8:25 am, October 29, 2025
The motor trade has seen ‘modest’ pay growth this year in the face of mounting cost pressures.
That is according to a new survey from BDO UK, which has recently published its ‘Motor Salary Survey’ for 2025.
The data found that overall total remuneration — including salary, bonus and commission — rose by 5% across all roles throughout the last year. However, that figure shrunk to just 2% when management positions were removed from the mix.
Meanwhile, despite the small rise in basic salaries, commissions and bonuses fell by a combined 7%.
The BDO is one of the world’s largest professional services networks, providing audit, assurance, tax, and business advisory services.
Its latest survey spoke to over 150 automotive businesses employing more than 20,000 people.
In its report into the findings, the BDO of automotive wages: ‘This modest growth masks a more significant shift in the composition of pay.
‘Basic salaries rose by 5%, while commissions and bonuses declined by 7%, indicating a potential move away from variable pay.
‘This is the second year in succession where this has happened, suggesting that employers might be prioritising income stability for their workforce in response to fluctuating sales volumes and tighter margins.’
Elsewhere, the BDO found a staff turnover rate of 28% — down from 32% the year before.
Experts say that while the figure may suggest an increase in employee retention or loyalty, respondents’ workforces shrank by 8% during the period.
The report added: ‘Employee costs are the largest expense in any dealership, accounting for a significant percentage of gross profit, and with increasing pressures on margins, expense and employee management is critical to sustained profitability,’
The full report is available for download from BDO’s website.
