Salaries have dipped at car dealer groups, BDO survey finds

Worker salaries have dipped slightly overall at dealer groups in the last 12 months, the first decrease in four years, according to the findings of BDO's annual Motor Salary Survey.

The drop in pay, which excludes management positions, is despite inflation rates remaining above the UK target, although inflation has fallen to 2.2% from 4.2% at the start of 2024.

The average salary for all non-management positions surveyed was £46,917 (2022: £47,344).

BDO's head of motor retail Chris Bond said the salary drop is mainly as a result of a fall in incentivised pay by 10%, reflecting the recent financial challenges within the industry.

"The largest increases were within the parts and service departments where 5% increases were found. Vehicle departments saw a fall (-2%) where incentivised pay makes up a higher proportion of the typical salary for this role.

"Service technicians remain the most sought-after role, though this has not impacted pay as much as previous years where salaries have increased by over 10%," he said.

In the latest survey only 49% of employees received car benefits, compared to 57% in the previous year's research.

Participants in the survey employ around 18,000 people and in the last year had an estimated staff turnover of 29% down slightly from last years 31%, although overall staffing levels remained consistent.

BDO's research includes hot topics in retention and reward and thoughts on the impact of electrification on people and skills from automotive recruitment experts Ennis & Co.

The summary report is available from BDO.

The full version with the detail for all positions is only available to participants. If you would like to participate in the next Salary Survey in 2025 or discuss the report further contact Chris Bond at BDO.