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Re-Engineering Used Vehicle Manager Pay Plans
Featuring: Ed French - AutoProfit
Air Date: August 11, 2022
1pm Eastern/ 12pm Central / 11am Mountain / 10am Pacific
Program Length: 45 minutes
Now could be the best time to re-think Used Vehicle Manager Compensation…
Since the dealership was likewise performing very well, this was not too much of a problem. However, as the market inches toward something more like normal… problems could arise.
Since the outbreak of COVID in 2020 the used vehicle grosses have skyrocketed. For many if not most auto dealers this resulted in an explosion of compensation for both new and especially used vehicle sales managers.
While the compensation expense mushroomed… so did dealership net profits… therefore it was not all that alarming.
As the used vehicle market shows some evidence of returning to something nearer to normal… many used vehicle manager’s pay plans will recede as well. That could spell trouble…
There are some interesting questions with regard to how those pay plans (those that resulting in huge compensation to some managers) were structured.
Can we avoid those “unintended consequences” via a better designed and engineered compensation plan? Listen in as expert Ed French addresses these questions and more…
The market is shifting as inflation rises and sales begin to normalize: How can a dealership manage used vehicle compensation metrics to aligned with the important elements of a high performing Used Car Department?
How can Used Vehicle Managers be incentivized to work more efficiently within the entire dealership enterprise? How does lack of cooperation between departments (For instance Used vs Service) manifest itself?
Is your current compensation plan actually hurting your operation by only focusing on Per Vehicle Retail? or gross profit?
What is the 360 degree view of a Used Vehicle Manager and how can adjusting compensation help bring clarity and effectiveness to the role?
Can you offer the outline of a Used Vehicle Manager’s Pay Plan that you can recommend?