Becoming a Car Dealership Franchisee

Job Description: Car Dealership Franchisee

Few industries took as hard of a hit during the down economy as the automotive industry. But now that things are looking up, the U.S. population is again investing in their cars, and dealers are slowly starting to move both new and used cars off the lot at an encouraging pace. Times are tough, but if owning a dealership is your dream job, don't be discouraged. You can put your faith in one simple fact: people are always going to want to drive.

What they do:

In the words of the Bureau of Labor Statistics, "automobile dealers are the link between the manufacturer of the automobile and the U.S. consumer." If you franchise a car dealership, you'll sell cars that you've received from your designated manufacturer. You can also curate a collection of used cars, which may make up the majority of your sales.

But owning a franchise goes much further than just selling. The franchisee will oversee a wide range of departments including maintenance and repairs, financing, insurance, ordering, office and administrative duties and finally, ensuring that their staff meets sales goals.

What they need:

Formal education is not a prerequisite, however, since many dealerships are hiring college-educated employees with sales experience, leadership roles often follow suit. Business and sales experience is essential.

A car dealer franchisee should be a good leader. You need to be able to motivate your team to sell even during tough times by staying positive, developing new compensation ideas and giving employees sales techniques to help them push cars off the lot.

If you work for a dealership, you won't follow a typical 9 a.m. to 5 p.m. schedule. In 2008, 35 percent of full-time employees worked more than 40 hours a week. Car dealers are at the mercy of the customer, and will often open on evenings and weekends to accommodate. It's safe to say that as the franchise owner, especially in the first few years, you will be putting in even more time at the dealership.

Legal savvy is a must, as dealership laws that protect both consumers and dealers vary from state-to-state.

What they earn:

While statistics exclusive to franchisee owners are unavailable, the average salary for car dealership managers is $115, 852, according to CBsalary.com. The 25^th and 75^th percentile salaries fall between $86, 482 and $196, 340 respectively. It's safe to presume salaries for dealership owners skew higher.

Job outlook:

Dealership consolidation and restructuring will negatively impact the job prospects in this field, and there will likely be fewer franchises available for purchase. However, a high turnover rate and number of soon-to-be retirees may help this number. Overall, jobs in the automobile dealership industry are expected to decline 6 percent through 2018.