How much do service managers make at dealerships?
The question of how much service managers make at dealerships is a common one among those interested in pursuing a career in the automotive industry. Service managers play a crucial role in ensuring that dealerships provide high-quality service to their customers. Their responsibilities include overseeing the service department, managing staff, and ensuring that vehicles are repaired and maintained efficiently. However, the salary of a service manager can vary significantly depending on several factors, such as location, experience, and the size of the dealership.
Salary Range for Service Managers at Dealerships
The salary range for service managers at dealerships can vary widely. According to the U.S. Bureau of Labor Statistics, the median annual wage for automotive service managers was $85,630 in May 2020. However, this figure can be higher or lower depending on the factors mentioned earlier.
In general, service managers with more experience and those working at larger dealerships tend to earn higher salaries. For example, service managers at dealerships with annual sales of $50 million or more can earn salaries ranging from $90,000 to $120,000 or more per year. On the other hand, those working at smaller dealerships may earn salaries ranging from $60,000 to $80,000 per year.
Factors Influencing Salary
Several factors can influence the salary of a service manager at a dealership:
1. Location: Service managers in areas with a high cost of living, such as major cities, tend to earn higher salaries compared to those in rural or smaller towns.
2. Experience: The more years of experience a service manager has, the higher their salary is likely to be. Those with several years of experience in the automotive industry or in a management role can expect to earn more.
3. Education: While a formal degree is not always required for a service manager position, those with a degree in business, management, or a related field may have a higher earning potential.
4. Performance: Service managers who demonstrate strong leadership skills, effective communication, and the ability to manage a profitable service department can expect to earn higher salaries.
5. Size of the dealership: Larger dealerships often have more resources and a higher volume of business, which can lead to higher salaries for their service managers.
Conclusion
In conclusion, the salary of a service manager at a dealership can vary significantly based on several factors. While the median annual wage is around $85,630, those with more experience, working in larger dealerships, or in high-cost-of-living areas can earn much more. Aspiring service managers should consider these factors when planning their career paths and negotiating salaries.
