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Most jobs in automobile dealers offer above-average earnings, but require only 2 years of postsecondary training or less. Automobile dealers are expected to decline in number but increase in size, as consolidation continues in the industry. Employment growth is expected to be average but sensitive to downturns in the economy.
The number of workers employed by automobile dealers varies significantly depending on dealer size, location, makes of vehicles handled, and distribution of sales among departments.
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Sales and related occupations are among the most important occupations in automobile dealers. Their success in selling vehicles and services determines the success of the dealer. Automotive retail salespersons usually are the first to greet customers and determine their interests through a series of questions. Before entering the dealer, many customers use the Internet to research and compare vehicle prices, features, and options. Salespersons then explain and demonstrate the vehicle’s features in the showroom and on the road. Working closely with automotive sales worker supervisors and their customers, they negotiate the final terms and price of the sale. Automotive salespersons must be tactful, well-groomed, and able to express themselves well. Their success in sales depends upon their ability to win the respect and trust of prospective customers.
In support of the service and repair department, parts salespersons supply vehicle parts to technicians and repairers. They also sell replacement parts and accessories to the public. Parts managers run the parts department and keep the automotive parts inventory. They display and promote sales of parts and accessories and deal with garages and other repair shops seeking to purchase parts.
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Installation, maintenance, and repair occupations are another integral part of automobile dealers. Automotive service techniciansand mechanics service, diagnose, adjust, and repair automobiles and light trucks with gasoline engines, such as vans and pickups. Automotive body and related repairers repair and finish vehicle bodies, straighten bent body parts, remove dents, and replace crumpled parts that are beyond repair. Shop managers usually are among the most experienced service technicians. They supervise and train other technicians to make sure that service work is performed properly. Service managers oversee the entire service department and are responsible for the department’s reputation, efficiency, and profitability. Increasingly, service departments use computers to increase productivity and improve service workflow by scheduling customer appointments, troubleshooting technical problems, and locating service information and parts.
Service advisors handle the administrative and customer relations part of the service department. They greet customers, listen to their description of problems or service desired, write repair orders, and estimate the cost and time needed to do the repair. They also handle customer complaints, contact customers when technicians discover new problems while doing the work, and explain to customers the work performed and the charges associated with the repairs.
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Office and administrative support workers handle the paperwork of automobile dealers. Bookkeeping, accounting, and auditing clerks; general office clerks; and secretaries and administrative assistants prepare reports on daily operations, inventory, and accounts receivable. They gather, process, and record information; and perform other administrative support and clerical duties. Office managers organize, supervise, and coordinate administrative operations. Many office managers also are responsible for collecting and analyzing information on each department’s financial performance.
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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.
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Automobile dealers provided about 1.2 million wage and salary jobs in 2002. An additional 55,000 self-employed persons worked in this industry. Sales, installation, maintenance, and repair workers shared two-thirds of wage and salary employment. The remaining third primarily were management, administrative support, transportation, and material-moving positions.
Since 1950, the trend in this industry has been toward consolidation. Franchised dealers have decreased in number while their sales volume has increased. Larger dealers can offer more services, typically at lower costs to the dealer and the customer. Over half of jobs in automobile dealers were in establishments employing between 50 and 249 workers. On average, automobile dealers had nearly 25 employees per establishment, compared with an average of about 14 employees in all retail businesses.
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Transportation and material-moving occupations account for about 11 percent of jobs in automobile dealers. Cleaners of vehicles and equipment prepare new and used cars for display in the showroom or parking lot and for delivery to customers. They may wash and wax vehicles by hand and perform simple services such as changing a tire or battery. Truckdrivers operate light delivery trucks to pick up and deliver automotive parts. Some drive tow trucks that bring damaged vehicles to the dealer for repair.
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Management jobs often are filled by promoting workers with years of related experience. For example, most sales managers start as automotive salespersons. Sales managers hire, train, and supervise the dealer’s sales force. They are the lead negotiators in all transactions between sales workers and customers. Most advance to their positions after success as salespersons. They review market analyses to determine consumer needs, estimate volume potential for various models, and develop sales campaigns.
General and operations managers are in charge of all dealer operations. They need extensive business and management skills, usually acquired through experience as a manager in one or more of the dealer departments. Dealer performance and profitability ultimately are up to them. General managers sometimes have an ownership interest in the dealer.
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Employees in automobile dealers work longer hours than do those in most other industries. About 85 percent of automobile dealer employees worked full time in 2002, and about 40 percent worked more than 40 hours a week. To satisfy customer service needs, many dealers provide evening and weekend service. The 5-day, 40-hour week usually is the exception, rather than the rule, in this industry.
Most automobile salespersons and administrative workers spend their time in dealer showrooms; individual offices are a rarity. Multiple users share limited office space that may be cramped and sparsely equipped. The competitive nature of selling is stressful to automotive salespersons, as they try to meet company sales quotas and personal earnings goals. Compared with that for all occupations in general, the proportion of workers who transfer from automotive sales jobs to other occupations is relatively high.
Service technicians and automotive body repairers generally work indoors in well-ventilated and well-lighted repair shops. However, some shops are drafty and noisy. Technicians and repairers frequently work with dirty and greasy parts, and in awkward positions. They often lift heavy parts and tools. Minor cuts, burns, and bruises are common, but serious accidents are avoided when the shop is kept clean and orderly and safety practices are observed. Despite hazards, precautions taken by dealers to avoid and prevent injuries have kept the workplace relatively safe. In 2002, there were 5.5 cases of work-related injuries and illnesses per 100 full-time workers in the new and used car dealers industry, close to the national average of 5.3 cases. Separately, used car dealers reported only 2.6 cases of work-related injuries and illnesses per 100 full-time workers—well below the national average.
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1. Unknown author; Occupational Outlook Handbook 2004-2005 Edition; U.S. Bureau of Labor Statistics; Washington DC USA; 2004; Available http://www.bls.gov/oco/home.htm.
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