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Dealership revenues, earnings up in latest NADA analysis

October 7, 2016
Weekly earnings at U.S. new-car dealerships in 2015 were up an average $1,341, or 1.4 percent, compared to the previous year, according to the latest Dealership Workplace Study, which is administered by the National Automobile Dealers Association.
The analysis showed growth rates in the service and parts departments ranging from 6.7 percent to 8.2 percent. Average weekly earnings for sales consultants grew 2.7 percent year-over-year.
The NADA study, now in its fifth year, continues to show a U.S. retail-auto industry with strong growth and earnings opportunities. Other findings:
• Overall employee turnover rate was 39 percent, which was relatively unchanged year-over-year and still well below the U.S. private sector average of 46 percent. 
• Dealership productivity, measured as gross profit per employee, increased 0.4 percent, to $8,446. 
• Millennials comprised 42 percent of all new-car dealership employees, up from 38 percent in 2014. Millennials represented 60 percent of new hires at new-car dealerships, and that percentage is expected to continue to increase in the future.   
• The ratio of women working at new-car dealerships was 18.6 percent, a slight increase in 2015. Women accounted for 20 percent of all new hires in 2015, the same figure reported the previous year. 
The NADA study analyzed more than 385,000 payroll records from 1,956 new-car and -truck dealerships. Each dealership provided information on sales volume, work schedules and employee benefits. The report, Automotive Retail: National & Regional Trends in Compensation, Benefits & Retention, also provides comparisons by luxury and non-luxury dealer franchises. 
Dealers who provided input to the study will obtain a complimentary copy of the results. Nonparticipants can buy the report by calling (800) 557-6232.