How much do finance managers make at car dealerships?

Introduction

Finance managers play a crucial role in the automotive industry, particularly at car dealerships. They are responsible for managing the financial aspects of the dealership’s operations, including securing financing for customers, overseeing loan applications, and ensuring compliance with financial regulations. One question that often arises is how much finance managers make at car dealerships. In this article, we will dive deeper into this topic to provide a comprehensive understanding of finance manager salaries in the automotive industry.

Factors Affecting Finance Manager Salaries

Several factors influence the salaries of finance managers at car dealerships. These factors include the location of the dealership, the size of the dealership, the experience and qualifications of the finance manager, and the overall financial performance of the dealership.

Location: Salaries can vary significantly based on the location of the dealership. In areas with a higher cost of living or a more competitive job market, finance managers may command higher salaries compared to those in less expensive or less competitive regions.

Size of the Dealership: The size of the dealership can also impact finance manager salaries. Larger dealerships with higher sales volumes may offer higher salaries to attract experienced finance managers who can handle the increased workload.

Experience and Qualifications: Finance managers with more experience and advanced qualifications, such as a bachelor’s degree in finance or a related field, may earn higher salaries. Additional certifications, such as Certified Finance and Insurance Professional (CFIP), can also contribute to higher earning potential.

Financial Performance: The financial performance of the dealership can influence the salaries of finance managers. If the dealership is performing well and generating higher profits, finance managers may be rewarded with higher salaries or performance-based bonuses.

Salary Range for Finance Managers

While finance manager salaries can vary, there is a general salary range that can provide an idea of what to expect. According to the Bureau of Labor Statistics, the median annual wage for financial managers, including those in the automotive industry, was $134,180 as of May 2020. However, it is important to note that this figure represents financial managers across various industries and not specifically those working at car dealerships.

In the automotive industry, finance managers’ salaries can range from around $50,000 to over $150,000 per year. The specific salary within this range depends on the factors mentioned earlier, such as location, dealership size, experience, and qualifications. Finance managers at high-end luxury car dealerships may have the potential to earn higher salaries due to the higher price points of the vehicles they handle.

Additional Compensation and Benefits

In addition to their base salaries, finance managers at car dealerships may receive additional compensation and benefits. These can include performance-based bonuses, commissions on finance and insurance products sold, health insurance, retirement plans, and other perks such as company car allowances or expense accounts.

It is worth noting that the commission structure for finance managers can vary. Some dealerships may offer a flat commission rate on each finance deal closed, while others may have a tiered structure that rewards higher volumes or higher profit margins. These additional compensation elements can significantly impact the overall earnings of finance managers.

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, and qualifications, finance managers in the automotive industry can expect to earn a salary range of approximately $50,000 to over $150,000 per year. Additional compensation and benefits, such as performance-based bonuses and commissions, can further enhance their earning potential.