“That really has, I think, just forced more innovation, more calling around or scouring Facebook Marketplace,” Manzi mentioned. “Dealers are really having to get creative with how they’re sourcing right now.”
Dealerships are also promoting extra effectively with fewer workers, Manzi mentioned. Dealership head depend dipped barely in 2021 after tumbling extra steeply in 2020 when the pandemic began. Total dealership employment slid 2.1 % to an estimated 1,055,400 folks final year, down from 1,078,000 for 2020 and 1,134,400 for 2019, in keeping with Bureau of Labor Statistics information cited by NADA.
The common dealership had 63 workers in 2021, usually flat from 64 in 2020 however down extra considerably from 68 in 2019. The common quantity of new automobiles offered per salesperson final year rose to 113 from 104 in each 2019 and 2020, Manzi mentioned.
“We still haven’t seen nationwide dealership employment recover completely,” he mentioned. “A lot of the salespeople have learned to be a little bit more productive. I think shifting more of the sales process online might have helped contribute to that.”
Manzi mentioned he would not count on dealership employment to choose up till gross sales charges are persistently nearer to 17 million automobiles yearly.
Payroll prices elevated considerably final year, in keeping with NADA’s report. Average annual payroll per dealership jumped 22 % to $4.95 million in 2021, up from $4.06 million in 2020 and $4.09 million in 2019, the report mentioned.
Manzi chalked up the rise largely to the tight labor market.
“It’s just more expensive to pay people right now,” he mentioned. “Dealers have to remain competitive, as well. And so they have to pay more to get good people.”