It’s not just vehicle prices that have gone up since the start of the pandemic. Earnings for employees of car dealerships also made a significant jump. There is even talk of increases higher than the historical inflation that is shaking the economy at the moment.
This is according to a study published by Automotive News Canada and conducted in the fall of 2022 by Toronto-based research firm Research+Knowledge=Insight among 655 dealership employees and managers across the country.
On average, they indeed earned 13.5% more income in 2022 than in 2020, while the Bank of Canada’s consumer price index rose by around 12% during the same period. . This is mainly due to higher commissions, much less to salary increases. Because with greatly reduced inventories, customers have virtually no power to negotiate prices to their advantage.
In addition, employee departures and a shortage of personnel have contributed to an increase in individual compensation within the dealerships.
Numbers
According to the cited study, car dealership employees earned an average of $131,200 last year, across all positions. This amount, which includes bonuses and commissions, was $124,700 in 2021 and $115,700 in 2020.
In Quebec, the average is $118,200, an annual increase of 6.4%. That’s less than anywhere else in the country except the Maritimes ($96,300). Employees in British Columbia pocket the most money, averaging $143,100. Speaking of Quebec, it is the only region where the percentage of commissions in relation to total compensation is less than 30%. In fact, it is only 15%.
Presidents/owners and generous directors earn $218,600 and $239,300, respectively, well ahead of other managers. A new vehicle manager, for example, receives an average of $154,700. Product advisors or sales reps, if you prefer, earn compensation of $91,300, down 1% from 2021.
Unsurprisingly, the lowest paid positions are service manager ($89,000), technician ($75,700) and technical advisor ($66,700).
In closing, 62% of employees surveyed say they expect their compensation to continue to rise over the next three years, but the possibility of a recession in 2023 and improving inventories may decide otherwise.