Pay growth at UK car dealers has stalled, while annual staff turnover has fallen to 25%, according to BDO’s latest Motor Salary Survey.
Average total remuneration was unchanged excluding management roles, with a 1% rise in basic salaries offset by a 1% fall in commissions, bonuses and other pay.
Across all positions, average remuneration fell by 4%, heavily influenced by an 8% reduction in management pay.
Management remuneration recorded the largest decline in BDO’s survey, with basic salaries down 5% and commissions, bonuses and other pay down 15%.
The management category includes managing directors and chief executives, dealer principals, finance directors and senior HR, IT and marketing roles.
However, BDO cautioned against viewing the decline in isolation.
Management remuneration has historically shown significant annual variation and recorded the largest increase in the previous survey.
Basic salaries accounted for 73% of total management remuneration.
The full report goes further into separate average earnings for managing directors and chief executives.
The findings are based on salary information as at March 31, 2026, submitted by participating businesses employing more than 20,000 people.
Staff retention improves
Annual staff turnover fell from 28% in the previous survey to 25%, continuing an improvement from 32% two years earlier.
The overall workforce among participating businesses contracted by approximately 1%, with most respondents expecting staffing levels to remain broadly unchanged over the coming year.
However, service technicians remained the hardest roles to fill. BDO also reported anecdotal evidence of reduced recruitment as costs continued to rise.
The report stated: “The moderation in staff turnover provides some welcome relief after several years of considerable recruitment and retention pressures.”
BDO said competition for skilled employees remained significant, requiring businesses to balance competitive remuneration with pressure on margins and profitability.
Vehicle department pay falls
| Department | Average total remuneration | Annual change |
|---|---|---|
| Vehicles | £61,750 | -2% |
| Parts | £36,650 | +4% |
| Service | £42,350 | +1% |
| Administration | £40,500 | +7% |
Average total remuneration in vehicle departments fell by 2% to £61,750. Basic salaries declined by 5%, while commissions, bonuses and other pay increased by 2%.
BDO said this reversed the recent trend towards a greater proportion of pay being delivered through basic salary.
Vehicle departments remained the most reliant on performance-related remuneration, with commissions and bonuses accounting for 38% of total pay.
Administration recorded the strongest increase outside management, with total remuneration rising by 7%, driven by higher basic salaries. Fixed pay accounted for 95% of remuneration in the department.
Parts department remuneration increased by 4%, as a 6% rise in basic salaries outweighed a 3% reduction in variable pay.
Service pay growth moderates
Average service department remuneration increased by 1% to £42,350. Basic salaries rose by 3%, while commissions, bonuses and other pay fell by 11%.
BDO said pay growth had moderated following stronger increases in earlier years, when dealerships were responding to shortages of skilled technicians.
Continuing recruitment difficulties would remain an important influence on future remuneration decisions, it added.
Employee benefits remained widespread, with 88% receiving benefits. The proportion receiving car benefits fell from 52% to 46%.
The average working week remained unchanged at 41 hours, while average annual leave entitlement stayed at 25 days.