/A
Yes - 2 times annual earnings, maximum benefit $300,000
____________________________________________________________________________________
Comments:
For this Honda store, I’m sure the general sales manager does OK. But, full commission pay plans for
senior dealership managers send a bad message (“You’re no more important to us than one of your sales
reps”). Try for more of a balance between salary and incentives.
GSM 2
General Sales Manager
14
Base:
$1,000 per week salary $500/week draw
Base pay:
65-70% of projected income
Commission:
Equal Unit sales of previous year same month $500 with each unit over worth $100 and
105% same month previous year earns additional $1,000
Bonus:
3% NC Dept Net Profit/Loss; 2% UC Dept Net Profit/Loss; 2% NC Dept F&I gross;
NC F&I avg/unit $500 or more is $1,000
Other Compensation: Demo vehicle
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda and Nissan
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
19
# of Mechanical Technicians:
20 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 80% of employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401(k) with 20% match of first 4% saved
# Vacation Days:
1 week after 1 year; 2 weeks after 3 years; 3 weeks after 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Vision, AFLAC paid by employee, 60% of disability premium
Yes - $237.93/month employee; $312/month if family coverage
____________________________________________________________________________________
Comments:
I don’t have any problem with this approach.
GSM 3
General Sales Manager
2
Base:
$36,000
Base pay:
24% of projected income
Commission:
10% of the net profit from financial statement line 70
Bonus:
None
Other Compensation: 20 Group participation paid, factory sponsor bonuses
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
16 - Non-Union – Combination: some team, some direct report
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes – 50%
____________________________________________________________________________________
Comments:
Looks like a good living for this Honda manager. Again, we’d suggest a little more salary and a little less
incentive. You’d hit the target income level and have better control over expenses. Less need to change
pay plans.
GSM 4
General Sales Manager
22
Base:
$5,000 monthly
Base pay:
50% of projected income
Commission:
4 percent of adjusted gross profit
Bonus:
$50 per car
Other Compensation: Volume bonus of $60 per car
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW Porsche Volkswagen Subaru Isuzu
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union - Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
3
Other Benefits:
N/A
Yes - $100K
____________________________________________________________________________________
Comments:
Good pay plan. No suggested improvements.
GSM 5
General Sales Manager
25
Base:
Salary of $1,700.00/week
Base pay:
90% of projected income
Commission:
1% of front-end gross
Bonus:
None
Other Compensation: A car allowance of $400 per month
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
9
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
15 max
# Paid Sick Days: 5
Paid Holidays:
7
Other Benefits:
Car allowance (managers)
Yes
____________________________________________________________________________________
Comments:
I like this approach and have seen it work very well in both domestic and import dealerships.
GSM 6
General Sales Manager
27
Base:
None
Base pay:
0% of projected income
Commission:
20% net
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
10
# of Mechanical Technicians:
12 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15
# Paid Sick Days: 0
Paid Holidays:
7
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Hate it. First, paying 20% of the net to any manager is the equivalent of making that manager a 20%
owner of the business with none of the downside risk. Why would you do that? Second, this full
commission approach tends to produce wide swings in income for things that are largely out of the
manager’s control. Does record sales one month mean this manager is a star while a drop off the next
month means the manager is suddenly incompetent?
GSM 7
General Sales Manager
28
Base:
$120,000 annually
Base is:
85% of projected income
Commission:
2% of Controllable Gross.
Controllable Gross = Total Gross - slsmn compensation - delivery exp. - policy work
- other salaries and wages - e-commerce and advertising
- Floor plan interest and credits
Bonus:
3% of SFE Bonus paid quarterly
5% total dealership net profit figured on a quarterly basis
Other Compensation: $500 monthly vehicle allowance. No demos.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chevrolet
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
13
# of Mechanical Technicians:
8 - Non-Union - Sales teams with alternating schedules
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes
# Vacation Days:
5 days after one year of employment
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Good pay plan for the GSM of this dealership.
GSM 8
General Sales Manager
32
Base:
$30,000
Base pay:
15% of projected income
Commission:
1.75% Gross profit new and preowned
20% finance and insurance income
Bonus:
Unit Count Bonus $500 - $3,000
New Unit Count Bonus $500 - $3,000
Preowned MO Gross Bonus $500 - $2,000 New MO
Gross Bonus $500 – $2,000
Preowned CSI Bonus $500
Other Compensation: Annual EOY Bonus $10,000 - $40,000
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
7 - Non-Union - Tech's work on the full car - not specialized
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, Pension and 401K
# Vacation Days:
5 days after 1 year - 10 days after 2 years
# Paid Sick Days: 5 days after 1 year
Paid Holidays:
5
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
Here’s my problem: This dealership delivers 50 to 100 units a month. The GSM is supposed to earn
about $200,000 based on the pay plan. When I work through the numbers we were given, it looks like the
dealer is giving up an awfully large chunk of the gross to this manager. If the GSM gets 20% of the net F
& I income, how much does the actual F & I manager get? I’d have to go back and re-think this one.
GSM 9
General Sales Manager
42
Base:
$1,500 per week
Base pay:
42% of projected income
Commission:
None
Bonus:
4% of bottom line Each month more than 100 new retail sale Cadillacs = $1500
Quarterly SFE bonus - if satisfy SFE criteria - $1000.00
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, Saturn & Hummer
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
41 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after year, 10 days after 2 years
# Paid Sick Days: up to 4 days 1st year, 6 days after 1 year, 11 days after 10 years
Paid Holidays:
6
Other Benefits:
N/A
Yes - Company paid $20,000 coverage
____________________________________________________________________________________
Comments:
High volume Cadillac/Hummer dealership. The pay plan looks just right!
GSM 10
General Sales Manager
45
Base:
$125,000 per year
Base pay:
80% of projected income
Commission:
2% of gross sales
Bonus:
None
Other Compensation: $1,000 demo allowance
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
GM
Monthly Sales Vol. (new & used):
201+ - Negotiated Sale
# of Sales People:
34
# of Mechanical Technicians:
11 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Discounts on vehicles, parts & labor
Yes - $15,000
____________________________________________________________________________________
Comments:
For this high-volume store, the pay plan is very good.
GSM 11
General Sales Manager
49
Base:
$12,000/month
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Used
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
8
# of Mechanical Technicians:
3 - Non-Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
N/A
# Paid Sick Days: included
Paid Holidays:
Included
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
If both the dealer and general sales manager are OK with this approach, I’m all for it. But $144,000 a
year in a dealership this size seems a tad high
GSM 12
General Sales Manager
51
Base:
$3,000/month draw
Base pay:
0% of projected income
Commission:
3% Variable Gross
Bonus:
$50.00 per vehicle after 59th delivery
Other Compensation: Demo provided, gas allowance & social membership at local country club.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Pontiac & Buick
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
N/A
# of Mechanical Technicians:
Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% for employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 after 1st year 10 after third year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail
Yes - None paid by employer
____________________________________________________________________________________
Comments:
Wait for it – I don’t like this pay plan. What is the dealer trying to accomplish by paying this senior
manager like a sales rep? Sure, the dealer is protected in bad months, but the GSM gets overpaid in
strong months, yet he is still the same manager doing the same things. What is the job worth? Create a
pay plan that pays the manager for the value of the job.
GSM 13
General Sales Manager
55
Base:
$700 per week
Base pay:
30-40% of projected income
Commission:
5% selling gross
Bonus:
Unit production, CSI
Other Compensation: Contests, etc
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford Lincoln Mercury Mazda
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes – 33.3% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1-3 weeks
# Paid Sick Days: 5
Paid Holidays:
6
Other Benefits:
Demos
Yes - $100,000
____________________________________________________________________________________
Comments:
This looks OK. The pay plan has the virtue of being simple and easy to track.
GSM 14
General Sales Manager
57
Base:
$5,500/month
Base pay:
70% f projected income
Commission:
5 % of total dealer net profit per month
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick Cadillac Pontiac
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes – 75% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 after first year - 10 after 2nd year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
125 plan
No
____________________________________________________________________________________
Comments:
No problem with the concept but I wonder if a dealership this size really needs a general sales manager.
GSM 15
General Sales Manager
61
Base:
$12,000/month
Base pay:
50% of projected income
Commission:
3.5% of new & used vehicle sales gross
Bonus:
CSI: $800 for Green, $0 for Yellow, $<800> for Red $500 bonus for #1 selling dealer in
the month $500 bonus for #1 selling dealer in region in the month
Other Compensation: Demo, Company paid health insurance, Gas allowance.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union
Benefits:
Health Insurance: Yes – 55% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 Max
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Offer Employee Paid Supplemental Insurance, Employee Discounts
Yes - $20,000
____________________________________________________________________________________
Comments:
Pay plan looks about right for this high volume Toyota store.
GSM 16
General Sales Manager
64
Base:
$35,000
Base pay:
40% of projected income
Commission:
2% on Gross sales
Bonus:
None
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
New RV's
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
2
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: No
Life Insurance:
Prescription Plan: No
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10 days at hire, 15 days after 4 years
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Christmas Bonus
No
____________________________________________________________________________________
Comments:
Note that this is an RV dealership, hence the low volume but large pay package.
GSM 17
General Sales Manager
66
Base:
Draw against commission
Base pay:
0% of projected income
Commission:
4% of sales gross profit less policy accounts
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota and Hyundai
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
15
# of Mechanical Technicians:
14 - Non-Union, Service teams but paid individual flat rate hours
Benefits:
Health Insurance: Yes – Dealership pays 50% of single 35% of family
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 after 1 year, 10 after 3 years, 15 after 10 years, 20 after 20 years
# Paid Sick Days: 5
Paid Holidays:
8
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Straight commission is not a good way to pay dealership managers. The pay plan sends a mixed
message to the managers.
GSM 18
General Sales Manager
97
Base:
$8,333.33 draw
Base pay:
0% of projected income
Commission:
16.8% of net income of sales Dept less draw= $$$ net to pay
Bonus:
$1,000 per month if closing ratio is 20% and Gross average per unit $2,000. If one of the
criteria not done bonus cut to $500.
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
N/A
Monthly Sales Vol. (new & used):
N/A
# of Sales People:
N/A
# of Mechanical Technicians:
N/A
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
16.8% of the gross. I wonder how the dealer came up with that precise percentage? Could it be that the
dealer feels the job is worth $100,000 a year and 16.8% gets him there? Pay plan changes coming up.
GSM 19
HRM:
Human Resources
Manager
Human Resources Manager
2
Base:
$60,000
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
16 - Non-Union
Combination - some team / some direct report
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes – 50%
____________________________________________________________________________________
Comments:
Good approach. I’d add a performance bonus equal to 5% of income.
HR 1
Human Resources Manager
21
Base:
$42,000/year
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Toyota, Scion
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
26
# of Mechanical Technicians:
29 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays a flat $200 per month per employee
Life Insurance:
Yes - Any portion of $200 monthly allowance not use on health insurance
applied to life insurance
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 3 years, 3 weeks after 15 years
# Paid Sick Days: 3 per year
Paid Holidays:
6
Other Benefits:
Vision, short and long disability
____________________________________________________________________________________
Comments:
Good approach although, again, I’d add a small bonus component.
HR 2
Human Resources Manager
39
Base:
$6,250 monthly
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: Demo
Note: HR Manager also is in charge of facilities, legal, liability & workers comp, roving employee
positions.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Lincoln, Mercury
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
15 - Non-Union
Benefits:
Health Insurance: Yes - 100% paid by the dealership for the employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days for 1 year and 10 days for 2+ years
# Paid Sick Days: 4 per year
Paid Holidays:
5
Other Benefits:
Vision
Yes - $10,000
____________________________________________________________________________________
Comments:
Add a performance bonus component, otherwise spot on.
HR 3
Human Resources Manager
4
Base:
$62,500/year
Base pay:
100% of projected income
Commission:
N/A
Bonus:
NA
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge Jeep
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
36
# of Mechanical Technicians:
54 - Non-Union, Lexus - Technician Team System
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 after 1 year, 10 after 2 years, 15 after 7 years.
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Voluntary Supplemental - AFLAC, Mutual of Omaha
Yes - $15,000
____________________________________________________________________________________
Comments:
Salary is the way to go for this position. Maybe a small performance-related bonus too.
HR 4
Human Resources Manager
61
Base:
$4,500/monthly
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union
Benefits:
Health Insurance: Yes – 55% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 Max
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Offer Employee Paid Supplemental Insurance, Employee Discounts
Yes - $20,000
____________________________________________________________________________________
Comments:
No problems with this approach.
HR 5
Human Resources Manager
67
Base:
$75,000/year
Base pay:
100% of projected income
Commission:
None
Bonus:
$10,000
Other Compensation: Car Allowance, Deferred Comp package
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
100
# of Mechanical Technicians:
100 - Non-Union, Sales Teams
Benefits:
Health Insurance: Yes - 65% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Supplemental 100% Employee Paid
Yes – 100%
____________________________________________________________________________________
Comments:
The straight salary approach is right for this job in this high volume dealership. Some performance
component would be in order too.
HR 6
NSM:
New Car Sales
Manager
New Vehicle Sales Manager
34
Base:
$24,000
Base pay:
20% of projected income
Commission:
1 % of new vehicle gross and new F&I net gross less new F&I net charge backs PG 2
LINE 2 TOYOTA , ALH1., ALH2 STATEMENT
$3.00 per new car including fleet/inet
12.5% of all new car SET bonuses (FAST START AND MARKET CHALLENGE)
$2.00 per unit on all new units sold per month if VDQ and SSI are at or above district
average MTD
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, BMW, Honda, Pontiac, Buick & GMC
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
42 - Non-Union, Llateral support
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
4 days after 90 days, 9 days after 1 year, 14 days after 2 years
# Paid Sick Days: Vacation and sick are called pto
Paid Holidays:
5 for all but productive on 3 for productive
Other Benefits:
Prepaid legal, HHF, FSA, AFLAC
Yes
____________________________________________________________________________________
Comments:
Looks like $120,000+ a year for the new car manager in this high volume store. That seems OK. It’s a
little complicated but not too much. I like the combined emphasis on both total front-end gross, unit
volume, and customer satisfaction scores.
NSM 1
New Vehicle Sales Manager
36
Base:
$2,000/month
Base pay:
33% of projected income
Commission:
1.3% of Total Variable Gross (New and Used, plus F&I comp) from monthly statement,
line 2.
Bonus:
$500 for beating our main competitor each month, $500 for leading the market area each
month CSI must be at 85% to qualify for bonus
Other Compensation: $1.50 per Etch sold
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick, Pontiac, GMC
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
15 - Non-Union
Due to the decrease in sales volume, we have created selling and administrative managers
Benefits:
Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
One week paid after first year, two weeks paid thereafter
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
This is OK. It’s hard to see this pay plan going too far wrong. The fixed dollar bonus for beating certain
hurdles is an especially good idea.
NSM 2
New Vehicle Sales Manager
39
Base:
$4,000 per month
Base pay:
Approximately 40% of projected income
Commission:
No commission
Bonus:
Paid monthly, 3% of New Selling Gross, 2% Used Selling Gross
Other Compensation: Ford spiffs for sales managers, demo
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Lincoln, Mercury
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
15 - Non-Union
Benefits:
Health Insurance: Yes - 100% paid by the dealership for the employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days for 1 year and 10 days for 2+ years
# Paid Sick Days: 4 per year
Paid Holidays:
5
Other Benefits:
Vision
Yes - $10,000
____________________________________________________________________________________
Comments:
This is very close to what we would recommend for sales managers. Maybe a little more in salary and a
little less emphasis on commissions.
NSM 3
New Vehicle Sales Manager
42
Base:
$750.00 per week
Base pay:
56% of projected income
Commission:
N/A
Bonus:
3% of variable gross profit less controllable expenses.
Any month 100 or more retail new Cadillacs - $1000.00
Quarterly SFE bonus - if obtain SFE then $1000.00
Other Compensation: Demonstrator vehicle
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, Saturn & Hummer
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
41 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after year, 10 days after 2 years
# Paid Sick Days: up to 4 days 1st year, 6 days after 1 year, 11 days after 10 years
Paid Holidays:
6
Other Benefits:
N/A
Yes - Company paid $20,000 coverage
____________________________________________________________________________________
Comments:
This is a big Cadillac store so maybe the projected income is a little light, but the basic formula is very
good.
NSM 4
New Vehicle Sales Manager
49
Base:
$10,000/month
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Used
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
8
# of Mechanical Technicians:
3 - Non-Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
N/A
# Paid Sick Days: Included
Paid Holidays:
Included
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
For a mature dealership with predictable results this approach will work well. Maybe reduce the salary a
little and add some production incentives.
NSM 5
New Vehicle Sales Manager
5
Base:
$2,000/month
Base pay:
25% of projected income
Commission:
Increasing commission based on department gross to 100k 1%, 100 to 200 k 1.5%,
200 to 300k 2.00%, 300k + 2.5%.
Bonus for units sold. New 1-20, $6, 21-40 $8, 41-60 $10, 61-80 $14, 81+,$20.
Used units sold bonus, 1-20 $6, 21-40 $8, 41-60 $10, 61-80 $14, 81+ $20.
Bonus:
Salesmen's performance bonus $150 for each salesman achieving 10 deals or more.
If 10 or more salesmen achieve 10 deals or more $1000 bonus
Other Compensation: Car allowance of $350 per month, gas allowance of $150 per month, cell phone.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chrysler, Dodge, Jeep
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
22 - Non-Union, yes
Benefits:
Health Insurance: Yes – 60% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, Group RRSP
# Vacation Days:
10 after one year, 15 days after 5 years, 20 days after 10 years
# Paid Sick Days: 0
Paid Holidays:
9
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Starts off good and then gets too complicated. Simplify it. Don’t make the sales manager think too much
about his pay plan and don’t give him reasons to defer sale from one month to the next just to bump up
the bonus.
NSM 6
New Vehicle Sales Manager
6
Base:
$3,750/month
Base pay:
39% of projected income
Commission:
.5% NC Gross Profit .92% NC Selling Profit
Bonus:
Hit Selling Profit Target = $1000
Meet or Beat CSI National Average = $500
Other Compensation: $50 /veh over annual target
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
15 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, RRSP (Canada Specific)
# Vacation Days:
10 - 20 Depends on LoS
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
Purchase Plan, Ed Asst. LoS Awards
Yes – 2x Gross Earnings
____________________________________________________________________________________
Comments:
Not bad, but the commission percentages are a classic example of a dealer trying to make the pay plan
hit a target number. If the idea is that the sales manager should earn $115,000 - $120,000/year there are
easier ways to get there.
NSM 7
New Vehicle Sales Manager
60
Base:
Commission
Base pay:
0% of projected income
Commission:
3-5% of gross
Bonus:
Bonuses are given on surveys if department is above zone & national.
Aso typical bonuses given for units and grosses.
Other Compensation: They also get a percentage of the net if forecast is acheived.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
24 - Non-Union, Lateral Support Groups
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
2 weeks
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
No! This is not really a manager’s pay plan. It’s a pay plan for a senior sales consultant. The potential
for wide fluctuations in pay, high turnover among managers and frequent pay plan changes is high.
NSM 8
New Vehicle Sales Manager
61
Base:
$6,000/month
Base pay:
50% of projected income
Commission:
2% of new and used gross profit sales
Bonus:
CSI: $500 for Green, $0 for yellow, $<500> reduction for Red
Other Compensation: Paid Health Insurance and Demo
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union, Yes
Benefits:
Health Insurance: Yes - 55% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 Max
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Offer Employee Paid Supplemental Insurance, Employee Discounts
Yes - $20,000
____________________________________________________________________________________
Comments:
Excellent pay plan for a sales manager in this high volume import dealership.
NSM 9
New Vehicle Sales Manager
62
Base:
$50,000/year
Base pay:
66% of projected income
Commission:
N/A
Bonus:
CSI, % of total vehicle gross, excluding F&I
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chevrolet
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
4
# of Mechanical Technicians:
6 - Union
Benefits:
Health Insurance: Yes – Dealership pays 100% employee only
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 4
Paid Holidays:
7
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
This Chevy dealership probably needs some additional salespeople, but that’s another issue. The pay
plan for the sales manager is sound.
NSM 10
New Vehicle Sales Manager
68
Base:
$450 per week
Base pay:
45% of projected income
Commission:
30% of gross profit on new vehicle sales
Bonus:
2% Gross Income for Year
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cheverolet
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
3
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 1 day for every month worked in year
Paid Holidays:
7
Other Benefits:
N/A
Yes - $5,000
____________________________________________________________________________________
Comments:
If I read this right, the new car manager gets 30% of the front-end gross plus 2% of the front-end gross at
year-end as a bonus. That adds up to 32% any way you slice it. Good formula but don’t fool yourself into
thinking the extra two percent means anything, unless it’s clear that it is a holdback and an incentive to
stay with the dealership through year-end.
NSM 11
New Vehicle Sales Manager
10
Base:
$3,000 per month draw
Base pay:
0% of projected income
Commission:
4.5% new Toyota gross profit (less doc fee, dealer advt&ins, Floorplan assist holdback)
will include Toyota Guard and dealer cash. page 6 lines 38 & 53 plus admin. incentive
total gross x 4.5% = total commission
Bonus:
135 units - $2500 bonus; 140 units - $2700; 145 units - $3000; 150 units - $3300;
155 units - $3500; 160 units - $3700; 165 units - $4000; 170 units - $4300;
175 units - $4500; 180 units - $5000; 185 units - $5200; 190 units - $5400;
200 units - $5600; 210 units - $6000; 225 units - $6500; 250 units - $7500;
275 units - $8000; 300 units - $8500.
Bonus is contingent upon the current month's SSS scores being at green, below green
will result in a 10% reduciton in total bonus. Must meet SET's set objective for the monthfailure to meet objective will result in a 10% reduction in total bonus
Other Compensation: New F&I x 2.5%
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Mitsubishi
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
27
# of Mechanical Technicians:
20 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
7
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Holy Moly! Where do I start? Overly complicated. The bonus plan pays $60/unit at most levels so you
really don’t need so many levels. The bonus rate peaks in the middle of the range and then declines at
the really high production levels – why? Don’t make this more complicated than it needs to be. The pay
plan will never manage the sales person’s behavior!
NSM 12
New Vehicle Sales Manager
12
Base:
$0
Base pay:
0% of projected income
Commission:
4.6% of GP for new & used retail & fleet sales including Business Office gross (less BO
commissions)
Bonus:
CSI monthly bonus
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
17
# of Mechanical Technicians:
15 - Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership:
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 year = 2 weeks, 4 years = 3 weeks, 9 years = 4 weeks
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
N/A
Yes - 2 times annual earnings, maximum benefit $300,000
____________________________________________________________________________________
Comments:
I just can’t get behind full commission pay plans for dealership managers. A plan like this can and does
create wild swings in monthly income. Figure out what the job is worth and try to get there with a
combination of salary and incentives.
NSM 13
New Vehicle Sales Manager
14
Base:
$1,000 per week salary plus $450/week draw
Base pay:
60-70% of projected income
Commission:
Equal Unit sales of previous year same month $400.00; each over $50;
105% same month previous year $700;
Bonus:
2% NC Dept net profit/loss; 1% UC net profit/loss; 1% nc dept F&I gross; new car dept
F&I average/unit $500 or more is $700
Other Compensation: Demo vehicle
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda and Nissan
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
19
# of Mechanical Technicians:
20 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 80% of employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K with 20% match of first 4% saved
# Vacation Days:
1 week after 1 year; 2 weeks after 3 years; 3 weeks after 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Vision, AFLAC paid by employee, 60% of disability premium
Yes - $237.93/month employee; $312/month if family coverage
____________________________________________________________________________________
Comments:
Much better. This is the formula we like to see for sales manager pay plans
NSM 14
New Vehicle Sales Manager
15
Base:
$14,400/year
Base pay:
12% of projected income
Commission:
3.5% of total sales gross, plus DX income less policy and delivery charges
Bonus:
$300 per month if CSI is hit
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
6
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
33 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Short term disability
Yes $25,000
____________________________________________________________________________________
Comments:
I’d like to see a higher salary and less reliance on commission, but this is basically OK. Simple and easy
to track.
NSM 15
New Vehicle Sales Manager
19
Base:
$0
Base pay:
0% of projected income
Commission:
4% of front and back end gross on new and used and an additional 25% for any personal
sales
Bonus:
Unit/volume bonus based on monthly objective
Other Compensation: Demo and gas allowance of $200/month
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, GMC, Pontiac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
6 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
up to 3 weeks
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Again, I think the dealer has an income level in mind for this manager, but a full-commission pay plan is
not the right way to get there. This pay plan will have to modified every six months or so.
NSM 16
New Vehicle Sales Manager
2
Base:
$48,000
Base pay:
53% of projected income
Commission:
4% of the New and Used Variable Net - Operating Income minus variable selling expense
and floor plan assistance
Bonus:
Occasional special bonuses
Other Compensation: Factory sponsor sales manager bonus
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
16 - Non-Union, combination - some team / some direct report
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes – 50%
____________________________________________________________________________________
Comments:
This is good. Nice and simple. Easy to track. Pay will be fair and stay under control.
NSM 17
New Vehicle Sales Manager
27
Base:
$0
Base pay:
0% of projected income
Commission:
6%
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
10
# of Mechanical Technicians:
12 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15
# Paid Sick Days: 0
Paid Holidays:
7
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Why is it that some dealers pay 3% others pay 4.5%, and this dealer pays 6% of the gross? Are some
sales more valuable than others or could it be that the dealer is trying to back into a desired income
range? If so, a full commission pay plan is the least effective way to do it!
NSM 18
New Vehicle Sales Manager
3
Base:
$78,000
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota & Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
12 - Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 10
Paid Holidays:
8
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Again, we like to see more reliance on salary vs. commission for managers’ pay plans, but there should
be some balance between the two variables. Say 60% salary and 40% bonus.
NSM 19
New Vehicle Sales Manager
34
Base:
None
Base pay:
0% of projected income
Commission:
Calculated from the NCM Statement pg 2 line 2
New and Used Grosses to include F&I (both) and fees (both) + or – wholesale less policy
1.75% up to $549K
2% $550K- $599K
2.25% $600K+
new, used F&I (both) and fees (both) + or – wholesale less policy gross. demo
25% of SET certified and market challenge and fast start.
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, BMW, Honda, Pontiac, Buick & GMC
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
42 - Non-Union, Lateral support
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
4 days after 90 days, 9 days after 1 year, 14 days after 2 years
# Paid Sick Days: vacation and sick are called pto
Paid Holidays:
5 for all but productive on 3 for productive
Other Benefits:
prepaid legal, HHF, FSA, AFLAC
Yes
____________________________________________________________________________________
Comments:
This probably makes sense to the payroll clerk and the controller but the sales manager can’t relate
except at the end of the week or month. Keep it simple and don’t pay dealership managers full
commission.
NSM 20
Fleet Manager
14
Base:
$1,025/week
Base pay:
80% of projected income
Commission:
None
Bonus:
$500/month if new car retail total exceeds previous year month by a minimum of 105%
Other Compensation: Selected Fleet Manager, but this is our inventory manager
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda and Nissan
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
19
# of Mechanical Technicians:
20 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 80% of employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401(k) with 20% match of first 4% saved
# Vacation Days:
1 week after 1 year; 2 weeks after 3 years; 3 weeks after 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Vision, AFLAC paid by employee, 60% of disability premium
Yes - $237.93/month employee; $312/month if family coverage
____________________________________________________________________________________
Comments:
I can’t see any problems with this approach. The pay is fair and the plan is easy to track and understand.
NSM 21
Fleet Manager
53
Base:
$1,000/month
Base pay:
20% of projected income
Commission:
Commission for any vehicle sold and the volumn of the fleet parts and service business
Bonus:
Override If over the quota for fleet vehicles
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford Lincoln-Mercury Mazda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
24
# of Mechanical Technicians:
41 - Non-Union
Simple Support with a Quick Service team of 18 Techs
Benefits:
Health Insurance: Yes – Dealership pays the first $150 not a %
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days 1st Year, 10 days after 3 Years 15 days after 10 years
# Paid Sick Days: 0
Paid Holidays:
7
Other Benefits:
N/A
Yes - $10K Paid by the Company
____________________________________________________________________________________
Comments:
Looks good. Make sure the projected income is adequate for the expected fleet volume.
NSM 22
Fleet Manager
67
Base:
Salary of $2,500 paid every other month
Base pay:
25% of projected income
Commission:
The Sales Consultant is eligible to receive a commission of 40% of the “Sales Payable
Gross” in excess of $0 on New Vehicles and $375 on Used Vehicles, subject to the
following Minimum commissions:
Minimum Commission on New Vehicles: $150.00
Minimum Commission on Used Vehicles: $200.00
Minimum Commission on all Enterprise fleet sales: $20.00
Minimum Commission on Governmental fleet sales: $100.00
Bonus:
Unit Bonus Opportunities - You are eligible for the following (non cumulative) unit
bonuses on “billed deals” where you are listed as a salesperson:
12 Units
16 Units
20 Units
$500.00
$750.00
$1,000.00
OR
OR
F&I Commission Opportunity - You are eligible to receive 10% of the F & I gross profit on
your billed deals.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
100
# of Mechanical Technicians:
100 - Non-Union - Sales Teams
Benefits:
Health Insurance: Yes – 65% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401(k)
# Vacation Days:
5
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Supplemental 100% Employee Paid
Yes – 100%
____________________________________________________________________________________
Comments:
We don’t know the expected fleet volume here, but a projected income of $60,000 a year seems about
right. The commission plan strikes us as just a little too complicated.
NSM 23
OM:
Office Manager
Office Manager
14
Base:
$875 per week
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda and Nissan
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
19
# of Mechanical Technicians:
20 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 80% of employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K with 20% match of first 4% saved
# Vacation Days:
1 week after 1 year; 2 weeks after 3 years; 3 weeks after 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Vision, AFLAC paid by employee, 60% of disability premium
Yes - $237.93/month employee; $312/month if family coverage
____________________________________________________________________________________
Comments:
Looks good. Maybe a small year-end incentive bonus based on store performance.
OM 1
Office Manager
15
Base:
$50,000
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
6
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
33 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Short term disability
Yes - $25,000
____________________________________________________________________________________
Comments:
If $50,000 is the right level of pay for the office manager in a six-franchise group, then OK. A small
performance bonus would be a good idea too.
OM 2
Office Manager
16
Base:
$50,000
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
NO
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
12 - Non-Union, Teams
Benefits:
Health Insurance: Yes - 80% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, Group RRSP
# Vacation Days:
10
# Paid Sick Days: 2
Paid Holidays:
10
Other Benefits:
N/A
Yes - Salary
____________________________________________________________________________________
Comments:
If $50,000 is the right level of pay for the office manager in a franchise group, then OK. A small
performance bonus would be a good idea too.
OM 3
Office Manager
19
Base:
$850 per week
Base pay:
95% of projected income
Commission:
N/A
Bonus:
Month end close bonus of $350
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, GMC, Pontiac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
6 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
up to 3 weeks
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
This is a very good office manager pay plan.
OM 4
Office Manager
2
Base:
$30,000
Base pay:
50% of projected income
Commission:
.75% on the net profit (F/S = L70) of both Honda & Toyota Dealerships
Bonus:
N/A
Other Compensation: Guarantee of $60,000 per year
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
16 - Non-Union, Combination - some team / some direct report
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes – 50%
____________________________________________________________________________________
Comments:
This is OK as long as the dealer believes in his heart of hearts that the office manager has this much
impact on store profits month-to-month.
OM 5
Office Manager
21
Base:
$40,308.00 annual
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Toyota, Scion
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
26
# of Mechanical Technicians:
29 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays a flat $200 per month per employee
Life Insurance:
Yes - Any portion of $200 monthly allowance not use on health insurance
applied to life insurance
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 3 years, 3 weeks after 15 years
# Paid Sick Days: 3 per year
Paid Holidays:
6
Other Benefits:
Vision, short and long disability
____________________________________________________________________________________
Comments:
OK, but why not add some small bonus for special achievement?
OM 6
Office Manager
31
Base:
$14.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
KIA Chevy
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes – 0% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
7
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Hourly pay for a manager is a problem. Salary is better. Hourly pay implies that this person is not really a
manager and should be eligible for overtime pay. Is that the case?
OM 7
Office Manager
37
Base:
$1913.00 bi-weekly
Base pay:
90% of projected income
Commission:
N/A
Bonus:
1% of net profit per month
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota and Scion
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
9 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K, Safe Harbor
# Vacation Days:
5 after 1 year, 10 after 2 years, 15 after 3 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Birthday off with pay
Yes - One year's gross wage
____________________________________________________________________________________
Comments:
Excellent office manager pay plan.
OM 8
Office Manager
4
Base:
$3,750.00 per month
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge Jeep
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
36
# of Mechanical Technicians:
54 - Non-Union, Lexus - Technician Team System
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 after 1 year. 10 after 2 years. 15 after 7 years.
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Voluntary Supplemental - AFLAC, Mutual of Omaha
Yes - $15,000
____________________________________________________________________________________
Comments:
Try a small bonus component but otherwise a good approach for office manager pay.
OM 9
Office Manager
45
Base:
$65,000 per year
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: $350 demo allowance
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
GM
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
34
# of Mechanical Technicians:
11 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Discounts on vehicles, parts & labor
Yes - $15,000
____________________________________________________________________________________
Comments:
Once again, straight salary is good, but a small incentive bonus would make this plan perfect.
OM 10
Office Manager
51
Base:
$3,500 Salary
Base pay:
80% of projected income
Commission:
Net x 1.02% = # Net - # = BONUS PAY
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Pontiac & Buick
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
N/A
# of Mechanical Technicians:
Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% for employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 days after 1st year, 10 days after third year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail
Yes - None paid by employer
____________________________________________________________________________________
Comments:
Good pay plan. Easy to understand and track performance.
OM 11
Office Manager
64
Base:
$32,000
Base pay:
100% of projected income
Commission:
None
Bonus:
$1,000
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
New RV's forest river
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
2
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: No
Life Insurance:
Prescription Plan: No
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10 days at hire, 15 days after 4 years
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Christmas Bonus
No
____________________________________________________________________________________
Comments:
OK. The bonus should be paid for some achievement other than not quitting during the year.
OM 12
P:
Porter
Porter
15
Base:
$20,800
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
6
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
33 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Short term disability
Yes - $25,000
____________________________________________________________________________________
Comments:
This is a fine way to pay the lot porters.
P1
Porter
17
Base:
$8 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
43
# of Mechanical Technicians:
28 - Non-Union, Lateral support
Benefits:
Health Insurance: Yes – Dealership pays 80% of employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days at one year, 10 days at two years, 15 days at ten years
# Paid Sick Days: 6 for hourly employee only
Paid Holidays:
5 for hourly employee
Other Benefits:
Christmas fund matching
Yes - up to $50,000
____________________________________________________________________________________
Comments:
You know, we have a low opinion of lot porters too, but $8/hour is awfully close to minimum wage.
Dealers who take this approach take the risk of being left with only the McDonald’s rejects as candidates.
P2
Porter
18
Base:
$10-11 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: $50 per week to 401K
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
17
# of Mechanical Technicians:
21 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days at 1 year, 10 days at 2 years, 15 days at 8 OR 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
An observation: The $50/week contribution to the 401K is very generous for someone in this wage range.
Is it even legal? Hard to believe someone earning $400/week pre-tax is adding much if anything to the
retirement plan.
P3
Porter
19
Base:
$12.25 per hour
Base pay:
100 % of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, GMC, Pontiac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
6 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
up to 3 weeks
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
This is OK for porters.
P4
Porter
2
Base:
$10.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
Random spot incentives through out the year usually between $20 - $200
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
16 - Non-Union, combination - some team / some direct report
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes – 50%
____________________________________________________________________________________
Comments:
I like the spot bonuses/spiffs. I question whether $10/hour is sufficient to attract quality people. If it is in
this case, so be it.
P5
Porter
20
Base:
$8.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: overtime pay = time & ½; paid lunches on Saturdays
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Lexus
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
14 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Overtime pay is legally required so don’t try to make it look like a bonus. If $8.50/hour attracts the level of
person you want, fine.
P6
Porter
37
Base:
$9.00 to $10.50 per hour depending on time in grade.
Base pay:
99% of projected income
Commission:
N/A
Bonus:
$50.00 per month bonus for VDI (vehicle delivery index) of 95-99%, $100.00 per month
for 100%
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota and Scion
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
9 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K, Safe Harbor
# Vacation Days:
5 days after 1 year, 10 days after 2 years, 15 days after 3 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Birthday off with pay
Yes - One year's gross wage
____________________________________________________________________________________
Comments:
This should be OK.
P7
Porter
4
Base:
$10.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
NA
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge Jeep
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
36
# of Mechanical Technicians:
54 - Non-Union, Lexus - Technician Team System
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after 1 year. 10 days after 2 years. 15 days after 7 years.
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Voluntary Supplemental - AFLAC, Mutual of Omaha
Yes - $15,000
____________________________________________________________________________________
Comments:
OK
P8
Porter
41
Base:
$8.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
CSI
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chevrolet here
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
12 - Non-Union, Service Groups, similar to lat support
Benefits:
Health Insurance: Yes - 20% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 per year, max of 15
# Paid Sick Days: 5
Paid Holidays:
6
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
If the minimum wage is $7.15 and higher in some states, $8.50 looks awfully low.
P9
Porter
45
Base:
$15.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: $100 uniform per quarter
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
GM
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
34
# of Mechanical Technicians:
11 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Discounts on vehicles, parts & labor
Yes - $15,000
____________________________________________________________________________________
Comments:
Seems OK.
P 10
Porter
49
Base:
$10.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Used
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
8
# of Mechanical Technicians:
3 - Non-Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
N/A
# Paid Sick Days: included
Paid Holidays:
Included
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
Think about it. Is $10/hour enough to attract and retain the kind of employees you want? If so, great. If
not, bump it up a little.
P 11
Porter
55
Base:
$28,000
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Lincoln, Mercury, Mazda
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes – 33.3% Paid by Dealership
Life Insurance: Yes – 100
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1-3 weeks
# Paid Sick Days: 5
Paid Holidays:
6
Other Benefits:
Demos
____________________________________________________________________________________
Comments:
This is a good approach, but remember: paying a salary does not exempt you from paying overtime. The
higher the salary, the higher the potential overtime pay.
P 12
Porter
58
Base:
$8.00 per hour with 5 hours OT (time & ½)
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Scion
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes - 40% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after one year, 10 days after two
# Paid Sick Days: 1/2 day a month
Paid Holidays:
7
Other Benefits:
10% above cost on parts, $25/hr labor, new & used car employee pricing
No
____________________________________________________________________________________
Comments:
Time and a half for overtime is not optional for employers.
P 13
Porter
60
Base:
$9.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
When there is a need, we will give them a $25 monthly bonus for CSI question
Time to pick up and retrieve car
Other Compensation: No commissions and practically no overtime at this time.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
24 - Non-Union, Lateral Support Groups
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
2 weeks
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Looks like a prescription for high turnover.
P 14
Porter
61
Base:
$9.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union
Benefits:
Health Insurance: Yes - 55% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 Max
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Offer Employee Paid Supplemental Insurance, Employee Discounts
Yes - $20,000
____________________________________________________________________________________
Comments:
If $9/hour does it in your market, go for it.
P 15
Porter
62
Base:
$14.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chevrolet
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
4
# of Mechanical Technicians:
6 - Union
Benefits:
Health Insurance: Yes – Dealership pays 100% employee only
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 4
Paid Holidays:
7
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Again, hourly pay is best for porters, but be sure that the rate is sufficient to get decent people.
P 16
Porter
67
Base:
$10.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
100
# of Mechanical Technicians:
100 - Non-Union, Sales Teams
Benefits:
Health Insurance: Yes - 65% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Supplemental 100% Employee Paid
Yes - 100%
____________________________________________________________________________________
Comments:
Again, hourly pay is best for porters, but be sure that the rate is sufficient to get decent people.
P 17
Porter
7
Base:
$10-$15 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
CSI bonus, same as service advisor
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Audi
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
12 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 6
Paid Holidays:
9
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Again, hourly pay is best for porters, but be sure that the rate is sufficient to get decent people.
P 18
Porter
8
Base:
$12.00 per hour
Base pay:
100% of projected income - based on a 44 hour work week
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Porsche, Audi, Infiniti, VW
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
11
# of Mechanical Technicians:
21 - Non-Union, No each department is separate
Benefits:
Health Insurance: Yes - 80% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: None
Paid Holidays:
All State only
Other Benefits:
Demo
Yes - $25,000
____________________________________________________________________________________
Comments:
Again, hourly pay is best for porters, but be sure that the rate is sufficient to get decent people. And a 44hour workweek implies 4 hours at time and a half.
P 19
R:
Receptionist
General Clerical
21
Base:
$14.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford Toyota Scion
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
26
# of Mechanical Technicians:
29 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays a flat $200 per month per employee
Life Insurance:
Yes - Any portion of $200 monthly allowance not used on health
insurance is applied to life insurance
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
1 week after 1 year, 2 weeks after 3 years, 3weeks after 15 years
# Paid Sick Days: 3 per year
Paid Holidays:
6
Other Benefits:
vision, short and long disability
____________________________________________________________________________________
Comments:
As long as $14/hour is competitive for the market area, this is a good way to pay clerical staff.
R1
General Clerical
31
Base:
$8.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
KIA Chevy
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
7
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
We’ll leave it to dealership managers to decide if $8/hour or slightly above the minimum wage is adequate
to attract talent, but otherwise a straight hourly wage is the best way to pay general clerical staff.
R2
General Clerical
58
Base:
$15.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota Scion
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes - 40% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after one year, 10 days after two
# Paid Sick Days: 1/2 day a month
Paid Holidays:
7
Other Benefits:
10% above cost on parts, $25.00 hour labor
No
new & used car employee pricing
____________________________________________________________________________________
Comments:
Just right for this job.
R3
Receptionist
12
Base:
$12.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
17
# of Mechanical Technicians:
15 - Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 year = 2 weeks, 4 years = 3 weeks, 9 years = 4 weeks
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
N/A
Yes - 2 times annual earnings, maximum benefit $300,000
____________________________________________________________________________________
Comments:
Tread carefully here. Receptionists are the voice and face of the store. Don’t get cheap on me.
R4
Receptionist
15
Base:
$20,800
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
6
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
33 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Short term disability
Yes - $25,000
____________________________________________________________________________________
Comments:
Total income is probably OK, but receptionists qualify for overtime. Also, think about adding a bonus for
CSI/SSI.
R5
Receptionist
16
Base:
$39,500
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
NO
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
12 - Non-Union, Teams
Benefits:
Health Insurance: Yes - 80% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, Group RRSP
# Vacation Days:
10
# Paid Sick Days: 2
Paid Holidays:
10
Other Benefits:
N/A
Yes - Salary
____________________________________________________________________________________
Comments:
This is a nice salary for an important employee. But the receptionist also can earn time and a half for
overtime.
R6
Receptionist
18
Base:
$13.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: Matching 401K 10% up to 6% of income
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
17
# of Mechanical Technicians:
21 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days at 1 year, 10 days at 2 years, 15 days at 8 OR 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Assuming $13/hour is the going rate for good receptionist in this dealer’s area, then this is just fine.
R7
Receptionist
19
Base:
$12.75 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, GMC, Pontiac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
6 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
up to 3 weeks
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Assuming $12.75/hour is the going rate for good receptionist in this dealer’s area, then this is just fine.
R8
Receptionist
20
Base:
$10.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: time & ½ for overtime
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Lexus
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
14 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Assuming $10/hour is the going rate for good receptionist in this dealer’s area, then this is just fine. How
about a small bonus for CSI?
R9
Receptionist
21
Base:
$15.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Toyota, Scion
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
26
# of Mechanical Technicians:
29 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays flat $200 per month per employee
Life Insurance:
Yes - any portion of $200 monthly allowance not use on health insurance
is applied to life insurance
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 3 years, 3 weeks after 15 years
# Paid Sick Days: 3 per year
Paid Holidays:
6
Other Benefits:
Vision, short and long disability
____________________________________________________________________________________
Comments:
Assuming $15.50/hour is the going rate for good receptionist in this dealer’s area, then this is just fine.
R 10
Receptionist
25
Base:
$14.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
9
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 max
# Paid Sick Days: 5
Paid Holidays:
7
Other Benefits:
Car allowance (managers)
Yes
____________________________________________________________________________________
Comments:
Assuming $14/hour is the going rate for good receptionist in this dealer’s area, then this is just fine.
R 11
Receptionist
3
Base:
$20,800
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota & Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
12 - Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 10
Paid Holidays:
8
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Assuming $20,800 is the going rate for a good receptionist in this dealer’s area, then this is just fine.
Don’t make the mistake of thinking that a salary relieves the employee from paying overtime.
R 12
Receptionist
31
Base:
$300/week
Base pay:
75% of projected income
Commission:
N/A
Bonus:
CSI 92.5 or above = $375
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
KIA, Chevy
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
7
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Good approach. Is $7.50/hour base pay sufficient to attract good candidates?
R 13
Receptionist
32
Base:
$9.00 per hour with overtime 45 hour week
Base pay:
99% of projected income: 99%
Commission:
N/A
Bonus:
SFE Bonus Quarterly – Can be up to $2,400 per year or as low as zero
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
7 - Non-Union, Tech's work on the full car - not specialized
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, Pension and 401K
# Vacation Days:
5 days after 1 year - 10 days after 2 years
# Paid Sick Days: 5 days after 1 year
Paid Holidays:
5
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
Looks OK to me.
R 14
Receptionist
37
Base:
$12.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota and Scion
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
9 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K, Safe Harbor
# Vacation Days:
5 after 1 year, 10 after 2 years, 15 after 3 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Birthday off with pay
Yes - One year's gross wage
____________________________________________________________________________________
Comments:
Assuming $12/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.
R 15
Receptionist
39
Base:
$11.00 per hour, Time and 1/2 for overtime
Base pay:
100% of projected income: 100%
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Lincoln, Mercury
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
15 - Non-Union
Benefits:
Health Insurance: Yes - 100% paid by the dealership for the employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days for 1 year and 10 days for 2+ years
# Paid Sick Days: 4 per year
Paid Holidays:
5
Other Benefits:
Vision
Yes - $10,000
____________________________________________________________________________________
Comments:
Assuming $12/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.
R 16
Receptionist
4
Base:
$13.25 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
NA
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge Jeep
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
36
# of Mechanical Technicians:
54 - Non-Union, Lexus - Technician Team System
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 after 1 year. 10 after 2 years. 15 after 7 years.
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Voluntary Supplemental - AFLAC, Mutual of Omaha
Yes - $15,000
____________________________________________________________________________________
Comments:
Assuming $13.25/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.
R 17
Receptionist
45
Base:
$12.00 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
GM
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
34
# of Mechanical Technicians:
11 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Discounts on vehicles, parts & labor
Yes - $15,000
____________________________________________________________________________________
Comments:
Assuming $12/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.
R 18
Receptionist
49
Base:
$12.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Used
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
8
# of Mechanical Technicians:
3 - Non-Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
N/A
# Paid Sick Days: Included
Paid Holidays:
Included
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
Assuming $12/hour is the going rate for good receptionists in this dealer’s area, then this is just fine.
R 19
Receptionist
5
Base:
$2,800 per month
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: Group benefits
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chrysler, Dodge, Jeep
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
22 - Non-Union
Benefits:
Health Insurance: Yes - 60% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, Group RRSP
# Vacation Days:
10 after one year, 15 after 5 years, 20 after 10 years
# Paid Sick Days: 0
Paid Holidays:
9
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Good approach to paying a receptionist. Don’t forget overtime eligibility.
R 20
Receptionist
55
Base:
$32,000
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Lincoln, Mercury, Mazda
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes – 33.3% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1-3 weeks
# Paid Sick Days: 5
Paid Holidays:
6
Other Benefits:
Demos
Yes - 100
____________________________________________________________________________________
Comments:
Now we’re talking! This dealer obviously sees the value in the receptionist position. Over time rules still
apply, though.
R 21
Receptionist
57
Base:
$13.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick, Cadillac, Pontiac
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes - 75% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 after first yr - 10 after 2nd yr
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
125 plan
No
____________________________________________________________________________________
Comments:
Assuming $13.50/hour is the going rate for good receptionists in this dealer’s area, then this is just fine.
R 22
Receptionist
6
Base:
$12.52/hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
15 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, RRSP (Canada Specific)
# Vacation Days:
10 - 20 Depends on LoS
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
Purchase Plan, Ed Asst. LoS Awards
Yes – 2x Gross Earnings
____________________________________________________________________________________
Comments:
Assuming $12.52/hour is the going rate for good receptionists in this dealer’s area, then this is just fine.
Where did the $12.52 figure come from? It works out to about $26,000/year.
R 23
Receptionist
64
Base:
$18/hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: 200 gallons gas
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
New RV's forest river
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
2
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: No
Life Insurance:
Prescription Plan: No
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10 at hire 15 after 4 years
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Christmas Bonus
No
____________________________________________________________________________________
Comments:
Assuming $18/hour is the going rate for good receptionists in this dealer’s area, then this is just fine.
R 24
Receptionist
67
Base:
$9.00 per hour
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
100
# of Mechanical Technicians:
100 - Non-Union, Sales Teams
Benefits:
Health Insurance: Yes - 65% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Supplemental 100% Employee Paid
Yes – 100%
____________________________________________________________________________________
Comments:
Assuming $9/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.
R 25
Receptionist
68
Base:
$28,000/year
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cheverolet
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
3
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 1 day for every month worked in year
Paid Holidays:
7
Other Benefits:
N/A
Yes - $5,000
____________________________________________________________________________________
Comments:
Assuming $28,000/year is the going rate for a good receptionist in this dealer’s area, then this is just fine.
Overtime rules still apply though.
R 26
S:
Sales
Sales Person
160
Base:
None
Base pay:
0% of proejcted income
Commission:
Forgiveable draw against commision of $1500.00 per month, % are 25% for deals 1-9,
27% deales 10-14 and 30% for 15 plus, once you hit 15 deals it is retroactive to deal one
Bonus:
10 units =$200.00 12 units =$300.00 15 units =$750.00 20 units =$1000.00
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
N/A
Monthly Sales Vol. (new & used):
N/A
# of Sales People:
N/A
# of Mechanical Technicians:
N/A
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
No information on what brands this dealer sells or the volume, but the commission rate is attractive.
Many dealers like to pay sales reps a salary equal to minimum wage and a slightly reduced commission
percentage.
S1
Sales Vehicles
105
Base:
$1,600/month
Base pay:
30% of projected income
Commission:
25% of commissionable gross.
Bonus:
Spiffs--sales survey returned
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
N/A
Monthly Sales Vol. (new & used):
N/A
# of Sales People:
N/A
# of Mechanical Technicians:
N/A
Benefits:
Health Insurance:
N/A
Life Insurance:
N/A
Prescription Plan:
N/A
Dental Plan:
N/A
Profit Sharing:
N/A
Stock Options:
N/A
Retirement Plan:
N/A
# Vacation Days:
N/A
# Paid Sick Days:
N/A
Paid Holidays:
N/A
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
I’d like to have some information on the brands sold here. Otherwise the pay plan looks off. Salary is
higher than normal.
S2
Salesperson
1
Base:
Varies between $200.00 - $400.00 per week
Base pay:
20% of projected income
Commission:
25% front end, 10% reserve, 25% extended warranties
Bonus:
N/A
Other Compensation: Company vehicle
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
5
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes – 85% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 week at 1 year, 2 weeks at 3 years, 3 weeks at 10 years
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
Vision Plan
No
____________________________________________________________________________________
Comments:
Interesting, but not an altogether unusual approach to paying dealership salespeople.
S3
Salesperson
10
Base:
$0
Base pay:
0% of projected income
Commission:
Toyota/Mitsubishi salesperson = min. commission is $100 - no cars = Min. wage
Toyota/ Mitsu - 25% of all gross proft over invoice including all customer incentives
(excludes Toyo guard, dealer retro cash, holdback, lease admin fees and dealer admin
fees as printed on the buyers order)- if the vehicle has a pull, the min comm. will be $50
Bonus:
12 units = $400 14 units = $500 16 units = $600 20 units = $1000 25 units = $1000
(ex. 25 units pays $3,500)
Other Compensation:
Salesman of the month: New Toyota - $500 (14 unit qualifier)
Mitsubishi - $25 (8 unit qualifier)
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Mitsubishi
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
27
# of Mechanical Technicians:
20 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
7
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Where should I start? 25% commission rate is fine. The unit bonus is skewed. I get $1,000 for selling up
to 35 cars, but #26 is worth an additional $2,500? I’d be tempted to sandbag some deals until the next
month. Smooth that out. A cynical sales rep might think the dealer is offering that big bonus because no
one has ever sold more than 25 units.
S4
Salesperson
10
Base:
$0
Base pay:
0% of projected income
Commissions: Pre-owned salesperson = $100 min commission per car (unless the vehicle does not
exceed cost plus pack of $500 - this sale will carry a $50 mini comm) or Min. Wage
25% of all gross profit over dealer cost (not paid on dealer fees) any sales associate that
has been certified through the Toyota certification program will receive 30% commission
Bonus:
12 units = $400 14 units = $500 16 units = $600 20 units = $1000 25 units = $1000
(ex. 25 units pays $3,500)
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Mitsubishi
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
27
# of Mechanical Technicians:
20 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
7
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
This looks OK. I like the idea of encouraging salespeople to go through the certification process by
offering a higher commission rate.
S5
Salesperson
12
Base:
$0
Base pay:
0% of projected income
Commission:
20% 1-9 units or up to $9000 gross 25% 9-14 units or up to $19,000 gross 27% over 14
units or over $19,000 gross
Bonus:
CSI monthly bonus $10 per qualified survey Buy-ins $150 / $250 3rd buy-in p/mth
Other Compensation: Car allowance $250 per month
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
17
# of Mechanical Technicians:
15 - Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 year = 2 weeks, 4 years = 3 weeks, 9 years = 4 weeks
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
N/A
Yes - 2 times annual earnings, maximum benefit $300,000
____________________________________________________________________________________
Comments:
Looks good.
S6
Salesperson
16
Base:
$10,400
Base pay:
15% of projected income
Commission:
Commssions will be paid bi-weekly and calculated at 20% of the vehicle gross profit less
the PAD or flat fee of $150, whichever is greater.
Bonus:
A retailer balance scorecard bonus will be paid monthly on the last day of the subsequent
month. This bonus will be based on actual showroom achievements versus employer
forcasted requirements. This bonus will begin to be paid when an achievement level of
80% of forecast is reached and it will pay to a maximum of 140% of forecast. The
maximum at 140% in all measurements will pay $15.00 per unit delivered. Each month a
minimum of 7 new vehicles and 2 used vehicles must be delivered in order to qualify for
this bonus. This bonus structure may be subject to change based on retailer balance
scorecard requirements. The chart below lists the measured criteria and weight of
importance in the balance scorecard.
Strategic measure
Weight
New unit target
14%
New gross target
20%
CSI
12%
Used unit target
19%
Used gross target
15%
New F & I gross target
10%
Used F & I gross target
10%
Total
100%
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Monthly Sales Vol. (new & used):
# of Sales People:
# of Mechanical Technicians:
NO
51-100 - Negotiated Sale
7
12 - Non-Union, Teams
Benefits:
Health Insurance: Yes - 80% Paid by Dealership
Life Insurance:
Yes - Salary
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan: Yes, Group RRSP
# Vacation Days: 10
# Paid Sick Days: 2
Paid Holidays:
10
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
We don’t hire dealership salespeople for their intellectual heft. We hire them to sell. Yet this pay plan is
so intricate, someone could spend half a day just trying to analyze the components. And how many
accountants does it take to figure out the weekly sales payroll? Simplify, man, simplify.
S7
Salesperson
19
Base:
$0
Base pay:
0% of projected income
Commission:
25% of front end gross and up to 10% of backend gross
Bonus:
$400 demo allow. Unit bonus starting at 10. Additonal 5% front end gross with montly
avg of 8 deliveries minimum
Other Compensation: Monthly, weekly, daily spiffs based of objectives
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, GMC, Pontiac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
6 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
up to 3 weeks
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
It reads a little complicated but it’s not. Sell 10 cars a month and see the commission rate jump.
S8
Salesperson
2
Base:
Minimum wage
Base pay:
Depends on commissions earned
Commission:
Sales Commission levels range from 25-35% depending on the rolling 3 month
average of cars delivered. Paid on Commissionable Gross profit (minus lot fee &
holdback)
Bonus:
Unit bonus: 10 units = $150
Every additional 2 units adds $150 - Until 20 then each unit adds $150
Gross bonus paid per unit: $1,000+ =$50 $1,500+ =$75 $2,000+ =$100
Other Compensation: Random contest and spiffs - cash or prizes
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
16 - Non-Union, combination - some team / some direct report
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes – 50%
____________________________________________________________________________________
Comments:
OK. I can follow this one. Focus on maximizing gross and delivering over 10 units a month.
S9
Salesperson
22
Base:
$400 per week draw
Base pay:
0% of projected income
Commission:
20 percent of selling gross
Bonus:
CSI bonus of $10.00 per car Volume bonus to 25% after 12 units-new 5 percent of F/I
per vehicle sold Quarterly bonus of volume, CSI and gross of $2500 per month if
objectives met.
Other Compensation: $10.00 (company match) of delivery fee paid at year end as Christmas bonus
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW, Porsche, Volkswagen, Subaru, Isuzu
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
3
Other Benefits:
N/A
Yes - $100K
____________________________________________________________________________________
Comments:
Focus on selling 12+ units a month. That’s where the bonuses start.
S 10
Salesperson
22
Base:
$450 per week draw
Base pay:
0% of projected income
Commission:
15 percent gross profit on pre-owned vehicles sold, after 8 units 20 percent retroactive to
first unit, 25 percent at 12 units retrocative to first unit.
Bonus:
Fast start bonus 6 cars by the 12th pays $250. 8 units by the 12th pays $500. 10 units
by the 15th pays $750.
Other Compensation: $10.00 per car sold (company match) paid at year end from delivery fee.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW, Porsche, Volkswagen, Subaru, Isuzu
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
3
Other Benefits:
N/A
Yes - $100K
____________________________________________________________________________________
Comments:
No quarrels here. Standard stair-step commission plan, except that it starts at a low 15% of the gross.
S 11
Salesperson
22
Base:
$500 per week salary
Base pay:
70 % of projected income
Commission:
$100 per car retailed-Volkswagen
Bonus:
N/A
Other Compensation: $10 (company match) for each unit sold from delivery fee paid at year end as
Christmas bonus
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW, Porsche, Volkswagen, Subaru, Isuzu
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
3
Other Benefits:
N/A
Yes - $100K
____________________________________________________________________________________
Comments:
This reads like a sales trainee pay plan, in which case it is a good idea. But projected income is in the
$35k range. Fine for a rookie but not sufficient for a veteran sales rep.
S 12
Salesperson
25
Base:
$300 per week
Base pay:
Varies
Commission:
• A weekly salary of at least $300.00, less applicable withholdings and deductions; paid in
accordance with our regular payroll procedures which, if annualized, would equal $15,600.00,
less applicable withholdings and deductions.
• The minimum per unit sold is $150.00/ea-unit
• Commission paid on units delivered for the month. All money collected and or titles for trades in
house by last day of the month.
• 15% commission paid on units 1- 9 delivered for the month.
• 23% commission paid on unit number 10 plus delivered for the month.
o With 10 plus units delivered, this qualifies Client Advisor to start the following month at
23% beginning with the first (1) unit delivered.
o Client Advisor will stay at 23% as long as at least 10 units are delivered each month or
the year to date average is at least 10 units per month.
• Monthly CSI unit bonus. CSI Unit Bonus is paid on 11 units plus.
• Commission is paid on the gross profit, less a lot charge (pack) of $400.00 on all new and used
vehicles.
• Three (3) months rolling average of at least 6 units per month delivered, is a requirement for
continued employment as a Client Advisor.
• Family purchases, employee purchases and trade assists, will not count towards the monthly CSI
unit bonus.
Bonus:
Unit bonus based on prior months units delivered see above
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Monthly Sales Vol. (new & used):
# of Sales People:
# of Mechanical Technicians:
BMW
51-100 - Negotiated Sale
9
10 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Yes
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan: Yes, 401k
# Vacation Days: 15 max
# Paid Sick Days: 5
Paid Holidays:
7
Other Benefits:
Car allowance (managers)
____________________________________________________________________________________
Comments:
Well, you know if the pay plan runs to ten or more lines it is most likely too long and ineffective.
Salespeople should focus on selling the car the customer in front of them. They should not be thinking
about “Section 4, line 2” of the pay plan document.
S 13
Salesperson
27
Base:
None
Base pay:
0% of projected income
Commission:
10% of commissionable gross profit.
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
10
# of Mechanical Technicians:
12 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15
# Paid Sick Days: 0
Paid Holidays:
7
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Well it is a simple pay plan, I’ll give it that. But is 10% of the gross going to be competitive in a crowded
marketplace?
S 14
Salesperson
28
Base:
Minimum wage, less commissions earned
Base pay:
0% of projected income
Commission:
Financed deals are paid on a 30% front end commission. F&I products will be paid at a
3% commission on back end gross.
front end gross.
gross.
Bonus:
Cash deals will be paid at a 25% commissionable
Secondary deals will be paid at a 25% front end and 0% back end
$200 minimum commisision unless it is a GMS or supplier deal.
12 deliveries pays $300 14 deliveries pays an additional $200 16 deliveries pays an
additional $200 18 deliveries pays an additional $200
Other Compensation:
Holiday bonus: $5 is held from each delivery and matched by the dealership and paid at the end of
the year.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chevrolet
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
13
# of Mechanical Technicians:
8 - Non-Union, Sales teams with alternating schedules
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes
# Vacation Days:
5 days after one year of employment
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Nothing good happens until the customer buys the car. So the distinction between a cash deal and a
finance deal escapes me. Do you want salespeople to convert cash buyers to finance or is that the F & I
manager’s job?
S 15
Salesperson
3
Base:
$15,600/salary/minimum wage
Base pay:
25% approximately depending on performance.
Commission:
28% front end
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota & Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
12 - Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 10
Paid Holidays:
8
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
This is good. Very simple and easy to track. The higher commission rate compensates for the lack of a
unit-based incentive.
S 16
Salesperson
34
Base:
Base pay:
Commission:
$0
0% of projected income
You will be paid commissions on new vehicles delivered based on the following formula:
Payable Gross:
Commission:
$500.00 and less
Flat of $125.00
$500.01-$1499.99
25% of payable gross defined below
$1500.00 +
30% of payable gross defined below
Payable gross is the total gross less $300 pack on all new vehicles less holdback, incentives
and/or Dealer Cash.
Split deals between two regular sales people will be $125.00 flat and be split $62.50 between
both sales people.
Retired Demos with over 3500 miles pay a flat of $400.00 or calculated % of the deal based on
the above gross calculation which ever is greater.
You will be paid commissions on used vehicles delivered based on the following formula:
25% of payable gross
As of 11/7/09, any USED vehicles sold will mean: Payable gross is total gross less
$500.00 pack.
Minimum Commissions are paid $100.00, with split deals paid $50. to each sales person
Fast Start Bonus: Pay $300 for 7 Deals sold by the 15th of the Month.
Top Sales Bonus: 1st place - $650.00 2nd place - $400.00 3rd place - $250.00
This bonus is paid for most units sold, delivered and posted in a calendar month. A tie goes to
the sales associate with the highest SPI monthly score on the most recently received report. If
50% or more of your units are to AutoAdvisors or another fleet company you are exempt from
earning this bonus.
Unit
Bonus:
11
pays $ 400
13
pays $ 600
14
pays $800
15
pays $900
16
pays $1000
17
pays $1100
18
pays $1200
19
pays $1300
20
Etc.
District Average additional Unit Bonus’ will be paid as follows:
11 pays and additional $100 for a total of $ 500
13 pays and additional $150 for a total of $ 750
16 pays and additional $200 for a total of $1,000
17 pays and additional $300 for a total of $1,500
20
pays and additional $400 for a total of $2,000
25
pays and additional $500 for a total of $2,300
After 90 days of continuous employment, a minimum of 8 cars a month must be sold in order to
maintain employment. - YTD SPI SCORE BONUS HIGHEST $1,000.00
The YTD SPI bonus will be paid out in November and to qualify you must be here 6 months.
A sales person with continued poor scores or a trend of declining scores can be grounds for
disciplinary action up to and including termination.
ANNUAL TENURE BONUS PLAN:
You will receive $5.00 per every retail unit you sell on a
three year rolling period. The pay out year is based on sales from December 1st to November
30th each year.
The following years pay out will be based on the current years performance and the prior two
years.
All payouts will be paid out on or before December 15th. You must be employed on the day of the
payout to receive this bonus.
S 17
Commissions will be paid monthly by the 10th of the following month. If you are paid a draw or
advance on your commissions, we will deduct that amount from the commissions that you earn,
and pay you the balance.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, BMW, Honda, Pontiac, Buick & GMC
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
42 - Non-Union, Lateral support
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
4 days after 90 days, 9 days after 1 year, 14 days after 2 years
# Paid Sick Days: Vacation and sick are called pto
Paid Holidays:
5 for all but productive on 3 for productive
Other Benefits:
Prepaid legal, HHF, FSA, AFLAC
Yes
____________________________________________________________________________________
Comments:
I’m sure this all made sense to whoever created it. But when a pay plan runs to multiple pages, it is too
long. Remember, if it takes more than a minute or so to explain the pay plan, it is too complicated and
therefore ineffective.
S 18
Salesperson
36
Base:
$900/month draw, employee does not repay any uncovered amounts
Base pay:
40% of projected income
Commission:
25% of New, less $25 pack; 30% of Used, less $650 pack, 7.2% of F&I
Bonus:
Fast Start Bonus (4 delivered by 10th working day) $250 to $400; Volume Bonus (starting
at 8) $400, plus $50 incremental; Etch $20 per sale if etch is sold
Other Compensation: Dealer withholds $25 per qualifying sale from consultant for Mark of Excellence.
We also have "Selling Managers" who operate under this pay plan, but receive $1500
base pay for taking on additional managerial responsibilities. This is a result of our
recent downsizing to adjust to market conditions.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick Pontiac GMC
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
15 - Non-Union
Due to the decrease in sales volume, we have created selling manages and administrative
managers
Benefits:
Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
One week paid after first year, two weeks paid thereafter
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Probably OK. Why is the used car pack so much higher than the new car pack? 7.2% of net F & I
income. Where did 7.2% come from? Are we trying to make the pay plan fit some predetermined
number? If so, say so!
S 19
Salesperson
37
Base:
$0
Base pay:
0% of projected income
Commission:
25% commission on new and used car profit $125.00 mini paid on cars that sell for less
Commission will equal about 80% of total pay, give or take, depending on number of
units
Commission:
25% commission on gross profits
Bonus:
$100.00 bonus at 8,13,18,23 etc units 450.00 monthly bonus for top total sales, 450.00
for top N/C gross and 450.00 top U/C gross
Other Compensation:
The sales person must make more than the # of hours worked times minumum wage or
the difference is made up
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota and Scion
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
9 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k, Safe Harbor
# Vacation Days:
5 after 1 year, 10 after 2 years, 15 after 3 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Birthday off with pay
Yes - One year's gross wage
____________________________________________________________________________________
Comments:
Basically OK, but some small base salary would provide a little comfort for the sales staff without putting
the dealer at risk.
S 20
Salesperson
42
Base:
$0
Base pay:
0% of projected income ($280/week draw against commissions earned)
Commission:
30% of gross on each unit with a guarantee of $200.00, Options buyer - $300.00 per car
with 30% commission on accessories in the amount that exceed the cost; GMS (option I
buyer) - $250.00
Bonus:
Salesman with highest gross - $150.00 unit bonus - 10 cars is $500.00, 13 cars $750.00, 15 cars is $1000.00, 16th-19th car - $100 per car, 20 cars - $2000.00, 21st and
each subsequent car - $100.00
Other Compensation: Demonstrator vehicle
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, Saturn & Hummer
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
41 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401(k)
# Vacation Days:
5 days after year, 10 days after 2 years
# Paid Sick Days: up to 4 days in 1st year, 6 days after 1 year, 11 days after 10 years
Paid Holidays:
6
Other Benefits:
N/A
Yes - Company pays $20,000 in coverage
____________________________________________________________________________________
Comments:
Looks good. Remember there is no getting around the minimum wage requirements.
S 21
Salesperson
45
Base:
$350
Base pay:
30% of projected income
Commission:
17% front gross
Bonus:
$20 per unit 12-14 $40 per unit 15 and above
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
GM
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
34
# of Mechanical Technicians:
11 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Discounts on vehicles, parts & labor
Yes - $15,000
____________________________________________________________________________________
Comments:
I thought this was going to be a Saturn-type pay plan, but it’s not. This approach should work out OK. I
have to question some of the information provided. A 100 unit/month dealership does not need 34 sales
people. 9 or 10 would be more like it.
S 22
Salesperson
49
Base:
$0
Base pay:
0% of projected income
Commission:
20 % of selling gross profit
Bonus:
5% retro on 9 units monthly
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Used
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
8
# of Mechanical Technicians:
3 - Non-Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
N/A
# Paid Sick Days: Included
Paid Holidays:
Included
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
Used car dealership. I’m surprised that the commission rate is only 20%, but if it works keep doing it.
S 23
Salesperson
50
Base:
Base: $0
Base pay:
0% of projected income (most salespeople in this store earn $35,000 - $100,000/year)
Commission:
20-30% of GP$
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Freightliner
Monthly Sales Vol. (new & used):
<50 - One-Price Store
# of Sales People:
8
# of Mechanical Technicians:
60 - Non-Union
Benefits:
Health Insurance: Yes - 75% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
up to 3 weeks max based on years of service
# Paid Sick Days: 0
Paid Holidays:
8
Other Benefits:
Match 401k
Yes - $10,000
____________________________________________________________________________________
Comments:
Note the franchise. Low volume/high gross product.
S 24
Salesperson
51
Base:
Base: Paid minimum wage bi-monthly for clock time Minimum wage is a draw against
commission
Base pay:
0% of projected income
Commission:
25% Front End Gross or $650 of $779 addendum if sold to customer; $250 flat on demos
and $1 per day on units over 100 days old up to $300.
Bonus:
$500 for fast start 6 units or more delivered $500 for fast finish 6 units or more delivered
Other Compensation: If sales consultant has 3 poor CSI surveys they are terminated.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Pontiac & Buick
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
N/A
# of Mechanical Technicians:
Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% for employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 after 1st year 10 after third year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail
Yes - None paid by employer
____________________________________________________________________________________
Comments:
Pretty good. I like that extra spiff for moving overage vehicles.
S 25
Salesperson
57
Base:
None
Base pay:
None
Commission:
20% of Gross profit from car deal
Bonus:
N/A
Other Compensation:
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick, Cadillac, Pontiac
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes - 75% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 days after first yr, 10 days after 2nd year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
125 plan
No
____________________________________________________________________________________
Comments:
Very straightforward, but a little thin. Shouldn’t the commission rate step up as volume increases?
S 26
Salesperson
58
Base:
None
Base pay:
None
Commission:
25% on sales of 1-8 units; 30% on sales after 9 units; 5% on F&I
Bonus:
8 Units = $300 demo allowance
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota Scion
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes - 40% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after one year, 10 days after two
# Paid Sick Days: 1/2 day a month
Paid Holidays:
7
Other Benefits:
10% above cost on parts
No
$25 hour labor
new and used car employee pricing
____________________________________________________________________________________
Comments:
Minimum wage is always a consideration, but otherwise good.
S 27
Salesperson
6
Base:
$0
Base pay:
0% of projected income
Commission:
NC 29% FE Gross + 20% BO Gross after pack; UC 20% FE Gross + 20% BO Gross
after pack; Pack varies by model line $1500 - $2500
Bonus:
Rep of the month NC $1000 Rep of the month UC $500 Volume bonus over 8/month =
$250/unit CSI vs Cat Average - minus $200 to plus $200
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
15 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, RRSP (Canada Specific)
# Vacation Days:
10-20 days Depends on LoS
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
Purchase Plan, Ed Asst. LoS Awards
Yes – 2x Gross Earnings
____________________________________________________________________________________
Comments:
Is the difference between the new and used car commissions and packs really an attempt to manage the
sales rep’s income? Otherwise, a dollar of gross profit should be equally desirable regardless of the type
of vehicle.
S 28
Salesperson
60
Base:
$0
Base pay:
0% of projected income
Commission:
25% of vehicle gross after pack.
Bonus:
Salespeople do not receive typical monthly bonuses for units/gross if they are below zone
on their CSI.
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
24 - Non-Union, Lateral Support Groups
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
2 weeks
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
A small salary can help smooth cash flow requirements. I like the idea of withholding the bonus if CSI is
poor.
S 29
Salesperson
67
Base:
Minimum Wage
Base pay:
20% of projected income
Commission:
A salesperson is eligible to earn commissions as follows on “billed deals” per month:
New Vehicles – 25% of sales payable gross or a $200.00 minimum commission; Used
Vehicles - 25% of sales payable gross or a $100.00 minimum commission (up to 5 units);
If 5 or more Used units are sold in the month (see split deals below), 30% of sales
payable gross will be paid on all used units sold during the month (with the same $100
minimum commission).
NOTE: On deals where a closing manager is involved, commissions will be paid at
above rates less 5%
Bonus:
10 units billed
12 units billed
15 units billed
20 units billed
25 units billed
30 units billed
Other Compensation: N/A
$250.00
Additional
Additional
Additional
Additional
Additional
$250.00
$1000.00
$1000.00
$500.00
$1000.00
$250.00
$500.00
$1500.00
$2500.00
$3000.00
$4000.00
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
100
# of Mechanical Technicians:
100 - Non-Union, Sales Teams
Benefits:
Health Insurance: Yes - 65% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401(k)
# Vacation Days:
5
# Paid Sick Days: 3
Paid Holidays:
6
Other Benefits:
Supplemental 100% Employee Paid
Yes – 100%
____________________________________________________________________________________
Comments:
I sure don’t want a closing manager involved in any of my deals. Can we agree that this approach makes
things overly complicated? Can a sales person really relate to the pay plan?
S 30
Salesperson
7
Base:
$2,000
Base pay:
25-50% of projected income
Commission:
Commission based off 5% of gross on new or pre-owned vehicle sold and delivered.
Bonus:
None
Other Compensation: Cell phone, Travel expenses, etc.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Audi
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
12 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 6
Paid Holidays:
9
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
OK, I can get behind this approach. $24,000/year salary plus 5% of the gross on Audi sales. Expected
income is $48,000 to $100,000.
S 31
SM:
Sales Manager &
Internet Sales
Internet Manager
3
Base:
$39,000
Base pay:
50% of projected income
Commission:
$100 per unit 28% front end gross on Internet units
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota & Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
12 - Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 10
Paid Holidays:
8
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Pay plans for Internet managers have been evolving and continue to develop. I like this one. It looks like
fair compensation for the value of the job.
SM 1
Internet Manager
32
Base:
$24,000
Base pay:
80% of projected income
Commission:
$100 per referral on units sold
Bonus:
CSI Bonus $2,400 to Zero per year
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
7 - Non-Union, Tech's work on the full car - not specialized
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, Pension and 401K
# Vacation Days:
5 days after 1 year - 10 days after 2 years
# Paid Sick Days: 5 days after 1 year
Paid Holidays:
5
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
The formula is good. The projected pay looks light for the value of the job.
SM 2
Internet Manager
55
Base:
$20,000
Base pay:
50% of projected income
Commission:
$50 + 25% gross / vehicle
Bonus:
Tiered bonus on # vehicles sold and on gross
Other Compensation: Contests
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford Lincoln Mercury Mazda
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes – 33.3% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1-3 weeks
# Paid Sick Days: 5
Paid Holidays:
6
Other Benefits:
Demos
Yes - $100K
____________________________________________________________________________________
Comments:
I assume the 25% of the gross applies only to units delivered by the Internet Manager.
SM 3
Internet Manager
8
Base:
$35,000
Base pay:
100% of projected income
Commission:
None
Bonus:
None
Other Compensation: Phone provided and paid for reinbursed for fuel usage
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Porsche, Audi, Infiniti, VW
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
11
# of Mechanical Technicians:
21 - Non-Union, Each department is separate
Benefits:
Health Insurance: Yes – 80% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: None
Paid Holidays:
All State only
Other Benefits:
Demo
Yes - $25,000
____________________________________________________________________________________
Comments:
As much as I like salary-based pay plans, 100% salary for an Internet Sales Manager is off the mark.
There should be a combination of salary (60%) and incentives (40%) in recognition of the revenue
production required of the position.
SM 4
Internet Salesperson
27
Base:
$0
Base pay:
0% of projected income
Commission:
10% of the gross on Internet units delivered
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
10
# of Mechanical Technicians:
12 - Non-Union
Benefits:
Health Insurance: Yes – 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15
# Paid Sick Days: 0
Paid Holidays:
7
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Obviously this Internet Manager is not really a manager at all. The pay plan assumes that the job is sales
oriented. Question: Why 10% of the gross on Internet deals? Are they worth less than traditional
showroom deliveries or is this an attempt to manage the employee’s income?
SM 5
Internet Salesperson
34
Base:
$12,000
Base pay:
20% of projected income
Commission:
You will be paid commissions on Used Vehicles Sold based 25% of the Commissionable
Gross as defined below:
Commissionable gross is total gross less $500.00 pack. Minimum commission equals $100.00 This is
put into a pool and divided equally between all members of the used Internet team
You will be paid commissions on new vehicles delivered based on the following formula:
Commissionable gross:
$500.00 and less = Flat of $125.00
$500.01-$1499.99 = 25% of commissionable gross
$1500.00+ = 30% of commissionable gross.
Commissionable gross on new units is total gross less $300 pack on all new vehicles less holdback,
incentives and/or Dealer Cash
This is put in to a pool and divided equally between all members of the used internet team
Retired Demos with over 3500 miles pay a flat of $400.00 or calculated % of the deal based on the above
gross calculation which ever is greater.
Department Unit Bonus: For total units (new and used) sold ,the two Internet UC salespersons will split a
Bonus
bonus as follows:
Units
8
$100
10
$500
12
$750
15
$1,000
18
$1,500
20
$2,000
25
$2,500
For total units (new and used) sold the two Internet UC salespersons will split another bonus as follows
for the number of New Vehicles sold. If your personal SPI MTD score is not red. If your score is Red you
forfeit this portion of the bonus and those monies remain with the dealership.
Total Units
Bonus
8
$ 25/new vehicle sold
10
$75/new vehicle sold
12
$100/new vehicle sold
15
$150/new vehicle sold
18
$200/new vehicle sold
20
$250/new vehicle sold
Addional Bonus: Top 25 Certified Dealer: $500
#1 unit preowned sales in MAG $500
$10 per preowned unit delivered during month / $20 per pre owned unit if pre owned department
achieves objective
Retro Bonus: If you sell a total of 15 Units (New and Used) you will be paid an additional 5% of the
payable gross for all units that had a Deal Gross of $2000.00 or more. This is put in to a pool and divided
equally between all members of the used internet team
F&I Bonus: $500, is paid to the Used Vehicle Sales Person including used internet sales associates with
the highest finance PVR. This is put in to a pool and divided equally between all members of the used
internet team There is a 10 unit qualifier. If the highest finance PVR Sales Associate doesn’t have 10
units the bonus is not paid.
SM 6
Fast Start Bonus: 6 deals delivered by the 15th pays $300. 10 deals delivered by the 15th pays $500.00
This is put in to a pool and divided equally between all members of the used internet team
******Monthly bonuses will be dependent on salesperson’s CSI scores remaining above benchmark as
evidenced by Certified Used Car Delivery Process.
You will receive $5.00 per every retail unit you sell on a three year rolling period.
based on sales from December 1st to November 30th each year. For example:
The pay out year is
Units Payout
Bonus
Year
12/04 – 11/05 100
$5 per car
$500 paid
12/05 – 11/06 125
$5 per car, both years
$1,125 paid
12/06 – 11/07 150
$5 per car, for three years
$1,875 paid
12/07 The following years pay out will be based on the current & the prior two
years performance
.
th
***All payouts will be paid out on or before December 15 . You must be employed on the
day of payout to receive this bonus.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, BMW, Honda, Pontiac, Buick & GMC
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
42 - Non-Union, Lteral support
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
4 days after 90 days, 9 days after 1 year, 14 days after 2 years
# Paid Sick Days: Vacation and sick are called pto
Paid Holidays:
5 for all but productive on 3 for productive
Other Benefits:
Prepaid legal, HHF, FSA, AFLAC
Yes
____________________________________________________________________________________
Comments:
Why so complicated? Will this sales rep really be thinking about the variations in the pay plan as he/she is
trying to close a deal?
SM 7
Internet Salesperson
49
Base:
$0
Base pay:
0% of projected income
Commission:
30%
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Used
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
8
# of Mechanical Technicians:
3 - Non-Union
Benefits:
Health Insurance: Yes – 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
N/A
# Paid Sick Days: included
Paid Holidays:
Included
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
Don’t forget the minimum wage. Looks like a standard sales person’s plan as long as other dealership
salespeople also get 30% of the gross.
SM 8
Internet Salesperson
57
Base:
None
Base pay:
0% of projected income
Commission:
20% of net profit from their car deals
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick, Cadillac, Pontiac
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes – 75% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 days after first year – 10 days after 2nd year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
125 plan
No
____________________________________________________________________________________
Comments:
Just like other salespeople, I assume.
SM 9
Internet Salesperson
58
Base:
$1,500 Month
Base pay:
50% of projected income
Commission:
25% on sales
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Scion
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes - 40% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after one year, 10 days after two
# Paid Sick Days: 1/2 day a month
Paid Holidays:
7
Other Benefits:
10% above cost on parts
No
$25.00 hour labor
New and used car employee pricing
____________________________________________________________________________________
Comments:
This is better. Good way to pay an Internet sales rep.
SM 10
Wholesale Truck/Car Manager
14
Base:
$100,000.00 annually
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
NOTE: This is our wholesale director pay program
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda and Nissan
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
19
# of Mechanical Technicians:
20 - Non-Union
Benefits:
Health Insurance: Yes - Dealership pays 80% of employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K with 20% match of first 4% saved
# Vacation Days:
1 week after 1 year, 2 weeks after 3 years, 3 weeks after 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Vision, AFLAC paid by employee, 60% of disability premium
Yes - $237.93/month employee; $312/month if family coverage
____________________________________________________________________________________
Comments:
Most dealerships don’t have this position.
SM 11
Leasing Manager
6
Base:
$3,042
Base pay:
35% of projected income
Commission:
25% NC Gross Profit; 4% NC Selling Profit; $125 per lease renewal
Bonus:
Hit Selling NC Profit Target = $500 Meet or Beat CSI National Average = $250
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
15 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, RRSP (Canada Specific)
# Vacation Days:
10 - 20 Depends on LoS
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
Purchase Plan, Ed Asst. LoS Awards.
Yes – 2x Gross Earnings
____________________________________________________________________________________
Comments:
Looks very attractive for the sales person. Salary/commission split is good. Why the distinction between
the gross profit and the net profit from selling the car? Does this sales rep have any control of
departmental expenses?
SM 12
TLC:
Title Clerk
Title Clerk
1
Base:
$725
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
5
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: Yes - 85% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
1 week with 1 year, 2 weeks with 3 years, 3 weeks with 10 years
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
Vision Plan
No
____________________________________________________________________________________
Comments:
Small dealership. No quarrel with paying hourly wage for the title clerk.
TLC 1
Title Clerk
19
Base:
$600 per week
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, GMC, Pontiac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
6
# of Mechanical Technicians:
6 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
up to 3 weeks
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Hourly wage for title clerks is the right way to pay.
TLC 2
Title Clerk
21
Base:
$14.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Toyota, Scion
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
26
# of Mechanical Technicians:
29 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays flat $200 per month per employee
Life Insurance:
Yes - any portion of $200 monthly allowance not use on health insurance
applied to life insurance
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
1 week after 1 year, 2 weeks after 3 years, 3 weeks after 15 years
# Paid Sick Days: 3 per year
Paid Holidays:
6
Other Benefits:
vision, short and long disability
____________________________________________________________________________________
Comments:
Hourly wage for clerical staff is the right way to pay.
TLC 3
Title Clerk
32
Base:
$10.00 per hour on 40 hours and OT for 5 hours
Base pay:
90% of projected income
Commission:
N/A
Bonus:
CSI Bonus $2,400 to zero per year
Other Compensation: Spiffs and referrals at $100 per each
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
7 - Non-Union
Tech's work on the full car - not specialized
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, Pension and 401K
# Vacation Days:
5 days after 1 year - 10 days after 2 years
# Paid Sick Days: 5 days after 1 year
Paid Holidays:
5
Other Benefits:
N/A
Yes - $10,000
____________________________________________________________________________________
Comments:
Hourly wage for title clerks is the right way to pay.
TLC 4
Title Clerk
37
Base:
$14.50 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
None
Other Compensation: None
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota and Scion
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
9 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k, Safe Harbor
# Vacation Days:
5 days after 1 year, 10 days after 2 years, 15 days after 3 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Birthday off with pay
Yes - One year's gross wage
____________________________________________________________________________________
Comments:
Hourly wage for title clerks is the right way to pay.
TLC 5
Title Clerk
57
Base:
$2,200 month
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick, Cadillac, Pontiac
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes - 75% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 days after first year - 10 days after 2nd year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
125 plan
No
____________________________________________________________________________________
Comments:
Title clerks are eligible for overtime pay for more than 40 hours in a week.
TLC 6
Title Clerk
61
Base:
$16.10 per hour
Base pay:
100% of projected income
Commission:
N/A
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union
Benefits:
Health Insurance: Yes 55% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 Max
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Offer Employee Paid Supplemental Insurance, Employee Discounts
Yes - $20,000
____________________________________________________________________________________
Comments:
Hourly wage for title clerks is the right way to pay.
TLC 7
Title Clerk
64
Base:
$18,000
Base pay:
75% of projected income
Commission:
$10/deal
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
New RV's
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
2
# of Mechanical Technicians:
4 - Non-Union
Benefits:
Health Insurance: No
Life Insurance:
Prescription Plan: No
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
10 days at hire, 15 days after 4 years
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Christmas Bonus
No
____________________________________________________________________________________
Comments:
In a high volume dealership this would be OK. But in a small dealership like this, you’d be better off
paying the bonus beginning at, say, 40 units.
TLC 8
USM:
Used Car Sales
Manager
Used Vehicle Sales Manager
10
Base:
$4,000 monthly draw
Base pay:
0% of projected income
Commission:
Used car gross profit less wholesale gross profit x 4.25%
Bonus:
$500 each at $209,000 gross $1,000 each at $250,000 gross $1,500 each at $300,000
gross $2,000 each at $350,000 gross $2,500 each at $400,000 gross
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, Mitsubishi
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
27
# of Mechanical Technicians:
20 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
7
# Paid Sick Days: 3
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
Probably works out OK in the end, but this is a senior dealership manager and should get a salary plus
bonus for surpassing goals.
USM 1
Used Vehicle Sales Manager
12
Base:
None
Base pay:
0% of projected iincome
Commission:
1.95% of GP for new & fleet sales including Bus.Office gross (less BO commissions) less
sales compensation, less sales policy, less advertising expense, less lot damage. 5.35%
of GP for used retail & wholesale sales including Bus.Office gross (less BO commissions)
less sales compensation, less sales policy, less advertising expense, less lot damage.
Bonus:
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
17
# of Mechanical Technicians:
15 - Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
2 weeks with 1 year, 3 weeks with 4 years, 4 weeks with 9 years
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
N/A
Yes - 2 times annual earnings, maximum benefit $300,000
____________________________________________________________________________________
Comments:
Paid like a glorified team leader. If this person is really a used vehicle manager, how about appraising
trade and attending the auction? Pay managers a salary a plus bonus.
USM 2
Used Vehicle Sales Manager
14
Base:
$1,400 per week draw
Base pay:
0% of projected income
Commission:
No 60 days units at month close = $2500; $100 bonus per retail unit after 60 units per
month (minimum $3,000 $ + ACV to qualify; At $115,000 of vehicle gross profit $2,000
bonus plus 4% of all vehicle gross over $115,000
Bonus:
F&I Bonus; line #10 of financial divided by total retail units -- $500/avg retail $1500; $600
avg/retail $2000; $700 and above avg/retail $2500
Other Compensation: Rotate driving UC
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda and Nissan
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
19
# of Mechanical Technicians:
20 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 80% of employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k with 20% match of first 4% saved
# Vacation Days:
1 week after 1 year, 2 weeks after 3 years, 3 weeks after 10 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Vision, AFLAC paid by employee, 60% of disability premium
Yes - $237.93/month employee; $312/month if family coverage
____________________________________________________________________________________
Comments:
Convert the draw to a salary and reduce the commission/bonus amounts by 25% and we have a good
pay plan for a used car manager.
USM 3
Used Vehicle Sales Manager
15
Base:
$12,000
Base pay:
14% of projected income
Commission:
3.25% of total used sales gross, plus DX income, less policy and delivery charges
Bonus:
$500 if 50 or more retail used are sold in a month
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
6
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
33 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
Short term disability
Yes - $25,000
____________________________________________________________________________________
Comments:
We’re on the right track here. Higher salary and a little less commission and this would be just right.
USM 4
Used Vehicle Sales Manager
16
Base:
Base pay:
Commission:
Bonus:
$48,000
65% of projected income
N/A
A retailer balance scorecard bonus will be paid monthly on the last day of the subsequent
month. This bonus will be based on actual showroom achievements versus employer
forcasted requirements. This bonus will begin to be paid when an achievement level of
80% of forecast is reached and it will pay to a maximum of 140% of forecast. The
maximum at 140% in all measurements will pay $75.00 per unit delivered. The chart
below lists the measured criteria and weight of importance in the balance scorecard.
Strategic Measure
Weight
New Unit Target
20%
New Gross Target
19%
CSI
8%
Used Unit Target
20%
Used Gross Target
19%
New F&I Gross Target
5%
Used F&I Gross Target
5%
New Net Income
2%
Used Net Income
2%
Other Compensation:
In addition to the retailer balance scorecard bonus a net income bonus of 2% will be paid on new
and used net income, this bonus will be paid monthly on the last day of the subsequent month.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
NO
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
12 - Non-Union, Teams
Benefits:
Health Insurance: Yes - 80% Paid by Dealership
Life Insurance:
Prescription Plan: No
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, Group RRSP
# Vacation Days:
10
# Paid Sick Days: 2
Paid Holidays:
10
Other Benefits:
N/A
Yes - Salary
____________________________________________________________________________________
Comments:
On the one hand, I applaud the dealer for paying 65% salary. That’s a smart move. On the other hand,
the bonus plan has too many elements. When you see it laid out on that chart, how can anyone be
thinking of all those things when trying to sell a car?
USM 5
Used Vehicle Sales Manager
2
Base:
$48,000
Base pay:
51% of projected income
Commission:
4% of the New and Used Variable Net - Operating Income minus variable selling expense
and floor plan assistance
Bonus:
Inventory Bonus: no inventory over 60 days + $1000 / inventory over 90 days -$500
Other Compensation:
Special Finance Bonus: 10% of bonus check when BOOK close & 10% of the BOOk when it matures
(usually 36 month from close)
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Honda
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
16 - Non-Union, combination - some team / some direct report
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years
# Paid Sick Days: 0
Paid Holidays:
6
Other Benefits:
N/A
Yes – 50%
____________________________________________________________________________________
Comments:
Good pay plan. Get the manager to concentrate on net profits and inventory management. How he does
it is up to the manager.
USM 6
Used Vehicle Sales Manager
22
Base:
$2,500
Base pay:
20% of projected income
Commission:
3.5 Percent of adjusted gross profit, less wholesale
Bonus:
Volume bonus based on intervals of 10
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW, Porsche, Volkswagen, Subaru, Isuzu
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan: Yes, 401K
# Vacation Days: 12
# Paid Sick Days: 0
Paid Holidays:
3
Other Benefits:
N/A
Yes - $100K
____________________________________________________________________________________
Comments:
Must be nice to be the used car manager in a BMW store. This pay plan is pretty much what we
recommend. Salary plus an easy-to-understand bonus program that pays a significant reward for
significant achievement.
USM 7
Used Vehicle Sales Manager
22
Base:
$2,000 per month
Base pay:
25% of projected income
Commission:
5 percent of adjusted gross profit
Bonus:
$50 per car for Subaru franchise
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW, Porsche, Volkswagen, Subaru, Isuzu
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
25
# of Mechanical Technicians:
35 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
12
# Paid Sick Days: 0
Paid Holidays:
3
Other Benefits:
N/A
Yes - $100K
____________________________________________________________________________________
Comments:
Looks good. Pay is attractive and the goals are very much under the control of the manager.
USM 8
Used Vehicle Sales Manager
25
Base:
$875 per week
Base pay:
50% of projected income
Commission:
* Commission of 20% of the gross profit of each unit you sell through the Mercedes
Annex in Shrewsbury. Used vehicles sold from other locations inventory will commission
only – not based on gross.
* F & I Commission of 20% for each unit sold at the Annex, 5% on vehicles sold from
other locations inventory.
Bonus:
N/A
Other Compensation: Monthly automobile allowance of $300.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
BMW
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
9
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
15 max
# Paid Sick Days: 5
Paid Holidays:
7
Other Benefits:
Car allowance (managers)
Yes
____________________________________________________________________________________
Comments:
Basically $875/week plus 20% of the front and back-end gross from the manager’s store. Why 20%?
That seems high. If sales reps get 20 -25% and the manager gets 20% of what’s left, that doesn’t leave a
lot for overhead and profit.
USM 9
Used Vehicle Sales Manager
28
Base:
Draw against commission of $64,800 annually
Base pay:
0% of projected income
Commission:
3.75% of Total Variable Gross
Bonus:
Attain $250,000 Gross=$1,000
Attain $300,000 Gross=$1,000 more
Attain $350,000 Gross=$1,000 more
If 75 used vehicles are sold retail in a month there is a $1,000 bonus.
Clean used vehicle inventory pays $500 bonus.
Clean equals no vehicles over 90 days old.
2% SFE bonus
Other Compensation: $500 vehicle allowance
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Chevrolet
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
13
# of Mechanical Technicians:
8 - Non-Union, Sales teams with alternating schedules
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes
# Vacation Days:
5 days after one year of employment
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
Yes
____________________________________________________________________________________
Comments:
Again, the dealership can achieve the same objective with less variability by paying a decent salary and a
lower commission rate. You will hit the target you want without exposing the dealership and employee to
wide swings. Does the draw have to paid back, if not earned?
USM 10
Used Vehicle Sales Manager
34
Base:
$0
Base pay:
0% of projected income
Commission:
Commissions & Bonuses
6.5% of Used vehicle gross and Used F&I net gross less new F&I net charge backs
PG 2 LINE 2 Toyota NCM STATEMENT
Bonus:
Less Used Policy page 2 line 15
Less Used Delivery expense page 2 line 8
N/A
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Toyota, BMW, Honda, Pontiac, Buick & GMC
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
42 - Non-Union, Lateral support
Benefits:
Health Insurance: Yes
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
4 days after 90 days, 9 days after 1 year, 14 days after 2 years
# Paid Sick Days: Vacation and sick are called pto
Paid Holidays:
5 for all but productive on 3 for productive
Other Benefits:
Prepaid legal, HHF, FSA, AFLAC
Yes
____________________________________________________________________________________
Comments:
What would be wrong with a salary equal to 50% of expected earnings and a commission rate of 3.25%?
USM 11
Used Vehicle Sales Manager
36
Base:
$2,000
Base pay:
33% of projected income
Commission:
1.3% of total variable gross (new & used, plus F&I comp) from monthly statement, line 2
Bonus:
$500 for beating our main competitor
$500 for leading market area
Both bonuses come with CSI qualifier of 85%
Other Compensation: $1.50 per Etch sold
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Buick, Pontiac, GMC
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
12
# of Mechanical Technicians:
15 - Non-Union
Due to the decrease in sales volume, we have created selling manages and administrative
managers
Benefits:
Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
One week paid after first year, two weeks paid thereafter
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
N/A
No
____________________________________________________________________________________
Comments:
I like this pay plan. I’d get behind it.
USM 12
Used Vehicle Sales Manager
39
Base:
$5,000
Base pay:
Approximately 40% of projected income
Commission:
None
Bonus:
Paid monthly, 2% New selling gross, 4.5% Used selling gross
Other Compensation: Demo
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Lincoln, Mercury
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
14
# of Mechanical Technicians:
15 - Non-Union, No
Benefits:
Health Insurance: Yes - 100% paid by the dealership for the employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401k
# Vacation Days:
5 days for 1 year and 10 days for 2+ years
# Paid Sick Days: 4 per year
Paid Holidays:
5
Other Benefits:
Vision
Yes - $10,000
____________________________________________________________________________________
Comments:
Nothing wrong with this pay plan. It’s the type of formula that we would recommend.
USM 13
Used Vehicle Sales Manager
42
Base:
$800 per week
Base pay:
45% of projected income
Commission:
N/A
Bonus:
* 3% of used vehicle gross profit after controllable expenses (sales comp, delivery exp,
policy work, advertising, floorplan esp)
* 1.0% of used vehicle gross profit
* 1/2% new car sales profit
* Quarterly SFE bonus - if facility satisfies criteria - $1,000
Other Compensation: Demonstrator vehicle
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cadillac, Saturn & Hummer
Monthly Sales Vol. (new & used):
201 - Negotiated Sale
# of Sales People:
30
# of Mechanical Technicians:
41 - Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
5 days after year, 10 days after 2 years
# Paid Sick Days: up to 4 days in 1st year, 6 days after 1 year, 11 days after 10 years
Paid Holidays:
6
Other Benefits:
N/A
Yes - Company paid $20,000 coverage
____________________________________________________________________________________
Comments:
Darn! And it started off so well. Pay the bonus on the gross profit or the adjusted net, but not both.
Ultimately these are the same dollars.
USM 14
Used Vehicle Sales Manager
5
Base:
Base pay:
Commission:
$2,250 per month
25% of projected income
Increasing commission based on department gross to:
Gross profit
Bonus
100k
1%
100 to 200 k
1.5%
200 to 300k
2.00%
300k +
2.5%
Bonus for units sold. New
1-20, $6
21-40 $8
41-60 $10
61-80 $14
81+$20
Used units sold bonus,
1-20 $6
21-40 $8
41-60 $10
61-80 $14
81+ $20
Salesmen's performance bonus $100 for each salesman achieving 10 deals or more.
Aged unit bonus of $1000 if there are no used units over 120 days.
Bonus:
Other Compensation: Car allowance of $450 per month, gas allowance of $150 per month, cell phone.
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Monthly Sales Vol. (new & used):
# of Sales People:
# of Mechanical Technicians:
Chrysler, Dodge, Jeep
51-100 - Negotiated Sale
12
22 - Non-Union
Benefits:
Health Insurance: Yes - 60% Paid by Dealership
Life Insurance:
Yes
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan: Yes, Group RRSP
# Vacation Days: 10 days after one year, 15 days after 5 years, 20 days after 10 years
# Paid Sick Days: 0
Paid Holidays:
9
Other Benefits:
N/A
____________________________________________________________________________________
Comments:
Combine the new and used unit bonus plans. They are the same. Don’t get too complicated trying to fit
the pay plan into a desired income range. It rarely works out as intended.
USM 15
Used Vehicle Sales Manager
51
Base:
$2,000 Draw
Base pay:
0% of projected income
Commission:
2.5% Used Variable Gross
Bonus:
$25.00 per vehicle delivered after 59th vehicle
Other Compensation: Demo and gas allowance
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Pontiac & Buick
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
N/A
# of Mechanical Technicians:
Non-Union
Benefits:
Health Insurance: Yes – Dealership pays 50% for employee
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
5 days after 1st year, 10 days after third year
# Paid Sick Days: 0
Paid Holidays:
5
Other Benefits:
Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail
Yes - None paid by employer
____________________________________________________________________________________
Comments:
The formula has a lot to recommend it. The only change I would make is paying a salary and a smaller
commission rate. This is a senior dealership manager, after all.
USM 16
Used Vehicle Sales Manager
55
Base:
$43,000
Base pay:
40-50% of projected income
Commission:
N/A
Bonus:
Production
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Ford, Lincoln, Mercury, Mazda
Monthly Sales Vol. (new & used):
51-100 - Negotiated Sale
# of Sales People:
7
# of Mechanical Technicians:
10 - Non-Union
Benefits:
Health Insurance: Yes – 33.3% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
Yes
Stock Options:
No
Retirement Plan:
Yes, 401K
# Vacation Days:
1-3 weeks
# Paid Sick Days: 5
Paid Holidays:
6
Other Benefits:
Demos
Yes - 100
____________________________________________________________________________________
Comments:
This looks OK, but I’d like to have more detail on the bonus.
USM 17
Used Vehicle Sales Manager
6
Base:
$4,075
Base pay:
41% of projected income
Commission:
0.38% NC Gross Profit
2.2% UC Gross Profit
3.00% UC Selling Profit
Bonus:
Hit NC Selling Profit Target = $500
Hit UC Selling Profit Target = $500
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Lexus
Monthly Sales Vol. (new & used):
101-200 - Negotiated Sale
# of Sales People:
18
# of Mechanical Technicians:
15 - Non-Union, Service Teams
Benefits:
Health Insurance: Yes - 50% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
Yes
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
Yes, RRSP (Canada Specific)
# Vacation Days:
10 - 20 Depends on LoS
# Paid Sick Days: 0
Paid Holidays:
10
Other Benefits:
Purchase Plan, Ed Asst. LoS Awards
Yes – 2x Gross Earnings
____________________________________________________________________________________
Comments:
Where do percentages like .38% and 2.2% come from? They are not standard benchmarks. The only
thing I can guess is that the dealer started with a desired income range for the manager and backed into
it using these percentages. That’s OK as long as everyone realizes what is going on.
USM 18
Used Vehicle Sales Manager
68
Base:
$450/week
Base pay:
45% of projected income
Commission:
30% used vehicle sales gross profit
Bonus:
2% annual net income
Other Compensation: N/A
____________________________________________________________________________________
General Dealership Information:
Dealer Franchise(s):
Cheverolet
Monthly Sales Vol. (new & used):
<50 - Negotiated Sale
# of Sales People:
3
# of Mechanical Technicians:
5 - Non-Union
Benefits:
Health Insurance: Yes - 100% Paid by Dealership
Life Insurance:
Prescription Plan: Yes
Dental Plan:
No
Profit Sharing:
No
Stock Options:
No
Retirement Plan:
No
# Vacation Days:
10
# Paid Sick Days: 1 day for every month worked in year
Paid Holidays:
7
Other Benefits:
N/A
Yes - $5,000
____________________________________________________________________________________
Comments:
In a small store like this, maybe only one sales manager is needed. My guess is that the dealer has to
pay such a high percentage of the gross in order to make the total income attractive. The reality is that
this manager is more of a partner than the dealer realizes, and the manager doesn’t have any capital at
risk.
USM 19