Pay Plans for the Sales and Administrative Staff - DealersEdge

5,0004,600$ in Millions4,2003,8003,4003,0002001 2002 2003 2004 2005 2006 2007YearsTotal Gross ProfitTotal ExpensesWhile some of the added expenses undoubtedly reflect higher rent factors due to facility upgrades, theanswer, obviously, is in the traditional dealership’s cost structure, specifically in the way most car dealerspay their productive employees, the sales consultants and sales managers.I have a strong bias against full-commission pay plans for dealership managers. And I hope I’ve beenconsistent in expressing that bias over the years. The full-commission plans, more than any other factor,in my opinion, actually work against dealership profitability.Full-commission plans for managers are a very bad idea. I use the term full-commission to mean the kindof compensation that pays a sales or service manager only when gross or net profit is generated. Themanager receives no salary or wage other that the commission. Draws don’t count if they have to be paidback when a manager gets “into the hole.”There are a number of reasons for this bias:First, full-commission pay plans allow for wide swings in total pay for the manager and in payrollexpense for the dealer/owner. When business stinks the manager starves and when business isgreat, the dealer ends up overpaying for the results. Remember, the manager hasn’t taken therisk of ownership. Why should he or she bear the same risks and rewards as thedealer/owner/investor?Second, full-commission plans make no provision for the non-production responsibilities that adealership manager carries. Managers have supervisory, administrative, and training dutiesamong others. Full-commission pay plans encourage the manager to neglect the important butnon-revenue-producing aspects of the job.Third, full-commission pay plans deprive the dealer/owner of the opportunity to benefit fromeconomies of scale in sales and service. The chart above demonstrates this. If a manager isalways paid 15 percent of the gross, then the dealer’s selling efficiency will always be stuck at15%. It cannot improve. Shouldn’t investments in technology like lead management systemsand CRM solutions improve sales efficiency and shouldn’t the dealer/investor reap thoserewards?Fourth, full-commission pay plans reduce the effect of management. When managers get paidonly by commission, they are likely to worry most about the activities that generate thosecommissions. A dealer can direct the managers to focus on certain products, customersatisfaction, anything, but the managers will do what earns them the easiest and fastestcommissions. It’s called “working the pay plan” and it always results in frequent pay planchanges and increase employee dissatisfaction. Remember: anytime you change a pay plan,it will be perceived, rightly or wrongly, by the employees as a pay cut.

Fifth, it is a myth that full-commission pay plans motivate people to continually produce more. Itsounds good but it does not hold true in the real world. A financial incentive works as a motivatoronly at the margins. It can push a 10-car-a-month salesman to sell 11 or 12 cars, but moneywon’t turn 10-car Charlie into a consistent 15-car-a-month producer. That’s a manager’s job.Comparable pay for comparable workEach job in a dealership has a value relative to other dealership positions. For example, managers’responsibilities carry more value than clerical functions. The service director’s job is considered to be ona par with the general sales manager. Their total compensation doesn’t have to be equal, but they shouldbe within range of each other.At the end of this section, there are two questionnaires – one for dealership managers and one for nonmanagers.Ask each dealership employee to complete one. The questionnaires are useful in severalways.1. Creating job descriptions. Employees need to know what is expected of them and a written jobdescription is the place to start. The questionnaires follow the recommended format for jobdescriptions.2. Comparing job values. Within the questionnaire are three areas that are used to calculate avalue for the job: (a) the level of training, education, and/or certification needed to do the jobeffectively; (b) the level of decision-making authority associated with the job; (c) the impact of thejob on dealership profitability. I have a proprietary formula for scoring the questionnaires but youdon’t need it. You can devise your own rudimentary scoring system to evaluate and rank jobswithin your companies.3. Employee performance evaluations. Before each performance evaluation meeting, theemployee and the direct supervisor should complete a questionnaire for the employee’s job. Acomparison of the two, especially in the areas of “purpose of the job” and “list the essentialfunctions of the job in order of importance,” can provide a great basis for the performance reviewmeeting.Golden RuleThe Golden Rule of Pay Plans is “Keep it simple.”Employees must be able to understand and relate to their pay plans in order for them to be effective. Thegoals have to be seen as achievable and within the employee’s control. Dealership employeesrepeatedly tell us that don’t feel any “connection” when pay plans get too complex. Unfortunately, asbusiness for car dealers has worsened in the last few years, we have seen pay plans get more complex.That won’t help!Finally, our standard warning: As always in reading through this material, remember that compensationis one important factor in developing strong organizations. It is the first link in building employeesatisfaction. But compensation is only one tool available to dealership managers. Imaginative,aggressive recruiting, careful selection, continuous training, and solid organizational support givemanagers what they need to do the “whole job.”Pay plans are not a substitute for hands-on management. Only dedicated dealership managers canmake pay plans “work.”Mike BowersExecutive EditorDealersEdge Publications Group

Sample Dealership Compensation PolicyA. Basis for pay increase:1. Employees of this dealership will receive increases in compensation for the following reasonsonly:a) Promotionb) Merited increase within the established rangec) Reclassification of position2. All increases will comply with our established job classifications and pay ranges. All changesinvolving increases in compensation will be one of the foregoing reasons and will be so indicated.All proposed and actual increase will be fully documented and supported by valid reasons.B. Control of compensation:No promise, commitment, or statement will be made to any employee regarding a change incompensation or the effective date of any increase until notice has been given by his/hersupervisor that such an increase has been approved and authorized. All increases will beeffective at the beginning of the next pay period.C. Merit increases1. A merit increase is an increase in an employee’s base compensation made as a reward forimproved job performance.2. Merit increases will be granted, when earned, to employees on the basis of formal jobperformance reviews. Merit increases shall be given only within the compensation rangeestablished for the job. It is recommended that a minimum and maximum percentage of anemployee’s present compensation be a guide when granting a merit increase.The dealership pay grade sheet gives the compensation range for all jobs in the dealership.These ranges were established on the basis of:a) Evaluation of each job within the plan;b) Analysis of the dealership’s existing compensation practices;c) External comparisons with the prevailing average salary practices within the surroundingarea.3. All personnel decisions must be approved by the supervisor of the individual who isrecommending action involving an employee who is under his/her supervision. Merit increase willbe given only within the compensation range established for the job. The compensation rangeestablishes the minimum compensation, the rate for 100% adequate performance and the rate foremployees performing at exceptional levels.

Questionnaire: Non-managersStatement of ResponsibilityName: ____________________________________________________________________________Title: ______________________________________________________________________________Company: __________________________________________________________________________Department: _______________________________ Location: ________________________________Length of time in present job: _________________ Initial date of employment: ___________________Supervisor’s Name: ___________________________________________________________________Supervisor’s Title: ____________________________________________________________________Instructions:Read this questionnaire before you begin.Describe your job as accurately as possible. Try not to underestimate or inflate yourresponsibilities.Generally, consider your normal assignments and primary responsibility.1. Purpose of your position: Briefly state the reason your job exists.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________2. Describe the duties you personally perform in the course of your work.a. Daily: _____________________________________________________________________________________________________________________________________________________b. Weekly or monthly: __________________________________________________________________________________________________________________________________________c. At irregular intervals: _________________________________________________________________________________________________________________________________________3. Which of your duties do you consider to be the most important?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4. Who assigns work to you? Give title and name.Name: __________________________________ Title: _______________________________________5. Does anyone else perform similar or the same duties which are assigned to you? If yes, who?________________________________________________________________________________________________________________________________________________________________________6. What reports or records do you personally prepare?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________7a. What percentage of your time is spent operating office or mechanical equipment?________________________________________________________________________________________________________________________________________________________________________7b. To what extent are you responsible for the maintenance of this equipment?________________________________________________________________________________________________________________________________________________________________________8. How much education is required for someone filling this job, and are there any specialized courses orschools which should be required? (This may or may not correspond with your own education.)________________________________________________________________________________________________________________________________________________________________________9. Are there any special courses necessary to start this position?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________10. What previous experience is necessary for a person starting in your job?a. Type: ________________________________________________________________________b. Time required to obtain it: ________________________________________________________c. Where obtained: _______________________________________________________________11. Are there any health or accident hazards connected with your work?____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

12. Are there any unfavorable working conditions over which you have no control, ex: irregular hours,noise, weather?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________13. Are there any physical requirements such as lifting, climbing or reaching which is an essential part ofyour job?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________14. Describe any special features of your work not covered above.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Questionnaire: Managers and SupervisorsStatement of ResponsibilityName: ____________________________________________________________________________Title: ______________________________________________________________________________Company: __________________________________________________________________________Department: _______________________________ Location: ________________________________Length of time in present job:______________ Initial date of employment with company:_____________Supervisor’s Name: ___________________________________________________________________Supervisor’s Title: ____________________________________________________________________Instructions:Read this questionnaire before you begin.Describe your job as accurately as possible. Try not to underestimate or inflate yourresponsibilities.Consider your most normal assignments and activities.If more space is required, additional sheets may be used.1. Purpose of your position: Briefly state, in your own words, the reason your job exists.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________2. Principal functions: Carefully think through the activities you regularly perform and those you carry outon a periodic basis. In order of priority, list the principal activities for which you are primarily accountable.a. _____________________________________________________________________________b. _____________________________________________________________________________c. _____________________________________________________________________________d. _____________________________________________________________________________e. _____________________________________________________________________________f. _____________________________________________________________________________3. General Position Information:a. What are the most important aspects of the work you do?________________________________________________________________________________________________________________________________________________________________

. What is the most time consuming activity of your position?________________________________________________________________________________________________________________________________________________________________4. Organizational Relationships:a. What positions (by title) report directly to you?________________________________________________________________________________________________________________________________________________________________b. What positions (by title) report indirectly to you?________________________________________________________________________________________________________________________________________________________________c. What positions (by title) report to your supervisor?________________________________________________________________________________________________________________________________________________________________5. Responsibility and Authority:What is the scope of your responsibility for taking action on the following:a. Company expenditures________________________________________________________________________________b. Personnel Actions (Hiring, Firing, Compensation, etc)________________________________________________________________________________c. Changing Company Policy________________________________________________________________________________d. Types of Decisions made without reference to higher authority________________________________________________________________________________6. Relative Position in Organization:a. From what positions within the company could employees be promoted to your job?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________b. For what higher positions should your job prepare you?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

7. Educationa. What is the minimal education requirement for this position?YearsDegreeHigh School _________________ _____________________________________________College _________________ _____________________________________________Graduate School _________________ _____________________________________________b. What special courses or certifications are required?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________8. Experiencea. What kind of, and how much, previous experience is required?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________b. Where can it be obtained?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

CTR:Controller

Controller1Base: $900Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: Company vehicle____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used):

Base: $140,000Base pay:Commission:Bonus:100% of projected incomeNoneNoneOther Compensation:NoneController15____________________________________________________________________________________General Dealership Information:Dealer Franchise(s): 6Monthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 33 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - Amount: $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401(K) # Vacation Days: 12# Paid Sick Days: None Paid Holidays: 6 Other Benefits: Short term disability____________________________________________________________________________________Comments:Big store and a good approach to paying the controller. Maybe a small incentive would be a goodaddition.CTR 2

Controller16Base: $70,000Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):NissanMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 12 - Non-Union - TeamsBenefits:Health Insurance: Yes – 80% Paid by Dealership Life Insurance: Yes – Amount: SalaryPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes – Group RRSP # Vacation Days: 10 # Paid Sick Days: 2 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:See the pattern developing. Straight salary for controllers. That’s OK. Again, maybe a small incentivebased on expense control would be beneficial.CTR 3

Base:Base pay:Commission:Bonus:$65,000 annually68% of projected incomeNoneOther Compensation:.75 % of monthly net profitCompany paid cell phoneController21____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford Toyota ScionMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 26# of Mechanical Technicians: 29 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays flat $200 per month per employee Life Insurance: Yes – Any portion of $200 monthly allowance not use on healthInsurance applied to life insurancePrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 1 wk after 1 yr / 2 wks after 3 yrs / 3wks after 15 yrs# Paid Sick Days: 3 per yr Paid Holidays: 6 Other Benefits: Vision, short and long disability____________________________________________________________________________________Comments:Projected income is $95,000 - $100,000. That’s where the .75% of the net comes from, but still OK.CTR 4

Controller3Base: $77,500Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota 7 CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 12 - UnionBenefits:Health Insurance: Yes – 100% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10 # Paid Sick Days: 10 Paid Holidays: 8 Other Benefits: N/A____________________________________________________________________________________Comments:Seems about right. A small incentive based on things this manager can control would be OK too.CTR 5

Controller32Base: $68,000Base pay: 80% of projected incomeCommission: NoneBonus: CSI Bonus $2,400 a year to as low as zeroOther Compensation: EOY bonus $10,000 to $30,000____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 7 - Non-UnionTech's work on the full car - not specializedBenefits:Health Insurance: Yes – 50% Paid by Dealership: Life Insurance: Yes – Amount: $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, Pension and 401K # Vacation Days: 5 days after 1 year - 10 days after 2 years# Paid Sick Days: 5 days after 1 year Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Good pay plan for a professional manager.CTR 6

Base: $132,000Base pay:Commission:79% of projected incomeYou are eligible to receive bonuses as follows:***all figures are pulled off the Toyota/Alh1/Alh2 financial statementYou will be paid .25% of the net before the General Managers Bonus.***all figures are pulled off the Honda of Ocala financial statementYou will be paid .25% of the net before the General Managers Bonus.***all figures are pulled off the BMW financial statementYou will be paid .10% of the net before the General Managers Bonus.Controller34____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 30Toyota, BMW, Honda, Pontiac, Buick & GMC201 - Negotiated Sale# of Mechanical Technicians: 42 - Non-Union - Lateral supportBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes 401K # Vacation Days: 4 days after 90 days, 9 days after 1 year, 14 days after 2 years etc# Paid Sick Days: Vacation and sick are called pto Paid Holidays: 5 for all but productive on 3 for productive Other Benefits: Prepaid legal, HHF, FSA, AFLAC____________________________________________________________________________________Comments:Multi-store operation and apparently profits from some franchises are worth more than others. How elseto explain the different percentages? But all in all, a good approach.CTR 7

Base:Base pay:Commission:Bonus:$54,000 annual100% of projected incomeNoneNoneOther Compensation:NoneController36____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick Pontiac GMCMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 15 - Non-UnionDue to the decrease in sales volume, we have created selling manages and administrativemanagersBenefits:Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: One week paid after first year, two weeks paid thereafter # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:As simple and direct as it gets.CTR 8

Base:Base pay:Commission:Bonus:$8,300 monthly100% of projected incomeNoneNoneOther Compensation:NoneController39____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford Lincoln MercuryMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 15 - Non-UnionBenefits:Health Insurance: Yes – 100% paid by the dealership for the employee Life Insurance: Yes – Amount: $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 5 days for 1 year and 10 days for 2+ years# Paid Sick Days: 4 per year Paid Holidays: 5 Other Benefits: Vision____________________________________________________________________________________Comments:As we said in the introduction, if the dealer wants the employee to earn $100,000 per year, this is themost direct way to accomplish the goal. Don’t rely on pay plans to manager employee performance.CTR 9

Controller50Base: $136,000Base pay: 75% of projected incomeCommission: NoneBonus: 2 % of net incomeOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FreightlinerMonthly Sales Vol. (new & used):

Controller62Base: $75,000Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ChevMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 4# of Mechanical Technicians: 6 - UnionBenefits:Health Insurance: Yes – 100% Paid by Dealership Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 4 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:Same as before. Good approach to paying a controller. A small incentive based on expense control ordealership profits wouldn’t hurt.CTR 11

Controller64Base: $60,000Base pay: 85% of projected incomeCommission: NoneBonus: NoneOther Compensation: 401K, company car____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):New RV's forest riverMonthly Sales Vol. (new & used):

Controller67Base: $80,000Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, InfinitiMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 100# of Mechanical Technicians: 100 - Non-Union - Sales TeamsBenefits:Health Insurance: Yes – 65% Paid by Dealership Life Insurance: Yes – Amount 100%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401(k) # Vacation Days: 5 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Supplemental 100% Employee Paid____________________________________________________________________________________Comments:Good pay plan for this controller.CTR 13

Controller68Base: $46,800Base pay: 90% of projected incomeCommission: NoneBonus: $5,200Other Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CheveroletMonthly Sales Vol. (new & used):

Controller92Base: $65,000Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):N/AMonthly Sales Vol. (new & used): N/A# of Sales People: N/A# of Mechanical Technicians: N/ABenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:Hard to go wrong with straight salary for a dealership controller. Bonus equal to 5% of income would beappropriate.CTR 15

Accountant/Bookkeeper2Base: $12.50 per hour $26,000Base pay: 85% of projected incomeCommission: NoneBonus: $2.00 per month for each new and used car delivered.Other Compensation: Random incentive bonuses for extra tasks - i.e. doing job for absent employeeextra or new project development____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 16 - Non-Union - Combination - some team / some direct reportBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – 50%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year / 2 weeks after 2 years / 3 weeks after 15 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:No real problem with this, although paying an accountant an incentive based on units sold raises aneyebrow. Why not base the incentive on something this employee can control?CTR 16

Base:Base pay:Commission:Bonus:$12.55 per hour80% of projected incomeAccountant/Bookkeeper34You will be paid a quarterly Bonus for each store you process payroll and taxes for of$300.00 per Quarter if there are NO Tax penalties for the specific store each Quarter.Also you will be paid a bonus based on the Toyota stores vehicle sales at $5.00 pervehicle sold per month (does not include fleet deals) divided by the accounting personnelwho have been employed at least 1 year.• 50% paid at month end if SSI is green• 75% paid of 50% at month end if SSI is not green• 50% paid in December if SSI is green for the year end.You will also earn back all monies not paid due to SSI if the year end score was Green.***Commissions will be paid monthly by the 10th of the following month. If you are paid a draw oradvance on your commissions, we will deduct that amount from the commissions that you earn,and pay you the balance.NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 30Toyota, BMW, Honda, Pontiac, Buick & GMC201 - Negotiated Sale# of Mechanical Technicians: 42 - Non-Union – Lateral supportBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 4 after 90 days, 9 after 1 year, 14 after 2 years ect# Paid Sick Days: Vacation and sick are called PTO Paid Holidays: 5 for all but productive on 3 for productive Other Benefits: Prepaid legal, HHF, FSA, AFLAC,____________________________________________________________________________________Comments:Total pay looks OK. But I question the use of a commission plan for clerical staff. I’d rather see a fixeddollar bonus paid quarterly based on achievement of specific goals.CTR 17

Base:Base pay:Commission:Bonus:$18.50 per hour95% of projected incomeNoneOther Compensation: None.5 % of net profit monthlyAccountant/Bookkeeper37____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota and ScionMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 9 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes - One year's gross wagePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k, Safe Harbor # Vacation Days: 5 after 1 year, 10 after 2 years, 15 after 3 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Birthday off with pay____________________________________________________________________________________Comments:This looks OK to me.CTR 18

Base:Base pay:Commission:Bonus:Other Compensation:$17.60 per hour100% of projected incomeNoneNoneNoneAccountant/Bookkeeper61____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-UnionBenefits:Health Insurance: Yes – 55% Paid by Dealership Life Insurance: Yes - $20,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 Max # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Offer Employee Paid Supplemental Insurance, Employee Discounts____________________________________________________________________________________Comments:Straightforward. Good pay plan for this job.CTR 19

Cashier21Base:Base pay:Commission:Bonus:$10.25 per hour85% of projected incomeNone$50.00 per franchise CSI hit $0.50 per service appt made and keptOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 26Ford Toyota Scion201 - Negotiated Sale# of Mechanical Technicians: 29 - Non-UnionBenefits:Health Insurance: Yes - Dealership pays a flat $200.00 per month per employee Life Insurance: Yes - Any portion of the $200 monthly allowance not used on healthinsurance is applied to life insurancePrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes 401k # Vacation Days: 1 week after 1 year / 2 weeks after 3 years / 3 weeks after 15 years# Paid Sick Days: 3 per year Paid Holidays: 6 Other Benefits: Vision, short and long disability____________________________________________________________________________________Comments:Not bad. I question paying the cashier for appointments kept. SSI is OK.CTR 20

Base:Base pay:Commission:Bonus:$9.50 per hour95% of projected incomeNoneCSI Bonus $2,400 to Zero per yearOther Compensation: Spiffs $100.00 for each referral soldCashier32____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 7 - Non-Union - Tech's work on the full car - not specializedBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes – Pension and 401K # Vacation Days: 5 days after 1 year – 10 days after 2 years# Paid Sick Days: 5 days after 1 year Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Cashier gets credit for referrals? OK. I can see that.CTR 21

Base:Base pay:Commission:Bonus:$12.00 per hour100% of projected incomeNoneNoneOther Compensation:NoneCashier58____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota ScionMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 4 - Non-UnionBenefits:Health Insurance: Yes - 40% Paid by Dealership Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after one year, 10 days after two years# Paid Sick Days: 1/2 day a month Paid Holidays: 7 Other Benefits: 10% above cost on parts, $25.00 hour labor, new and used caremployee pricing____________________________________________________________________________________Comments:Straight hourly wage for this job is fine.CTR 22

Base:Base pay:Commission:Bonus:Cashiers average $9.50 per clock hour100% of projected incomeNoneNoneOther Compensation:Very little (if any) overtime.Cashier60____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 24 - Non-Union - Lateral Support GroupsBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 2 weeks # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:$9.50 an hour seems light considering the importance of the job, but if everyone is OK with it, then we aretoo.CTR 23

Base:Base pay:Commission:Bonus:$13.50 per hour100% of projected incomeNoneNoneOther Compensation:NoneCashier61____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-UnionBenefits:Health Insurance: Yes – 55% Paid by Dealership Life Insurance: Yes - $20,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 Max # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Offer Employee Paid Supplemental Insurance, Employee Discounts____________________________________________________________________________________Comments:Straight salary for a cashier is generally the way to go.CTR 24

Base:Base pay:Commission:Bonus:$14.00 per hour100% of projected incomeNoneNoneOther Compensation:Position is part timeCashier9____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):VolkswagenMonthly Sales Vol. (new & used):

F&IM:F&I Manager

Base:Base pay:Commission:Bonus:$3,000 draw per month100% of projected incomeF&I Manager10Used cars - finance reserve 8% x gross profit TLC extended warranty 10% x gross profitNew cars - lease 4% x gross profit; finance reserve 8% x gross profit;TLC extended warranty x gross profitspecial finance GP 10% x gross profitGAP ___ x ______ $15.00 @ 50%; $18.00 @ 60%; $21.00 @ 70%;NoneOther Compensation: None$25.00 @ 80%;$30.00 @ 90% penetration____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, MitsubishiMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 27# of Mechanical Technicians: 20 - Non-Union – Service TeamsBenefits:Health Insurance: Yes Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 7 # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:The distinction between draw and salary in this case is not significant. The F & I manager ought to earnat least $3,000/month. However, as a matter of principle, I’d prefer that the $3,000 be salary and thecommission rates be adjusted accordingly.F&IM 1

F&I Manager12Base: $0Base pay: 0% of projected incomeCommission: 0.46% per day rate annualized (10% of BO gross based on 5 days per week, 8% on 4days, etc)Bonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 17# of Mechanical Technicians: 15 - UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – Dealership pays 2x annual earnings, maximum benefit $300,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 1 yr = 2 weeks, 4 yrs = 3 weeks, 9 yrs = 4 weeks # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:Sorry. I don’t see what this plan is getting at.F&IM 2

Base:Base pay:Commission:$1,000/week drawF&I Manager14Ranges from 40-75% of projected income - Depends on performance of manager17% flat of their net F&I production after actual personal chargebacksBonus: Additional 10% if reserve does not exceed 40%Other Compensation: NoneDeduct 5% if reserve exceeds 50%Deduct 10% if reserve exceeds 60%Bonus to the F&I mgr with the highest number of deliveries (min 50 to qualify) $500Bonus to the F&I manager with the highest F&I gross profit delivery $250____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda and NissanMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 19# of Mechanical Technicians: 20 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 80% of employee Life Insurance: Yes - $237.93/month employee; $312/month if family coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K with 20% match of first 4% saved # Vacation Days: 1 wk after 1 year; 2 weeks after 3 years; 3 weeks after 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Vision, AFLAC paid by employee, 60% of disability premium____________________________________________________________________________________Comments:$1,000 a week draw puts all the risk on the manager. Salary plus commission works out the same in theend but shares the risk.F&IM 3

F&I Manager15Base: $0Base pay: 0% of projected incomeCommission: 10% of finance gross, plus addditional 1% of warranty, Gap, Life and A&H penetration isat least 60-80%, 2% if 81% or higherBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s): 6Monthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 33 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes - $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Short term disability____________________________________________________________________________________Comments:Commission program is OK. But salary plus commission is more fitting for a dealership manager.F&IM 4

F&I Manager16Base: $42,000Base pay:Commission:Bonus:60% of projected incomeCommissions will be paid bi-weekly at a rate of 15% of the F&I Gross profit earned on thesale of F&I products and accessoriesA retailer balance scorecard bonus will be paid monthly on the last day of the subsequentmonth. This bonus will be based on actual showroom achievments versus employerforcasted requirements. This bonus will begin to be paid when an achievment level of80% of forecast is reached and it will pay to a maximium of 140% of forecast. Themaxiumum at 140% in all measurements wo;; pay $15.00 per unit delivered. This bonusstructure may be subject to change basned on retailer balance scorecard requirements.The chart below lists the measured criteria and weight of importance in the balancescorecard.Strategic Measure WeightNew Unit Target 14%New Gross Target 20%CSI 12%Used Unit Target 19%Used Gross Targe 15%New F&I Gross Target 10%Used F&I Gross Target 10%TOTAL 100%____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):NOMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 12 - Non-Union, TeamsBenefits: Health Insurance: Yes – 80% Paid by Dealership Life Insurance: Yes - Salary Prescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 # Paid Sick Days: 2 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:Basically this a good pay plan for an F & I manager. Right mix of salary and commission. The bonusprogram seems a little complicated.F&IM 5

F&I Manager19Base: $0Base pay: 0% of projected incomeCommission: 4% of front and back-end grossBonus: $50/warranty sold, $25/gap soldOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, GMC, PontiacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 6# of Mechanical Technicians: 6 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: No Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: up to 3 weeks # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:While there is a lot to like about this pay plan (total income should be OK and the benefit plan isattractive), I’d be a lot more comfortable with more of a split between salary and commission. The endresult will be what the dealer wants and it’s easier to plan.F&IM 6

Base:Base pay:$2,500 monthly draw0% of projected incomeF&I Manager22Commission: Per car percentage: $500 per car, 4 percent of pot $600 per car, 5 percent of pot, $700Bonus:per car, 7.5% of pot, $800 per car, 9.0 percent of pot, $900 per car, 10.5 percent of pot.$1000 per car, bonus of $1000 and 12 percent of pot. Pots are split in thirds.NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMW Porsche Volkswagen Subaru IsuzuMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-Union, Service TeamsBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – $100,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 3 Other Benefits: N/A____________________________________________________________________________________Comments:Again, this probably works out OK, but both parties could hit the desired result easier with a salary pluscommission plan. That’s not the same as a draw vs. commission plan.F&IM 7

Base:Base pay:Commission:Bonus:Other Compensation:$600 per week40% of projected incomeF&I Manager25Business manager will be paid 7% of the gross profit of the F& I department minuscharge backs from finance statement.$500 per month if GAP insurance sales penetration is greater than 50% of the total unitssold for the month.$500.00 per month if Warranty insurance sales penetration is greater than 40% of thetotal units sold for the month.$500.00 per month if the average PRU generated by the F & I department is over $1,000A monthly car allowance of $300.The weekly draw up to $600 against commission. The balance will be reviewed at leastmonthly and may be adjusted at managements discretion____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 9BMW51-100 - Negotiated Sale# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 max # Paid Sick Days: 5 Paid Holidays: 7 Other Benefits: Car allowance for managers____________________________________________________________________________________Comments:Looks like a good pay plan for an F & I manager. Mix of salary plus commission. Commission rate is atthe right level.F&IM 8

Base:Base pay:$2,500 monthlyApproximately 35% of projected incomeCommission: 2.5% Total Variable Gross minus chargebacks up to $349,999.For $350,000 and above it is 3%.Bonus: Finance Penetration: 75%=$750; 70%=$500; 65%=$250Other Compensation:Extended Warranties: 50%=$500; 45%=$400; 40%=$300*Only the largest bonuses for each category will be paid.F&I Manager28Annual Christmas bonus of $0.50 for every new and used retail unit will be paid.$500 monthly vehicle allowance. No demos.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ChevroletMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 13# of Mechanical Technicians: 8 - Non-Union - Sales teams with alternating schedulesBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes # Vacation Days: 5 days after one year of employment # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments: Something doesn’t add up here. If $2500 per month is about 35% of projected income, thenprojected income is about $100,000 per year. But the commission plan will likely pay about twice that.Possible pay plan change coming soon.F&IM 9

F&I Manager3Base: $78,000Base pay: 75% of projected incomeCommission: 15 % of back endBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota & CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 12 - UnionBenefits:Health Insurance: Yes – 100% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10 # Paid Sick Days: 10 Paid Holidays: 8 Other Benefits: N/A____________________________________________________________________________________Comments:Someone will be disappointed her and it’s probably the dealer/owner. The $78K salary is fine and 75% ofprojected income is OK too. But make sure the math works. 15% of net F & I income will most likelybring total compensation in a lot higher than planned.F&IM 10

Base: $0Base pay: 0% of projected incomeCommission:You will be paid commissions based on the following formula for your personalperformance on deals that you are the finance closer on:PVRPercentage of Gross:0 - 700 13.0%701-775 13.5%776-850 14.0%851-925 14.5%926+ 15.0%F&I Manager34(A) Gross is defined as total individual gross to include a percentage of one source money but not toinclude JMA Management money. (calculated by the number of store deals divided by one source payout) less individual charge backs. (B) Total units is total personal deliveries PVR is calculated as totalgross as defined in section (A) divided by total units as defined in section (B) You will be paidcommissions based on the following formula for the stores performance on the profits of the FinanceDepartment after all income and charge backs to include management money from JMAYou will be paid commissions based on the following formula Calculated from the NCM Statement pg 2line 2 New and Used Grosses to include F&I (both) and fees (both) + or – wholesaleGrossPercentage of Gross0-500,000 .25%500,001 – 550,000 .35%550,000 + .50%Bonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, BMW, Honda, Pontiac, Buick & GMCMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 42 - Non-Union - Lateral supportBenefits: Health Insurance: Yes Life Insurance: Yes Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 4- after 90 days , 9 after 1 year , 14 after 2 years ect # Paid Sick Days: vacation and sick are called pto Paid Holidays: 5 for all but productive on 3 for productive Other Benefits: Prepaid legal, HHF, FSA, AFLAC,____________________________________________________________________________________Comments:Too complicated. Intentions are good, but in practice, the managers will focus on selling to the customerin front of them. They will not be thinking about the various percentages for different products. Keep itsimple. You want F & I profits? Pay on net F & I income.F&IM 11

Base:Base pay:Commission:Bonus:NoneOther Compensation: None0% of projected income7.5% of Gross F&I, less 10% Chargeback reservePenetration Bonus on ESC's, Bonus paid on ESC to Service customersF&I Manager36____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick Pontiac GMCMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 15 - Non-UnionDue to the decrease in sales volume, we have created selling manages and administrativemanagersBenefits:Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: One week paid after first year, two weeks paid thereafter # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:The approach is OK, but I’d try to split the F & I manager’s income 50/50 between salary andcommission. That way the manager will earn approximately what the job is worth.F&IM 12

Base:NoneCommission: Net F @ I income new 10%Net F @ I income used 10%Paid monthly, $3,000 draw against commissionsBonus:NoneOther Compensation: DemoF&I Manager39____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 14Ford Lincoln Mercury101-200 - Negotiated Sale# of Mechanical Technicians: 15 - Non-UnionBenefits:Health Insurance: Yes - 100% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days for 1 year and 10 days for 2+ years# Paid Sick Days: 4 per year Paid Holidays: 5 Other Benefits: Vision____________________________________________________________________________________Comments:This is OK, but you will have better control over the total compensation by splitting the manager’s pay50/50 salary and commission.F&IM 13

Base:Base pay:Commission:Bonus:$700 per week52% of projected incomeNoneOther Compensation: NoneF&I Manager42Verified F&I income per F&I log less chargeback reserve of 7% of finance income earnedfor the month X bonus % as follows: dept. income < $52,000 pays 4%; dept. income >$52,000 pays 5$; dept. income > $62,000 pays 6%. $25.00 per lease generated $25.00per extended warranty sold____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, Saturn & HummerMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 41 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan Life Insurance: Yes - Company paid $20,000 coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after year, 10 days after 2 years# Paid Sick Days: up to 4 days in the 1st year, 6 days after 1 year, 11 days after 10 years Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:I had to read the plan a couple of times to fully understand it, but once I did, it looks pretty good to me.F&IM 14

F&I Manager45Base: $6,000Base pay: 75% of projected incomeCommission: 10% commission on total gross from salesBonus: NoneOther Compensation: $400 demo allowance____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):GMMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 34# of Mechanical Technicians: 11 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Discounts on vehicles, parts & labor____________________________________________________________________________________Comments:Yes and no. The basic concept of this plan is excellent, but once again the math doesn’t work out right.Total income is projected at about $100,000 +/-. And base pay is $72,000. So far, so good. But if thebonus is to be 10% of the gross, then total income will likely be far higher than $100K. 10% of the grossis a good target to keep in the back of your mind, but with the base salary, the commission rate has to beadjusted downward to get there.F&IM 15

Base:Base pay:Commission:Bonus:None0% of projected income15% of net F & I incomeNoneOther Compensation: NoneF&I Manager49____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):UsedMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 8# of Mechanical Technicians: 3 - Non-UnionBenefits:Health Insurance: Yes - 100% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: N/A# Paid Sick Days: Included Paid Holidays: Included Other Benefits: N/A____________________________________________________________________________________Comments:A straight commission plan like this is bound to result in wide fluctuations in income for the manager andexpenses for the dealership. The dealer clearly wants to pay 15% of anticipated F & I net income to thismanager. The pay plan sort of guarantees that will happen, but doesn’t address the question of whetherthat will be the right $ amount.F&IM 16

Base:Base pay:Commission:Bonus:None0% of projected income8% of gross profit generated by departmentF&I Manager5Target penetration bonus for AH&H, additional .5% of department gross profit; bonus foraverage gross per vehicle sold is greater the $1200 per unit, additional .5% ofdepartment gross profitOther Compensation: Group benefits____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Chrysler, Dodge, JeepMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 22 - Non-UnionBenefits:Health Insurance: Yes – 60% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 days after one year, 15 days after 5 years, 20 days after 10 years # Paid Sick Days: 0 Paid Holidays: 9 Other Benefits: N/A____________________________________________________________________________________Comments:As a side observation, why do some dealerships pay 15% of net F & I while others pay varyingpercentages. This one pays 8%. Obviously it’s an attempt to bring total compensation in at someprojected level. But it that is the case, scrap the full commission approach and pay a combination ofsalary and commission as a more certain path to success.F&IM 17

Base:Base pay:Commission:Bonus:$2,000/month draw against commission35% of projected income12% Net F & I IncomeNoneOther Compensation: DemoF&I Manager51____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Pontiac & BuickMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: N/A# of Mechanical Technicians: Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% for employee Life Insurance: Yes - None paid by employerPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 5 after 1st year, 10 after third year # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail____________________________________________________________________________________Comments:Nobody will be happy with the results of this plan, especially in light of the franchises..F&IM 18

Base:Base pay:Commission:Bonus:None0% of projected income20% Net F&I income$10 per File Prepped$20 per File CheckedOther Compensation: NoneHit NC GP target = $250Hit UC GP Target = $250F&I Manager6____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):LexusMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 15 - Non-Union - Service TeamsBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – 2 times Gross EarningsPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, RRSP (Canada Specific) # Vacation Days: 10 - 20 Depends on LoS # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: Purchase Plan, Ed Asst. LoS Awards____________________________________________________________________________________Comments:See what I mean about the varying percentages? Plans like this are clearly attempts by the dealer to paythe F & I manager a certain amount of money. But the plan won’t achieve the desired results. It will bechanged frequently as will the manager.F&IM 19

F&I Manager62Base: $50,000Base pay: 50% of projected incomeCommission: NoneBonus: 5% of total F&I income including extended warr, less chargebacks, if any.Utilize 75% / 25% reserve policy.Other Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ChevMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 4# of Mechanical Technicians: 6 - UnionBenefits:Health Insurance: Yes – Dealership pays100% employee only Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 4 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:This is what I’m talking about! Good pay plan for an F&I Manager.F&IM 20

F&I Manager64Base: $35,000Base pay: 50% of projected incomeCommission: 20% F&I netBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):New RV's forest riverMonthly Sales Vol. (new & used):

Base:Base pay:Commission:Minimum WageShould be 0% of projected incomeF&I Manager67Commissions: You are eligible to be paid 2.0% of the “Net F&I Income, plus NewFlooring-FMCC Rebate” as represented on the dealership monthly financial reportingpackage.Commission Rates:Max. Selling Price/Gross Commission Finance Reserve Gross Profit10% Service Contract Gross Profit Max $1,500 Gross Profit15% Theft Code $59515% Paint Protection $69515% Security Systems $895 (Alarm) $995 (Lo-jack)15% GAP $750Bonus: Sales Penetration Bonus Opportunity: If you achieve a penetration of 50%or greater on sales of Service Contract products (ESP or JM&A Service Contract &Maintenance plans), you are eligible for the following monthly bonuses may be earnedbased upon performance during the month. Please note that each bonus is paid at thelevel earned and is not cumulative. All bonuses are contingent on a minimum of 40 dealsbeing contracted and you must be an active employee at time of payout for bonus to beconsidered earned.Gross Average per unit Bonus (% of Base Commission earned above)$900 – 999 12%$1,000 - $1,099 15%$1,100+ 18%____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, InfinitiMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 100# of Mechanical Technicians: 100 - Non-Union - Sales TeamsBenefits: Health Insurance: Yes – 65% Paid by Dealership Life Insurance: Yes – 100% Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Supplemental 100% Employee Paid____________________________________________________________________________________Comments:I’m sure this sounded like the perfect pay pan when the general manager concocted it. But it’s far toocomplicated. People don’t think like this especially when there are customers waiting to be served. Keept simple. Don’t expect the pay plan to manage the employee. That’s the general manager’s job. Anddon’t write a pay plan that insinuates that the employee is a crook.F&IM 22

GC:Greeter

Base:Base pay:Commission:Bonus:$11.00 per hour100% of projected incomeN/AN/AOther Compensation: N/AGreeter20____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, LexusMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 14 - Non-Union, Service TeamsBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Regardless of the dollar amount, an hourly wage is the right way to pay greeters.GC 1

Greeter21Base: $12.50 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Toyota, ScionMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 26# of Mechanical Technicians: 29 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays flat $200 per month per employee Life Insurance: Yes - Any portion of $200 monthly allowance not use on health insuranceapplied to life insurancePrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year / 2 weeks after 3 years / 3weeks after 15 years# Paid Sick Days: 3 per year Paid Holidays: 6 Other Benefits: vision, short and long disability____________________________________________________________________________________Comments:No problems with this approach. Paying an hourly wage is right and the benefit package looks attractive.GC 2

Base:Base pay:Commission:$8.50 per hour100% of projected incomeN/ABonus: CSI up to 200.00Other Compensation: N/AGreeter41____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Chevrolet hereMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 12 - Non-Union, Service Groups, similar to lat supportBenefits:Health Insurance: Yes – 20% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 5 days per year, max of 15 days # Paid Sick Days: 5 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:$8.50 an hour is perilously close to minimum wage, but if that’s OK with all parties then who are we to sayit’s wrong?GC 3

Greeter5Base: $2,600 per monthBase pay: 90% of projected incomeCommission: N/ABonus: Delivery bonus of $2 per unit delivered, both New and UsedOther Compensation: Group benefits____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Chrysler, Dodge, JeepMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 22 - Non-UnionBenefits:Health Insurance: Yes - 60% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 after 1 year, 15 after 5 years, 20 after 10 years # Paid Sick Days: 0 Paid Holidays: 9 Other Benefits: N/A____________________________________________________________________________________Comments:It’s a pretty good salary for a greeter, but the concept is right.GC 4

Base:Base pay:Commission:Bonus:$10.00 per hour60% of projected incomeGreeter535% commission on the upsells from the WalkArounds and the pre-inspections from theservice drive.N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Lincoln-Mercury, MazdaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 24# of Mechanical Technicians: 41 - Non-UnionSimple Support with a Quick Service team of 18 TechsBenefits: Health Insurance: Yes – Dealership pays the first $150 not a % Life Insurance: Yes - $10K Paid by the CompanyPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days 1st year, 10 days after 3 years, 15 days after 10 years # Paid Sick Days: 0 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:Obviously this greeter does more than just log in service customers. There is a sales productioncomponent to the job and the pay plan. Good approach.GC 5

Base:Base pay:Commission:Bonus:$11.39 per hour100% of projected incomeN/AN/AOther Compensation: N/AGreeter6____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):LexusMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 15 - Non-Union, Service TeamsBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – 2 times Gross EarningsPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, RRSP (Canada Specific) # Vacation Days: 10 - 20 Depends on LoS # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: Purchase Plan, Ed Asst. LoS Awards.____________________________________________________________________________________Comments:Good pay plan for a greeter.GC 6

Greeter60Base: $8.50 per clock hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 24 - Non-Union, Lateral Support GroupsBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 2 weeks # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:No problems with this approach except a caution to make sure that the wage rate is competitive in themarket.GC 7

Base:Base pay:Commission:Bonus:$10.00 per hour100% of projected incomeNoneNoneOther Compensation: NoneGreeter8____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Porsche, Audi, Infiniti, VWMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 11# of Mechanical Technicians: 21 - Non-Union, No each department is separateBenefits:Health Insurance: Yes – 80% Paid by Dealership Life Insurance: Yes - $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10# Paid Sick Days: None Paid Holidays: All State only Other Benefits: Demo____________________________________________________________________________________Comments:Good pay plan for a greeter.GC 8

GM:General Manager

General Manager225Base: $4,200 per monthBase pay: 50% of projected incomeCommission: N/ABonus: 17% of the store's profitOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):MercedesMonthly Sales Vol. (new & used): < 50# of Sales People: 6# of Mechanical Technicians: 7 – Non-UnionBenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:Total works out about right. But 17 percent of the net profit is a big slice of the pie. Pay a larger portion insalary and reduce the bonus percentage.GM 1

General Manager226Base: $575 a weekBase pay: 22-25% of projected payCommission: 3.5% of all departments adjusted selling grossBonus: N/AOther Compensation: Demo____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used): 201# of Sales People: 24# of Mechanical Technicians: 21– Non-Union, use individual by flat rateBenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:Good plan for a general manager. Income potential is strong and it puts accountability for results where itbelongs, on the manager's shoulders.GM 2

General Manager230Base: $1,000 a weekBase pay: 63% of projected payCommission: 10% of dealership profitBonus: N/AOther Compensation: Demo____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, MercuryMonthly Sales Vol. (new & used): 51-100# of Sales People: 7# of Mechanical Technicians: 6 – UnionBenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:We'd rather see $1,300 a week and 5% of the net to prevent wide swings in total pay.GM 3

General Manager232Base: $1346.15 per weekBase pay: 50% of projected payCommission: $1,000 per month draw against EOY bonusBonus: EOY bonus 10% of net profit before bonuses and taxesOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Pontiac, KiaMonthly Sales Vol. (new & used): 101-200# of Sales People: 9# of Mechanical Technicians: 16 – Non-Union, Service TeamsBenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:$70,000 salary plus 10% of the net is an excellent way to pay an experienced general manager. Noproblems here.GM 4

General Manager235Base: $1,400 a weekBase pay: 40% of projected payCommission: N/ABonus: 8.5% net profit of dealershipOther Compensation: Two demos and gas____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used): 201+# of Sales People: 42# of Mechanical Technicians: 45 – Non-Union, Sales Teams, Lateral support groupsBenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:Alright. $72,000 a year plus 8.5% of the net is a good method for paying a general manager, especially ina larger dealership like this one.GM 5

General Manager252Base: $1,850.00 per weekBase pay: 100% of projected payCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Nissan, Mitsubishi, KiaMonthly Sales Vol. (new & used): 101-200# of Sales People: 15# of Mechanical Technicians: 7 – Non-UnionBenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:Here's an unusual one. A straight salary program for the general manager. I don’t see anything wrongwith it.GM 6

General Manager270Base: $3,000 per monthBase pay: 30% of projected payCommission: 4% of selling gross of new and used vehicles departments. Total variable gross lessdirect expensesBonus: 10% of net profit of dealership. Paid quarterly (based on calendar year)$300 - sales CSI exceeds 3 month zone average$200 - service CSI exceeds 3 month zone averageOther Compensation: Company Car____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used): 101-200# of Sales People: 20# of Mechanical Technicians: 12 – Non-UnionBenefits: Health Insurance: Yes – 50% paid by dealership Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: Yes # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: Country club membership____________________________________________________________________________________Comments:Here's another pay plan where I think the actual compensation will come in a lot higher than the targetrange of $120,000. If it does, the dealer will be tempted to change the plan and there will be onedisgruntled general manager. Better to raise the base salary and pay a smaller percentage of the netprofit as a bonus.GM 7

General Manager281Base: $1,800.00 per weekBase pay: 79% of projected payCommission: Based on net profit of store: 0-40,000 5% 40,001-69,999 6% 70,000 & over 7%Bonus: N/AOther Compensation: Demo____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 200+# of Sales People: 50# of Mechanical Technicians: 52 – Non-UnionBenefits: Health Insurance: Yes – 100% Dealership paid Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:Good combination of base pay and bonus. I like the use of the stair-step bonus approach.GM 8

GSM:General Sales Manager

Base:Base pay:Commission:Bonus:$500/week salary100% of projected incomeNone$10,000 yearly bonusOther Compensation: Company VehicleGeneral Sales Manager1____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used):

Base: $0Base pay:Commission:Bonus:0% of projected incomeGeneral Sales Manager125.9% of GP for new & used retail & fleet sales including Business Office (BO) gross (lessBO commissions).CSI monthly bonusOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 17# of Mechanical Technicians: 15 - UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes - 2 times annual earnings, maximum benefit $300,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 1 year gets 2 weeks, 4 years gets 3 weeks, 9 years gets 4 weeks # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:For this Honda store, I’m sure the general sales manager does OK. But, full commission pay plans forsenior dealership managers send a bad message (“You’re no more important to us than one of your salesreps”). Try for more of a balance between salary and incentives.GSM 2

Base:Base pay:Commission:Bonus:$1,000 per week salary $500/week draw65-70% of projected incomeGeneral Sales Manager14Equal Unit sales of previous year same month $500 with each unit over worth $100 and105% same month previous year earns additional $1,0003% NC Dept Net Profit/Loss; 2% UC Dept Net Profit/Loss; 2% NC Dept F&I gross;NC F&I avg/unit $500 or more is $1,000Other Compensation: Demo vehicle____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda and NissanMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 19# of Mechanical Technicians: 20 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 80% of employee Life Insurance: Yes - $237.93/month employee; $312/month if family coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401(k) with 20% match of first 4% saved # Vacation Days: 1 week after 1 year; 2 weeks after 3 years; 3 weeks after 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Vision, AFLAC paid by employee, 60% of disability premium____________________________________________________________________________________Comments:I don’t have any problem with this approach.GSM 3

Base: $36,000Base pay:24% of projected incomeCommission: 10% of the net profit from financial statement line 70Bonus:NoneOther Compensation: 20 Group participation paid, factory sponsor bonusesGeneral Sales Manager2____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 16 - Non-Union – Combination: some team, some direct reportBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 50%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:Looks like a good living for this Honda manager. Again, we’d suggest a little more salary and a little lessincentive. You’d hit the target income level and have better control over expenses. Less need to changepay plans.GSM 4

Base:Base pay:Commission:Bonus:$5,000 monthly50% of projected income4 percent of adjusted gross profit$50 per carOther Compensation: Volume bonus of $60 per carGeneral Sales Manager22____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMW Porsche Volkswagen Subaru IsuzuMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-Union - Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $100KPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 3 Other Benefits: N/A____________________________________________________________________________________Comments:Good pay plan. No suggested improvements.GSM 5

General Sales Manager25Base: Salary of $1,700.00/weekBase pay: 90% of projected incomeCommission: 1% of front-end grossBonus: NoneOther Compensation: A car allowance of $400 per month____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMWMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 9# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 15 max # Paid Sick Days: 5 Paid Holidays: 7 Other Benefits: Car allowance (managers)____________________________________________________________________________________Comments:I like this approach and have seen it work very well in both domestic and import dealerships.GSM 6

General Sales Manager27Base: NoneBase pay: 0% of projected incomeCommission: 20% netBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 10# of Mechanical Technicians: 12 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 # Paid Sick Days: 0 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:Hate it. First, paying 20% of the net to any manager is the equivalent of making that manager a 20%owner of the business with none of the downside risk. Why would you do that? Second, this fullcommission approach tends to produce wide swings in income for things that are largely out of themanager’s control. Does record sales one month mean this manager is a star while a drop off the nextmonth means the manager is suddenly incompetent?GSM 7

Base:Base is:Commission:Bonus:$120,000 annually85% of projected income2% of Controllable Gross.General Sales Manager28Controllable Gross = Total Gross - slsmn compensation - delivery exp. - policy work3% of SFE Bonus paid quarterly- other salaries and wages - e-commerce and advertising- Floor plan interest and credits5% total dealership net profit figured on a quarterly basisOther Compensation: $500 monthly vehicle allowance. No demos.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ChevroletMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 13# of Mechanical Technicians: 8 - Non-Union - Sales teams with alternating schedulesBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes # Vacation Days: 5 days after one year of employment # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Good pay plan for the GSM of this dealership.GSM 8

General Sales Manager32Base: $30,000Base pay: 15% of projected incomeCommission: 1.75% Gross profit new and preowned20% finance and insurance incomeBonus: Unit Count Bonus $500 - $3,000New Unit Count Bonus $500 - $3,000Preowned MO Gross Bonus $500 - $2,000 New MOGross Bonus $500 – $2,000Preowned CSI Bonus $500Other Compensation: Annual EOY Bonus $10,000 - $40,000____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 7 - Non-Union - Tech's work on the full car - not specializedBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, Pension and 401K # Vacation Days: 5 days after 1 year - 10 days after 2 years# Paid Sick Days: 5 days after 1 year Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Here’s my problem: This dealership delivers 50 to 100 units a month. The GSM is supposed to earnabout $200,000 based on the pay plan. When I work through the numbers we were given, it looks like thedealer is giving up an awfully large chunk of the gross to this manager. If the GSM gets 20% of the net F& I income, how much does the actual F & I manager get? I’d have to go back and re-think this one.GSM 9

Base:Base pay:Commission:$1,500 per week42% of projected incomeNoneGeneral Sales Manager42Bonus: 4% of bottom line Each month more than 100 new retail sale Cadillacs = $1500Other Compensation: NoneQuarterly SFE bonus - if satisfy SFE criteria - $1000.00____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, Saturn & HummerMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 41 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan Life Insurance: Yes - Company paid $20,000 coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after year, 10 days after 2 years# Paid Sick Days: up to 4 days 1st year, 6 days after 1 year, 11 days after 10 years Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:High volume Cadillac/Hummer dealership. The pay plan looks just right!GSM 10

General Sales Manager45Base: $125,000 per yearBase pay: 80% of projected incomeCommission: 2% of gross salesBonus: NoneOther Compensation: $1,000 demo allowance____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):GMMonthly Sales Vol. (new & used): 201+ - Negotiated Sale# of Sales People: 34# of Mechanical Technicians: 11 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Discounts on vehicles, parts & labor____________________________________________________________________________________Comments:For this high-volume store, the pay plan is very good.GSM 11

Base:Base pay:Commission:Bonus:$12,000/month100% of projected incomeNoneNoneOther Compensation: N/AGeneral Sales Manager49____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):UsedMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 8# of Mechanical Technicians: 3 - Non-UnionBenefits:Health Insurance: Yes – 100% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: N/A# Paid Sick Days: included Paid Holidays: Included Other Benefits: N/A____________________________________________________________________________________Comments:If both the dealer and general sales manager are OK with this approach, I’m all for it. But $144,000 ayear in a dealership this size seems a tad highGSM 12

Base:Base pay:Commission:Bonus:$3,000/month draw0% of projected income3% Variable Gross$50.00 per vehicle after 59th deliveryGeneral Sales Manager51Other Compensation: Demo provided, gas allowance & social membership at local country club.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Pontiac & BuickMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: N/A# of Mechanical Technicians: Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% for employee Life Insurance: Yes - None paid by employerPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 5 after 1st year 10 after third year # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail____________________________________________________________________________________Comments:Wait for it – I don’t like this pay plan. What is the dealer trying to accomplish by paying this seniormanager like a sales rep? Sure, the dealer is protected in bad months, but the GSM gets overpaid instrong months, yet he is still the same manager doing the same things. What is the job worth? Create apay plan that pays the manager for the value of the job.GSM 13

General Sales Manager55Base: $700 per weekBase pay: 30-40% of projected incomeCommission: 5% selling grossBonus: Unit production, CSIOther Compensation: Contests, etc____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford Lincoln Mercury MazdaMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes – 33.3% Paid by Dealership Life Insurance: Yes - $100,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1-3 weeks # Paid Sick Days: 5 Paid Holidays: 6 Other Benefits: Demos____________________________________________________________________________________Comments:This looks OK. The pay plan has the virtue of being simple and easy to track.GSM 14

Base:Base pay:Commission:Bonus:$5,500/month70% f projected income5 % of total dealer net profit per monthN/AOther Compensation: N/AGeneral Sales Manager57____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick Cadillac PontiacMonthly Sales Vol. (new & used):

General Sales Manager61Base: $12,000/monthBase pay: 50% of projected incomeCommission: 3.5% of new & used vehicle sales grossBonus: CSI: $800 for Green, $0 for Yellow, $ for Red $500 bonus for #1 selling dealer inthe month $500 bonus for #1 selling dealer in region in the monthOther Compensation: Demo, Company paid health insurance, Gas allowance.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-UnionBenefits:Health Insurance: Yes – 55% Paid by Dealership Life Insurance: Yes - $20,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 Max # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Offer Employee Paid Supplemental Insurance, Employee Discounts____________________________________________________________________________________Comments:Pay plan looks about right for this high volume Toyota store.GSM 16

Base: $35,000Base pay:Commission:Bonus:40% of projected income2% on Gross salesNoneOther Compensation: N/AGeneral Sales Manager64____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):New RV'sMonthly Sales Vol. (new & used):

Base:Base pay:Commission:Bonus:Draw against commission0% of projected income4% of sales gross profit less policy accountsN/AOther Compensation: N/AGeneral Sales Manager66____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota and HyundaiMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 15# of Mechanical Technicians: 14 - Non-Union, Service teams but paid individual flat rate hoursBenefits:Health Insurance: Yes – Dealership pays 50% of single 35% of family Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 after 1 year, 10 after 3 years, 15 after 10 years, 20 after 20 years # Paid Sick Days: 5 Paid Holidays: 8 Other Benefits: N/A____________________________________________________________________________________Comments:Straight commission is not a good way to pay dealership managers. The pay plan sends a mixedmessage to the managers.GSM 18

Base:Base pay:Commission:Bonus:$8,333.33 drawOther Compensation: N/A0% of projected income16.8% of net income of sales Dept less draw= $$$ net to payGeneral Sales Manager97$1,000 per month if closing ratio is 20% and Gross average per unit $2,000. If one of thecriteria not done bonus cut to $500.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):N/AMonthly Sales Vol. (new & used): N/A# of Sales People: N/A# of Mechanical Technicians: N/ABenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:16.8% of the gross. I wonder how the dealer came up with that precise percentage? Could it be that thedealer feels the job is worth $100,000 a year and 16.8% gets him there? Pay plan changes coming up.GSM 19

HRM:Human ResourcesManager

Base: $60,000Base pay:Commission:Bonus:100% of projected incomeN/AN/AOther Compensation: N/AHuman Resources Manager2____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 16 - Non-UnionCombination - some team / some direct reportBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – 50%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:Good approach. I’d add a performance bonus equal to 5% of income.HR 1

Human Resources Manager21Base: $42,000/yearBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Toyota, ScionMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 26# of Mechanical Technicians: 29 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays a flat $200 per month per employee Life Insurance: Yes - Any portion of $200 monthly allowance not use on health insuranceapplied to life insurancePrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 3 years, 3 weeks after 15 years# Paid Sick Days: 3 per year Paid Holidays: 6 Other Benefits: Vision, short and long disability____________________________________________________________________________________Comments:Good approach although, again, I’d add a small bonus component.HR 2

Base:Base pay:Commission:Bonus:$6,250 monthly100% of projected incomeN/AN/AOther Compensation: DemoHuman Resources Manager39Note: HR Manager also is in charge of facilities, legal, liability & workers comp, roving employeepositions.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Lincoln, MercuryMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 15 - Non-UnionBenefits:Health Insurance: Yes - 100% paid by the dealership for the employee Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days for 1 year and 10 days for 2+ years# Paid Sick Days: 4 per year Paid Holidays: 5 Other Benefits: Vision____________________________________________________________________________________Comments:Add a performance bonus component, otherwise spot on.HR 3

Base:Base pay:Commission:Bonus:$62,500/year100% of projected incomeN/ANAOther Compensation: N/AHuman Resources Manager4____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge JeepMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 36# of Mechanical Technicians: 54 - Non-Union, Lexus - Technician Team SystemBenefits:Health Insurance: Yes Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 after 1 year, 10 after 2 years, 15 after 7 years. # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Voluntary Supplemental - AFLAC, Mutual of Omaha____________________________________________________________________________________Comments:Salary is the way to go for this position. Maybe a small performance-related bonus too.HR 4

Human Resources Manager61Base: $4,500/monthlyBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-UnionBenefits:Health Insurance: Yes – 55% Paid by Dealership Life Insurance: Yes - $20,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 Max # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Offer Employee Paid Supplemental Insurance, Employee Discounts____________________________________________________________________________________Comments:No problems with this approach.HR 5

Base:Base pay:Commission:$75,000/year100% of projected incomeNoneBonus: $10,000Other Compensation: Car Allowance, Deferred Comp packageHuman Resources Manager67____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, InfinitiMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 100# of Mechanical Technicians: 100 - Non-Union, Sales TeamsBenefits:Health Insurance: Yes - 65% Paid by Dealership Life Insurance: Yes – 100%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Supplemental 100% Employee Paid____________________________________________________________________________________Comments:The straight salary approach is right for this job in this high volume dealership. Some performancecomponent would be in order too.HR 6

NSM:New Car SalesManager

New Vehicle Sales Manager34Base: $24,000Base pay: 20% of projected incomeCommission: 1 % of new vehicle gross and new F&I net gross less new F&I net charge backs PG 2LINE 2 TOYOTA , ALH1., ALH2 STATEMENT$3.00 per new car including fleet/inet12.5% of all new car SET bonuses (FAST START AND MARKET CHALLENGE)$2.00 per unit on all new units sold per month if VDQ and SSI are at or above districtaverage MTDBonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, BMW, Honda, Pontiac, Buick & GMCMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 42 - Non-Union, Llateral supportBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 4 days after 90 days, 9 days after 1 year, 14 days after 2 years# Paid Sick Days: Vacation and sick are called pto Paid Holidays: 5 for all but productive on 3 for productive Other Benefits: Prepaid legal, HHF, FSA, AFLAC____________________________________________________________________________________Comments:Looks like $120,000+ a year for the new car manager in this high volume store. That seems OK. It’s alittle complicated but not too much. I like the combined emphasis on both total front-end gross, unitvolume, and customer satisfaction scores.NSM 1

Base:Base pay:Commission:Bonus:$2,000/month33% of projected incomeNew Vehicle Sales Manager361.3% of Total Variable Gross (New and Used, plus F&I comp) from monthly statement,line 2.$500 for beating our main competitor each month, $500 for leading the market area eachmonth CSI must be at 85% to qualify for bonusOther Compensation: $1.50 per Etch sold____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick, Pontiac, GMCMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 15 - Non-UnionDue to the decrease in sales volume, we have created selling and administrative managersBenefits:Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: One week paid after first year, two weeks paid thereafter # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:This is OK. It’s hard to see this pay plan going too far wrong. The fixed dollar bonus for beating certainhurdles is an especially good idea.NSM 2

New Vehicle Sales Manager39Base: $4,000 per monthBase pay: Approximately 40% of projected incomeCommission: No commissionBonus: Paid monthly, 3% of New Selling Gross, 2% Used Selling GrossOther Compensation: Ford spiffs for sales managers, demo____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Lincoln, MercuryMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 15 - Non-UnionBenefits:Health Insurance: Yes - 100% paid by the dealership for the employee Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days for 1 year and 10 days for 2+ years# Paid Sick Days: 4 per year Paid Holidays: 5 Other Benefits: Vision____________________________________________________________________________________Comments:This is very close to what we would recommend for sales managers. Maybe a little more in salary and alittle less emphasis on commissions.NSM 3

New Vehicle Sales Manager42Base: $750.00 per weekBase pay: 56% of projected incomeCommission: N/ABonus: 3% of variable gross profit less controllable expenses.Any month 100 or more retail new Cadillacs - $1000.00Quarterly SFE bonus - if obtain SFE then $1000.00Other Compensation: Demonstrator vehicle____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, Saturn & HummerMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 41 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan Life Insurance: Yes - Company paid $20,000 coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after year, 10 days after 2 years# Paid Sick Days: up to 4 days 1st year, 6 days after 1 year, 11 days after 10 years Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:This is a big Cadillac store so maybe the projected income is a little light, but the basic formula is verygood.NSM 4

Base:Base pay:Commission:Bonus:$10,000/month100% of projected incomeNoneNoneOther Compensation: NoneNew Vehicle Sales Manager49____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):UsedMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 8# of Mechanical Technicians: 3 - Non-UnionBenefits:Health Insurance: Yes – 100% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: N/A# Paid Sick Days: Included Paid Holidays: Included Other Benefits: N/A____________________________________________________________________________________Comments:For a mature dealership with predictable results this approach will work well. Maybe reduce the salary alittle and add some production incentives.NSM 5

New Vehicle Sales Manager5Base: $2,000/monthBase pay: 25% of projected incomeCommission: Increasing commission based on department gross to 100k 1%, 100 to 200 k 1.5%,200 to 300k 2.00%, 300k + 2.5%.Bonus for units sold. New 1-20, $6, 21-40 $8, 41-60 $10, 61-80 $14, 81+,$20.Used units sold bonus, 1-20 $6, 21-40 $8, 41-60 $10, 61-80 $14, 81+ $20.Bonus: Salesmen's performance bonus $150 for each salesman achieving 10 deals or more.If 10 or more salesmen achieve 10 deals or more $1000 bonusOther Compensation: Car allowance of $350 per month, gas allowance of $150 per month, cell phone.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Chrysler, Dodge, JeepMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 22 - Non-Union, yesBenefits:Health Insurance: Yes – 60% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 after one year, 15 days after 5 years, 20 days after 10 years # Paid Sick Days: 0 Paid Holidays: 9 Other Benefits: N/A____________________________________________________________________________________Comments:Starts off good and then gets too complicated. Simplify it. Don’t make the sales manager think too muchabout his pay plan and don’t give him reasons to defer sale from one month to the next just to bump upthe bonus.NSM 6

New Vehicle Sales Manager6Base: $3,750/monthBase pay: 39% of projected incomeCommission: .5% NC Gross Profit .92% NC Selling ProfitBonus: Hit Selling Profit Target = $1000Meet or Beat CSI National Average = $500Other Compensation: $50 /veh over annual target____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):LexusMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 15 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 2x Gross EarningsPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, RRSP (Canada Specific) # Vacation Days: 10 - 20 Depends on LoS # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: Purchase Plan, Ed Asst. LoS Awards____________________________________________________________________________________Comments:Not bad, but the commission percentages are a classic example of a dealer trying to make the pay planhit a target number. If the idea is that the sales manager should earn $115,000 - $120,000/year there areeasier ways to get there.NSM 7

New Vehicle Sales Manager60Base: CommissionBase pay: 0% of projected incomeCommission: 3-5% of grossBonus: Bonuses are given on surveys if department is above zone & national.Aso typical bonuses given for units and grosses.Other Compensation: They also get a percentage of the net if forecast is acheived.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 24 - Non-Union, Lateral Support GroupsBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 2 weeks # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:No! This is not really a manager’s pay plan. It’s a pay plan for a senior sales consultant. The potentialfor wide fluctuations in pay, high turnover among managers and frequent pay plan changes is high.NSM 8

Base:Base pay:Commission:Bonus:$6,000/month50% of projected income2% of new and used gross profit salesCSI: $500 for Green, $0 for yellow, $ reduction for RedOther Compensation: Paid Health Insurance and DemoNew Vehicle Sales Manager61____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-Union, YesBenefits:Health Insurance: Yes - 55% Paid by Dealership Life Insurance: Yes - $20,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 Max # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Offer Employee Paid Supplemental Insurance, Employee Discounts____________________________________________________________________________________Comments:Excellent pay plan for a sales manager in this high volume import dealership.NSM 9

Base:Base pay:Commission:Bonus:$50,000/year66% of projected incomeN/AOther Compensation: N/ACSI, % of total vehicle gross, excluding F&INew Vehicle Sales Manager62____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ChevroletMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 4# of Mechanical Technicians: 6 - UnionBenefits:Health Insurance: Yes – Dealership pays 100% employee only Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 4 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:This Chevy dealership probably needs some additional salespeople, but that’s another issue. The payplan for the sales manager is sound.NSM 10

New Vehicle Sales Manager68Base: $450 per weekBase pay: 45% of projected incomeCommission: 30% of gross profit on new vehicle salesBonus: 2% Gross Income for YearOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CheveroletMonthly Sales Vol. (new & used):

New Vehicle Sales Manager10Base:Base pay:Commission:$3,000 per month draw0% of projected income4.5% new Toyota gross profit (less doc fee, dealer advt&ins, Floorplan assist holdback)will include Toyota Guard and dealer cash. page 6 lines 38 & 53 plus admin. incentivetotal gross x 4.5% = total commissionBonus: 135 units - $2500 bonus; 140 units - $2700; 145 units - $3000; 150 units - $3300;155 units - $3500; 160 units - $3700; 165 units - $4000; 170 units - $4300;175 units - $4500; 180 units - $5000; 185 units - $5200; 190 units - $5400;200 units - $5600; 210 units - $6000; 225 units - $6500; 250 units - $7500;275 units - $8000; 300 units - $8500.Bonus is contingent upon the current month's SSS scores being at green, below greenwill result in a 10% reduciton in total bonus. Must meet SET's set objective for the monthfailureto meet objective will result in a 10% reduction in total bonusOther Compensation: New F&I x 2.5%____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 27Toyota, Mitsubishi101-200 - Negotiated Sale# of Mechanical Technicians: 20 - Non-Union, Service TeamsBenefits:Health Insurance: Yes Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 7 # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Holy Moly! Where do I start? Overly complicated. The bonus plan pays $60/unit at most levels so youreally don’t need so many levels. The bonus rate peaks in the middle of the range and then declines atthe really high production levels – why? Don’t make this more complicated than it needs to be. The payplan will never manage the sales person’s behavior!NSM 12

Base: $0Base pay:Commission:Bonus:0% of projected incomeNew Vehicle Sales Manager124.6% of GP for new & used retail & fleet sales including Business Office gross (less BOcommissions)CSI monthly bonusOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 17# of Mechanical Technicians: 15 - UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership: Life Insurance: Yes - 2 times annual earnings, maximum benefit $300,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 1 year = 2 weeks, 4 years = 3 weeks, 9 years = 4 weeks # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:I just can’t get behind full commission pay plans for dealership managers. A plan like this can and doescreate wild swings in monthly income. Figure out what the job is worth and try to get there with acombination of salary and incentives.NSM 13

New Vehicle Sales Manager14Base: $1,000 per week salary plus $450/week drawBase pay: 60-70% of projected incomeCommission: Equal Unit sales of previous year same month $400.00; each over $50;105% same month previous year $700;Bonus: 2% NC Dept net profit/loss; 1% UC net profit/loss; 1% nc dept F&I gross; new car deptF&I average/unit $500 or more is $700Other Compensation: Demo vehicle____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda and NissanMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 19# of Mechanical Technicians: 20 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 80% of employee Life Insurance: Yes - $237.93/month employee; $312/month if family coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K with 20% match of first 4% saved # Vacation Days: 1 week after 1 year; 2 weeks after 3 years; 3 weeks after 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Vision, AFLAC paid by employee, 60% of disability premium____________________________________________________________________________________Comments:Much better. This is the formula we like to see for sales manager pay plansNSM 14

Base:Base pay:Commission:Bonus:$14,400/yearOther Compensation: N/A12% of projected incomeNew Vehicle Sales Manager153.5% of total sales gross, plus DX income less policy and delivery charges$300 per month if CSI is hit____________________________________________________________________________________General Dealership Information:Dealer Franchise(s): 6Monthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 33 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Short term disability____________________________________________________________________________________Comments:I’d like to see a higher salary and less reliance on commission, but this is basically OK. Simple and easyto track.NSM 15

Base: $0Base pay:Commission:Bonus:0% of projected incomeNew Vehicle Sales Manager194% of front and back end gross on new and used and an additional 25% for any personalsalesUnit/volume bonus based on monthly objectiveOther Compensation: Demo and gas allowance of $200/month____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, GMC, PontiacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 6# of Mechanical Technicians: 6 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: No Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: up to 3 weeks # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Again, I think the dealer has an income level in mind for this manager, but a full-commission pay plan isnot the right way to get there. This pay plan will have to modified every six months or so.NSM 16

New Vehicle Sales Manager2Base: $48,000Base pay: 53% of projected incomeCommission: 4% of the New and Used Variable Net - Operating Income minus variable selling expenseand floor plan assistanceBonus: Occasional special bonusesOther Compensation: Factory sponsor sales manager bonus____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 16 - Non-Union, combination - some team / some direct reportBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – 50%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:This is good. Nice and simple. Easy to track. Pay will be fair and stay under control.NSM 17

New Vehicle Sales Manager27Base: $0Base pay: 0% of projected incomeCommission: 6%Bonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 10# of Mechanical Technicians: 12 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 # Paid Sick Days: 0 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:Why is it that some dealers pay 3% others pay 4.5%, and this dealer pays 6% of the gross? Are somesales more valuable than others or could it be that the dealer is trying to back into a desired incomerange? If so, a full commission pay plan is the least effective way to do it!NSM 18

New Vehicle Sales Manager3Base: $78,000Base pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota & CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 12 - UnionBenefits:Health Insurance: Yes – 100% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10 # Paid Sick Days: 10 Paid Holidays: 8 Other Benefits: N/A____________________________________________________________________________________Comments:Again, we like to see more reliance on salary vs. commission for managers’ pay plans, but there shouldbe some balance between the two variables. Say 60% salary and 40% bonus.NSM 19

Base:Base pay:None0% of projected incomeNew Vehicle Sales Manager34Commission: Calculated from the NCM Statement pg 2 line 2New and Used Grosses to include F&I (both) and fees (both) + or – wholesale less policy1.75% up to $549K2% $550K- $599K2.25% $600K+new, used F&I (both) and fees (both) + or – wholesale less policy gross. demo25% of SET certified and market challenge and fast start.Bonus:N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, BMW, Honda, Pontiac, Buick & GMCMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 42 - Non-Union, Lateral supportBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 4 days after 90 days, 9 days after 1 year, 14 days after 2 years# Paid Sick Days: vacation and sick are called pto Paid Holidays: 5 for all but productive on 3 for productive Other Benefits: prepaid legal, HHF, FSA, AFLAC____________________________________________________________________________________Comments:This probably makes sense to the payroll clerk and the controller but the sales manager can’t relateexcept at the end of the week or month. Keep it simple and don’t pay dealership managers fullcommission.NSM 20

Fleet Manager14Base: $1,025/weekBase pay: 80% of projected incomeCommission: NoneBonus: $500/month if new car retail total exceeds previous year month by a minimum of 105%Other Compensation: Selected Fleet Manager, but this is our inventory manager____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda and NissanMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 19# of Mechanical Technicians: 20 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 80% of employee Life Insurance: Yes - $237.93/month employee; $312/month if family coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401(k) with 20% match of first 4% saved # Vacation Days: 1 week after 1 year; 2 weeks after 3 years; 3 weeks after 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Vision, AFLAC paid by employee, 60% of disability premium____________________________________________________________________________________Comments:I can’t see any problems with this approach. The pay is fair and the plan is easy to track and understand.NSM 21

Fleet Manager53Base: $1,000/monthBase pay: 20% of projected incomeCommission: Commission for any vehicle sold and the volumn of the fleet parts and service businessBonus: Override If over the quota for fleet vehiclesOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford Lincoln-Mercury MazdaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 24# of Mechanical Technicians: 41 - Non-UnionSimple Support with a Quick Service team of 18 TechsBenefits: Health Insurance: Yes – Dealership pays the first $150 not a % Life Insurance: Yes - $10K Paid by the CompanyPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days 1st Year, 10 days after 3 Years 15 days after 10 years # Paid Sick Days: 0 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:Looks good. Make sure the projected income is adequate for the expected fleet volume.NSM 22

Fleet Manager67Base:Base pay:Commission:Bonus:Salary of $2,500 paid every other month25% of projected incomeThe Sales Consultant is eligible to receive a commission of 40% of the “Sales PayableGross” in excess of $0 on New Vehicles and $375 on Used Vehicles, subject to thefollowing Minimum commissions:Minimum Commission on New Vehicles: $150.00Minimum Commission on Used Vehicles: $200.00Minimum Commission on all Enterprise fleet sales: $20.00Minimum Commission on Governmental fleet sales: $100.00Unit Bonus Opportunities - You are eligible for the following (non cumulative) unitbonuses on “billed deals” where you are listed as a salesperson:12 Units $500.00 OR16 Units $750.00 OR20 Units $1,000.00F&I Commission Opportunity - You are eligible to receive 10% of the F & I gross profit onyour billed deals.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 100Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti201 - Negotiated Sale# of Mechanical Technicians: 100 - Non-Union - Sales TeamsBenefits:Health Insurance: Yes – 65% Paid by Dealership Life Insurance: Yes – 100%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401(k) # Vacation Days: 5 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Supplemental 100% Employee Paid____________________________________________________________________________________Comments:We don’t know the expected fleet volume here, but a projected income of $60,000 a year seems aboutright. The commission plan strikes us as just a little too complicated.NSM 23

OM:Office Manager

Office Manager14Base: $875 per weekBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda and NissanMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 19# of Mechanical Technicians: 20 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 80% of employee Life Insurance: Yes - $237.93/month employee; $312/month if family coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K with 20% match of first 4% saved # Vacation Days: 1 week after 1 year; 2 weeks after 3 years; 3 weeks after 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Vision, AFLAC paid by employee, 60% of disability premium____________________________________________________________________________________Comments:Looks good. Maybe a small year-end incentive bonus based on store performance.OM 1

Base: $50,000Base pay:Commission:Bonus:100% of projected incomeN/AN/AOther Compensation: N/AOffice Manager15____________________________________________________________________________________General Dealership Information:Dealer Franchise(s): 6Monthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 33 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Short term disability____________________________________________________________________________________Comments:If $50,000 is the right level of pay for the office manager in a six-franchise group, then OK. A smallperformance bonus would be a good idea too.OM 2

Office Manager16Base: $50,000Base pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):NOMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 12 - Non-Union, TeamsBenefits:Health Insurance: Yes - 80% Paid by Dealership Life Insurance: Yes - SalaryPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 # Paid Sick Days: 2 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:If $50,000 is the right level of pay for the office manager in a franchise group, then OK. A smallperformance bonus would be a good idea too.OM 3

Office Manager19Base: $850 per weekBase pay: 95% of projected incomeCommission: N/ABonus: Month end close bonus of $350Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, GMC, PontiacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 6# of Mechanical Technicians: 6 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: No Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: up to 3 weeks # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:This is a very good office manager pay plan.OM 4

Base: $30,000Base pay:Commission:Bonus:50% of projected income.75% on the net profit (F/S = L70) of both Honda & Toyota DealershipsN/AOther Compensation: Guarantee of $60,000 per yearOffice Manager2____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 16 - Non-Union, Combination - some team / some direct reportBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 50%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:This is OK as long as the dealer believes in his heart of hearts that the office manager has this muchimpact on store profits month-to-month.OM 5

Base:Base pay:Commission:Bonus:$40,308.00 annual100% of projected incomeN/AN/AOther Compensation: N/AOffice Manager21____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Toyota, ScionMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 26# of Mechanical Technicians: 29 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays a flat $200 per month per employee Life Insurance: Yes - Any portion of $200 monthly allowance not use on health insuranceapplied to life insurancePrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 3 years, 3 weeks after 15 years# Paid Sick Days: 3 per year Paid Holidays: 6 Other Benefits: Vision, short and long disability____________________________________________________________________________________Comments:OK, but why not add some small bonus for special achievement?OM 6

Office Manager31Base: $14.00 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):KIA ChevyMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 5 - Non-UnionBenefits:Health Insurance: Yes – 0% Paid by Dealership Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 7 # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Hourly pay for a manager is a problem. Salary is better. Hourly pay implies that this person is not really amanager and should be eligible for overtime pay. Is that the case?OM 7

Office Manager37Base: $1913.00 bi-weeklyBase pay: 90% of projected incomeCommission: N/ABonus: 1% of net profit per monthOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota and ScionMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 9 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - One year's gross wagePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K, Safe Harbor # Vacation Days: 5 after 1 year, 10 after 2 years, 15 after 3 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Birthday off with pay____________________________________________________________________________________Comments:Excellent office manager pay plan.OM 8

Base:Base pay:Commission:Bonus:$3,750.00 per month100% of projected incomeN/AN/AOther Compensation: N/AOffice Manager4____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge JeepMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 36# of Mechanical Technicians: 54 - Non-Union, Lexus - Technician Team SystemBenefits:Health Insurance: Yes Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 after 1 year. 10 after 2 years. 15 after 7 years. # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Voluntary Supplemental - AFLAC, Mutual of Omaha____________________________________________________________________________________Comments:Try a small bonus component but otherwise a good approach for office manager pay.OM 9

Office Manager45Base: $65,000 per yearBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: $350 demo allowance____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):GMMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 34# of Mechanical Technicians: 11 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Discounts on vehicles, parts & labor____________________________________________________________________________________Comments:Once again, straight salary is good, but a small incentive bonus would make this plan perfect.OM 10

Base:Base pay:Commission:Bonus:$3,500 Salary80% of projected incomeNet x 1.02% = # Net - # = BONUS PAYN/AOther Compensation: N/AOffice Manager51____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Pontiac & BuickMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: N/A# of Mechanical Technicians: Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% for employee Life Insurance: Yes - None paid by employerPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 5 days after 1st year, 10 days after third year # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail____________________________________________________________________________________Comments:Good pay plan. Easy to understand and track performance.OM 11

Office Manager64Base: $32,000Base pay: 100% of projected incomeCommission: NoneBonus: $1,000Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):New RV's forest riverMonthly Sales Vol. (new & used):

P:Porter

Base: $20,800Base pay:Commission:Bonus:100% of projected incomeN/AN/AOther Compensation: N/APorter15____________________________________________________________________________________General Dealership Information:Dealer Franchise(s): 6Monthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 33 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Short term disability____________________________________________________________________________________Comments:This is a fine way to pay the lot porters.P 1

Base:Base pay:Commission:Bonus:$8 per hour100% of projected incomeN/AN/AOther Compensation: N/APorter17____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 43# of Mechanical Technicians: 28 - Non-Union, Lateral supportBenefits:Health Insurance: Yes – Dealership pays 80% of employee Life Insurance: Yes - up to $50,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days at one year, 10 days at two years, 15 days at ten years# Paid Sick Days: 6 for hourly employee only Paid Holidays: 5 for hourly employee Other Benefits: Christmas fund matching____________________________________________________________________________________Comments:You know, we have a low opinion of lot porters too, but $8/hour is awfully close to minimum wage.Dealers who take this approach take the risk of being left with only the McDonald’s rejects as candidates.P 2

Porter18Base: $10-11 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: $50 per week to 401K____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 17# of Mechanical Technicians: 21 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days at 1 year, 10 days at 2 years, 15 days at 8 OR 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:An observation: The $50/week contribution to the 401K is very generous for someone in this wage range.Is it even legal? Hard to believe someone earning $400/week pre-tax is adding much if anything to theretirement plan.P 3

Porter19Base: $12.25 per hourBase pay: 100 % of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, GMC, PontiacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 6# of Mechanical Technicians: 6 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: No Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: up to 3 weeks # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:This is OK for porters.P 4

Base:Base pay:Commission:$10.00 per hour100% of projected incomeN/ABonus: Random spot incentives through out the year usually between $20 - $200Other Compensation: N/APorter2____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 16 - Non-Union, combination - some team / some direct reportBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes – 50%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:I like the spot bonuses/spiffs. I question whether $10/hour is sufficient to attract quality people. If it is inthis case, so be it.P 5

Base:Base pay:Commission:Bonus:$8.50 per hour100% of projected incomeN/AN/AOther Compensation: overtime pay = time & ½; paid lunches on SaturdaysPorter20____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, LexusMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 14 - Non-Union, Service TeamsBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Overtime pay is legally required so don’t try to make it look like a bonus. If $8.50/hour attracts the level ofperson you want, fine.P 6

Base:Base pay:Commission:Bonus:$9.00 to $10.50 per hour depending on time in grade.99% of projected incomeN/APorter37$50.00 per month bonus for VDI (vehicle delivery index) of 95-99%, $100.00 per monthfor 100%Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota and ScionMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 9 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - One year's gross wagePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K, Safe Harbor # Vacation Days: 5 days after 1 year, 10 days after 2 years, 15 days after 3 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Birthday off with pay____________________________________________________________________________________Comments:This should be OK.P 7

Base:Base pay:Commission:Bonus:$10.00 per hour100% of projected incomeN/ANAOther Compensation: N/APorter4____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge JeepMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 36# of Mechanical Technicians: 54 - Non-Union, Lexus - Technician Team SystemBenefits:Health Insurance: Yes Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after 1 year. 10 days after 2 years. 15 days after 7 years. # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Voluntary Supplemental - AFLAC, Mutual of Omaha____________________________________________________________________________________Comments:OKP 8

Porter41Base: $8.50 per hourBase pay: 100% of projected incomeCommission: N/ABonus: CSIOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Chevrolet hereMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 12 - Non-Union, Service Groups, similar to lat supportBenefits:Health Insurance: Yes - 20% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 5 per year, max of 15 # Paid Sick Days: 5 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:If the minimum wage is $7.15 and higher in some states, $8.50 looks awfully low.P 9

Porter45Base: $15.00 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: $100 uniform per quarter____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):GMMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 34# of Mechanical Technicians: 11 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Discounts on vehicles, parts & labor____________________________________________________________________________________Comments:Seems OK.P 10

Porter49Base: $10.00 per hourBase pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):UsedMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 8# of Mechanical Technicians: 3 - Non-UnionBenefits:Health Insurance: Yes - 100% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: N/A# Paid Sick Days: included Paid Holidays: Included Other Benefits: N/A____________________________________________________________________________________Comments:Think about it. Is $10/hour enough to attract and retain the kind of employees you want? If so, great. Ifnot, bump it up a little.P 11

Base: $28,000Base pay:Commission:Bonus:100% of projected incomeN/AN/AOther Compensation: N/APorter55____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Lincoln, Mercury, MazdaMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes – 33.3% Paid by DealershipLife Insurance: Yes – 100Prescription Plan: YesDental Plan: YesProfit Sharing: YesStock Options: NoRetirement Plan: Yes, 401K# Vacation Days: 1-3 weeks# Paid Sick Days: 5Paid Holidays: 6Other Benefits: Demos____________________________________________________________________________________Comments:This is a good approach, but remember: paying a salary does not exempt you from paying overtime. Thehigher the salary, the higher the potential overtime pay.P 12

Porter58Base: $8.00 per hour with 5 hours OT (time & ½)Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, ScionMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 4 - Non-UnionBenefits:Health Insurance: Yes - 40% Paid by Dealership Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after one year, 10 days after two# Paid Sick Days: 1/2 day a month Paid Holidays: 7 Other Benefits: 10% above cost on parts, $25/hr labor, new & used car employee pricing____________________________________________________________________________________Comments:Time and a half for overtime is not optional for employers.P 13

Base:Base pay:Commission:Bonus:$9.00 per hour100% of projected incomeN/AWhen there is a need, we will give them a $25 monthly bonus for CSI questionTime to pick up and retrieve carOther Compensation: No commissions and practically no overtime at this time.Porter60____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 24 - Non-Union, Lateral Support GroupsBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 2 weeks # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Looks like a prescription for high turnover.P 14

Base:Base pay:Commission:Bonus:$9.00 per hour100% of projected incomeN/AN/AOther Compensation: N/APorter61____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-UnionBenefits:Health Insurance: Yes - 55% Paid by Dealership Life Insurance: Yes - $20,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 Max # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Offer Employee Paid Supplemental Insurance, Employee Discounts____________________________________________________________________________________Comments:If $9/hour does it in your market, go for it.P 15

Base:Base pay:Commission:Bonus:$14.00 per hour100% of projected incomeN/AN/AOther Compensation: N/APorter62____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ChevroletMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 4# of Mechanical Technicians: 6 - UnionBenefits:Health Insurance: Yes – Dealership pays 100% employee only Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 4 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:Again, hourly pay is best for porters, but be sure that the rate is sufficient to get decent people.P 16

Porter67Base: $10.00 per hourBase pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, InfinitiMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 100# of Mechanical Technicians: 100 - Non-Union, Sales TeamsBenefits:Health Insurance: Yes - 65% Paid by Dealership Life Insurance: Yes - 100%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Supplemental 100% Employee Paid____________________________________________________________________________________Comments:Again, hourly pay is best for porters, but be sure that the rate is sufficient to get decent people.P 17

Base:Base pay:Commission:Bonus:$10-$15 per hour100% of projected incomeNoneOther Compensation: NoneCSI bonus, same as service advisorPorter7____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):AudiMonthly Sales Vol. (new & used):

Porter8Base: $12.00 per hourBase pay: 100% of projected income - based on a 44 hour work weekCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Porsche, Audi, Infiniti, VWMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 11# of Mechanical Technicians: 21 - Non-Union, No each department is separateBenefits:Health Insurance: Yes - 80% Paid by Dealership Life Insurance: Yes - $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10# Paid Sick Days: None Paid Holidays: All State only Other Benefits: Demo____________________________________________________________________________________Comments:Again, hourly pay is best for porters, but be sure that the rate is sufficient to get decent people. And a 44-hour workweek implies 4 hours at time and a half.P 19

R:Receptionist

General Clerical21Base: $14.00 per hourBase pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford Toyota ScionMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 26# of Mechanical Technicians: 29 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays a flat $200 per month per employee Life Insurance: Yes - Any portion of $200 monthly allowance not used on healthinsurance is applied to life insurancePrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 1 week after 1 year, 2 weeks after 3 years, 3weeks after 15 years# Paid Sick Days: 3 per year Paid Holidays: 6 Other Benefits: vision, short and long disability____________________________________________________________________________________Comments:As long as $14/hour is competitive for the market area, this is a good way to pay clerical staff.R 1

General Clerical31Base: $8.00 per hourBase pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):KIA ChevyMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 5 - Non-UnionBenefits:Health Insurance: Yes Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 7 # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:We’ll leave it to dealership managers to decide if $8/hour or slightly above the minimum wage is adequateto attract talent, but otherwise a straight hourly wage is the best way to pay general clerical staff.R 2

Base:Base pay:Commission:Bonus:$15.00 per hour100% of projected incomeNoneNoneOther Compensation: NoneGeneral Clerical58____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota ScionMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 4 - Non-UnionBenefits:Health Insurance: Yes - 40% Paid by Dealership Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after one year, 10 days after two# Paid Sick Days: 1/2 day a month Paid Holidays: 7 Other Benefits: 10% above cost on parts, $25.00 hour labornew & used car employee pricing____________________________________________________________________________________Comments:Just right for this job.R 3

Base:Base pay:Commission:Bonus:$12.50 per hour100% of projected incomeN/AN/AOther Compensation: N/AReceptionist12____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 17# of Mechanical Technicians: 15 - UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - 2 times annual earnings, maximum benefit $300,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 1 year = 2 weeks, 4 years = 3 weeks, 9 years = 4 weeks # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:Tread carefully here. Receptionists are the voice and face of the store. Don’t get cheap on me.R 4

Receptionist15Base: $20,800Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s): 6Monthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 33 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Short term disability____________________________________________________________________________________Comments:Total income is probably OK, but receptionists qualify for overtime. Also, think about adding a bonus forCSI/SSI.R 5

Base: $39,500Base pay:Commission:Bonus:100% of projected incomeN/AN/AOther Compensation: N/AReceptionist16____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):NOMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 12 - Non-Union, TeamsBenefits:Health Insurance: Yes - 80% Paid by Dealership Life Insurance: Yes - SalaryPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 # Paid Sick Days: 2 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:This is a nice salary for an important employee. But the receptionist also can earn time and a half forovertime.R 6

Base:Base pay:Commission:Bonus:$13.00 per hour100% of projected incomeN/AN/AOther Compensation: Matching 401K 10% up to 6% of incomeReceptionist18____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 17# of Mechanical Technicians: 21 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days at 1 year, 10 days at 2 years, 15 days at 8 OR 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:Assuming $13/hour is the going rate for good receptionist in this dealer’s area, then this is just fine.R 7

Base:Base pay:Commission:Bonus:$12.75 per hour100% of projected incomeN/AN/AOther Compensation: N/AReceptionist19____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, GMC, PontiacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 6# of Mechanical Technicians: 6 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: No Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: up to 3 weeks # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Assuming $12.75/hour is the going rate for good receptionist in this dealer’s area, then this is just fine.R 8

Base:Base pay:Commission:Bonus:$10.00 per hour100% of projected incomeN/AN/AOther Compensation: time & ½ for overtimeReceptionist20____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, LexusMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 14 - Non-Union, Service TeamsBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Assuming $10/hour is the going rate for good receptionist in this dealer’s area, then this is just fine. Howabout a small bonus for CSI?R 9

Base:Base pay:Commission:Bonus:$15.50 per hour100% of projected incomeN/AN/AOther Compensation: N/AReceptionist21____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Toyota, ScionMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 26# of Mechanical Technicians: 29 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays flat $200 per month per employee Life Insurance: Yes - any portion of $200 monthly allowance not use on health insuranceis applied to life insurancePrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 3 years, 3 weeks after 15 years# Paid Sick Days: 3 per year Paid Holidays: 6 Other Benefits: Vision, short and long disability____________________________________________________________________________________Comments:Assuming $15.50/hour is the going rate for good receptionist in this dealer’s area, then this is just fine.R 10

Receptionist25Base: $14.00 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMWMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 9# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 max # Paid Sick Days: 5 Paid Holidays: 7 Other Benefits: Car allowance (managers)____________________________________________________________________________________Comments:Assuming $14/hour is the going rate for good receptionist in this dealer’s area, then this is just fine.R 11

Base: $20,800Base pay:Commission:Bonus:100% of projected incomeN/AN/AOther Compensation: N/AReceptionist3____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota & CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 12 - UnionBenefits:Health Insurance: Yes - 100% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10 # Paid Sick Days: 10 Paid Holidays: 8 Other Benefits: N/A____________________________________________________________________________________Comments:Assuming $20,800 is the going rate for a good receptionist in this dealer’s area, then this is just fine.Don’t make the mistake of thinking that a salary relieves the employee from paying overtime.R 12

Base:Base pay:Commission:$300/week75% of projected incomeN/ABonus: CSI 92.5 or above = $375Other Compensation: N/AReceptionist31____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):KIA, ChevyMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 5 - Non-UnionBenefits:Health Insurance: Yes Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 7 # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Good approach. Is $7.50/hour base pay sufficient to attract good candidates?R 13

Base:$9.00 per hour with overtime 45 hour weekBase pay: 99% of projected income: 99%Commission:Bonus:N/AOther Compensation: N/ASFE Bonus Quarterly – Can be up to $2,400 per year or as low as zeroReceptionist32____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 7 - Non-Union, Tech's work on the full car - not specializedBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, Pension and 401K # Vacation Days: 5 days after 1 year - 10 days after 2 years# Paid Sick Days: 5 days after 1 year Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Looks OK to me.R 14

Base:Base pay:Commission:Bonus:$12.00 per hour100% of projected incomeN/AN/AOther Compensation: N/AReceptionist37____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota and ScionMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 9 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - One year's gross wagePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K, Safe Harbor # Vacation Days: 5 after 1 year, 10 after 2 years, 15 after 3 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Birthday off with pay____________________________________________________________________________________Comments:Assuming $12/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.R 15

Base:$11.00 per hour, Time and 1/2 for overtimeBase pay: 100% of projected income: 100%Commission:Bonus:NoneNoneOther Compensation: NoneReceptionist39____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Lincoln, MercuryMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 15 - Non-UnionBenefits:Health Insurance: Yes - 100% paid by the dealership for the employee Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days for 1 year and 10 days for 2+ years# Paid Sick Days: 4 per year Paid Holidays: 5 Other Benefits: Vision____________________________________________________________________________________Comments:Assuming $12/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.R 16

Receptionist4Base: $13.25 per hourBase pay: 100% of projected incomeCommission: N/ABonus: NAOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Lexus, Porsche, Hyundai, Subaru, Chrysler Dodge JeepMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 36# of Mechanical Technicians: 54 - Non-Union, Lexus - Technician Team SystemBenefits:Health Insurance: Yes Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 after 1 year. 10 after 2 years. 15 after 7 years. # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Voluntary Supplemental - AFLAC, Mutual of Omaha____________________________________________________________________________________Comments:Assuming $13.25/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.R 17

Receptionist45Base: $12.00 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):GMMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 34# of Mechanical Technicians: 11 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Discounts on vehicles, parts & labor____________________________________________________________________________________Comments:Assuming $12/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.R 18

Receptionist49Base: $12.00 per hourBase pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):UsedMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 8# of Mechanical Technicians: 3 - Non-UnionBenefits:Health Insurance: Yes - 100% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: N/A# Paid Sick Days: Included Paid Holidays: Included Other Benefits: N/A____________________________________________________________________________________Comments:Assuming $12/hour is the going rate for good receptionists in this dealer’s area, then this is just fine.R 19

Receptionist5Base: $2,800 per monthBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: Group benefits____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Chrysler, Dodge, JeepMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 22 - Non-UnionBenefits:Health Insurance: Yes - 60% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 after one year, 15 after 5 years, 20 after 10 years # Paid Sick Days: 0 Paid Holidays: 9 Other Benefits: N/A____________________________________________________________________________________Comments:Good approach to paying a receptionist. Don’t forget overtime eligibility.R 20

Receptionist55Base: $32,000Base pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Lincoln, Mercury, MazdaMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes – 33.3% Paid by Dealership Life Insurance: Yes - 100Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1-3 weeks # Paid Sick Days: 5 Paid Holidays: 6 Other Benefits: Demos____________________________________________________________________________________Comments:Now we’re talking! This dealer obviously sees the value in the receptionist position. Over time rules stillapply, though.R 21

Receptionist57Base: $13.50 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick, Cadillac, PontiacMonthly Sales Vol. (new & used):

Receptionist6Base: $12.52/hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):LexusMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 15 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 2x Gross EarningsPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, RRSP (Canada Specific) # Vacation Days: 10 - 20 Depends on LoS # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: Purchase Plan, Ed Asst. LoS Awards____________________________________________________________________________________Comments:Assuming $12.52/hour is the going rate for good receptionists in this dealer’s area, then this is just fine.Where did the $12.52 figure come from? It works out to about $26,000/year.R 23

Receptionist64Base: $18/hourBase pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: 200 gallons gas____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):New RV's forest riverMonthly Sales Vol. (new & used):

Receptionist67Base: $9.00 per hourBase pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, InfinitiMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 100# of Mechanical Technicians: 100 - Non-Union, Sales TeamsBenefits:Health Insurance: Yes - 65% Paid by Dealership Life Insurance: Yes – 100%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Supplemental 100% Employee Paid____________________________________________________________________________________Comments:Assuming $9/hour is the going rate for a good receptionist in this dealer’s area, then this is just fine.R 25

Receptionist68Base: $28,000/yearBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CheveroletMonthly Sales Vol. (new & used):

S:Sales

Sales Person160Base: NoneBase pay: 0% of proejcted incomeCommission: Forgiveable draw against commision of $1500.00 per month, % are 25% for deals 1-9,27% deales 10-14 and 30% for 15 plus, once you hit 15 deals it is retroactive to deal oneBonus: 10 units =$200.00 12 units =$300.00 15 units =$750.00 20 units =$1000.00Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):N/AMonthly Sales Vol. (new & used): N/A# of Sales People: N/A# of Mechanical Technicians: N/ABenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:No information on what brands this dealer sells or the volume, but the commission rate is attractive.Many dealers like to pay sales reps a salary equal to minimum wage and a slightly reduced commissionpercentage.S 1

Sales Vehicles105Base: $1,600/monthBase pay: 30% of projected incomeCommission: 25% of commissionable gross.Bonus: Spiffs--sales survey returnedOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):N/AMonthly Sales Vol. (new & used): N/A# of Sales People: N/A# of Mechanical Technicians: N/ABenefits: Health Insurance: N/A Life Insurance: N/A Prescription Plan: N/A Dental Plan: N/A Profit Sharing: N/A Stock Options: N/A Retirement Plan: N/A # Vacation Days: N/A # Paid Sick Days: N/A Paid Holidays: N/A Other Benefits: N/A____________________________________________________________________________________Comments:I’d like to have some information on the brands sold here. Otherwise the pay plan looks off. Salary ishigher than normal.S 2

Salesperson1Base: Varies between $200.00 - $400.00 per weekBase pay: 20% of projected incomeCommission: 25% front end, 10% reserve, 25% extended warrantiesBonus: N/AOther Compensation: Company vehicle____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used):

Salesperson10Base: $0Base pay: 0% of projected incomeCommission: Toyota/Mitsubishi salesperson = min. commission is $100 - no cars = Min. wageToyota/ Mitsu - 25% of all gross proft over invoice including all customer incentives(excludes Toyo guard, dealer retro cash, holdback, lease admin fees and dealer adminfees as printed on the buyers order)- if the vehicle has a pull, the min comm. will be $50Bonus: 12 units = $400 14 units = $500 16 units = $600 20 units = $1000 25 units = $1000(ex. 25 units pays $3,500)Other Compensation:Salesman of the month: New Toyota - $500 (14 unit qualifier)Mitsubishi - $25 (8 unit qualifier)____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, MitsubishiMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 27# of Mechanical Technicians: 20 - Non-Union, Service TeamsBenefits:Health Insurance: Yes Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 7 # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Where should I start? 25% commission rate is fine. The unit bonus is skewed. I get $1,000 for selling upto 35 cars, but #26 is worth an additional $2,500? I’d be tempted to sandbag some deals until the nextmonth. Smooth that out. A cynical sales rep might think the dealer is offering that big bonus because noone has ever sold more than 25 units.S 4

Salesperson10Base: $0Base pay: 0% of projected incomeCommissions: Pre-owned salesperson = $100 min commission per car (unless the vehicle does notexceed cost plus pack of $500 - this sale will carry a $50 mini comm) or Min. Wage25% of all gross profit over dealer cost (not paid on dealer fees) any sales associate thathas been certified through the Toyota certification program will receive 30% commissionBonus: 12 units = $400 14 units = $500 16 units = $600 20 units = $1000 25 units = $1000(ex. 25 units pays $3,500)Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, MitsubishiMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 27# of Mechanical Technicians: 20 - Non-Union, Service TeamsBenefits:Health Insurance: Yes Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 7 # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:This looks OK. I like the idea of encouraging salespeople to go through the certification process byoffering a higher commission rate.S 5

Salesperson12Base: $0Base pay: 0% of projected incomeCommission: 20% 1-9 units or up to $9000 gross 25% 9-14 units or up to $19,000 gross 27% over 14units or over $19,000 grossBonus: CSI monthly bonus $10 per qualified survey Buy-ins $150 / $250 3rd buy-in p/mthOther Compensation: Car allowance $250 per month____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 17# of Mechanical Technicians: 15 - UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - 2 times annual earnings, maximum benefit $300,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 1 year = 2 weeks, 4 years = 3 weeks, 9 years = 4 weeks # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:Looks good.S 6

Base: $10,400Base pay:Commission:15% of projected incomeSalesperson16Commssions will be paid bi-weekly and calculated at 20% of the vehicle gross profit lessthe PAD or flat fee of $150, whichever is greater.Bonus: A retailer balance scorecard bonus will be paid monthly on the last day of the subsequentmonth. This bonus will be based on actual showroom achievements versus employerforcasted requirements. This bonus will begin to be paid when an achievement level of80% of forecast is reached and it will pay to a maximum of 140% of forecast. Themaximum at 140% in all measurements will pay $15.00 per unit delivered. Each month aminimum of 7 new vehicles and 2 used vehicles must be delivered in order to qualify forthis bonus. This bonus structure may be subject to change based on retailer balancescorecard requirements. The chart below lists the measured criteria and weight ofimportance in the balance scorecard.Strategic measureWeightNew unit target 14%New gross target 20%CSI 12%Used unit target 19%Used gross target 15%New F & I gross target 10%Used F & I gross target 10%Total 100%____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):NOMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 12 - Non-Union, TeamsBenefits: Health Insurance: Yes - 80% Paid by Dealership Life Insurance: Yes - Salary Prescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 # Paid Sick Days: 2 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:We don’t hire dealership salespeople for their intellectual heft. We hire them to sell. Yet this pay plan isso intricate, someone could spend half a day just trying to analyze the components. And how manyaccountants does it take to figure out the weekly sales payroll? Simplify, man, simplify.S 7

Salesperson19Base: $0Base pay: 0% of projected incomeCommission: 25% of front end gross and up to 10% of backend grossBonus: $400 demo allow. Unit bonus starting at 10. Additonal 5% front end gross with montlyavg of 8 deliveries minimumOther Compensation: Monthly, weekly, daily spiffs based of objectives____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, GMC, PontiacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 6# of Mechanical Technicians: 6 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: No Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: up to 3 weeks # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:It reads a little complicated but it’s not. Sell 10 cars a month and see the commission rate jump.S 8

Salesperson2Base: Minimum wageBase pay: Depends on commissions earnedCommission: Sales Commission levels range from 25-35% depending on the rolling 3 monthaverage of cars delivered. Paid on Commissionable Gross profit (minus lot fee &holdback)Bonus: Unit bonus: 10 units = $150Every additional 2 units adds $150 - Until 20 then each unit adds $150Gross bonus paid per unit: $1,000+ =$50 $1,500+ =$75 $2,000+ =$100Other Compensation: Random contest and spiffs - cash or prizes____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 16 - Non-Union, combination - some team / some direct reportBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 50%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:OK. I can follow this one. Focus on maximizing gross and delivering over 10 units a month.S 9

Salesperson22Base: $400 per week drawBase pay: 0% of projected incomeCommission: 20 percent of selling grossBonus: CSI bonus of $10.00 per car Volume bonus to 25% after 12 units-new 5 percent of F/Iper vehicle sold Quarterly bonus of volume, CSI and gross of $2500 per month ifobjectives met.Other Compensation: $10.00 (company match) of delivery fee paid at year end as Christmas bonus____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMW, Porsche, Volkswagen, Subaru, IsuzuMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $100KPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 3 Other Benefits: N/A____________________________________________________________________________________Comments:Focus on selling 12+ units a month. That’s where the bonuses start.S 10

Salesperson22Base: $450 per week drawBase pay: 0% of projected incomeCommission: 15 percent gross profit on pre-owned vehicles sold, after 8 units 20 percent retroactive tofirst unit, 25 percent at 12 units retrocative to first unit.Bonus: Fast start bonus 6 cars by the 12th pays $250. 8 units by the 12th pays $500. 10 unitsby the 15th pays $750.Other Compensation: $10.00 per car sold (company match) paid at year end from delivery fee.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMW, Porsche, Volkswagen, Subaru, IsuzuMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $100KPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 3 Other Benefits: N/A____________________________________________________________________________________Comments:No quarrels here. Standard stair-step commission plan, except that it starts at a low 15% of the gross.S 11

Salesperson22Base: $500 per week salaryBase pay: 70 % of projected incomeCommission: $100 per car retailed-VolkswagenBonus: N/AOther Compensation: $10 (company match) for each unit sold from delivery fee paid at year end asChristmas bonus____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMW, Porsche, Volkswagen, Subaru, IsuzuMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $100KPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 3 Other Benefits: N/A____________________________________________________________________________________Comments:This reads like a sales trainee pay plan, in which case it is a good idea. But projected income is in the$35k range. Fine for a rookie but not sufficient for a veteran sales rep.S 12

Salesperson25Base: $300 per weekBase pay: VariesCommission:• A weekly salary of at least $300.00, less applicable withholdings and deductions; paid inaccordance with our regular payroll procedures which, if annualized, would equal $15,600.00,less applicable withholdings and deductions.• The minimum per unit sold is $150.00/ea-unit• Commission paid on units delivered for the month. All money collected and or titles for trades inhouse by last day of the month.• 15% commission paid on units 1- 9 delivered for the month.• 23% commission paid on unit number 10 plus delivered for the month.o With 10 plus units delivered, this qualifies Client Advisor to start the following month at23% beginning with the first (1) unit delivered.o Client Advisor will stay at 23% as long as at least 10 units are delivered each month orthe year to date average is at least 10 units per month.• Monthly CSI unit bonus. CSI Unit Bonus is paid on 11 units plus.• Commission is paid on the gross profit, less a lot charge (pack) of $400.00 on all new and usedvehicles.• Three (3) months rolling average of at least 6 units per month delivered, is a requirement forcontinued employment as a Client Advisor.• Family purchases, employee purchases and trade assists, will not count towards the monthly CSIunit bonus.Bonus: Unit bonus based on prior months units delivered see aboveOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMWMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 9# of Mechanical Technicians: 10 - Non-UnionBenefits: Health Insurance: Yes – 50% Paid by Dealership Life Insurance: Yes Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 15 max # Paid Sick Days: 5 Paid Holidays: 7 Other Benefits: Car allowance (managers)____________________________________________________________________________________Comments:Well, you know if the pay plan runs to ten or more lines it is most likely too long and ineffective.Salespeople should focus on selling the car the customer in front of them. They should not be thinkingabout “Section 4, line 2” of the pay plan document.S 13

Salesperson27Base: NoneBase pay: 0% of projected incomeCommission: 10% of commissionable gross profit.Bonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 10# of Mechanical Technicians: 12 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 # Paid Sick Days: 0 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:Well it is a simple pay plan, I’ll give it that. But is 10% of the gross going to be competitive in a crowdedmarketplace?S 14

Salesperson28Base: Minimum wage, less commissions earnedBase pay: 0% of projected incomeCommission: Financed deals are paid on a 30% front end commission. F&I products will be paid at a3% commission on back end gross. Cash deals will be paid at a 25% commissionablefront end gross. Secondary deals will be paid at a 25% front end and 0% back endgross. $200 minimum commisision unless it is a GMS or supplier deal.Bonus: 12 deliveries pays $300 14 deliveries pays an additional $200 16 deliveries pays anadditional $200 18 deliveries pays an additional $200Other Compensation:Holiday bonus: $5 is held from each delivery and matched by the dealership and paid at the end ofthe year.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ChevroletMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 13# of Mechanical Technicians: 8 - Non-Union, Sales teams with alternating schedulesBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes # Vacation Days: 5 days after one year of employment # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Nothing good happens until the customer buys the car. So the distinction between a cash deal and afinance deal escapes me. Do you want salespeople to convert cash buyers to finance or is that the F & Imanager’s job?S 15

Salesperson3Base: $15,600/salary/minimum wageBase pay: 25% approximately depending on performance.Commission: 28% front endBonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota & CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 12 - UnionBenefits:Health Insurance: Yes - 100% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10 # Paid Sick Days: 10 Paid Holidays: 8 Other Benefits: N/A____________________________________________________________________________________Comments:This is good. Very simple and easy to track. The higher commission rate compensates for the lack of aunit-based incentive.S 16

Salesperson34Base: $0Base pay: 0% of projected incomeCommission: You will be paid commissions on new vehicles delivered based on the following formula:Payable Gross:Commission:$500.00 and less Flat of $125.00$500.01-$1499.99 25% of payable gross defined below$1500.00 + 30% of payable gross defined below Payable gross is the total gross less $300 pack on all new vehicles less holdback, incentivesand/or Dealer Cash. Split deals between two regular sales people will be $125.00 flat and be split $62.50 betweenboth sales people. Retired Demos with over 3500 miles pay a flat of $400.00 or calculated % of the deal based onthe above gross calculation which ever is greater. You will be paid commissions on used vehicles delivered based on the following formula:25% of payable grossAs of 11/7/09, any USED vehicles sold will mean: Payable gross is total gross less$500.00 pack.Minimum Commissions are paid $100.00, with split deals paid $50. to each sales person Fast Start Bonus: Pay $300 for 7 Deals sold by the 15th of the Month. Top Sales Bonus: 1 st place - $650.00 2 nd place - $400.00 3 rd place - $250.00This bonus is paid for most units sold, delivered and posted in a calendar month. A tie goes tothe sales associate with the highest SPI monthly score on the most recently received report. If50% or more of your units are to AutoAdvisors or another fleet company you are exempt fromearning this bonus.Unit Bonus:11 pays $ 40013 pays $ 60014 pays $80015 pays $90016 pays $100017 pays $110018 pays $120019 pays $130020 Etc.District Average additional Unit Bonus’ will be paid as follows:11 pays and additional $100 for a total of $ 50013 pays and additional $150 for a total of $ 75016 pays and additional $200 for a total of $1,00017 pays and additional $300 for a total of $1,50020 pays and additional $400 for a total of $2,00025 pays and additional $500 for a total of $2,300 After 90 days of continuous employment, a minimum of 8 cars a month must be sold in order tomaintain employment. - YTD SPI SCORE BONUS HIGHEST $1,000.00 The YTD SPI bonus will be paid out in November and to qualify you must be here 6 months. A sales person with continued poor scores or a trend of declining scores can be grounds fordisciplinary action up to and including termination. ANNUAL TENURE BONUS PLAN: You will receive $5.00 per every retail unit you sell on athree year rolling period. The pay out year is based on sales from December 1st to November30th each year. The following years pay out will be based on the current years performance and the prior twoyears. All payouts will be paid out on or before December 15 th . You must be employed on the day of thepayout to receive this bonus.S 17

Commissions will be paid monthly by the 10th of the following month. If you are paid a draw oradvance on your commissions, we will deduct that amount from the commissions that you earn,and pay you the balance.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 30Toyota, BMW, Honda, Pontiac, Buick & GMC201 - Negotiated Sale# of Mechanical Technicians: 42 - Non-Union, Lateral supportBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 4 days after 90 days, 9 days after 1 year, 14 days after 2 years# Paid Sick Days: Vacation and sick are called pto Paid Holidays: 5 for all but productive on 3 for productive Other Benefits: Prepaid legal, HHF, FSA, AFLAC____________________________________________________________________________________Comments:I’m sure this all made sense to whoever created it. But when a pay plan runs to multiple pages, it is toolong. Remember, if it takes more than a minute or so to explain the pay plan, it is too complicated andtherefore ineffective.S 18

Salesperson36Base: $900/month draw, employee does not repay any uncovered amountsBase pay: 40% of projected incomeCommission: 25% of New, less $25 pack; 30% of Used, less $650 pack, 7.2% of F&IBonus: Fast Start Bonus (4 delivered by 10th working day) $250 to $400; Volume Bonus (startingat 8) $400, plus $50 incremental; Etch $20 per sale if etch is soldOther Compensation: Dealer withholds $25 per qualifying sale from consultant for Mark of Excellence.We also have "Selling Managers" who operate under this pay plan, but receive $1500base pay for taking on additional managerial responsibilities. This is a result of ourrecent downsizing to adjust to market conditions.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick Pontiac GMCMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 15 - Non-UnionDue to the decrease in sales volume, we have created selling manages and administrativemanagersBenefits:Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: One week paid after first year, two weeks paid thereafter # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Probably OK. Why is the used car pack so much higher than the new car pack? 7.2% of net F & Iincome. Where did 7.2% come from? Are we trying to make the pay plan fit some predeterminednumber? If so, say so!S 19

Salesperson37Base: $0Base pay: 0% of projected incomeCommission: 25% commission on new and used car profit $125.00 mini paid on cars that sell for lessCommission will equal about 80% of total pay, give or take, depending on number ofunitsCommission: 25% commission on gross profitsBonus: $100.00 bonus at 8,13,18,23 etc units 450.00 monthly bonus for top total sales, 450.00for top N/C gross and 450.00 top U/C grossOther Compensation:The sales person must make more than the # of hours worked times minumum wage orthe difference is made up____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota and ScionMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 9 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - One year's gross wagePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k, Safe Harbor # Vacation Days: 5 after 1 year, 10 after 2 years, 15 after 3 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Birthday off with pay____________________________________________________________________________________Comments:Basically OK, but some small base salary would provide a little comfort for the sales staff without puttingthe dealer at risk.S 20

Salesperson42Base: $0Base pay: 0% of projected income ($280/week draw against commissions earned)Commission: 30% of gross on each unit with a guarantee of $200.00, Options buyer - $300.00 per carwith 30% commission on accessories in the amount that exceed the cost; GMS (option Ibuyer) - $250.00Bonus: Salesman with highest gross - $150.00 unit bonus - 10 cars is $500.00, 13 cars -$750.00, 15 cars is $1000.00, 16th-19th car - $100 per car, 20 cars - $2000.00, 21st andeach subsequent car - $100.00Other Compensation: Demonstrator vehicle____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, Saturn & HummerMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 41 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan Life Insurance: Yes - Company pays $20,000 in coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401(k) # Vacation Days: 5 days after year, 10 days after 2 years# Paid Sick Days: up to 4 days in 1st year, 6 days after 1 year, 11 days after 10 years Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:Looks good. Remember there is no getting around the minimum wage requirements.S 21

Salesperson45Base: $350Base pay: 30% of projected incomeCommission: 17% front grossBonus: $20 per unit 12-14 $40 per unit 15 and aboveOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):GMMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 34# of Mechanical Technicians: 11 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $15,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 10 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Discounts on vehicles, parts & labor____________________________________________________________________________________Comments:I thought this was going to be a Saturn-type pay plan, but it’s not. This approach should work out OK. Ihave to question some of the information provided. A 100 unit/month dealership does not need 34 salespeople. 9 or 10 would be more like it.S 22

Salesperson49Base: $0Base pay: 0% of projected incomeCommission: 20 % of selling gross profitBonus: 5% retro on 9 units monthlyOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):UsedMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 8# of Mechanical Technicians: 3 - Non-UnionBenefits:Health Insurance: Yes - 100% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: N/A# Paid Sick Days: Included Paid Holidays: Included Other Benefits: N/A____________________________________________________________________________________Comments:Used car dealership. I’m surprised that the commission rate is only 20%, but if it works keep doing it.S 23

Salesperson50Base: Base: $0Base pay: 0% of projected income (most salespeople in this store earn $35,000 - $100,000/year)Commission: 20-30% of GP$Bonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FreightlinerMonthly Sales Vol. (new & used):

Salesperson51Base: Base: Paid minimum wage bi-monthly for clock time Minimum wage is a draw againstcommissionBase pay: 0% of projected incomeCommission: 25% Front End Gross or $650 of $779 addendum if sold to customer; $250 flat on demosand $1 per day on units over 100 days old up to $300.Bonus: $500 for fast start 6 units or more delivered $500 for fast finish 6 units or more deliveredOther Compensation: If sales consultant has 3 poor CSI surveys they are terminated.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Pontiac & BuickMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: N/A# of Mechanical Technicians: Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% for employee Life Insurance: Yes - None paid by employerPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 5 after 1st year 10 after third year # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail____________________________________________________________________________________Comments:Pretty good. I like that extra spiff for moving overage vehicles.S 25

Base:Base pay:Commission:Bonus:NoneNone20% of Gross profit from car dealN/AOther Compensation:Salesperson57____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick, Cadillac, PontiacMonthly Sales Vol. (new & used):

Salesperson58Base: NoneBase pay: NoneCommission: 25% on sales of 1-8 units; 30% on sales after 9 units; 5% on F&IBonus: 8 Units = $300 demo allowanceOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota ScionMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 4 - Non-UnionBenefits:Health Insurance: Yes - 40% Paid by Dealership Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after one year, 10 days after two# Paid Sick Days: 1/2 day a month Paid Holidays: 7 Other Benefits: 10% above cost on parts$25 hour labornew and used car employee pricing____________________________________________________________________________________Comments:Minimum wage is always a consideration, but otherwise good.S 27

Salesperson6Base: $0Base pay: 0% of projected incomeCommission: NC 29% FE Gross + 20% BO Gross after pack; UC 20% FE Gross + 20% BO Grossafter pack; Pack varies by model line $1500 - $2500Bonus: Rep of the month NC $1000 Rep of the month UC $500 Volume bonus over 8/month =$250/unit CSI vs Cat Average - minus $200 to plus $200Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):LexusMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 15 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 2x Gross EarningsPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, RRSP (Canada Specific) # Vacation Days: 10-20 days Depends on LoS # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: Purchase Plan, Ed Asst. LoS Awards____________________________________________________________________________________Comments:Is the difference between the new and used car commissions and packs really an attempt to manage thesales rep’s income? Otherwise, a dollar of gross profit should be equally desirable regardless of the typeof vehicle.S 28

Salesperson60Base: $0Base pay: 0% of projected incomeCommission: 25% of vehicle gross after pack.Bonus: Salespeople do not receive typical monthly bonuses for units/gross if they are below zoneon their CSI.Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 24 - Non-Union, Lateral Support GroupsBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 2 weeks # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:A small salary can help smooth cash flow requirements. I like the idea of withholding the bonus if CSI ispoor.S 29

Base:Base pay:Commission:Minimum Wage20% of projected incomeSalesperson67A salesperson is eligible to earn commissions as follows on “billed deals” per month:New Vehicles – 25% of sales payable gross or a $200.00 minimum commission; UsedVehicles - 25% of sales payable gross or a $100.00 minimum commission (up to 5 units);If 5 or more Used units are sold in the month (see split deals below), 30% of salespayable gross will be paid on all used units sold during the month (with the same $100minimum commission).NOTE: On deals where a closing manager is involved, commissions will be paid atabove rates less 5%Bonus: 10 units billed $250.00 $250.0012 units billed Additional $250.00 $500.0015 units billed Additional $1000.00 $1500.0020 units billed Additional $1000.00 $2500.0025 units billed Additional $500.00 $3000.0030 units billed Additional $1000.00 $4000.00Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 100Honda, Kia, Ford, Toyota, BMW, Subaru, Hyundai, Infiniti201 - Negotiated Sale# of Mechanical Technicians: 100 - Non-Union, Sales TeamsBenefits:Health Insurance: Yes - 65% Paid by Dealership Life Insurance: Yes – 100%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401(k) # Vacation Days: 5 # Paid Sick Days: 3 Paid Holidays: 6 Other Benefits: Supplemental 100% Employee Paid____________________________________________________________________________________Comments:I sure don’t want a closing manager involved in any of my deals. Can we agree that this approach makesthings overly complicated? Can a sales person really relate to the pay plan?S 30

Salesperson7Base: $2,000Base pay: 25-50% of projected incomeCommission: Commission based off 5% of gross on new or pre-owned vehicle sold and delivered.Bonus: NoneOther Compensation: Cell phone, Travel expenses, etc.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):AudiMonthly Sales Vol. (new & used):

SM:Sales Manager &Internet Sales

Base: $39,000Base pay:Commission:Bonus:50% of projected income$100 per unit 28% front end gross on Internet unitsN/AOther Compensation: N/AInternet Manager3____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota & CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 12 - UnionBenefits:Health Insurance: Yes – 100% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10 # Paid Sick Days: 10 Paid Holidays: 8 Other Benefits: N/A____________________________________________________________________________________Comments:Pay plans for Internet managers have been evolving and continue to develop. I like this one. It looks likefair compensation for the value of the job.SM 1

Internet Manager32Base: $24,000Base pay: 80% of projected incomeCommission: $100 per referral on units soldBonus: CSI Bonus $2,400 to Zero per yearOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 7 - Non-Union, Tech's work on the full car - not specializedBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, Pension and 401K # Vacation Days: 5 days after 1 year - 10 days after 2 years# Paid Sick Days: 5 days after 1 year Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:The formula is good. The projected pay looks light for the value of the job.SM 2

Base: $20,000Base pay:Commission:Bonus:50% of projected income$50 + 25% gross / vehicleOther Compensation: ContestsTiered bonus on # vehicles sold and on grossInternet Manager55____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford Lincoln Mercury MazdaMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes – 33.3% Paid by Dealership Life Insurance: Yes - $100KPrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1-3 weeks # Paid Sick Days: 5 Paid Holidays: 6 Other Benefits: Demos____________________________________________________________________________________Comments:I assume the 25% of the gross applies only to units delivered by the Internet Manager.SM 3

Internet Manager8Base: $35,000Base pay: 100% of projected incomeCommission: NoneBonus: NoneOther Compensation: Phone provided and paid for reinbursed for fuel usage____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Porsche, Audi, Infiniti, VWMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 11# of Mechanical Technicians: 21 - Non-Union, Each department is separateBenefits:Health Insurance: Yes – 80% Paid by Dealership Life Insurance: Yes - $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 10# Paid Sick Days: None Paid Holidays: All State only Other Benefits: Demo____________________________________________________________________________________Comments:As much as I like salary-based pay plans, 100% salary for an Internet Sales Manager is off the mark.There should be a combination of salary (60%) and incentives (40%) in recognition of the revenueproduction required of the position.SM 4

Internet Salesperson27Base: $0Base pay: 0% of projected incomeCommission: 10% of the gross on Internet units deliveredBonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 10# of Mechanical Technicians: 12 - Non-UnionBenefits:Health Insurance: Yes – 50% Paid by Dealership Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 # Paid Sick Days: 0 Paid Holidays: 7 Other Benefits: N/A____________________________________________________________________________________Comments:Obviously this Internet Manager is not really a manager at all. The pay plan assumes that the job is salesoriented. Question: Why 10% of the gross on Internet deals? Are they worth less than traditionalshowroom deliveries or is this an attempt to manage the employee’s income?SM 5

Base: $12,000Base pay:20% of projected incomeInternet Salesperson34Commission: You will be paid commissions on Used Vehicles Sold based 25% of the CommissionableGross as defined below:Commissionable gross is total gross less $500.00 pack. Minimum commission equals $100.00 This isput into a pool and divided equally between all members of the used Internet teamYou will be paid commissions on new vehicles delivered based on the following formula:Commissionable gross: $500.00 and less = Flat of $125.00$500.01-$1499.99 = 25% of commissionable gross$1500.00+ = 30% of commissionable gross.Commissionable gross on new units is total gross less $300 pack on all new vehicles less holdback,incentives and/or Dealer CashThis is put in to a pool and divided equally between all members of the used internet teamRetired Demos with over 3500 miles pay a flat of $400.00 or calculated % of the deal based on the abovegross calculation which ever is greater.Department Unit Bonus: For total units (new and used) sold ,the two Internet UC salespersons will split abonus as follows: Units Bonus8 $10010 $50012 $75015 $1,00018 $1,50020 $2,00025 $2,500For total units (new and used) sold the two Internet UC salespersons will split another bonus as followsfor the number of New Vehicles sold. If your personal SPI MTD score is not red. If your score is Red youforfeit this portion of the bonus and those monies remain with the dealership.Total Units Bonus8 $ 25/new vehicle sold10 $75/new vehicle sold12 $100/new vehicle sold15 $150/new vehicle sold18 $200/new vehicle sold20 $250/new vehicle soldAddional Bonus: Top 25 Certified Dealer: $500#1 unit preowned sales in MAG $500$10 per preowned unit delivered during month / $20 per pre owned unit if pre owned departmentachieves objectiveRetro Bonus: If you sell a total of 15 Units (New and Used) you will be paid an additional 5% of thepayable gross for all units that had a Deal Gross of $2000.00 or more. This is put in to a pool and dividedequally between all members of the used internet teamF&I Bonus: $500, is paid to the Used Vehicle Sales Person including used internet sales associates withthe highest finance PVR. This is put in to a pool and divided equally between all members of the usedinternet team There is a 10 unit qualifier. If the highest finance PVR Sales Associate doesn’t have 10units the bonus is not paid.SM 6

Fast Start Bonus: 6 deals delivered by the 15th pays $300. 10 deals delivered by the 15th pays $500.00This is put in to a pool and divided equally between all members of the used internet team******Monthly bonuses will be dependent on salesperson’s CSI scores remaining above benchmark asevidenced by Certified Used Car Delivery Process.You will receive $5.00 per every retail unit you sell on a three year rolling period.based on sales from December 1st to November 30th each year. For example:The pay out year isYear Units Payout Bonus12/04 – 11/05 100 $5 per car $500 paid12/05 – 11/06 125 $5 per car, both years $1,125 paid12/06 – 11/07 150 $5 per car, for three years $1,875 paid12/07 The following years pay out will be based on the current & the prior twoyears performance .***All payouts will be paid out on or before December 15 th . You must be employed on theday of payout to receive this bonus.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 30Toyota, BMW, Honda, Pontiac, Buick & GMC201 - Negotiated Sale# of Mechanical Technicians: 42 - Non-Union, Lteral supportBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 4 days after 90 days, 9 days after 1 year, 14 days after 2 years# Paid Sick Days: Vacation and sick are called pto Paid Holidays: 5 for all but productive on 3 for productive Other Benefits: Prepaid legal, HHF, FSA, AFLAC____________________________________________________________________________________Comments:Why so complicated? Will this sales rep really be thinking about the variations in the pay plan as he/she istrying to close a deal?SM 7

Internet Salesperson49Base: $0Base pay: 0% of projected incomeCommission: 30%Bonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):UsedMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 8# of Mechanical Technicians: 3 - Non-UnionBenefits:Health Insurance: Yes – 100% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: N/A# Paid Sick Days: included Paid Holidays: Included Other Benefits: N/A____________________________________________________________________________________Comments:Don’t forget the minimum wage. Looks like a standard sales person’s plan as long as other dealershipsalespeople also get 30% of the gross.SM 8

Internet Salesperson57Base: NoneBase pay: 0% of projected incomeCommission: 20% of net profit from their car dealsBonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick, Cadillac, PontiacMonthly Sales Vol. (new & used):

Internet Salesperson58Base: $1,500 MonthBase pay: 50% of projected incomeCommission: 25% on salesBonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, ScionMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 4 - Non-UnionBenefits:Health Insurance: Yes - 40% Paid by Dealership Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after one year, 10 days after two# Paid Sick Days: 1/2 day a month Paid Holidays: 7 Other Benefits: 10% above cost on parts$25.00 hour laborNew and used car employee pricing____________________________________________________________________________________Comments:This is better. Good way to pay an Internet sales rep.SM 10

Base:Base pay:Commission:Bonus:$100,000.00 annually100% of projected incomeN/AN/ANOTE: This is our wholesale director pay programWholesale Truck/Car Manager14____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda and NissanMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 19# of Mechanical Technicians: 20 - Non-UnionBenefits:Health Insurance: Yes - Dealership pays 80% of employee Life Insurance: Yes - $237.93/month employee; $312/month if family coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K with 20% match of first 4% saved # Vacation Days: 1 week after 1 year, 2 weeks after 3 years, 3 weeks after 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Vision, AFLAC paid by employee, 60% of disability premium____________________________________________________________________________________Comments:Most dealerships don’t have this position.SM 11

Leasing Manager6Base: $3,042Base pay: 35% of projected incomeCommission: 25% NC Gross Profit; 4% NC Selling Profit; $125 per lease renewalBonus: Hit Selling NC Profit Target = $500 Meet or Beat CSI National Average = $250Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):LexusMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 15 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 2x Gross EarningsPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, RRSP (Canada Specific) # Vacation Days: 10 - 20 Depends on LoS # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: Purchase Plan, Ed Asst. LoS Awards.____________________________________________________________________________________Comments:Looks very attractive for the sales person. Salary/commission split is good. Why the distinction betweenthe gross profit and the net profit from selling the car? Does this sales rep have any control ofdepartmental expenses?SM 12

TLC:Title Clerk

Title Clerk1Base: $725Base pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):FordMonthly Sales Vol. (new & used):

Title Clerk19Base: $600 per weekBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, GMC, PontiacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 6# of Mechanical Technicians: 6 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: No Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: up to 3 weeks # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Hourly wage for title clerks is the right way to pay.TLC 2

Title Clerk21Base: $14.50 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Toyota, ScionMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 26# of Mechanical Technicians: 29 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays flat $200 per month per employee Life Insurance: Yes - any portion of $200 monthly allowance not use on health insuranceapplied to life insurancePrescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 1 week after 1 year, 2 weeks after 3 years, 3 weeks after 15 years# Paid Sick Days: 3 per year Paid Holidays: 6 Other Benefits: vision, short and long disability____________________________________________________________________________________Comments:Hourly wage for clerical staff is the right way to pay.TLC 3

Title Clerk32Base: $10.00 per hour on 40 hours and OT for 5 hoursBase pay: 90% of projected incomeCommission: N/ABonus: CSI Bonus $2,400 to zero per yearOther Compensation: Spiffs and referrals at $100 per each____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CadillacMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 7 - Non-UnionTech's work on the full car - not specializedBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, Pension and 401K # Vacation Days: 5 days after 1 year - 10 days after 2 years# Paid Sick Days: 5 days after 1 year Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Hourly wage for title clerks is the right way to pay.TLC 4

Title Clerk37Base: $14.50 per hourBase pay: 100% of projected incomeCommission: N/ABonus: NoneOther Compensation: None____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota and ScionMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 9 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - One year's gross wagePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k, Safe Harbor # Vacation Days: 5 days after 1 year, 10 days after 2 years, 15 days after 3 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Birthday off with pay____________________________________________________________________________________Comments:Hourly wage for title clerks is the right way to pay.TLC 5

Title Clerk57Base: $2,200 monthBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick, Cadillac, PontiacMonthly Sales Vol. (new & used):

Title Clerk61Base: $16.10 per hourBase pay: 100% of projected incomeCommission: N/ABonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ToyotaMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-UnionBenefits:Health Insurance: Yes 55% Paid by Dealership Life Insurance: Yes - $20,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 Max # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Offer Employee Paid Supplemental Insurance, Employee Discounts____________________________________________________________________________________Comments:Hourly wage for title clerks is the right way to pay.TLC 7

Title Clerk64Base: $18,000Base pay: 75% of projected incomeCommission: $10/dealBonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):New RV'sMonthly Sales Vol. (new & used):

USM:Used Car SalesManager

Used Vehicle Sales Manager10Base: $4,000 monthly drawBase pay: 0% of projected incomeCommission: Used car gross profit less wholesale gross profit x 4.25%Bonus: $500 each at $209,000 gross $1,000 each at $250,000 gross $1,500 each at $300,000gross $2,000 each at $350,000 gross $2,500 each at $400,000 grossOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, MitsubishiMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 27# of Mechanical Technicians: 20 - Non-Union, Service TeamsBenefits:Health Insurance: Yes Life Insurance: NoPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 7 # Paid Sick Days: 3 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Probably works out OK in the end, but this is a senior dealership manager and should get a salary plusbonus for surpassing goals.USM 1

Used Vehicle Sales Manager12Base: NoneBase pay: 0% of projected iincomeCommission: 1.95% of GP for new & fleet sales including Bus.Office gross (less BO commissions) lesssales compensation, less sales policy, less advertising expense, less lot damage. 5.35%of GP for used retail & wholesale sales including Bus.Office gross (less BO commissions)less sales compensation, less sales policy, less advertising expense, less lot damage.Bonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 17# of Mechanical Technicians: 15 - UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - 2 times annual earnings, maximum benefit $300,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 2 weeks with 1 year, 3 weeks with 4 years, 4 weeks with 9 years # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:Paid like a glorified team leader. If this person is really a used vehicle manager, how about appraisingtrade and attending the auction? Pay managers a salary a plus bonus.USM 2

Used Vehicle Sales Manager14Base: $1,400 per week drawBase pay: 0% of projected incomeCommission: No 60 days units at month close = $2500; $100 bonus per retail unit after 60 units permonth (minimum $3,000 $ + ACV to qualify; At $115,000 of vehicle gross profit $2,000bonus plus 4% of all vehicle gross over $115,000Bonus: F&I Bonus; line #10 of financial divided by total retail units -- $500/avg retail $1500; $600avg/retail $2000; $700 and above avg/retail $2500Other Compensation: Rotate driving UC____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Honda and NissanMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 19# of Mechanical Technicians: 20 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 80% of employee Life Insurance: Yes - $237.93/month employee; $312/month if family coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k with 20% match of first 4% saved # Vacation Days: 1 week after 1 year, 2 weeks after 3 years, 3 weeks after 10 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Vision, AFLAC paid by employee, 60% of disability premium____________________________________________________________________________________Comments:Convert the draw to a salary and reduce the commission/bonus amounts by 25% and we have a goodpay plan for a used car manager.USM 3

Used Vehicle Sales Manager15Base: $12,000Base pay: 14% of projected incomeCommission: 3.25% of total used sales gross, plus DX income, less policy and delivery chargesBonus: $500 if 50 or more retail used are sold in a monthOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s): 6Monthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 33 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $25,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: Short term disability____________________________________________________________________________________Comments:We’re on the right track here. Higher salary and a little less commission and this would be just right.USM 4

Base: $48,000Base pay: 65% of projected incomeCommission: N/ABonus:Used Vehicle Sales Manager16A retailer balance scorecard bonus will be paid monthly on the last day of the subsequentmonth. This bonus will be based on actual showroom achievements versus employerforcasted requirements. This bonus will begin to be paid when an achievement level of80% of forecast is reached and it will pay to a maximum of 140% of forecast. Themaximum at 140% in all measurements will pay $75.00 per unit delivered. The chartbelow lists the measured criteria and weight of importance in the balance scorecard.Strategic MeasureNew Unit Target 20%New Gross Target 19%CSI 8%Used Unit Target 20%Used Gross Target 19%New F&I Gross Target 5%Used F&I Gross Target 5%New Net Income 2%Used Net Income 2%WeightOther Compensation:In addition to the retailer balance scorecard bonus a net income bonus of 2% will be paid on newand used net income, this bonus will be paid monthly on the last day of the subsequent month.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Monthly Sales Vol. (new & used):# of Sales People: 7NO51-100 - Negotiated Sale# of Mechanical Technicians: 12 - Non-Union, TeamsBenefits:Health Insurance: Yes - 80% Paid by Dealership Life Insurance: Yes - SalaryPrescription Plan: No Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 # Paid Sick Days: 2 Paid Holidays: 10 Other Benefits: N/A____________________________________________________________________________________Comments:On the one hand, I applaud the dealer for paying 65% salary. That’s a smart move. On the other hand,the bonus plan has too many elements. When you see it laid out on that chart, how can anyone bethinking of all those things when trying to sell a car?USM 5

Used Vehicle Sales Manager2Base: $48,000Base pay: 51% of projected incomeCommission: 4% of the New and Used Variable Net - Operating Income minus variable selling expenseand floor plan assistanceBonus: Inventory Bonus: no inventory over 60 days + $1000 / inventory over 90 days -$500Other Compensation:Special Finance Bonus: 10% of bonus check when BOOK close & 10% of the BOOk when it matures(usually 36 month from close)____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):HondaMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 16 - Non-Union, combination - some team / some direct reportBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 50%Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1 week after 1 year, 2 weeks after 2 years, 3 weeks after 15 years # Paid Sick Days: 0 Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:Good pay plan. Get the manager to concentrate on net profits and inventory management. How he doesit is up to the manager.USM 6

Used Vehicle Sales Manager22Base: $2,500Base pay: 20% of projected incomeCommission: 3.5 Percent of adjusted gross profit, less wholesaleBonus: Volume bonus based on intervals of 10Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMW, Porsche, Volkswagen, Subaru, IsuzuMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $100KPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: NoRetirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 3 Other Benefits: N/A____________________________________________________________________________________Comments:Must be nice to be the used car manager in a BMW store. This pay plan is pretty much what werecommend. Salary plus an easy-to-understand bonus program that pays a significant reward forsignificant achievement.USM 7

Used Vehicle Sales Manager22Base: $2,000 per monthBase pay: 25% of projected incomeCommission: 5 percent of adjusted gross profitBonus: $50 per car for Subaru franchiseOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMW, Porsche, Volkswagen, Subaru, IsuzuMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 25# of Mechanical Technicians: 35 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes - $100KPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 12 # Paid Sick Days: 0 Paid Holidays: 3 Other Benefits: N/A____________________________________________________________________________________Comments:Looks good. Pay is attractive and the goals are very much under the control of the manager.USM 8

Used Vehicle Sales Manager25Base: $875 per weekBase pay: 50% of projected incomeCommission: * Commission of 20% of the gross profit of each unit you sell through the MercedesAnnex in Shrewsbury. Used vehicles sold from other locations inventory will commissiononly – not based on gross.* F & I Commission of 20% for each unit sold at the Annex, 5% on vehicles sold fromother locations inventory.Bonus: N/AOther Compensation: Monthly automobile allowance of $300.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):BMWMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 9# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 15 max # Paid Sick Days: 5 Paid Holidays: 7 Other Benefits: Car allowance (managers)____________________________________________________________________________________Comments:Basically $875/week plus 20% of the front and back-end gross from the manager’s store. Why 20%?That seems high. If sales reps get 20 -25% and the manager gets 20% of what’s left, that doesn’t leave alot for overhead and profit.USM 9

Used Vehicle Sales Manager28Base:Base pay:Commission:Bonus:Draw against commission of $64,800 annually0% of projected income3.75% of Total Variable GrossAttain $250,000 Gross=$1,000Attain $300,000 Gross=$1,000 moreAttain $350,000 Gross=$1,000 moreIf 75 used vehicles are sold retail in a month there is a $1,000 bonus.Clean used vehicle inventory pays $500 bonus.Clean equals no vehicles over 90 days old.2% SFE bonusOther Compensation: $500 vehicle allowance____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):ChevroletMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 13# of Mechanical Technicians: 8 - Non-Union, Sales teams with alternating schedulesBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes # Vacation Days: 5 days after one year of employment # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:Again, the dealership can achieve the same objective with less variability by paying a decent salary and alower commission rate. You will hit the target you want without exposing the dealership and employee towide swings. Does the draw have to paid back, if not earned?USM 10

Used Vehicle Sales Manager34Base: $0Base pay: 0% of projected incomeCommission: Commissions & Bonuses 6.5% of Used vehicle gross and Used F&I net gross less new F&I net charge backsPG 2 LINE 2 Toyota NCM STATEMENT Less Used Policy page 2 line 15 Less Used Delivery expense page 2 line 8Bonus: N/AOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Toyota, BMW, Honda, Pontiac, Buick & GMCMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 42 - Non-Union, Lateral supportBenefits:Health Insurance: Yes Life Insurance: YesPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 4 days after 90 days, 9 days after 1 year, 14 days after 2 years# Paid Sick Days: Vacation and sick are called pto Paid Holidays: 5 for all but productive on 3 for productive Other Benefits: Prepaid legal, HHF, FSA, AFLAC____________________________________________________________________________________Comments:What would be wrong with a salary equal to 50% of expected earnings and a commission rate of 3.25%?USM 11

Used Vehicle Sales Manager36Base: $2,000Base pay: 33% of projected incomeCommission: 1.3% of total variable gross (new & used, plus F&I comp) from monthly statement, line 2Bonus: $500 for beating our main competitor$500 for leading market areaBoth bonuses come with CSI qualifier of 85%Other Compensation: $1.50 per Etch sold____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Buick, Pontiac, GMCMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 15 - Non-UnionDue to the decrease in sales volume, we have created selling manages and administrativemanagersBenefits:Health Insurance: Yes – Dealership pays 50% of Employee, 0% of Spouse and family Life Insurance: NoPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: One week paid after first year, two weeks paid thereafter # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: N/A____________________________________________________________________________________Comments:I like this pay plan. I’d get behind it.USM 12

Used Vehicle Sales Manager39Base: $5,000Base pay: Approximately 40% of projected incomeCommission: NoneBonus: Paid monthly, 2% New selling gross, 4.5% Used selling grossOther Compensation: Demo____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Lincoln, MercuryMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 14# of Mechanical Technicians: 15 - Non-Union, NoBenefits:Health Insurance: Yes - 100% paid by the dealership for the employee Life Insurance: Yes - $10,000Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401k # Vacation Days: 5 days for 1 year and 10 days for 2+ years# Paid Sick Days: 4 per year Paid Holidays: 5 Other Benefits: Vision____________________________________________________________________________________Comments:Nothing wrong with this pay plan. It’s the type of formula that we would recommend.USM 13

Used Vehicle Sales Manager42Base: $800 per weekBase pay: 45% of projected incomeCommission: N/ABonus: * 3% of used vehicle gross profit after controllable expenses (sales comp, delivery exp,policy work, advertising, floorplan esp)* 1.0% of used vehicle gross profit* 1/2% new car sales profit* Quarterly SFE bonus - if facility satisfies criteria - $1,000Other Compensation: Demonstrator vehicle____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Cadillac, Saturn & HummerMonthly Sales Vol. (new & used): 201 - Negotiated Sale# of Sales People: 30# of Mechanical Technicians: 41 - Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% of base plan, offer buy up plan Life Insurance: Yes - Company paid $20,000 coveragePrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 5 days after year, 10 days after 2 years# Paid Sick Days: up to 4 days in 1st year, 6 days after 1 year, 11 days after 10 years Paid Holidays: 6 Other Benefits: N/A____________________________________________________________________________________Comments:Darn! And it started off so well. Pay the bonus on the gross profit or the adjusted net, but not both.Ultimately these are the same dollars.USM 14

Base:Base pay:Commission:$2,250 per month25% of projected incomeIncreasing commission based on department gross to:Gross profitBonus100k 1%100 to 200 k 1.5%200 to 300k 2.00%300k + 2.5%Used Vehicle Sales Manager5Bonus for units sold. New1-20, $621-40 $841-60 $1061-80 $1481+$20Bonus:Used units sold bonus,1-20 $621-40 $841-60 $1061-80 $1481+ $20Salesmen's performance bonus $100 for each salesman achieving 10 deals or more.Aged unit bonus of $1000 if there are no used units over 120 days.Other Compensation: Car allowance of $450 per month, gas allowance of $150 per month, cell phone.____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Chrysler, Dodge, JeepMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 12# of Mechanical Technicians: 22 - Non-UnionBenefits: Health Insurance: Yes - 60% Paid by Dealership Life Insurance: Yes Prescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, Group RRSP # Vacation Days: 10 days after one year, 15 days after 5 years, 20 days after 10 years # Paid Sick Days: 0 Paid Holidays: 9 Other Benefits: N/A____________________________________________________________________________________Comments:Combine the new and used unit bonus plans. They are the same. Don’t get too complicated trying to fitthe pay plan into a desired income range. It rarely works out as intended.USM 15

Used Vehicle Sales Manager51Base: $2,000 DrawBase pay: 0% of projected incomeCommission: 2.5% Used Variable GrossBonus: $25.00 per vehicle delivered after 59th vehicleOther Compensation: Demo and gas allowance____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Pontiac & BuickMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: N/A# of Mechanical Technicians: Non-UnionBenefits:Health Insurance: Yes – Dealership pays 50% for employee Life Insurance: Yes - None paid by employerPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: No # Vacation Days: 5 days after 1st year, 10 days after third year # Paid Sick Days: 0 Paid Holidays: 5 Other Benefits: Vehicles $500 over cost, Parts cost+10%, Labor 15% off retail____________________________________________________________________________________Comments:The formula has a lot to recommend it. The only change I would make is paying a salary and a smallercommission rate. This is a senior dealership manager, after all.USM 16

Used Vehicle Sales Manager55Base: $43,000Base pay: 40-50% of projected incomeCommission: N/ABonus: ProductionOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):Ford, Lincoln, Mercury, MazdaMonthly Sales Vol. (new & used): 51-100 - Negotiated Sale# of Sales People: 7# of Mechanical Technicians: 10 - Non-UnionBenefits:Health Insurance: Yes – 33.3% Paid by Dealership Life Insurance: Yes - 100Prescription Plan: Yes Dental Plan: Yes Profit Sharing: Yes Stock Options: No Retirement Plan: Yes, 401K # Vacation Days: 1-3 weeks # Paid Sick Days: 5 Paid Holidays: 6 Other Benefits: Demos____________________________________________________________________________________Comments:This looks OK, but I’d like to have more detail on the bonus.USM 17

Used Vehicle Sales Manager6Base: $4,075Base pay: 41% of projected incomeCommission: 0.38% NC Gross Profit2.2% UC Gross Profit3.00% UC Selling ProfitBonus: Hit NC Selling Profit Target = $500Hit UC Selling Profit Target = $500Other Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):LexusMonthly Sales Vol. (new & used): 101-200 - Negotiated Sale# of Sales People: 18# of Mechanical Technicians: 15 - Non-Union, Service TeamsBenefits:Health Insurance: Yes - 50% Paid by Dealership Life Insurance: Yes – 2x Gross EarningsPrescription Plan: Yes Dental Plan: Yes Profit Sharing: No Stock Options: No Retirement Plan: Yes, RRSP (Canada Specific) # Vacation Days: 10 - 20 Depends on LoS # Paid Sick Days: 0 Paid Holidays: 10 Other Benefits: Purchase Plan, Ed Asst. LoS Awards____________________________________________________________________________________Comments:Where do percentages like .38% and 2.2% come from? They are not standard benchmarks. The onlything I can guess is that the dealer started with a desired income range for the manager and backed intoit using these percentages. That’s OK as long as everyone realizes what is going on.USM 18

Used Vehicle Sales Manager68Base: $450/weekBase pay: 45% of projected incomeCommission: 30% used vehicle sales gross profitBonus: 2% annual net incomeOther Compensation: N/A____________________________________________________________________________________General Dealership Information:Dealer Franchise(s):CheveroletMonthly Sales Vol. (new & used):