How to Decrease Car Salesperson Turnover

December 10, 2018

Car dealerships continue to be plagued by salesperson turnover. And the problem is only getting worse. According to the National Automobile Dealerships Association, employee turnover rates have steadily climbed since 2013 and are fast-approaching 50%.

Fortunately, there are some possible solutions. Below are five ways to decrease car salesperson turnover at your dealership.

Decreasing Car Salesperson Turnover

Change how you pay

A paycheck that is heavily influenced by commissions is great when cars are flying off the lot. But during slow times, the smaller pay tends to scare employees away into something more stable.

Consider coupling a higher base pay with lower commissions to alleviate the pressure to make ends meet. Or, scrap the commission program altogether and install a year-end bonus for meeting sales quotas. Providing a long-term incentive gives your salespersons a reason to make a longer commitment.

Empower your employees

A car salesperson often has very little authority in negotiating deals, operating leases, or getting a loaner car for a customer. Too often, sales employees rely heavily on their manager for these decisions.

But by giving more power to your salespeople, they will gain a greater feeling of importance, confidence, and self-esteem. And they won’t be tempted to leave for another job where they will have less empowerment.  

Promote from within

Promoting a salesperson from your lot to a management position sends the message to the rest of your sales team that this is not a dead-end job. When announcing the promotion, make it clear that it was earned through hard work and dedication, and make it just as clear that the same type of upward mobility is possible for any member of the sales staff.  

Change the culture

Many of today’s younger employees have expressed a disdain for the old-fashioned work culture and stereotypical car salesman persona and tactics affiliated with working at an auto dealership. Getting your dealership to adapt its culture to a younger generation can be pivotal in improving retention rates.  

Go high-tech

Technology is providing tools to benefit salespeople in a wide range of industries, and auto dealerships are now finally getting on board as well. Streamline your car sales process with MAX Digital’s Path to Purchase™ system. This tool empowers your sales staff by giving them a simplified and repeatable sales process that aligns with the way customers want to shop.

Evaluate Your Turnover Rate  

Take a two-minute quiz to evaluate your car salesperson turnover rate and learn how you can improve your retention rate and sales profits alike. With MAX Digital, neither customers nor salespeople will be walking away from a sale again.