Introduction
Finance managers play a crucial role in the operations of car dealerships. They are responsible for managing the financial aspects of the dealership, including securing financing for customers, overseeing the sales process, and ensuring compliance with financial regulations. One question that often arises is how much finance managers at car dealerships make. In this article, we will delve into this topic to provide a comprehensive understanding of their earning potential.
Factors Affecting Finance Manager Salaries
The salary of a finance manager at a car dealership can vary based on several factors. These factors include the location of the dealership, the size of the dealership, the manager’s experience and qualifications, and the overall financial performance of the dealership.
Location: Salaries can differ significantly depending on the geographical location of the dealership. For example, finance managers in metropolitan areas or regions with a higher cost of living may earn higher salaries compared to those in rural areas.
Dealership Size: The size of the dealership can also impact a finance manager’s salary. Larger dealerships with higher sales volumes may offer more competitive compensation packages to attract experienced finance managers.
Experience and Qualifications: Finance managers with more experience and advanced qualifications, such as a bachelor’s degree in finance or a related field, may command higher salaries. Additionally, certifications such as the Certified Finance and Insurance Professional (CFIP) designation can enhance earning potential.
Financial Performance: The financial performance of the dealership can also influence a finance manager’s salary. If the dealership is experiencing strong sales and profitability, it may have more resources to allocate towards higher salaries for its employees.
Average Salary Range
While salaries can vary, there is data available that provides insight into the average salary range for finance managers at car dealerships. According to the U.S. Bureau of Labor Statistics, the median annual wage for financial managers, which includes finance managers at car dealerships, was $134,180 as of May 2020. However, it is important to note that this figure represents the median across all industries and may not be specific to car dealerships.
A more specific estimate can be obtained from industry reports and surveys. According to the National Automobile Dealers Association (NADA), the average annual salary for finance and insurance managers at franchised new-car dealerships was $142,739 in 2020. This figure takes into account commissions and bonuses, which can significantly contribute to a finance manager’s overall compensation.
It is worth mentioning that these figures represent averages, and individual salaries can vary based on the factors mentioned earlier. Finance managers with extensive experience, exceptional sales performance, and a proven track record may earn salaries well above the average range.
Conclusion
Finance managers at car dealerships play a vital role in managing the financial aspects of the business. While salaries can vary based on factors such as location, dealership size, experience, qualifications, and financial performance, the average salary range for finance managers at car dealerships is estimated to be around $142,739 per year. However, it is important to note that individual salaries can deviate from this average based on various circumstances.
References
– U.S. Bureau of Labor Statistics: www.bls.gov
– National Automobile Dealers Association (NADA): www.nada.org
