Pay in the motor retail market has stalled in the last 12 months, as dealerships face ongoing pressures on profitability.
According to the Motor Salary Survey 2026, from accountancy and business advisory firm BDO LLP, dealers remain cautious about pay in an attempt to keep tight control on cost bases.
In the last 12 months, the average base salary across all positions was £47,733, with the average commission £6,818 and bonuses and other remuneration £8,515.
Salaries, commission and bonuses remained largely the same across multiple departments, including vehicles, parts, services and administration.
Management remuneration saw the biggest fall, down 8%. BDO said however that management remuneration has historically shown significant year-on-year variability and recorded the largest increase in last year’s survey.
Employee costs are the largest expense in any dealership, accounting for a significant percentage of gross profit.
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.”
The annual survey, which is now in its 15th year, also highlighted a further improvement in employee retention, with staff turnover falling in the sector for the second year running, decreasing from 32% two years ago to 25% this year. However, recruitment challenges remain, particularly for service technicians, which continues to be the most difficult 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.”
