Although this will vary based on a variety of factors, the yearly average salary for a Dealership General Manager in the United States was $114,843 as of November 26, 2022. This works out to about $55.21 per hour, $2,208 per week, or $9,570 per month.
Even though yearly incomes can vary from $259,500 to $23,000, most car dealership General Managers earn from $52,000 to $151,000, with the higher earners going up to $218,500. The general manager of a dealership is the supreme power in the company. He or she is in charge of both the sales and service departments.
An automotive general manager is in full control of a dealership’s everyday activities, such as hiring, business budgeting, and sales tracking. They develop workplace guidelines and collaborate with sales managers to monitor the organization’s progress in sales volume targets, revenue growth, as well as other quotas.
Reports have it that the salary of an auto dealer general manager remains one of the highest for general and operations managers in the United States.
When put in comparison to general managers in some industry sectors, managers in retail sales, which encompasses auto dealerships, managed to gain the fifth-highest income. Note that by May 2019, retail sales managers garnered an average yearly salary of $73,190.
Factors That Influence How Much a GM of a Car Dealership Makes Yearly
As previously stated, the income of a general manager at a car dealership is determined by a variety of factors. These factors include;
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Location
One of the most important factors influencing the income of a car dealership is its location. Note that cost of living, crime levels, medical conditions, as well as other regional facts and figures can all have a real impact on a car dealership’s revenue.
Although a densely populated location could have a decent amount of buyer possibilities, it might also contain a lot of other car dealerships, making the market more fiercely contested.
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Agency revenue
In this industry, the greater your car dealership’s income, the more you may be able to earn as the general manager. It makes no economic sense to expect that you should earn $200,000 when the car dealership’s total yearly income is $200,000.
Also have it in mind that increased income doesn’t in any way imply a higher wage or remuneration for the general manager, as some dealerships grow unprofitably instead of lucratively.
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Type of Car Dealership
Note that your earnings as a general manager will be influenced by the sort of cars your dealership sells. Each dealership (vintage, used cars, brand new cars, or even online retailing) offers different potentials to draw in new clients.
Nevertheless, a car dealership that only sells vintage cars can expect to earn more money than a brand-new car dealership, but the market is not as frequent.
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Full-time vs. part-time
According to industry reports, a good percentage of car dealership general managers tend to work full-time in their car dealership business, meanwhile many prefer to operate part-time. Note that if you work just under full-time, you will not receive 100% of your annual income, particularly because a portion of those funds will be used to pay the substitute doing your old job.
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Tax Preparation
Your financial planner may suggest that you receive a fairly low paycheck for tax purposes; however, keep in mind that this strategy has limitations. It is recommended that you take into account “converting” your financial reward to a salary-based equivalent for standardization purposes to guarantee an apples-to-apples correlation.
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Number of employees
Note that a lot of workers imply more expenses, which necessitates a lower salary for a general manager. Researchers estimate that car dealerships splurge 50-60% of their revenue on workers. Owing to that, if you decide to splash the cash just on general managers, there will be fewer funds available to pay other workers, which is a scenario you don’t want to be in.
Conclusion
Auto dealers are where customers go if they want to purchase vehicles. General managers oversee the day-to-day operations of these establishments. They meet with sales and service department directors, focus on promoting and recruiting department managers, develop employee learning schemes, and handle client concerns that employees cannot remedy.
However, keep in mind that the salary of a general manager at a car dealership is governed by a range of factors, particularly those mentioned above.