F&I Pay Plan, Salesman Pay plan and BDC Pay Plans

Matteo Batelli

I have asked a lot for the same pay plan and would like to get all answers within same thread.

We are a small independent used car dealership (80 cars) and trying to restructure our business organization.

I am looking for F&I, Salesman and BDC people pay plans. What would you guys do if you hold 80 cars and its keep growing for the pay plans ? We mostly do Subprime on Financing. What would you pay to Finance employee ? 

I want to hire 2 Sales and 1 Finance and BDC inside and outside. 

Looking for your pay plan examples.

Best.

Bryant Gibby

Depending on your business model, it may make more sense to pay them according to performance metrics rather than based off of gross. With the way our industry is going, it is harder and harder to hold the salesperson accountable for front end gross profit.

I recommend looking at a starting salary (not too comfortable, but enough) and then doing monthly bonuses based on the achievement of their monthly goals. A manager should be doing monthly evaluations with their employees and a variable comp plan around their performance seems to drive the best results. 

Examples for salespeople might be: phone closing %, internet closing %, walk-in closing %, units sold, CSI scores, reviews collected, training requirements met, etc.

Examples for an F&I guy might be: individual product penetration percentage (gap, service contract, ancillary products), CSI, PVR, days to process deal, days to get deal funded w/ bank, chargeback %, etc.

I hope this helps. You won't regret tying their comp plans to their overall performance.

 

Mark Rask

In our bdc we pay a salary and a bonus for appts showed and an additional amount if they buy

Derrick Woolfson

@Mark, I bet your team appreciates a salary vs. hourly rate! that and I am sure you save a lot of money not having to pay overtime?

Mark Rask

@derrick we do

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