Average weekly earnings of nonsupervisory workers in automobile dealers were $619 in 2002, substantially higher than the average for retail trade ($361), as well as that for all private industry ($506). Earnings vary depending on occupation, experience, and the dealer’s geographic location and size.
Most automobile sales workers are paid on a commission-only basis. Commission systems vary, but dealers often guarantee new salespersons a modest salary for the first few months until they learn how to sell vehicles. Many dealers also pay experienced, commissioned sales workers a modest weekly or monthly salary to compensate for the unstable nature of sales. Dealers, especially larger ones, also pay bonuses and have special incentive programs for exceeding sales quotas. With increasing customer service requirements, some dealers and manufacturers have adopted a noncommissioned sales force paid entirely by salary.
Most automotive service technicians and mechanics receive a commission related to the labor cost charged to the customer. Their earnings depend on the amount of work available and completed.
In 2002, relatively few workers in automobile dealers, less than 4 percent, were union members or were covered by union contracts, compared with about 15 percent of workers in all industries.