N A D A M ana g e m e n t s e r i e s NADA Compensation Study 2009 Regional compensation and benefits for automobile and truck dealerships in 2008 PF16 New Section on Legally-sound Pay Plans PF16 Driven The National Automobile Dealers Association (NADA) has prepared this management guide to assist its dealer members in being as efficient as possible in the operation of their dealerships. The presentation of this information is not intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service. Driven NADA Compensation Study 2009 Table of Contents The Need to have Clear-Cut Written Pay Plans.................................................................. i Introduction and Background........................................................................................... 1 Region 1 – New England..................................................................................................... 4 Region 1a: Connecticut / Massachusetts / Rhode Island........................................................... 7 Region 1b: Maine / New Hampshire / Vermont........................................................................ 10 Region 2 – Mid-Atlantic...................................................................................................... 11 Region 3 – East North Central........................................................................................... 14 Region 4 – West North Central.......................................................................................... 17 Region 5 – South Atlantic.................................................................................................. 20 Region 6 – East South Central........................................................................................... 23 Region 7 – West South Central.......................................................................................... 26 Region 8 – Mountain........................................................................................................... 29 Region 9 – Pacific............................................................................................................... 32 Automobile Dealerships Fringe Benefits, 2008................................................................... 36 Regions 1–5................................................................................................................... 36 Regions 6–9.................................................................................................................... 37 By Units.......................................................................................................................... 38 Medium- and Heavy-Duty Truck Data................................................................................... 39 Introduction..................................................................................................................... 39 National Compensation Data............................................................................................... 41 Fringe Benefits 2008......................................................................................................... 43 The compensation statistics presented in this guide are intended to represent trends in the industry and do not serve as recommended compensation levels for any dealership. Dealers should determine appropriate compensation levels and plans for their own dealerships. NADA neither endorses nor has an opinion on compensation levels of specific pay plans. The Need to Have Clear-Cut Written Pay Plans INTRODUCTION For purposes of avoiding misunderstandings with employees, the importance of legally-sound pay plans cannot be overstated. Moreover, dealers must pay close attention to the rules relating to wage and hour law, which can be deceptively complex. The Fair Labor Standards Act is the primary federal law in this area but some states have rules that are different from or stricter than the federal. A typical dealership uses a variety of pay plans. Some of these, such as those for employees primarily compensated on commission, revolve around complex accounting concepts involving a defined “gross” or “profit.” In part, dealers use pay plans to motivate employees to exert their greatest efforts—and subsequently to reward them for doing so. For example, salespeople paid on a commission basis receive a portion of the “gross” or “profit” on each vehicle sold. Most dealership salespeople clearly understand that they are being paid on a commission basis and that their compensation is tied directly to their production. However, unless key details are spelled out with well-defined terms in a legally-sound pay plan, salespeople may not fully understand all of the parameters of their compensation. This an overview of the basic concepts that should be covered when drafting pay plans. This overview, however, cannot cover all of the details needed to craft a legally-compliant pay plan and it does not constitute legal advice. Dealers are strongly encouraged to have their compensation plans reviewed by competent counsel for compliance with federal, state, and local law. OVERTIME AND MINIMUM WAGE REQUIREMENTS A. Overtime Exemptions Generally, federal law requires that all employees be paid overtime at one-and-a-half times their regular rate of pay (which must be at least equal to minimum wage) for all hours worked in excess of 40 hours per seven-day week. However, dealers may avoid paying overtime for employees who qualify for an exemption. Numerous overtime exemptions exist. Some “white collar exemptions” apply primarily to salaried managers. A significant exemption also exists for dealership salespeople, parts people, and mechanics. In addition, other dealership employees are exempt from overtime since they are: 1) employed by a retail establishment; 2) have earnings that exceed one-and-a-half times minimum wage for every actual hour they work; and 3) earn more than half of their total earnings in the period from commissions on goods or services. To see if an overtime exemption applies, dealers must establish a representative period for determining if an employee’s earnings and duties meet the conditions of the exemption. Dealers typically do PF16 NADA Management Series Driven i this on a weekly, bi-weekly, or monthly basis. The burden is always on the dealership to prove that an exemption applies, so it is critical that accurate records of both compensation and hours worked be maintained. Note: this is one area where state laws can be different and deserve close attention. Please contact your state or metro dealer association for more information. B. Minimum Wage Requirements Salespeople exempt from overtime under federal law are still entitled to at least minimum wage for all hours worked. As of July 24, 2009, the federal minimum wage was $7.25 per hour. If you are located in one of the several states that have a minimum wage higher than the federal, you must pay that higher rate. For most employees, the minimum wage requirement must be met on a pay period basis. In the case of commission employees, the minimum wage requirement can be met on a “settlement period” basis. This means if you pay commissions (“settle”) weekly, you must pay the applicable minimum wage due for that week, but if you settle monthly, you may pay minimum wages owed monthly. Thus you cannot settle weekly, but only check minimum wage compliance monthly. Issues can arise if a commission employee does not earn enough to meet the minimum wage due. If the total compensation for the period (commissions, bonuses, spiffs, etc.) does not meet or exceed the minimum wages due for all hours worked during the settlement period, the dealer must advance an amount sufficient to make up the deficiency. For example, assume a salesperson’s commissions total $200 for week one, a 55-hour week. At the current federal minimum wage of $7.25/ hour, she would be entitled to at least $398.75 for the week. Since she only earned $200 in commissions, an advance would need to be made for at least $198.75 to satisfy the federal minimum wage requirement. Calculating the minimum wage obligation for commission employees is an administrative burden but is critical in situations where ii Driven NADA Management Series PF16 such employees may not have earned commissions meeting or exceeding the minimum wages due to them (e.g., new employees, poor performing employees, or poor economic conditions). Dealers may recoup minimum wage advances paid to commission employees in a subsequent settlement period if their compensation is sufficiently in excess of the minimum due for that subsequent settlement period. You should detail this procedure in the written pay plans for all commission employees. For example, assume that the salesperson described above earns $1,500 in commissions in week two, also a 55-hour week. The dealer may deduct the $198.75 advance paid for week one and then pay the remaining $1,301.25, since the amount is well in excess of the minimum wage. If in week two, however, her commissions were only $250, she would have to be advanced another $148.75 to bring her up to minimum wage ($7.25 x 55 hrs. minus the $250 received from commissions). At that point, she would be indebted to the dealership for $347.50 ($198.75 + $148.75), which could be recouped in a subsequent settlement period. But if she leaves the dealership while indebted in this way, the dealer may not recoup the advances from her final check; she must have received minimum wage for all hours worked. The federal wage and hour law does not require dealers who use biweekly, semi-monthly, or monthly pay plans to pay “draws” or advances, nor does it dictate when wages must be paid, but dealers must establish a regular pay period (such as weekly, biweekly or monthly). Some state laws do require that employees be paid weekly or biweekly. Dealers often choose to pay draws based on minimum wage, as a lump sum, or even on a percentage of commissions earned. Draws are deducted from commissions earned at the end of the settlement period. Note that it is in no way inconsistent to have a longer settlement period (i.e., monthly) with a weekly or biweekly “pay period.” Some dealers pay new commission employees, such as salespeople, a “guarantee” for a set period (e.g., 60 or 90 days). Guarantees are intended to help new employees make the transition into auto sales by reducing the pressure to achieve quick results. New employees who receive guarantees must still receive at least the minimum wage for all hours worked. If a guarantee is sufficiently high, then a new employee will earn more than minimum wage without any adjustments. If instead the minimum wage due exceeds the guarantee plus any commissions earned, the dealer must advance the difference. Always spell out in writing exactly how long the guarantee will be in effect and include the following: “This ‘guarantee’ is not a guarantee of employment for the full guarantee period. Rather, it is a guarantee of the amount we will pay you if you continue to be employed for that period.” Including this language in written pay plans for commission employees should prevent them from later claiming they had a contract to be employed and paid a guarantee for the entire period. C. Wage Records Federal law requires that dealers maintain records for all employees including accurate records of hours worked. Ensure especially that commission employees keep timecards, time sheets, or other accurate records of hours worked. “Hours worked” include any time an employee must be on the employer’s premises or is permitted to work, including attendance at mandatory lectures, meetings, or training. Training, lectures, or meetings do not count as hours worked if they occur outside normal working hours, if they are voluntary or not job-related, and if no other work is performed. “Hours worked” also include rest periods of short duration – 20 minutes or less – but not bona fide meal periods (usually 30 minutes or more), in which employees are completely relieved from duties. If an employee is performing any duties during a meal period, then that time must be counted toward hours worked. Maintain a policy that the employees clock in and out for bona fide meal periods. Be aware that some states require employers to provide mandatory meal and/or rest breaks. One record-keeping option is to have employees sign timecards or sheets for each pay period, acknowledging that the timecard or time sheet accurately reflects all hours worked. Such records can prove critical should a minimum wage or overtime dispute arise. Note that employees seeking to collect back pay for improperly paid wages can look back for up to two years, three years if a violation is found to be willful. Dealers also must maintain records of employee rates of pay, deductions from or additions to wages, dates of payment, and pay periods covered. Federal law requires dealers to maintain payroll records for at least three years, and the records upon which wage computations are based (timecards, etc.) for at least two years. As statutes of limitations may allow contract or fraud claims to be made after a longer period of time, maintain wage records for at least as long as the longest applicable state statute of limitations. Employees covered by a collective bargaining agreement are still protected by federal, state, and local wage and hour laws. A union’s agreement to a pay plan does not protect a dealer from back wage claims by employees or the government if that pay plan does not comply with all applicable laws. CONTRACT, FRAUD, AND OTHER WAGE CONCERNS Ensuring that employee pay plans are in compliance with applicable state and federal wage-hour laws may not protect you from all claims. Lawsuits may also involve breach of contract and fraud claims. Often, salespeople allege that they were promised a percentage of the “gross profit “ on each sale, but that by deducting “packs” and other undisclosed charges, the dealer failed to pay them all that was due. They also often claim that dealers must include all payments received from manufacturers, lenders, and other vendors when calculating the actual “profit” on a deal. PF16 NADA Management Series Driven iii These cases are difficult to defend because, even if there was a written pay plan, it may have been loaded with dealership jargon and subject to a number of different interpretations. If a contract such as a sales pay plan is ambiguous or unclear, the court normally will construe it against the party who drafted it. Therefore, always clearly define terms like “gross profit,” especially with respect to what deductions may be made and when. In addition to breach of contract claims, salespeople may also file fraud claims alleging that the dealership made misrepresentations or omissions by failing to fully disclose all of the deductions it made or by artificially inflating costs and charges. Fraud claims allow claims for punitive damages in addition to “lost wages.” Also, a salesperson can allege violations of state wage payment laws, claiming that when the dealership made a deduction, it failed to pay “all wages due.” In a number of states, such a claim may involve liquidated damages and attorney’s fees. Bottom line: even a dispute over a small amount of commissions can easily become a very expensive case. To avoid these kinds of claims, dealers should have detailed, written commission schedules explaining in plain English how compensation will be calculated. Clearly define industry-specific terms such as “commissionable gross profit,” “pack,” “spiff,” etc., and use examples to show how actual calculations will be made. Carefully review methods used to calculate commissions to ensure that all potential deductions or adjustments are listed or explained in the pay plan itself. Pay plans also should address issues such as the potential for additional charges against the vehicle, and who has the authority to determine when to split a commission. Claims may arise when an employee leaves a dealership and receives a final paycheck that does not show commissions for all deals worked because some vehicles had not yet been funded or delivered. Pay plans should always define when commissions are considered earned, and how they iv Driven NADA Management Series PF16 will be paid if an employee leaves the dealership. Pay plans also should indicate if a salesperson must be a current employee when a bonus or contest award is paid. Weekly or monthly bonuses can make up a significant amount of many employees’ overall compensation and should be clearly addressed in their pay plans. Explain exactly how bonuses are to be calculated, when they are to be paid, and what employees must do to qualify for them. Sales managers often change pay plans or add special bonus programs in order to motivate salespeople. Too often these changes and programs are announced at a sales meeting but never put into writing. In order to avoid misunderstandings, all such changes should be put in writing. Ideally, have each employee acknowledge receipt of a copy of their pay plan when hired and provide acknowledged copies each time the plan is changed in any way. Only make pay plan changes prospectively, even temporary or minor ones involving special incentive or bonus programs. Detail in writing all eligibility requirements and effective dates. Taking steps to ensure that details are spelled out and understood by applicable employees will avoid future misunderstandings or legal issues. Tailor your pay plan to your specific dealership and to your state’s minimum wage if it is higher than the federal minimum. Because a poorly drafted pay plan—or the lack of a written pay plan—can subject a dealership to significant back wage liability, dealers should have all sales pay plans reviewed by counsel experienced in dealership wage and hour matters. —Christopher C. Hoffman A DEALER GUIDE TO NADA Compensation Study 2009 INTRODUCTION AND BACKGROUND As the economy began to come out of recession during the third quarter of 2009, the need for good comparative data for compensation became ever more important. In 2009, the national debate on health care focused attention on this important segment of fringe benefits, which are also covered in these pages by region. The regional differences in economic activity were great during the recession and the pattern of correction in the real estate market is a key element, along with economic growth, contributing to the outlook for light-vehicle sales region by region. As long as home equity was falling, many consumers would be reluctant to commit to a new light-vehicle purchase. A sign of future improvement in business, and thus future needs to stay of top of compensation policy, can be found in the pent-up demand revealed in the “Cash for Clunkers” program during the summer of 2009. That program was very effective at converting prospective used-car buyers into new-car buyers. As the recovery proceeds, new-car dealers must stay attuned to compensation trends in their regional marketplace, with the NADA survey data as their baseline. In setting compensation, managers must be aware of how much, if any, wage decline occurred at franchised new-car dealers in their region. They must also judge how fast recovery will occur during the last months of 2009 and the initial months of 2010. Therefore, the regional approach to NADA’s compensation measurements is essential for new-car dealerships to stay current on compensation. During mid-2010, unemployment, which surged over 10 percent late in 2009, will peak, and then start to moderate in the last half of 2010. Falling unemployment will assist new light-vehicle purchases and service work, as consumers start to relax about the stability of their own jobs. Rehiring by major corporations will begin late in 2010—a slow pattern of rehiring first seen in the recovery from the 2001-2002 recession, a recession in which the damage to retail automotive activity was comparatively slight. Currently, with about 6.5 million fewer new cars and light trucks sold in 2009, and fewer trades of used cars as a result, used cars will remain in tight supply during 2010, assisting the demand by households for new light-vehicles. Enhanced new-car sales will help franchised dealers restock used-car operations gradually as 2010 unfolds. All of this will have varying regional patterns that influence the wage trends and pressures that start to develop in compensation at the dealership. Look at important indicators of economic activity such as monthly new-car registrations in your immediate sales area, the drawdown of unsold existing and new housing for your market area, PF16 NADA Management Series Driven 1 and indications of adequate credit availability for your customers. Look at local employment and announcements of layoffs and hiring by major employers of your customers. Look for measures of the business climate produced by local Chambers of Commerce and professional organizations. In addition, get out of the dealership at least once a week and talk to merchants and bankers about the market conditions for other durable and nondurable goods and services in your area. All of these economic measures should be showing some signs of improvement in nearly all regions during the initial quarters of 2010, but at different regional rates of recovery. This 2009 dealership compensation publication updates the data presented in NADA Management Guide PF.15, Paying to Motivate: Update ’07. The National Automobile Dealers Association collected the data in the current publication on behalf of 60 independent state and local associations that commissioned NADA to conduct a compensation study for their members. All figures presented are for the calendar year 2008. The compensation statistics for each region are examined in relation to the average number of new units sold per dealership and the per capita personal income for that area. Salary* averages are based on full-year 2008 W-2 form information plus any elected salary deferrals for 39 dealership positions. Not included in the averages are earnings for employees who worked in a position less than the full calendar year. Also excluded are the earnings of dealer principals who perform the duties of one or more of the positions listed. Dealer compensation is not addressed in this survey. For each region, column one shows the average salary for each dealership position without regard to sales volume. Column two shows that salary as a percentage of the U.S. average. Columns three and four show the regional averages broken down by unit sales volume. Column five shows the average for all dealers in the U.S. According to NADA Industry Analysis Division, NADA DATA 2009, major expenses for the average dealership in 2008 were: • Payroll • Advertising • Rent and Equivalent $2,658,000 $341,285 $376,578 Of the 16,528 surveys mailed, 2,120 (12.8 percent) were returned. Maine had the highest response rate at 43 percent, and Nevada had the lowest response rate at 2 percent. The survey also included questions about various fringe benefits. That data follows the regional compensation data. For the purpose of this study, the nation has been divided into nine geographic regions based on the Bureau of Labor Statistics divisions. * The term “salary” in this survey refers to total W-2 compensation plus any salary deferrals. Total W-2 compensation averages, as reported on the W-2, include wages, salaries, cash bonuses, and other reported income. —Paul Taylor 2 Driven NADA Management Series PF16 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % of Dealerships Offering Paid Sick Leave $0 PF16 NADA Management Series $20,000 $10,000 Region 7 National Average $30,000 National Average $50,000 Region 9 $40,000 Region 9 Per Capita Income Region 8 $60,000 Region 8 Region 7 40% Region 6 60% Region 6 80% Region 5 100% Region 5 % of Dealerships Offering Employee/Dependent Health Plans Region 4 $20,000 Region 4 $60,000 Region 3 $40,000 Region 2 National Average Region 9 Region 8 Region 7 Region 6 Region 5 Region 4 $80,000 Region 1 National Average Region 9 Region 8 Region 7 Region 6 Region 5 Region 4 Region 3 Driven National Average Region 9 Region 8 Region 7 Region 6 Region 5 Region 4 Region 3 Region 2 Region 1 Average Management Salary Region 3 0% Region 3 Region 2 $100,000 1400 1200 1000 800 600 400 200 0 Region 2 75% 70% Region 2 Region 1 $120,000 Region 1 National Average Region 9 Region 8 Region 7 Region 6 Region 5 Region 4 Region 3 Region 2 20% Region 1 $0 Region 1 Comparative Statistics At-A-Glance Average New Units Sold 100% % of Dealerships Offering 401(k) Plans 90% 95% 80% 85% 3 Region 1— New England Survey Response State Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont Surveys Sent Surveys Received 268 138 386 158 59 87 34 59 17 46 8 31 1,096 195 In 2008, the per capita personal income for the New England region was $48,715, a full 23 percent higher than the national average. Just 14 of 39 dealership positions surveyed, however, had salaries at or above the national average in 2008. More than any other region, New England dealers continued to rely on fixed operations for profitability. Fixed operations in 2008 still accounted for a 61 percent absorption rate and, at 15 percent of total sales, remained the highest percentage of total dealership revenue in the nation. Of the dealership positions with below-average salaries, the most striking were the upper management positions. The average general manager’s salary in the region was 16 percent below the national average, and compensation for new-vehicle sales managers was 5 percent below the national average. Salaries for management positions in the service and parts operations were generally below the national average. The average service technician Benefit Offered Driven NADA Management Series % of Regional Response 12.69% 42.75% 4.40% 29.11% 13.56% 35.63% 17.44% 30.25% 8.72% 23.59% 4.10% 15.90% salary was 5 percent below the national average; office workers’ salaries were 5 percent higher than the national average. Employees of New England dealerships arguably had the best fringe benefits in the nation. The region ranked second in providing two weeks paid vacation, first in paid sick leave, and fourth in providing six to ten annual paid holidays. Ninety-two percent of the region’s dealerships offered 401(k) plans. Nearly 97 percent of dealerships extended a health plan to both employees and dependents, although 44 percent required employees to pay half. Following the statistics for the New England region as a whole, we have broken out the compensation figures by group, for ease of comparison. Since Connecticut, Massachusetts, and Rhode Island are significantly more urban and higher wage states, we have grouped them together; we have grouped Maine, New Hampshire, and Vermont as well. Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 4 Response Rate (%) PF16 1st 4th 3rd 6th 1st Region 1: New England 2008 Regional Compensation Data Region 1: New England MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE General Manager Overall Region 1 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $136,724 84% $106,492 $163,993 $163,034 Business Manager/Comptroller $78,006 95% $59,182 $95,409 $82,192 IT / Network Manager $60,458 99% $41,447 $65,890 $60,854 Human Resources Director/Manager $51,734 99% $41,919 $55,005 $52,032 BDC Manager $61,989 105% $38,050 $66,153 $59,282 $101,517 89% $85,726 $116,651 $113,578 New-Vehicle Sales Manager $89,489 95% $75,704 $96,744 $94,470 Used-Vehicle Sales Manager $86,489 93% $75,219 $93,250 $93,063 Truck Sales Manager $84,488 107% $65,188 $100,571 $79,223 Fleet Sales Manager $64,965 79% $39,631 $74,465 $82,256 Sales Training Manager $68,648 93% $60,495 $76,800 $74,096 Lease and Rental Manager $31,276 50% $31,276 ** $62,361 Internet Sales Manager $56,483 84% $46,187 $61,631 $67,128 Website Manager / Webmaster $49,152 105% $32,202 $100,000 $46,776 Marketing Manager $57,773 92% $47,167 $61,750 $62,989 Finance and Insurance Manager $82,020 92% $63,267 $96,530 $89,497 $102,013 94% $92,242 $108,297 $108,730 Service Manager $74,420 93% $62,095 $92,133 $80,291 Parts Manager $61,799 89% $52,864 $72,899 $69,412 Body Shop Manager $70,005 96% $52,683 $84,350 $72,638 Service Advisor/Writer $54,687 96% $47,617 $61,880 $57,056 Office Manager $53,863 105% $48,043 $59,851 $51,437 General Sales Manager Service and Parts Director * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. PF16 NADA Management Series Driven 5 Region 1: New England NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 1 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $37,927 104% $34,508 $41,667 $36,504 Average Paid Worker $30,384 105% $28,605 $32,163 $29,049 Lowest Paid Worker $25,098 108% $24,793 $25,464 $23,223 Highest Paid Worker $64,616 91% $57,874 $72,917 $71,288 Average Paid Worker $44,571 95% $41,126 $48,724 $46,799 Lowest Paid Worker $30,139 103% $29,670 $30,489 $29,292 Highest Paid Worker $59,724 86% $48,170 $71,101 $69,670 Average Paid Worker $45,196 93% $40,497 $49,931 $48,737 Lowest Paid Worker $32,913 96% $32,546 $33,617 $34,233 Highest Paid Worker $68,873 88% $58,449 $80,809 $78,369 Average Paid Worker $46,097 95% $42,939 $49,512 $48,363 Lowest Paid Worker $33,408 104% $33,618 $33,240 $32,203 Highest Paid Worker $54,093 91% $41,801 $60,240 $59,691 Average Paid Worker $45,613 94% $36,059 $55,168 $48,379 Lowest Paid Worker $44,710 108% $41,801 $47,037 $41,360 Body Shop Foreman $21.04 95% $17.22 $23.50 $22.04 Parts Counterperson $15.21 98% $14.32 $16.20 $15.51 Telephone Switchboard Operator $11.91 108% $11.45 $12.24 $11.03 Warranty Clerk $16.83 107% $15.59 $17.83 $15.71 General Cashier $11.51 104% $10.84 $11.87 $11.11 Showroom Receptionist/Greeter $12.68 113% $12.64 $12.70 $11.18 Title Clerk $14.54 101% $13.63 $15.17 $14.43 Bookkeeper $15.40 99% $15.18 $15.71 $15.52 AR/AP Clerk $14.87 105% $13.79 $15.67 $14.16 $9.81 101% $9.98 $9.67 $9.76 Car Washer $10.92 112% $11.02 $10.84 $9.73 Detailer $12.80 110% $12.86 $12.73 $11.63 $48,715 123% $39,751 528 74% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- & Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Courtesy/Shuttle Driver Per Capita Personal Income Avg. # New Units Sold * Rounded to the nearest whole percentage point. 6 Driven NADA Management Series PF16 Region 1: New England 2008 Regional Compensation Data Region 1a: Connecticut / Massachusetts / Rhode Island MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE General Manager Overall Region 1a % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $174,448 107% $120,252 $201,546 $163,034 Business Manager/Comptroller $89,426 109% $60,161 $101,807 $82,192 IT / Network Manager $66,640 110% ** $66,640 $60,854 Human Resources Director/Manager $47,750 92% $37,800 $50,237 $52,032 BDC Manager $84,465 142% ** $84,465 $59,282 $114,081 100% $104,076 $122,320 $113,578 New-Vehicle Sales Manager $96,512 102% $70,237 $104,596 $94,470 Used-Vehicle Sales Manager $95,854 103% $70,850 $101,536 $93,063 Truck Sales Manager $103,856 131% $86,000 $108,320 $79,223 Fleet Sales Manager $82,325 100% ** $82,325 $82,256 Sales Training Manager $76,800 104% ** $76,800 $74,096 Lease and Rental Manager $31,276 50% $31,276 ** $62,361 Internet Sales Manager $64,039 95% $53,581 $68,222 $67,128 $100,000 214% ** $100,000 $46,776 Marketing Manager $59,472 94% $40,800 $65,696 $62,989 Finance and Insurance Manager $97,228 109% $71,482 $110,078 $89,497 $105,460 97% $108,551 $106,320 $108,730 Service Manager $96,465 120% $75,321 $109,998 $80,291 Parts Manager $74,392 107% $62,436 $83,616 $69,412 Body Shop Manager $85,803 118% $51,724 $96,453 $72,638 Service Advisor/Writer $62,892 110% $47,910 $72,078 $57,056 Office Manager $65,500 127% $61,258 $68,669 $51,437 General Sales Manager Website Manager / Webmaster Service and Parts Director * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. PF16 NADA Management Series Driven 7 Region 1: New England NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 1a % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $44,599 122% $37,855 $48,462 $36,504 Average Paid Worker $33,522 115% $30,273 $35,304 $29,049 Lowest Paid Worker $27,229 117% $27,167 $27,295 $23,223 Highest Paid Worker $76,935 108% $71,238 $81,470 $71,288 Average Paid Worker $50,570 108% $47,404 $52,674 $46,799 Lowest Paid Worker $33,214 113% $34,330 $32,103 $29,292 Highest Paid Worker $75,600 109% $59,990 $82,290 $69,670 Average Paid Worker $53,306 109% $45,320 $57,869 $48,737 Lowest Paid Worker $38,413 112% $38,865 $38,204 $34,233 Highest Paid Worker $74,335 95% $65,829 $80,787 $78,369 Average Paid Worker $46,674 97% $41,305 $50,655 $48,363 Lowest Paid Worker $33,213 103% $31,584 $34,352 $32,203 Highest Paid Worker $53,317 89% $40,135 $63,204 $59,691 Average Paid Worker $46,055 95% $37,226 $54,884 $48,379 Lowest Paid Worker $40,687 98% $40,135 $41,239 $41,360 Body Shop Foreman $27.71 126% $15.00 $29.83 $22.04 Parts Counterperson $16.78 108% $15.05 $17.97 $15.51 Telephone Switchboard Operator $12.71 115% $12.38 $12.81 $11.03 Warranty Clerk $17.00 108% $16.18 $17.43 $15.71 General Cashier $12.00 108% $11.29 $12.26 $11.11 Showroom Receptionist/Greeter $12.69 114% $13.67 $12.40 $11.18 Title Clerk $15.97 111% $15.88 $16.00 $14.43 Bookkeeper $16.48 106% $16.14 $16.61 $15.52 AR/AP Clerk $16.57 117% $15.00 $17.00 $14.16 Courtesy/Shuttle Driver $10.28 105% $10.87 $9.86 $9.76 Car Washer $11.38 117% $10.93 $11.76 $9.73 Detailer $13.32 115% $13.50 $13.19 $11.63 $48,715 123% $39,751 656 92% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- & Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Per Capita Personal Income, New England Avg. # New Units Sold 8 Driven NADA Management Series PF16 * Rounded to the nearest whole percentage point. Region 1: New England 2008 Regional Compensation Data Region 1b: Maine / New Hampshire / Vermont MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE General Manager Overall Region 1b % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $119,833 74% $102,669 $139,765 $163,034 Business Manager/Comptroller $71,506 87% $58,898 $89,249 $82,192 IT / Network Manager $56,822 93% $41,447 $65,208 $60,854 Human Resources Director/Manager $54,579 105% $43,979 $58,819 $52,032 BDC Manager $50,751 86% $38,050 $54,381 $59,282 General Sales Manager $95,335 84% $77,697 $113,542 $113,578 New-Vehicle Sales Manager $84,983 90% $77,692 $90,157 $94,470 Used-Vehicle Sales Manager $80,870 87% $76,212 $85,324 $93,063 Truck Sales Manager $68,348 86% $59,986 $85,072 $79,223 Fleet Sales Manager $61,107 74% $39,631 $71,845 $82,256 Sales Training Manager $60,495 82% $60,495 ** $74,096 ** ** ** ** $62,361 Internet Sales Manager $48,346 72% $40,272 $53,393 $67,128 Website Manager / Webmaster $32,202 69% $32,202 ** $46,776 Marketing Manager $56,802 90% $50,350 $59,382 $62,989 Finance and Insurance Manager $74,127 83% $60,529 $87,385 $89,497 Service and Parts Director $99,643 92% $84,715 $109,857 $108,730 Service Manager $65,730 82% $58,983 $79,373 $80,291 Parts Manager $55,390 80% $49,627 $64,674 $69,412 Body Shop Manager $60,525 83% $52,936 $71,441 $72,638 Service Advisor/Writer $50,160 88% $47,516 $53,611 $57,056 Office Manager $48,404 94% $43,838 $54,218 $51,437 Lease and Rental Manager * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. PF16 NADA Management Series Driven 9 Region 1: New England NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008 Volume EMPLOYEE Overall Region 1b % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $34,428 94% $33,410 $36,197 $36,504 Average Paid Worker $28,591 98% $28,027 $29,382 $29,049 Lowest Paid Worker $23,911 103% $24,095 $23,786 $23,223 Highest Paid Worker $59,078 83% $53,762 $67,272 $71,288 Average Paid Worker $41,778 89% $39,181 $45,941 $46,799 Lowest Paid Worker $28,726 98% $28,158 $29,435 $29,292 Highest Paid Worker $52,821 76% $45,443 $62,856 $69,670 Average Paid Worker $40,502 83% $38,568 $43,394 $48,737 Lowest Paid Worker $30,301 89% $30,741 $30,304 $34,233 Highest Paid Worker $74,335 95% $65,829 $80,787 $78,369 Average Paid Worker $46,674 97% $41,305 $50,655 $48,363 Lowest Paid Worker $33,213 103% $31,584 $34,352 $32,203 Highest Paid Worker $55,180 92% $46,800 $57,275 $59,691 Average Paid Worker $44,729 92% $33,723 $55,735 $48,379 Lowest Paid Worker $52,757 128% $46,800 $55,735 $41,360 Body Shop Foreman $18.13 82% $17.50 $18.75 $22.04 Parts Counterperson $14.40 93% $14.06 $14.93 $15.51 Telephone Switchboard Operator $11.35 103% $11.13 $11.63 $11.03 Warranty Clerk $16.70 106% $15.30 $18.24 $15.71 General Cashier $11.12 100% $10.58 $11.50 $11.11 Showroom Receptionist/Greeter $12.67 113% $12.25 $13.00 $11.18 Title Clerk $13.54 94% $12.88 $14.27 $14.43 Bookkeeper $14.80 95% $14.93 $14.76 $15.52 AR/AP Clerk $13.77 97% $13.45 $14.20 $14.16 $9.55 98% $9.53 $9.55 $9.76 Car Washer $10.68 110% $11.06 $10.23 $9.73 Detailer $12.62 109% $12.71 $12.50 $11.63 $27,364 69% $39,751 473 67% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- & Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Courtesy/Shuttle Driver Per Capita Personal Income Maine, New Hampshire, Vermont Avg. # New Units Sold 10 Driven NADA Management Series PF16 * Rounded to the nearest whole percentage point. Region 2— Mid-Atlantic Survey Response State Surveys Sent Surveys Received 480 572 949 56 133 88 2,001 277 New Jersey New York Pennsylvania The Mid-Atlantic region per capita personal income for 2008 was $46,290—16 percent above the national average. From 2006 to 2008, the number of dealerships in the region shrank by 243. New vehicle registrations in the region declined 12.8 percent. The typical Mid-Atlantic dealership sold an average of 926 new vehicles in 2008. Thirty-two of the 39 positions surveyed at MidAtlantic dealerships had salaries that met or exceeded the national average. Among those, the typical marketing manager earned a sizable 17 percent more than his or her counterparts in the nation as a whole, a reflection of the highly competitive and changing retail market in the region. Salaries for clerical and office employees were 9 percent higher than the national average and most fixed operations positions also paid higher than average. Managerial positions, with five exceptions, Response Rate (%) % of Regional Response 11.67% 23.25% 9.27% 20.22% 48.01% 31.77% came in higher or at the national average. Service technicians were paid an average of 6 percent above the national average. Mid-Atlantic dealers offered an above-average benefits package relative to the rest of the nation. The region ranked first in the nation in the share of dealers offering demos to managers. After the New England region, the Mid-Atlantic also ranked highest in the percentage of dealers providing paid sick leave. They also ranked second in the nation for maternity/paternity leave; over 9 percent of dealerships surveyed offered a leave plan to their employees. The percentage of dealerships offering 401(k) plans ranked seventh nationally, and the region ranked third for dental plans, with 80 percent of dealerships offering dental plans to full-time employees. Benefit Offered Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 2nd 5th 2nd 7th 3rd PF16 NADA Management Series Driven 11 Region 2: Mid-Atlantic 2008 Regional Compensation Data Region 2: Mid-Atlantic MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE Overall Region 2 General Manager % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $171,044 105% $98,937 $200,863 $163,034 Business Manager/Comptroller $85,470 104% $64,755 $92,329 $82,192 IT / Network Manager $65,992 108% $69,555 $65,469 $60,854 Human Resources Director/Manager $52,684 101% $57,165 $52,228 $52,032 BDC Manager $65,555 111% $43,444 $67,359 $59,282 General Sales Manager $122,339 108% $80,081 $136,746 $113,578 New-Vehicle Sales Manager $102,583 109% $76,536 $108,682 $94,470 Used-Vehicle Sales Manager $94,782 102% $60,109 $101,716 $93,063 Truck Sales Manager $73,650 93% $72,410 $74,004 $79,223 Fleet Sales Manager $82,483 100% $53,500 $88,923 $82,256 Sales Training Manager $70,453 95% ** $70,453 $74,096 Lease and Rental Manager $64,748 104% $67,250 $63,785 $62,361 Internet Sales Manager $62,578 93% $54,881 $63,960 $67,128 Website Manager / Webmaster $41,067 88% $35,944 $42,988 $46,776 Marketing Manager $73,669 117% $55,000 $75,536 $62,989 Finance and Insurance Manager $101,105 113% $64,616 $111,952 $89,497 Service and Parts Director $110,471 102% $65,773 $125,148 $108,730 Service Manager $86,036 107% $62,851 $96,857 $80,291 Parts Manager $71,162 103% $53,216 $79,417 $69,412 Body Shop Manager $72,115 99% $55,862 $76,264 $72,638 Service Advisor/Writer $62,058 109% $52,985 $65,595 $57,056 Office Manager $53,023 103% $42,029 $58,013 $51,437 * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. 12 Driven NADA Management Series PF16 Region 2: Mid-Atlantic NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 2 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $39,264 108% $33,649 $41,527 $36,504 Average Paid Worker $31,616 109% $29,610 $32,259 $29,049 Lowest Paid Worker $24,685 106% $24,572 $24,702 $23,223 Highest Paid Worker $75,831 106% $60,178 $83,316 $71,288 Average Paid Worker $49,387 106% $45,336 $51,080 $46,799 Lowest Paid Worker $30,880 105% $30,495 $30,917 $29,292 Highest Paid Worker $64,907 93% $51,617 $70,038 $69,670 Average Paid Worker $47,105 97% $39,603 $49,868 $48,737 Lowest Paid Worker $34,283 100% $30,163 $35,749 $34,233 Highest Paid Worker $83,139 106% $63,312 $91,584 $78,369 Average Paid Worker $52,903 109% $47,001 $55,202 $48,363 Lowest Paid Worker $35,032 109% $35,373 $34,876 $32,203 Highest Paid Worker $61,108 102% $48,054 $63,330 $59,691 Average Paid Worker $50,303 104% $42,905 $51,735 $48,379 Lowest Paid Worker $43,423 105% $29,204 $46,533 $41,360 Body Shop Foreman $20.38 92% $20.88 $20.17 $22.04 Parts Counterperson $15.53 100% $14.81 $15.79 $15.51 Telephone Switchboard Operator $11.38 103% $10.73 $11.50 $11.03 Warranty Clerk $16.65 106% $14.23 $17.30 $15.71 General Cashier $11.57 104% $11.30 $11.63 $11.11 Showroom Receptionist/Greeter $11.62 104% $10.92 $11.81 $11.18 Title Clerk $14.97 104% $13.85 $15.31 $14.43 Bookkeeper $16.88 109% $17.00 $16.87 $15.52 AR/AP Clerk $14.81 105% $12.47 $15.21 $14.16 $9.99 102% $9.00 $10.20 $9.76 Car Washer $10.14 104% $10.12 $10.21 $9.73 Detailer $12.21 105% $11.92 $12.43 $11.63 $46,290 116% $39,751 926 130% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- & Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Courtesy/Shuttle Driver Per Capita Personal Income Avg. # New Units Sold * Rounded to the nearest whole percentage point. PF16 NADA Management Series Driven 13 Region 3— East North Central Survey Response State Surveys Sent Surveys Received 452 405 432 704 537 96 15 37 130 48 2,530 326 Illinois Indiana Michigan Ohio Wisconsin Per capita personal income in the East North Central region in 2008 was 5.9 percent below the national average. Salaries for just two management positions exceeded the national average, with compensation for the marketing manager coming in a full 11 percent higher than average. Compensation for non-managers was generally closer to average, and service and body shop technicians’ pay often met or exceeded the average. The average dealership sold 661 units. The region, like many in the nation, experienced a decline in new light-vehicle registrations in 2008. Nationwide, vehicle registrations decreased by 2 percent. Service and parts absorption was 56 percent for the region, and service and parts sales were 14.1 percent of total dealership sales, both above national average in 2008. Benefit Offered Driven NADA Management Series % of Regional Response 21.24% 3.70% 8.56% 18.47% 8.94% PF16 29.45% 4.60% 11.35% 39.88% 14.72% The positions of IT manager, website manager, and truck sales manager paid the least, compared to the national average, coming in at 15 to 23 percent below average. The results were mixed with regard to benefits packages. The region ranked third nationally in the share of dealerships offering one week of paid vacation and seventh among the regions surveyed offering paid sick leave. Over 94 percent of dealerships surveyed in the region reported offering 401(k) plans to employees, ranking second in the nation. But the region came in eighth nationwide for offering a dental plan for employees and their dependents. And though less than half of the region’s dealerships surveyed reported paying 50 percent of the cost of the health and dental plans offered to their employees, the region came in first in that category. Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 14 Response Rate (%) 7th 6th 1st 2nd 4th Region 3: East North Central 2008 Regional Compensation Data Region 3: East North Central MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE General Manager Overall Region 3 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $154,780 95% $99,283 $188,590 $163,034 Business Manager/Comptroller $73,518 89% $57,268 $83,256 $82,192 IT / Network Manager $51,749 85% $43,756 $53,398 $60,854 Human Resources Director/Manager $46,307 89% $34,557 $48,417 $52,032 BDC Manager $54,220 91% $54,768 $53,999 $59,282 $110,758 98% $78,451 $136,620 $113,578 New-Vehicle Sales Manager $87,900 93% $67,579 $94,350 $94,470 Used-Vehicle Sales Manager $91,739 99% $69,648 $99,151 $93,063 Truck Sales Manager $62,867 79% $54,458 $67,912 $79,223 Fleet Sales Manager $73,648 90% $43,666 $81,504 $82,256 Sales Training Manager $77,115 104% ** $77,115 $74,096 Lease and Rental Manager $55,359 89% $54,703 $55,650 $62,361 Internet Sales Manager $62,390 93% $55,880 $64,424 $67,128 Website Manager / Webmaster $36,217 77% $30,500 $37,647 $46,776 Marketing Manager $69,922 111% $46,009 $72,579 $62,989 Finance and Insurance Manager $84,368 94% $61,004 $99,658 $89,497 Service and Parts Director $96,879 89% $62,846 $106,841 $108,730 Service Manager $73,104 91% $56,934 $88,188 $80,291 Parts Manager $65,772 95% $57,307 $72,049 $69,412 Body Shop Manager $66,181 91% $54,941 $72,113 $72,638 Service Advisor/Writer $50,369 88% $42,411 $55,153 $57,056 Office Manager $48,533 94% $42,492 $53,346 $51,437 General Sales Manager * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. PF16 NADA Management Series Driven 15 Region 3: East North Central NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 3 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $33,706 92% $31,374 $35,366 $36,504 Average Paid Worker $26,777 92% $25,775 $27,322 $29,049 Lowest Paid Worker $21,418 92% $21,622 $21,302 $23,223 Highest Paid Worker $71,629 100% $58,141 $82,760 $71,288 Average Paid Worker $46,851 100% $42,631 $49,972 $46,799 Lowest Paid Worker $29,136 99% $28,836 $29,381 $29,292 Highest Paid Worker $66,444 95% $54,965 $73,451 $69,670 Average Paid Worker $49,927 102% $42,878 $53,754 $48,737 Lowest Paid Worker $35,415 103% $31,416 $37,631 $34,233 Highest Paid Worker $81,115 104% $67,321 $92,047 $78,369 Average Paid Worker $48,091 99% $45,214 $50,316 $48,363 Lowest Paid Worker $31,953 99% $33,253 $31,129 $32,203 Highest Paid Worker $63,203 106% $49,918 $67,023 $59,691 Average Paid Worker $46,812 97% $49,859 $47,855 $48,379 Lowest Paid Worker $39,687 96% $59,429 $39,093 $41,360 Body Shop Foreman $21.00 95% $18.83 $21.93 $22.04 Parts Counterperson $14.59 94% $13.35 $15.34 $15.51 Telephone Switchboard Operator $10.72 97% $10.46 $10.84 $11.03 Warranty Clerk $14.48 92% $13.63 $14.84 $15.71 General Cashier $10.75 97% $10.68 $10.80 $11.11 Showroom Receptionist/Greeter $10.84 97% $11.17 $10.79 $11.18 Title Clerk $13.48 93% $12.97 $13.73 $14.43 Bookkeeper $15.21 98% $14.31 $15.57 $15.52 AR/AP Clerk $13.70 97% $13.03 $13.91 $14.16 Courtesy/Shuttle Driver $9.32 95% $8.67 $9.59 $9.76 Car Washer $9.45 97% $9.13 $9.66 $9.73 $11.41 98% $10.72 $11.88 $11.63 $37,405 94% $39,751 661 93% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- & Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Detailer Per Capita Personal Income Avg. # New Units Sold 16 Driven * Rounded to the nearest whole percentage point. NADA Management Series PF16 Region 4— West North Central Survey Response State Surveys Sent Surveys Received 353 234 362 367 188 94 114 68 43 102 43 41 4 22 1,712 323 Iowa Kansas Minnesota Missouri Nebraska North Dakota South Dakota The West North Central region’s per capita personal income was 3.9 percent below the national average. The region’s relatively large number of small, rural dealerships translated into the nation’s lowest average new units sold per dealership—455. The region’s dealerships relied heavily on their used-vehicle departments for profitability. Usedvehicle departments accounted for 33 percent of the region’s total dealership sales in 2008; the national average was 30 percent. New-vehicle sales were 54 percent of total sales in 2008; the national average, according to NADA DATA 2009, was 57 percent. Of the 39 dealership positions surveyed, just six, including Internet sales manager and HR director, surpassed the average salary for the nation. Salaries for top management positions, including the general manager, marketing manager, and general sales manager, remained the lowest in the nation. The general manager came in at just 73 percent of the national average and general sales manager at 80 percent of national average. Service Response Rate (%) % of Regional Response 19.26% 18.38% 28.18% 11.72% 21.81% 4.26% 19.30% 21.05% 13.31% 31.59% 13.31% 12.69% 1.24% 6.81% technicians and body shop technicians came in at 7 and 4 percent below average, respectively. The average employee count was 45 per dealership in Minnesota and 43 in Missouri; Kansas and North Dakota had 40 each and the rest of the region had fewer than 37 employees per dealership. Nationally, the average dealership employed 53 people, according to the 2009 NADA DATA report. In the West North Central region, over 99 percent of dealerships surveyed offered paid vacation to their employees but less than half offered paid sick leave. The region was first nationwide in the share of dealers offering six to ten days of paid holidays. In most other benefit categories, the region’s dealerships were around the national average. The region ranked sixth in the percentage of dealerships offering demos to managers and third in the percentage offering demos to salespeople. Dealerships in the region placed fifth among those offering 401(k) plans and came in last for providing dental plans to employees and their dependents. Benefit Offered Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 4th 1st 4th 5th 6th PF16 NADA Management Series Driven 17 Region 4: West North Central 2008 Regional Compensation Data Region 4: West North Central MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE Overall Region 4 General Manager % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $119,122 73% $91,243 $159,073 $163,034 Business Manager/Comptroller $68,556 83% $54,448 $84,694 $82,192 IT / Network Manager $50,398 83% $44,540 $51,669 $60,854 Human Resources Director/Manager $54,590 105% $59,808 $50,810 $52,032 BDC Manager $58,277 98% $56,283 $58,847 $59,282 General Sales Manager $90,915 80% $69,653 $121,862 $113,578 New-Vehicle Sales Manager $87,951 93% $71,257 $98,145 $94,470 Used-Vehicle Sales Manager $84,340 91% $67,832 $96,091 $93,063 Truck Sales Manager $77,207 97% $85,347 $69,068 $79,223 Fleet Sales Manager $72,247 88% $52,104 $76,896 $82,256 Sales Training Manager $85,737 116% $48,000 $95,171 $74,096 Lease and Rental Manager $63,123 101% $54,088 $65,661 $62,361 Internet Sales Manager $69,570 104% $48,038 $76,196 $67,128 Website Manager / Webmaster $43,913 94% $28,017 $52,997 $46,776 Marketing Manager $43,199 69% $32,548 $47,072 $62,989 Finance and Insurance Manager $74,873 84% $57,192 $95,408 $89,497 Service and Parts Director $85,596 79% $70,803 $102,789 $108,730 Service Manager $67,266 84% $56,873 $85,608 $80,291 Parts Manager $57,813 83% $48,195 $73,583 $69,412 Body Shop Manager $61,750 85% $53,123 $71,821 $72,638 Service Advisor/Writer $49,067 86% $40,669 $61,838 $57,056 Office Manager $44,387 86% $39,219 $53,514 $51,437 * Rounded to the nearest whole percentage point. 18 Driven NADA Management Series PF16 Region 4: West North Central NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 4 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $34,430 94% $31,880 $38,495 $36,504 Average Paid Worker $28,192 97% $26,709 $30,072 $29,049 Lowest Paid Worker $23,381 101% $23,168 $23,663 $23,223 Highest Paid Worker $59,226 83% $52,874 $71,342 $71,288 Average Paid Worker $43,537 93% $40,645 $48,482 $46,799 Lowest Paid Worker $29,309 100% $28,570 $30,704 $29,292 Highest Paid Worker $64,999 93% $50,497 $83,217 $69,670 Average Paid Worker $46,877 96% $41,259 $53,770 $48,737 Lowest Paid Worker $34,885 102% $31,811 $38,155 $34,233 Highest Paid Worker $73,696 94% $61,693 $92,854 $78,369 Average Paid Worker $47,050 97% $43,317 $51,653 $48,363 Lowest Paid Worker $32,036 99% $31,890 $32,249 $32,203 Highest Paid Worker $59,409 100% $43,245 $70,805 $59,691 Average Paid Worker $47,500 98% $42,408 $50,773 $48,379 Lowest Paid Worker $43,419 105% $38,390 $44,602 $41,360 Body Shop Foreman $20.68 94% $20.57 $20.75 $22.04 Parts Counterperson $15.30 99% $13.79 $17.03 $15.51 Telephone Switchboard Operator $11.32 103% $10.47 $11.67 $11.03 Warranty Clerk $14.95 95% $13.79 $15.84 $15.71 General Cashier $11.45 103% $10.54 $12.07 $11.11 Showroom Receptionist/Greeter $11.04 99% $10.25 $11.43 $11.18 Title Clerk $13.92 96% $12.52 $15.11 $14.43 Bookkeeper $14.51 93% $13.72 $15.43 $15.52 AR/AP Clerk $13.86 98% $12.64 $14.68 $14.16 Courtesy/Shuttle Driver $9.62 99% $9.20 $9.86 $9.76 Car Washer $9.45 97% $8.85 $10.26 $9.73 $11.02 95% $10.47 $11.90 $11.63 $38,216 96% $39,751 455 64% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- and Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Detailer Per Capita Personal Income Avg. # New Units Sold * Rounded to the nearest whole percentage point. PF16 NADA Management Series Driven 19 Region 5— South Atlantic Survey Response State Surveys Sent Surveys Received 59 854 490 307 571 252 524 160 15 96 11 18 34 67 62 6 3,217 309 Delaware Florida Georgia Maryland North Carolina South Carolina Virginia West Virginia Per capita personal income in the South Atlantic region at $38,352 was fourth among the nine regions in 2008, still 3.5 percent below national average. The average number of new vehicles sold per dealership surpassed the national average by 14 percent—808 per dealership. Financially, South Atlantic dealerships performed better than the national average in most categories. Total dollar sales were lower in 2008 compared to 2007, but total service and parts sales ranked third in the nation and total dealership gross (both as a percent of total sales) tied for third. Many positions—16 of the 39 surveyed—met or exceeded the national average. General manager salaries were 6 percent above average, F&I managers’ salaries were 4 percent higher, and service manager salaries were 10 percent higher. In general, salaries for both management and other positions were near or above the nation’s average. Benefit Offered Driven NADA Management Series % of Regional Response 25.42% 11.24% 2.24% 5.86% 5.95% 26.59% 11.83% 3.75% PF16 4.86% 31.07% 3.56% 5.83% 11.00% 21.68% 20.06% 1.94% Thirteen positions had salaries above the national average. The body shop manager had the highest relative salary at 17 percent above the national average and the truck sales manager the lowest at 8 percent below national average. Eighty-five percent of the dealerships in the South Atlantic region surveyed reported offering a dental plan to employees and their dependents, ranking second nationally. Sixty percent offered one to five paid holidays annually, ranking third nationally. This region again ranked third nationally in 2008 for paid sick leave, which was offered at 63 percent of dealerships. The region’s dealerships ranked first nationwide for offering 401(k) plans; 96 percent of dealerships surveyed reported offering pension plans and nearly 50 percent offered a 1-2 percent matching company contribution to their employees. Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 20 Response Rate (%) 3rd 7th 6th 1st 2nd Region 5: South Atlantic 2008 Regional Compensation Data Region 5: South Atlantic MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE General Manager Overall Region 5 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $172,587 106% $120,751 $209,489 $163,034 Business Manager/Comptroller $86,335 105% $67,326 $97,086 $82,192 IT / Network Manager $68,118 112% $49,822 $73,524 $60,854 Human Resources Director/Manager $50,850 98% $39,905 $54,846 $52,032 BDC Manager $61,829 104% $43,514 $67,190 $59,282 $117,307 103% $84,468 $133,024 $113,578 New-Vehicle Sales Manager $91,942 97% $70,767 $99,778 $94,470 Used-Vehicle Sales Manager $92,226 99% $73,246 $101,255 $93,063 Truck Sales Manager $72,959 92% $45,863 $81,991 $79,223 Fleet Sales Manager $84,156 102% $61,251 $85,852 $82,256 Sales Training Manager $73,372 99% $44,325 $80,633 $74,096 Lease and Rental Manager $61,396 98% $85,778 $49,205 $62,361 Internet Sales Manager $67,096 100% $51,920 $71,726 $67,128 Website Manager / Webmaster $44,152 94% $28,500 $48,624 $46,776 Marketing Manager $61,923 98% $46,226 $67,155 $62,989 Finance and Insurance Manager $93,292 104% $65,824 $107,568 $89,497 $114,493 105% $84,096 $126,864 $108,730 Service Manager $88,074 110% $64,977 $103,845 $80,291 Parts Manager $71,761 103% $56,559 $81,604 $69,412 Body Shop Manager $85,079 117% $61,769 $97,554 $72,638 Service Advisor/Writer $57,526 101% $47,050 $64,364 $57,056 Office Manager $50,133 97% $45,185 $53,398 $51,437 General Sales Manager Service and Parts Director * Rounded to the nearest whole percentage point. PF16 NADA Management Series Driven 21 Region 5: South Atlantic NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 5 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $36,554 100% $34,514 $38,017 $36,504 Average Paid Worker $28,732 99% $28,079 $29,079 $29,049 Lowest Paid Worker $22,709 98% $22,340 $22,920 $23,223 Highest Paid Worker $76,519 107% $64,578 $85,081 $71,288 Average Paid Worker $46,713 100% $43,378 $48,884 $46,799 Lowest Paid Worker $27,530 94% $28,210 $27,180 $29,292 Highest Paid Worker $83,509 120% $61,993 $95,912 $69,670 Average Paid Worker $50,721 104% $44,385 $54,198 $48,737 Lowest Paid Worker $33,541 98% $30,714 $35,162 $34,233 Highest Paid Worker $77,974 99% $64,330 $87,233 $78,369 Average Paid Worker $46,387 96% $43,019 $48,469 $48,363 Lowest Paid Worker $29,484 92% $29,512 $29,466 $32,203 Highest Paid Worker $57,801 97% $45,528 $60,051 $59,691 Average Paid Worker $44,557 92% $43,202 $44,865 $48,379 Lowest Paid Worker $36,762 89% $42,292 $35,882 $41,360 Body Shop Foreman $20.66 94% $21.22 $20.48 $22.04 Parts Counterperson $14.48 93% $14.09 $14.72 $15.51 Telephone Switchboard Operator $10.49 95% $10.17 $10.65 $11.03 Warranty Clerk $15.14 96% $13.53 $15.90 $15.71 General Cashier $10.58 95% $10.36 $10.69 $11.11 Showroom Receptionist/Greeter $10.76 96% $10.32 $10.96 $11.18 Title Clerk $14.09 98% $13.25 $14.45 $14.43 Bookkeeper $15.28 98% $14.77 $15.46 $15.52 AR/AP Clerk $13.70 97% $12.85 $13.99 $14.16 Courtesy/Shuttle Driver $9.70 99% $9.67 $9.71 $9.76 Car Washer $9.47 97% $9.08 $9.71 $9.73 $11.63 100% $10.75 $12.10 $11.63 $38,352 96% $39,751 808 114% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- and Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Detailer Per Capita Personal Income Avg. # New Units Sold 22 Driven NADA Management Series PF16 * Rounded to the nearest whole percentage point. Region 6— East South Central Survey Response State Alabama Kentucky Mississippi Tennessee Surveys Sent Surveys Received 292 255 208 333 47 10 20 59 1,088 136 In 2008, the typical East South Central dealership sold 567 new vehicles, 20 percent below the national average of 711. Per capita personal income in the region at $32,788 was 17.5 percent lower than the national average and lowest among the nine regions in data updated by the new census. However, parts and service income as a percentage of total sales ranked in the middle of the regions. Of the 39 positions surveyed in the East South Central region, only two met or surpassed the national average. The salaries for fleet sales manager and truck sales manager were highest at 2 percent and 6 percent above the national average, respectively. Service technicians earned 14 percent below national average; body shop technicians earned 9 percent below average. Excluding the fleet sales Benefit Offered Response Rate (%) 16.10% 3.92% 9.62% 17.72% % of Regional Response 34.56% 7.35% 14.71% 43.38% and truck sales manager, management positions in the region’s dealerships earned 3 to 26 percent below the national average. Salespeople in the region earned, on average, 13 percent below the national average. Dealerships in the region were among the worst at offering benefits to dealership personnel. The region ranked last nationally in the percentage offering six to ten days of paid annual holidays, and fifth for offering a week of vacation per year. The percentage of dealerships providing paid maternity/paternity leave was seventh in the nation; the region ranked fifth in paid sick leave, and last in offering 401(k) plans. The region was not any better in terms of health benefits, coming in last in terms of offering health care benefits to both employees and dependents. Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 5th 9th 7th 9th 9th PF16 NADA Management Series Driven 23 Region 6: East South Central 2008 Regional Compensation Data Region 6: East South Central MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE Overall Region 6 General Manager % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $138,111 85% $89,976 $186,245 $163,034 Business Manager/Comptroller $72,276 88% $50,708 $91,275 $82,192 IT / Network Manager $55,186 91% $54,188 $55,852 $60,854 Human Resources Director/Manager $41,402 80% $45,876 $37,426 $52,032 BDC Manager $47,486 80% $22,052 $50,312 $59,282 General Sales Manager $98,462 87% $68,091 $124,366 $113,578 New-Vehicle Sales Manager $82,624 87% $65,198 $94,099 $94,470 Used-Vehicle Sales Manager $82,434 89% $65,500 $90,533 $93,063 Truck Sales Manager $84,192 106% $85,000 $83,845 $79,223 Fleet Sales Manager $83,531 102% $75,980 $87,306 $82,256 Sales Training Manager $69,721 94% $54,600 $72,745 $74,096 Lease and Rental Manager $46,029 74% $47,161 $42,067 $62,361 Internet Sales Manager $52,842 79% $40,585 $64,078 $67,128 Website Manager / Webmaster $39,481 84% $28,954 $46,500 $46,776 Marketing Manager $61,275 97% $61,700 $60,000 $62,989 Finance and Insurance Manager $71,832 80% $51,810 $91,085 $89,497 Service and Parts Director $81,075 75% $57,954 $95,388 $108,730 Service Manager $67,480 84% $54,098 $84,279 $80,291 Parts Manager $63,772 92% $48,298 $81,370 $69,412 Body Shop Manager $64,906 89% $51,132 $76,477 $72,638 Service Advisor/Writer $50,352 88% $40,407 $58,308 $57,056 Office Manager $45,239 88% $41,520 $48,756 $51,437 * Rounded to the nearest whole percentage point. 24 Driven NADA Management Series PF16 Region 6: East South Central NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 6 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $32,394 89% $30,916 $33,898 $36,504 Average Paid Worker $25,203 87% $24,272 $25,887 $29,049 Lowest Paid Worker $21,610 93% $22,008 $21,229 $23,223 Highest Paid Worker $58,194 82% $50,559 $67,035 $71,288 Average Paid Worker $40,108 86% $37,584 $42,679 $46,799 Lowest Paid Worker $26,533 91% $26,280 $26,823 $29,292 Highest Paid Worker $63,124 91% $53,655 $71,501 $69,670 Average Paid Worker $44,268 91% $41,153 $46,511 $48,737 Lowest Paid Worker $31,787 93% $30,046 $33,260 $34,233 Highest Paid Worker $68,907 88% $59,221 $79,458 $78,369 Average Paid Worker $42,212 87% $38,112 $46,234 $48,363 Lowest Paid Worker $29,540 92% $30,243 $28,850 $32,203 Highest Paid Worker $46,332 78% $37,768 $51,004 $59,691 Average Paid Worker $42,535 88% $28,120 $44,337 $48,379 Lowest Paid Worker $37,904 92% $12,454 $41,085 $41,360 Body Shop Foreman $18.86 86% $17.00 $20.71 $22.04 Parts Counterperson $13.32 86% $12.57 $14.10 $15.51 $9.94 90% $9.97 $9.92 $11.03 Warranty Clerk $14.21 90% $13.70 $14.56 $15.71 General Cashier $10.57 95% $10.00 $10.86 $11.11 $9.90 89% $9.89 $9.92 $11.18 Title Clerk $12.59 87% $12.43 $12.69 $14.43 Bookkeeper $14.48 93% $13.44 $14.77 $15.52 AR/AP Clerk $12.66 89% $13.16 $12.35 $14.16 Courtesy/Shuttle Driver $9.31 95% $9.80 $9.09 $9.76 Car Washer $8.94 92% $8.88 $9.00 $9.73 $10.26 88% $9.77 $10.73 $11.63 $32,788 82% $39,751 567 80% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- and Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Telephone Switchboard Operator Showroom Receptionist/Greeter Detailer Per Capita Personal Income Avg. # New Units Sold * Rounded to the nearest whole percentage point. PF16 NADA Management Series Driven 25 Region 7— West South Central Survey Response State Arkansas Louisiana Oklahoma Texas Surveys Sent Surveys Received 252 280 270 1,003 5 17 10 81 1,805 113 The West South Central region’s per capita personal income of $37,521 was 5.6 percent below the national average in 2008. The average number of new units sold per dealership (1,216 units) was 71 percent above average. Of the 39 dealership positions surveyed in the region, 26 met or exceeded the national average. Most notable were the average salaries for general managers and website managers, which were 46 and 45 percent above average, respectively, but Benefit Offered Driven NADA Management Series % of Regional Response 1.98% 6.07% 3.70% 8.08% PF16 4.42% 15.04% 8.85% 71.69% salaries for a great many positions, particularly in management but also in Internet sales, significantly exceeded the national average. Benefits in the region were low. Although the percentage of dealerships offering two weeks’ paid vacation ranked first in the nation, the region was next to last in offering 401(k) plans. The region ranked eighth in offering employee-dependent health plans, and ranked last in paid maternity/ paternity leave. Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 26 Response Rate (%) 6th 8th 9th 8th 8th Region 7: West South Central 2008 Regional Compensation Data Region 7: West South Central MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE Overall Region 7 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. General Manager $237,498 146% $139,218 $261,637 $163,034 Business Manager/Comptroller $102,884 125% $80,256 $107,553 $82,192 IT / Network Manager $73,738 121% $92,375 $72,093 $60,854 Human Resources Director/Manager $57,028 110% $57,167 $57,002 $52,032 BDC Manager $55,799 94% ** $55,799 $59,282 General Sales Manager $148,265 131% $79,534 $155,003 $113,578 New-Vehicle Sales Manager $112,786 119% $66,549 $116,806 $94,470 Used-Vehicle Sales Manager $108,791 117% $63,232 $114,073 $93,063 Truck Sales Manager $96,368 122% $113,688 $79,048 $79,223 Fleet Sales Manager $81,856 100% ** $81,856 $82,256 Sales Training Manager $56,000 76% ** $56,000 $74,096 Lease and Rental Manager $62,710 101% $65,250 $60,170 $62,361 Internet Sales Manager $88,509 132% $51,284 $93,163 $67,128 Website Manager / Webmaster $67,790 145% ** $67,790 $46,776 Marketing Manager $43,310 69% $35,000 $45,388 $62,989 Finance and Insurance Manager $112,562 126% $64,692 $120,653 $89,497 Service and Parts Director $119,239 110% $77,493 $130,130 $108,730 Service Manager $90,586 113% $65,225 $99,733 $80,291 Parts Manager $81,961 118% $57,170 $88,572 $69,412 Body Shop Manager $89,521 123% $73,719 $91,184 $72,638 Service Advisor/Writer $57,822 101% $45,638 $61,226 $57,056 Office Manager $51,517 100% $38,025 $55,514 $51,437 * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. PF16 NADA Management Series Driven 27 Region 7: West South Central NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 7 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $35,097 96% $30,901 $36,408 $36,504 Average Paid Worker $26,810 92% $25,183 $27,303 $29,049 Lowest Paid Worker $21,197 91% $20,693 $21,351 $23,223 Highest Paid Worker $76,307 107% $65,925 $79,724 $71,288 Average Paid Worker $47,234 101% $43,668 $48,392 $46,799 Lowest Paid Worker $28,594 98% $29,194 $28,412 $29,292 Highest Paid Worker $70,450 101% $66,267 $71,115 $69,670 Average Paid Worker $48,304 99% $47,339 $48,442 $48,737 Lowest Paid Worker $33,477 98% $33,129 $33,528 $34,233 Highest Paid Worker $84,002 107% $62,885 $90,951 $78,369 Average Paid Worker $49,132 102% $43,504 $50,739 $48,363 Lowest Paid Worker $32,371 101% $35,171 $31,571 $32,203 Highest Paid Worker $66,105 111% $57,939 $67,412 $59,691 Average Paid Worker $57,541 119% $50,567 $58,239 $48,379 Lowest Paid Worker $50,549 122% $50,567 $50,547 $41,360 Body Shop Foreman $25.20 114% ** $25.20 $22.04 Parts Counterperson $16.63 107% $15.31 $16.97 $15.51 Telephone Switchboard Operator $10.78 98% $10.25 $10.87 $11.03 Warranty Clerk $16.27 104% $16.06 $16.32 $15.71 General Cashier $10.72 96% $10.15 $10.83 $11.11 Showroom Receptionist/Greeter $10.18 91% $9.33 $10.41 $11.18 Title Clerk $14.39 100% $13.47 $14.59 $14.43 Bookkeeper $15.05 97% $14.20 $15.17 $15.52 AR/AP Clerk $13.88 98% $14.00 $13.86 $14.16 Courtesy/Shuttle Driver $9.12 93% $8.00 $9.25 $9.76 Car Washer $9.14 94% $8.45 $9.30 $9.73 $11.21 96% $10.64 $11.35 $11.63 $37,521 94% $39,751 1,216 171% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- and Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Detailer Per Capita Personal Income Avg. # New Units Sold 28 Driven NADA Management Series PF16 * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. Region 8— Mountain Survey Response State Arizona Colorado Idaho Montana Nevada New Mexico Utah Wyoming Surveys Sent Surveys Received 161 265 107 122 111 119 146 67 5 85 27 18 2 27 30 16 1,098 210 Although the average number of new units sold per dealership in the Mountain region was 548 units, a considerable 23 percent below average, the region tied for second in the nation for the percentage of net profit before tax in 2008. The per capita personal income for the region at $35,971 was 9.5 percent below the national average, yet 23 of 39 dealership positions that were surveyed had salaries that met or surpassed the national average. General managers in the region earned 9 percent above average, reflecting the size and productivity of the region’s larger operations. Indeed, all but six of the 22 management positions met or exceeded the national average. Benefit Offered Response Rate (%) 3.11% 32.08% 25.23% 14.75% 1.80% 22.69% 20.55% 23.88% % of Regional Response 2.38% 40.47% 12.86% 8.57% 0.95% 12.86% 14.29% 7.62% Other dealership personnel, including salespeople, technicians, and office staff generally earned salaries above the national average. As for benefits, with more than 69 percent of dealerships offering six to ten paid holidays, the region ranked second nationally. With nearly 84 percent offering one week paid vacation, the region ranked sixth nationally. The region was next to last among the regions for dealerships offering paid sick leave (36.5 percent) and paid maternity/paternity leave (5.3 percent). The region ranked fourth in the percentage of dealerships offering 401(k) plans and fifth among the share of dealerships providing both health and dental benefits. Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 8th 2nd 8th 4th 5th PF16 NADA Management Series Driven 29 Region 8: Mountain 2008 Regional Compensation Data Region 8: Mountain MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE Overall Region 8 General Manager % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $177,080 109% $128,886 $223,266 $163,034 Business Manager/Comptroller $84,760 103% $59,799 $103,562 $82,192 IT / Network Manager $53,939 89% $42,986 $56,005 $60,854 Human Resources Director/Manager $49,641 95% $43,450 $50,606 $52,032 BDC Manager $57,931 98% $45,975 $59,069 $59,282 $113,339 100% $78,884 $137,792 $113,578 New-Vehicle Sales Manager $94,798 100% $80,332 $104,004 $94,470 Used-Vehicle Sales Manager $96,352 104% $80,053 $106,632 $93,063 Truck Sales Manager $102,911 130% $62,157 $111,062 $79,223 Fleet Sales Manager $82,855 101% $55,863 $89,370 $82,256 Sales Training Manager $91,758 124% ** $103,351 $74,096 Lease and Rental Manager $59,984 96% $125,000 $49,981 $62,361 Internet Sales Manager $70,324 105% $49,007 $80,355 $67,128 Website Manager / Webmaster $48,376 103% $35,829 $50,036 $46,776 Marketing Manager $75,540 120% ** $71,130 $62,989 Finance and Insurance Manager $91,558 102% $71,197 $107,536 $89,497 $117,207 108% $86,292 $129,607 $108,730 Service Manager $81,637 102% $68,257 $96,283 $80,291 Parts Manager $69,695 100% $56,632 $82,614 $69,412 Body Shop Manager $69,750 96% $62,641 $76,148 $72,638 Service Advisor/Writer $55,143 97% $46,620 $62,193 $57,056 Office Manager $52,788 103% $50,080 $54,853 $51,437 General Sales Manager Service and Parts Director * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. 30 Driven NADA Management Series PF16 Region 8: Mountain NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 8 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $36,134 99% $33,003 $38,941 $36,504 Average Paid Worker $29,377 101% $27,999 $30,388 $29,049 Lowest Paid Worker $23,577 102% $22,976 $24,034 $23,223 Highest Paid Worker $75,789 106% $67,522 $84,055 $71,288 Average Paid Worker $48,504 104% $46,590 $50,300 $46,799 Lowest Paid Worker $29,094 99% $28,811 $29,377 $29,292 Highest Paid Worker $74,444 107% $62,018 $86,504 $69,670 Average Paid Worker $51,389 105% $46,228 $55,335 $48,737 Lowest Paid Worker $35,497 104% $32,765 $37,746 $34,233 Highest Paid Worker $85,096 109% $64,980 $103,994 $78,369 Average Paid Worker $50,856 105% $45,750 $54,868 $48,363 Lowest Paid Worker $32,346 100% $31,640 $32,945 $32,203 Highest Paid Worker $62,245 104% $57,760 $66,431 $59,691 Average Paid Worker $53,239 110% $50,839 $55,422 $48,379 Lowest Paid Worker $45,644 110% $51,405 $40,931 $41,360 Body Shop Foreman $23.69 107% $24.80 $23.18 $22.04 Parts Counterperson $16.28 105% $15.08 $17.67 $15.51 Telephone Switchboard Operator $10.91 99% $10.20 $11.30 $11.03 Warranty Clerk $14.98 95% $13.49 $16.10 $15.71 General Cashier $10.69 96% $10.19 $11.08 $11.11 Showroom Receptionist/Greeter $10.75 96% $10.44 $10.97 $11.18 Title Clerk $14.06 97% $13.42 $14.49 $14.43 Bookkeeper $14.46 93% $14.25 $14.57 $15.52 AR/AP Clerk $13.92 98% $13.27 $14.26 $14.16 Courtesy/Shuttle Driver $9.67 99% $9.35 $9.85 $9.76 Car Washer $9.50 98% $9.12 $9.83 $9.73 $11.05 95% $10.39 $11.68 $11.63 $35,971 90% $39,751 548 77% 711 Service Mechanical Technician: Body Shop Technician/Painter: New & Used Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Detailer Per Capita Personal Income Avg. # New Units Sold * Rounded to the nearest whole percentage point. PF16 NADA Management Series Driven 31 Region 9— Pacific Survey Response State Surveys Sent Surveys Received 29 1210 62 241 339 1 154 3 66 12 1,881 236 Alaska California Hawaii Oregon Washington Based on this survey, the Pacific region had the third-highest new-unit sales in 2008, an average of 873 per dealership. The typical number of new units sold was 23 percent higher compared to the rest of the nation. However, new-vehicle sales for 2008 were down significantly from 2007. According to NADA DATA 2009, registrations of new light vehicles were down by more than 24 percent in 2008 compared to 2007. Among large states, in California dealership employees as a percentage of total retail employment—at 8.2 percent—ranked second, behind only Arizona’s 9.1 percent and just ahead of Texas at 8 percent. Salaries for all dealership positions with the exception of BDC manager surpassed the average national salary. The typical general sales manager in the region earned 10 percent more than the national average, while salaries for F&I managers were 9 percent higher. Not surprisingly, website managers and marketing managers at the Benefit Offered Driven NADA Management Series 3.45% 12.73% 4.84% 27.39% 3.54% PF16 % of Regional Response 0.42% 65.26% 1.27% 27.97% 5.08% region’s dealerships also earned more than average, with salaries that were 16 percent and 15 percent higher, respectively. Dealerships in the region ranked second highest in the nation in offering both health and dental plans and third in offering retirement plans to employees. The Pacific region ranked first nationwide in providing one week paid vacation and third in providing six to ten paid annual holidays. Demo vehicles, however, were offered less frequently to this region’s managers and staff. The Pacific region ranked last nationwide in providing paid sick leave and fifth in providing paid maternity/ paternity leave. Despite ongoing corrections in residential real estate values, the region ranked third in per capita personal income—averaging 6 percent above the national average. Rank among the nine regions Paid Sick Leave 6-10 Paid Holidays Paid Maternity/Paternity Leave Plan 401(k) Plan Health Plan for Employee and Dependents 32 Response Rate (%) 9th 3rd 5th 3rd 7th Region 9: Pacific 2008 Regional Compensation Data Region 9: Pacific MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. Volume EMPLOYEE General Manager Overall Region 9 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. $186,358 114% $127,938 $225,292 $163,034 Business Manager/Comptroller $92,304 112% $74,028 $101,984 $82,192 IT / Network Manager $63,958 105% $55,599 $64,613 $60,854 Human Resources Director/Manager $58,775 113% $44,844 $60,089 $52,032 BDC Manager $56,770 96% $40,973 $59,437 $59,282 General Sales Manager $125,210 110% $94,006 $143,704 $113,578 New-Vehicle Sales Manager $101,148 107% $85,636 $107,301 $94,470 Used-Vehicle Sales Manager $99,035 106% $81,371 $106,373 $93,063 Truck Sales Manager $91,309 115% ** $91,309 $79,223 Fleet Sales Manager $91,212 111% $52,021 $95,666 $82,256 Sales Training Manager $75,103 101% $63,372 $76,779 $74,096 Lease and Rental Manager $84,819 136% ** $84,819 $62,361 Internet Sales Manager $70,436 105% $54,391 $76,052 $67,128 Website Manager / Webmaster $54,032 116% $32,486 $57,949 $46,776 Marketing Manager $72,476 115% $70,000 $73,507 $62,989 Finance and Insurance Manager $97,757 109% $76,534 $107,813 $89,497 $138,801 128% $104,719 $148,539 $108,730 Service Manager $97,970 122% $81,348 $110,509 $80,291 Parts Manager $86,301 124% $63,552 $102,639 $69,412 Body Shop Manager $82,195 113% $69,226 $88,319 $72,638 Service Advisor/Writer $73,761 129% $64,153 $79,414 $57,056 Office Manager $64,614 126% $52,683 $71,912 $51,437 Service and Parts Director * Rounded to the nearest whole percentage point. ** Insufficient data. Smaller dealerships may not have this position. PF16 NADA Management Series Driven 33 Region 9: Pacific NON-MANAGEMENT COMPENSATION Shown are 2008 W-2 compensation averages for the non-management employees who were in their positions for all of 2008. Volume EMPLOYEE Overall Region 9 % of U.S.* 0-400 Units Over 400 Units All Dealers Total U.S. Clerical and Office Worker: Highest Paid Worker $41,944 115% $38,527 $43,927 $36,504 Average Paid Worker $32,557 112% $31,046 $33,289 $29,049 Lowest Paid Worker $24,615 106% $24,177 $24,828 $23,223 Highest Paid Worker $81,838 115% $72,000 $89,477 $71,288 Average Paid Worker $51,557 110% $48,563 $53,550 $46,799 Lowest Paid Worker $30,991 106% $32,340 $29,887 $29,292 Highest Paid Worker $70,415 101% $57,476 $76,453 $69,670 Average Paid Worker $51,491 106% $48,050 $52,820 $48,737 Lowest Paid Worker $34,411 101% $37,871 $33,027 $34,233 Highest Paid Worker $79,300 101% $63,769 $91,063 $78,369 Average Paid Worker $50,319 104% $47,171 $52,210 $48,363 Lowest Paid Worker $33,265 103% $33,856 $32,825 $32,203 Highest Paid Worker $60,201 101% $48,196 $61,948 $59,691 Average Paid Worker $49,196 102% $42,340 $50,443 $48,379 Lowest Paid Worker $40,051 97% $33,005 $40,890 $41,360 Body Shop Foreman $27.24 124% $26.88 $27.38 $22.04 Parts Counterperson $18.26 118% $16.47 $19.51 $15.51 Telephone Switchboard Operator $11.96 108% $11.95 $11.97 $11.03 Warranty Clerk $17.96 114% $17.40 $18.24 $15.71 General Cashier $12.06 109% $11.69 $12.22 $11.11 Showroom Receptionist/Greeter $11.91 107% $11.80 $11.94 $11.18 Title Clerk $17.28 120% $17.71 $17.07 $14.43 Bookkeeper $17.35 112% $15.68 $17.71 $15.52 AR/AP Clerk $15.36 108% $14.48 $15.71 $14.16 Courtesy/Shuttle Driver $10.58 108% $10.64 $10.54 $9.76 Car Washer $10.29 106% $10.49 $10.17 $9.73 Detailer $12.47 107% $12.73 $12.29 $11.63 $42,081 106% $39,751 873 123% 711 Service Mechanical Technician: Body Shop Technician/Painter: New- and Used-Vehicle Salesperson: Internet Salesperson: Other Positions: (per hour) Per Capita Personal Income Avg. # New Units Sold * Rounded to the nearest whole percentage point. 34 Driven NADA Management Series PF16 Automobile Dealerships: Fringe Benefits, 2008 Benefit Company Car Dealer Principal Managers Sales Personnel Office Personnel Other Paid Vacation 0 Weeks 1 Week 2 Weeks 3 Weeks Varies Paid Sick Leave Paid Annual Holidays 0 1-5 6-10 More than 10 Calculations of Paid Time Off Based on average flat rate hours worked Based on average wage earned Based on a fixed amount Other Paid Maternity/Paternity 401(k) or Other Qualified Retirement Plan Matching Company Contribution 1-2% 3-4% 5-6% Other Health Plan Employee and dependents Employee only None Portion of Health Plan Paid by Dealership 0% 50% 80% 100% Other Other (avg. percentage) Dental Plan Employee and dependents Employee only None Portion of Dental Plan Paid by Dealership 0% 50% 80% 100% Other Other (avg. percentage) Both Health and Dental Plans 36 Driven Region 1 Region 2 Region 3 Region 4 Region 5 82.56% 64.62% 29.23% 5.13% 12.82% 92.78% 74.01% 32.13% 12.27% 15.88% 87.42% 63.19% 38.34% 12.88% 18.10% 86.07% 58.20% 29.41% 7.12% 13.93% 88.03% 70.55% 17.15% 9.71% 18.12% 1.03% 80.93% 16.49% 0.52% 1.03% 76.80% 1.82% 88.73% 8.00% 0.00% 1.45% 74.09% 0.31% 89.20% 10.19% 0.31% 0.00% 37.12% 0.62% 83.80% 12.46% 0.62% 2.49% 47.35% 0.00% 89.29% 10.71% 0.00% 0.00% 62.99% 1.03% 30.41% 68.56% 0.00% 0.74% 31.99% 65.07% 2.21% 1.23% 36.31% 62.15% 0.31% 1.90% 25.95% 72.15% 0.00% 1.31% 60.00% 38.36% 0.33% 10.11% 30.85% 35.11% 23.94% 7.29% 91.71% 15.65% 45.04% 24.81% 14.50% 9.19% 91.27% 19.23% 42.31% 24.13% 14.34% 10.49% 94.48% 20.27% 33.89% 33.89% 11.96% 6.60% 91.90% 18.00% 53.00% 14.67% 14.33% 6.19% 96.10% 45.24% 27.38% 2.98% 24.40% 50.00% 19.83% 6.47% 23.71% 54.95% 26.96% 4.44% 13.65% 48.76% 25.80% 3.89% 21.55% 49.30% 19.37% 1.76% 29.58% 96.91% 3.09% 0.00% 91.34% 8.30% 0.36% 86.73% 12.65% 0.62% 81.99% 16.15% 1.86% 94.16% 5.84% 0.00% 2.06% 44.33% 8.76% 10.82% 34.02% 58% 1.82% 31.02% 14.60% 12.41% 40.15% 57% 1.24% 45.51% 10.84% 10.53% 31.89% 51% 0.95% 37.54% 11.36% 21.14% 29.02% 59% 1.94% 35.92% 13.59% 8.09% 40.45% 56% 86.08% 2.58% 11.34% 80.14% 5.05% 14.80% 66.15% 5.23% 28.62% 60.06% 4.64% 35.29% 85.11% 5.18% 9.71% 62.79% 20.93% 2.91% 2.91% 10.47% 51% 88.66% 47.66% 14.89% 7.23% 11.91% 18.30% 54% 85.20% 54.55% 23.81% 4.76% 5.63% 11.26% 44% 71.38% 55.50% 20.57% 1.44% 9.57% 12.92% 49% 64.71% 72.66% 10.07% 2.52% 5.76% 8.99% 55% 90.29% NADA Management Series PF16 Automobile Dealerships: Fringe Benefits, 2008 Benefit Company Car Dealer Principal Managers Sales Personnel Office Personnel Other Paid Vacation 0 Weeks 1 Week 2 Weeks 3 Weeks Varies Paid Sick Leave Paid Annual Holidays 0 1-5 6-10 More than 10 Calculations of Paid Time Off Based on average flat rate hours worked Based on average wage earned Based on a fixed amount Other Paid Maternity/Paternity 401(k) or Other Qualified Retirement Plan Matching Company Contribution 1-2% 3-4% 5-6% Other Health Plan Employee and dependents Employee only None Portion of Health Plan Paid by Dealership 0% 50% 80% 100% Other Other (avg. percentage) Dental Plan Employee and dependents Employee only None Portion of Dental Plan Paid by Dealership 0% 50% 80% 100% Other Other (avg. percentage) Both Health and Dental Plans Region 6 Region 7 Region 8 Region 9 86.03% 61.03% 20.59% 8.82% 21.32% 98.23% 61.95% 19.47% 5.31% 19.47% 83.81% 56.67% 9.52% 3.33% 15.71% 91.10% 51.69% 3.81% 1.69% 16.10% 0.00% 85.07% 11.94% 0.00% 2.99% 46.27% 0.00% 81.42% 17.70% 0.00% 0.88% 41.07% 3.40% 83.98% 12.14% 0.00% 0.49% 36.54% 1.27% 89.41% 9.32% 0.00% 0.00% 33.47% 0.75% 75.94% 23.31% 0.00% 0.00% 73.45% 26.55% 0.00% 2.46% 28.08% 69.46% 0.00% 2.13% 28.51% 68.94% 0.43% 22.13% 45.90% 22.95% 9.02% 6.02% 77.44% 13.89% 58.33% 23.15% 4.63% 3.54% 86.73% 18.85% 52.36% 15.18% 13.61% 5.34% 92.79% 17.27% 40.91% 25.91% 15.91% 6.36% 93.22% 43.62% 26.60% 2.13% 27.66% 61.62% 24.24% 3.03% 11.11% 38.33% 33.89% 3.33% 24.44% 39.59% 35.03% 2.54% 22.84% 78.52% 20.00% 1.48% 78.76% 15.93% 5.31% 86.67% 11.90% 1.43% 80.51% 17.37% 2.12% 1.61% 29.03% 10.48% 13.71% 45.16% 50% 0.93% 30.84% 18.69% 23.36% 26.17% 65% 1.94% 36.89% 14.08% 12.14% 34.95% 57% 2.16% 19.91% 20.35% 22.94% 34.63% 61% 71.11% 8.15% 20.74% 76.99% 6.19% 16.81% 78.47% 6.22% 15.31% 75.85% 13.98% 10.17% 70.48% 11.43% 0.95% 5.71% 11.43% 38% 79.26% 82.98% 3.19% 1.06% 6.38% 6.38% 57% 83.19% 59.55% 19.66% 4.49% 4.49% 11.80% 56% 84.69% 36.49% 10.90% 11.85% 20.38% 20.38% 65% 89.83% PF16 NADA Management Series Driven 37 Automobile Fringe Benefits 2008 By Units Benefit Company Car Dealer Principal Managers Sales Personnel Office Personnel Other Paid Vacation 0 Weeks 1 Week 2 Weeks 3 Weeks Varies Paid Sick Leave Paid Annual Holidays 0 1-5 6-10 More than 10 Calculations of Paid Time Off Based on average flat rate hours worked Based on average wage earned Based on a fixed amount Other Paid Maternity/Paternity 401(k) or Other Qualified Retirement Plan Matching Company Contribution 1-2% 3-4% 5-6% Other Health Plan Employee and dependents Employee only None Portion of Health Plan Paid by Dealership 0% 50% 80% 100% Other Other (avg. percentage) Dental Plan Employee and dependents Employee only None Portion of Dental Plan Paid by Dealership 0% 50% 80% 100% Other Other (avg. percentage) Both Health and Dental Plans 38 Driven NADA Management Series All Dealers Total U.S. 0-400 Units Total U.S. Over 400 Units Total U.S. 88.21% 62.88% 23.49% 7.92% 16.56% 85.01% 53.22% 25.55% 6.14% 16.30% 91.16% 71.60% 21.37% 9.56% 16.77% 0.95% 86.42% 11.49% 0.19% 0.95% 51.19% 1.02% 83.45% 13.81% 0.20% 1.52% 49.95% 0.82% 89.31% 9.24% 0.18% 0.45% 52.09% 1.39% 40.03% 58.15% 0.43% 1.62% 35.70% 62.37% 0.30% 1.19% 43.67% 54.59% 0.55% 17.48% 43.87% 24.47% 14.18% 7.11% 91.89% 16.58% 39.80% 29.66% 13.96% 6.31% 87.06% 18.23% 47.50% 19.67% 14.59% 7.94% 96.37% 48.00% 26.14% 3.56% 22.30% Overall Average PF16 46.29% 30.69% 3.53% 19.49% 0-50 Employees 49.24% 22.60% 3.63% 24.52% 51+ Employess 86.94% 11.87% 1.18% 82.84% 15.30% 1.86% 91.93% 7.52% 0.55% 1.63% 35.53% 13.37% 14.38% 35.10% 57% 1.99% 36.74% 12.13% 18.89% 30.24% 58% 1.20% 34.06% 15.12% 8.87% 40.53% 56% 74.76% 6.14% 19.09% 65.63% 6.50% 27.87% 86.60% 5.56% 7.84% 58.52% 15.70% 4.51% 8.32% 12.95% 53% 80.91% 59.65% 16.47% 4.00% 8.59% 11.29% 56% 72.13% 57.63% 14.67% 5.09% 7.93% 14.67% 51% 92.16% Medium- and Heavy-Duty Truck Data INTRODUCTION This section is based on data from the responses of the 109 surveyed dealers who identified themselves as sellers of medium- and heavy-duty trucks, class 5-8 dealerships. The results are shown by the number of new units sold, either 0–400 or more than 400 units. If an insufficient number of responses were received for a specific question, then only overall averages are provided. Dealers who did not provide unit sales and employee count information are included in “Overall Averages.” Here is a thumbnail profile of the dealers who responded: Average number of new units sold in 2008 Average dealership dollar sales for 2008 Average number of employees per dealership 323 $29,112,832 60 Of the responding dealerships, 72.9 percent sold 400 or fewer new units in 2008, and 27.1 percent sold more than 400 new units. Charts providing an overview of total dealership sales and new-unit sales are provided on the next page. The compensation figures listed are for employees who were in their positions for all of calendar year 2008. Manager compensation refers to average total compensation figures; responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee and not identified on the W-2 are included. For non-management employees, listed are 2008 W-2 compensation averages. Part-time employees were not included in the survey. Dealers who are curious about the variance between the average dollar sales published here and the average dollar sales published in the 2009 ATD Performance Measurement Update ($42,189,348 for 2008, representing average month sales of $3,515,779) –are reminded that the ATD Performance Measurement Update is based on data provided by ATD 20 Group members only, whereas this survey measures responses from the entire ATD membership base. PF16 NADA Management Series Driven 39 Medium- and Heavy-Duty Truck Dealerships Year 2006 Year 2008 Year 2006 Year 2008 Year 2004 Year 2002 Year 2000 Year 1998 Year 1996 Year 1994 Year 1992 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Year 1990 Total Dealership Dollar Sales 1990–2008 (in millions) New Unit Sales 1990–2008 600 500 400 300 200 40 Driven NADA Management Series PF16 Year 2004 Year 2002 Year 2000 Year 1998 Year 1996 Year 1994 Year 1992 0 Year 1990 100 Medium- and Heavy-Duty Truck Dealerships 2008 National Compensation Data Medium- and Heavy-Duty Truck Dealerships MANAGER COMPENSATION Below are listed average total compensation figures for managers who were in their positions for all of 2008. Compensation responses were taken directly from 2008 W-2 forms. Any elected salary deferrals made by the employee not identified on the W-2 were included. Includes dealers who did not provide unit sales and employee count information. EMPLOYEE All Dealers U.S. Average 0-400 Units Total U.S. Over 400 Units Total U.S. $126,479 $118,810 $142,194 Business Manager/Comptroller $78,223 $75,167 $85,075 IT / Network Manager $59,678 $58,647 $54,566 Human Resources Director/Manager $57,742 $53,916 $59,507 BDC Manager $69,114 ** $69,114 $109,840 $95,548 $127,504 New-Vehicle Sales Manager $93,331 $82,063 $101,924 Used-Vehicle Sales Manager $90,885 $81,545 $96,667 Fleet Sales Manager $85,530 $79,442 $86,883 ** ** ** Lease and Rental Manager $78,238 $77,074 $83,073 Internet Sales Manager $58,801 $24,000 $70,401 Website Manager / Webmaster $40,080 $40,080 ** Marketing Manager $50,885 $50,122 $52,667 Finance and Insurance Manager $88,751 $59,140 $114,017 $102,582 $101,529 $104,161 Service Manager $79,319 $74,194 $92,186 Parts Manager $75,523 $70,994 $87,146 Body Shop Manager $61,107 $55,759 $71,318 Service Advisor/Writer $54,304 $47,860 $66,797 Office Manager $58,128 $49,933 $73,226 General Manager General Sales Manager Sales Training Manager Service and Parts Director ** Insufficient data. Smaller dealerships may not have this position. PF16 NADA Management Series Driven 41 Medium- and Heavy-Duty Truck Dealerships NON-MANAGEMENT COMPENSATION EMPLOYEE All Dealerships U.S. Average 0-400 Units Total U.S. Over 400 Units Total U.S. Highest Paid Worker $39,589 $38,776 $41,254 Average Paid Worker $32,586 $32,580 $32,530 Lowest Paid Worker $25,922 $26,177 $25,249 Highest Paid Worker $69,848 $65,296 $82,355 Average Paid Worker $48,766 $47,554 $52,328 Lowest Paid Worker $32,259 $32,094 $32,720 Highest Paid Worker $58,953 $52,037 $71,400 Average Paid Worker $44,055 $41,460 $48,502 Lowest Paid Worker $31,487 $31,428 $31,586 Highest Paid Worker $87,488 $79,486 $104,805 Average Paid Worker $59,050 $59,078 $57,912 Lowest Paid Worker $43,428 $46,452 $37,638 Highest Paid Worker $73,274 $34,808 $86,096 Average Paid Worker $48,633 $28,205 $60,889 Lowest Paid Worker $34,383 $27,308 $37,920 Body Shop Foreman $23.47 $23.33 $23.67 Parts Counterperson $18.07 $17.40 $19.32 Telephone Switchboard Operator $12.12 $12.11 $12.08 Warranty Clerk $17.64 $17.73 $17.33 General Cashier $12.50 $12.81 $12.00 Showroom Receptionist/Greeter $11.72 $12.63 $10.56 Title Clerk $16.22 $16.00 $16.43 Bookkeeper $16.05 $17.33 $14.91 AR/AP Clerk $15.60 $15.29 $15.96 Courtesy/Shuttle Driver $11.06 $11.60 $10.33 Car Washer $10.91 $10.69 $11.00 Detailer $12.62 $12.21 $13.05 Clerical and Office Worker: Service Mechanical Technician: Body Shop Technician/Painter: New- and Used-Vehicle Salesperson: Internet Salesperson: Other Positions: 42 Driven NADA Management Series PF16 Medium- and Heavy-Duty Truck Dealerships: Fringe Benefits 2008 Benefit Company Car Dealer Principal Managers Sales Personnel Office Personnel Other Paid Vacation 0 Weeks 1 Week 2 Weeks 3 Weeks Varies Paid Sick Leave Paid Annual Holidays 0 1-5 6-10 More than 10 Calculations of Paid Time Off Based on average flat rate hours worked Based on average wage earned Based on a fixed amount Other Paid Maternity/Paternity 401(k) or Other Qualified Retirement Plan Matching Company Contribution 1-2% 3-4% 5-6% Other Health Plan Employee and dependents Employee only None Portion of Health Plan Paid by Dealership 0% 50% 80% 100% Other Other (avg. percentage) Dental Plan Employee and dependents Employee only None Portion of Dental Plan Paid by Dealership 0% 50% 80% 100% Other Other (avg. percentage) Both Health and Dental Plans All Dealers Total U.S. 0-400 Units Total U.S. Over 400 Units Total U.S. 79.82% 53.21% 30.28% 7.34% 19.27% 75.64% 43.59% 32.05% 1.28% 19.23% 89.66% 79.31% 24.14% 24.14% 20.69% 0.00% 88.99% 10.09% 0.00% 0.92% 62.96% 0.00% 87.18% 11.54% 0.00% 1.28% 61.04% 0.00% 93.10% 6.90% 0.00% 0.00% 65.52% 1.83% 20.18% 77.06% 0.92% 1.28% 12.82% 84.62% 1.28% 3.45% 41.38% 55.17% 0.00% 10.28% 24.30% 49.53% 15.89% 7.34% 96.33% 10.53% 14.47% 57.89% 17.11% 6.41% 94.87% 10.34% 51.72% 24.14% 13.79% 10.34% 100.00% 57.58% 22.22% 1.01% 19.19% Overall Average 58.33% 25.00% 1.39% 15.28% 0-50 Employees 60.00% 16.00% 0.00% 24.00% 51+ Employess 90.83% 8.26% 0.92% 87.50% 10.94% 1.56% 95.45% 4.55% 0.00% 0.93% 25.00% 12.96% 21.30% 39.81% 64% 1.59% 20.63% 11.11% 28.57% 38.10% 63% 0.00% 31.82% 15.91% 11.36% 40.91% 65% 72.48% 5.50% 22.02% 60.94% 6.25% 32.81% 88.64% 4.55% 6.82% 48.24% 15.29% 3.53% 15.29% 17.65% 64% 77.98% 45.45% 13.64% 4.55% 11.36% 25.00% 67% 67.19% 53.66% 17.07% 2.44% 17.07% 9.76% 57% 93.18% PF16 NADA Management Series Driven 43 NOTES 44 Driven NADA Management Series PF16 NOTES PF16 NADA Management Series Driven 45 NOTES 46 Driven NADA Management Series PF16 ACKNOWLEDGMENTS “The Need to Have Clear-Cut Written Pay Plans” was written for NADA by Christopher C. Hoffman, Esq. Fisher & Phillips LLP Suite 950 4225 Executive Square La Jolla, CA 92037 (858) 597-9610 www.laborlawyers.com Scott Harmon, NADA University, compiled the data in this publication. We thank Paul Taylor, Ph.D., Chief Economist, NADA Industry Analysis, for his analysis of the compensation survey data, and Douglas I. Greenhaus, Esq., Director Environment, Health and Safety, NADA Legal and Regulatory Affairs Group, for his legal expertise. National Automobile Dealers Association 8400 Westpark Drive McLean, Virginia 22102-3591 http://www.nadauniversity.com © NADA 2010. All rights reserved.
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