How Much Do Finance Managers at Car Dealerships Make?

What is the average salary of finance managers at car dealerships?

Finance managers play an essential role in the car dealership industry, responsible for overseeing the financial aspects of the business and ensuring that customers are receiving the best possible financing options. The salary of a finance manager at a car dealership varies depending on several factors, including experience, location, and the size of the dealership.

Experience and Education

The more extensive the experience and education of a finance manager, the higher their salary tends to be. Entry-level finance managers typically earn around $40,000 to $50,000 per year, while those with more experience can earn upwards of $100,000 per year. Education is also a factor, with finance managers who hold a bachelor's or master's degree earning more than those without.

Location

Location is another significant factor that impacts the salary of finance managers at car dealerships. Salaries tend to be higher in metropolitan areas with a high cost of living, such as New York, Los Angeles, and San Francisco. In contrast, salaries in rural areas or smaller cities may be lower.

Dealership Size

The size of the dealership also plays a role in determining the salary of finance managers. Larger dealerships with more significant sales volume tend to pay their finance managers higher salaries than smaller dealerships with less sales volume.

Additional Compensation

In addition to base salaries, finance managers at car dealerships may also receive bonuses, commission, and other incentives. For example, a finance manager may receive a commission based on the number of finance deals they close or receive a bonus for meeting or exceeding sales targets.

Investment Opportunities

For those interested in investing in the car dealership industry, becoming a finance manager can be a promising career path. However, it is essential to understand the risks and rewards associated with investing in the industry. One strategy is to invest in publicly traded car dealership stocks, such as AutoNation or CarMax. Another option is to invest in car dealership real estate, which can provide steady rental income and long-term appreciation.

Conclusion

The average salary of finance managers at car dealerships varies depending on several factors, including experience, location, and dealership size. While entry-level finance managers may earn around $40,000 to $50,000 per year, those with more experience can earn upwards of $100,000 per year. Additionally, finance managers may receive bonuses, commissions, and other incentives. For those interested in investing in the car dealership industry, there are several investment opportunities to consider, such as publicly traded car dealership stocks or car dealership real estate.