Motor retail salaries remained broadly unchanged over the past year as dealerships sought to control costs amid continuing pressure on profitability.
The average base salary across all dealership positions was £47,733, according to accountancy and business advisory firm BDO’s Motor Salary Survey 2026. Average commission stood at £6,818, while bonuses and other remuneration averaged £8,515.
BDO said salaries, commission and bonuses remained largely unchanged across vehicle sales, parts, servicing and administration despite growth in the new car market. Some 1.74 million new cars were registered during the first nine months of 2026.
Motor retail salaries remained broadly unchanged over the past year as dealerships sought to control costs amid continuing pressure on profitability.
The average base salary across all dealership positions was £47,733, according to accountancy and business advisory firm BDO’s Motor Salary Survey 2026. Average commission stood at £6,818, while bonuses and other remuneration averaged £8,515.
BDO said salaries, commission and bonuses remained largely unchanged across vehicle sales, parts, servicing and administration despite growth in the new car market. Some 1.74 million new cars were registered during the first nine months of 2026.
Management pay drops 8%
Management remuneration recorded the largest decline, falling by 8% during the latest survey period.
BDO cautioned that management pay has historically displayed significant year-on-year variability and recorded the largest increase in the previous survey.
Employee costs represent the largest expense for dealerships and account for a significant proportion of gross profit, making remuneration and workforce management increasingly important to dealer profitability.
James Evans, head of motor retail at BDO, said: “The past year has continued to present a challenging operating environment for the motor retail industry. While the new car market has strengthened, dealer profitability has remained under pressure, largely due to increasing costs such as the rise in Employers’ National Insurance Contributions.
“With increasing pressures on margins, expense and employee management is critical to sustained profitability. Therefore, the ability of businesses to not only appropriately remunerate employees but also provide structures for their development, remains essential.”
Staff turnover falls again
The annual survey, now in its 15th year, found that motor retail staff turnover had fallen for the second consecutive year.
Turnover decreased from 32% two years ago to 25% in the latest survey, providing some relief for dealerships following several years of recruitment and retention challenges.
Finding skilled employees remains difficult, however, with service technicians continuing to be the hardest dealership role to fill.
Evans added: “The moderation in staff turnover provides some welcome relief after several years of considerable recruitment and retention pressures. However, competition for skilled employees remains significant and businesses will need to continue balancing competitive remuneration with ongoing pressure on margins and profitability. It is no surprise that the most profitable groups tend to have the most stable workforce.”
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