Salary for a Car Finance Manager

Source

© 2012 by Aurelio Locsin.

Car finance managers are only one of the 1 million positions available in the automobile dealer industry as of May 2011, according to the Bureau of Labor Statistics. Other jobs include management, sales, installation and repair, with an average wage of $21.29 per hour or $44,280 per year for all professions.

Basics

Car finance managers evaluate and process loan applications, as well as coordinate the activities of subordinate loan officers and credit analysts. They recruit, motivate, oversee training programs for, and fire credit and loan staff. They also establish and carry out loan procedures and standards; ensure that the number and amount of loans meet dealer goals; and prepare reports for management. They also handle customers whose applications and money situations require special attention and analysis. Car finance managers could expect a mean income of $51.74 per hour or $107,610 per year in 2011.

Education

The BLS states that financial managers need a minimum degree in finance, accounting or business administration. Many also have more than 5 years experience in a subordinate position. Those helming larger dealerships with several branches may need a master’s degree in the same subjects. Professional certification is not required. However, it is available from national organizations. These credentials typically need experience, an education and passing an exam. Some dealerships may have training programs to help subordinate workers qualify for the finance manager position even without the prerequisite educational background.

Starting

Car finance managers generally start work at automobile dealers as either credit analysts or loan officers. They can thus gain practical experience in the industry and experience first-hand what their subordinates go through. Both analysts and officers can help a consumer obtain a car loan by helping him fill out paperwork and evaluating finances. However, officers traditionally meet with loan applicants while analysts evaluate the numbers. The BLS showed an even split between both professions, which may indicate interchangeability between both job titles. For 2011, loan officers earned a mean $39.74 per hour or $82,670 per year, while credit analysts averaged $37.63 per hour or $78,280 per year.

Outlook

The BLS sees jobs for all financial managers, including those working in car finance, increasing at 9 percent from 2010 to 2020. This compares to the 7 percent growth seen for all management occupation and the 14 percent predicted for all jobs in all industries. A growing population and a growing economy will spur much of the growth. However, consolidation in the automobile industry means fewer jobs. Competition will be strong because the number of applicants will exceed the number of openings.

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Comments 17 comments

TToombs08 profile image

TToombs08 4 years ago from Somewhere between Heaven and Hell without a road map.

That's about where I thought they would be, very interesting information. VUM. :)


teaches12345 profile image

teaches12345 4 years ago

This is another career that holds interest for those who love the interaction with people. I find the salary a big higher than expected. Does this include commission and bonus? A nine percent increase isn't bad over the next few years.


Sunshine625 profile image

Sunshine625 4 years ago from Orlando, FL

Now this is an interesting career to look into for those who might be car fanatics! Well researched!


billybuc profile image

billybuc 4 years ago from Olympia, WA

Wow, that's pretty good money for that job! I could never do it but still, excellent money. Great job of research; very interesting series you are writing.


Peggy W profile image

Peggy W 4 years ago from Houston, Texas

As billybuc stated, this is a very interesting series you are writing about the salaries for various types of jobs. It is valuable for those people seeking jobs in the here and now and also considering jobs for the future. Voted useful and interesting. Thanks!


b. Malin profile image

b. Malin 4 years ago

You always make these Hubs so Interesting Alocsin. I so Enjoy following them. And the Questions and Comments show we are all Enjoying them as well. Thanks for sharing this useful Information.


alocsin profile image

alocsin 4 years ago from Orange County, CA Author

I believe this is only slaary, teaches12345.


tammyswallow profile image

tammyswallow 4 years ago from North Carolina

That is one job I wouldn't want. I really thought they made more than that. I always learn something new when I visit you. Well done!


cclitgirl profile image

cclitgirl 4 years ago from Western NC

Interesting...I admit my ignorance when I say that I didn't know finance managers had to have so much training. I had thought that they were previous car salesmen and had worked up the ranks. In any case, they make a chunk of change, for sure. For the person who wants to do that, that's great; I admit I am too right-brained for it. ;)


Nell Rose profile image

Nell Rose 4 years ago from England

Great info as always alocsin, I used to work in the car trade, Fords to be exact so its good to know who earns what amount, sadly I was in the recall business so it was a really low wage.


molometer profile image

molometer 4 years ago

Interesting to see the level of qualifications that a finance manager may have in the US.

The motor industry [sales] here is less well developed as far as qualifications go, from what I have seen.

Most dealerships are one man bands owner dealerships. There are of course the big firms like Ford Toyota etc.

Interesting to know the basic salary for a car finance manager.

I assume they have a bonus scheme for commissions too?

Great information. Votes and sharing.


alocsin profile image

alocsin 4 years ago from Orange County, CA Author

Yes, molometer, they typically have all kinds of bonuses.


Brett.Tesol profile image

Brett.Tesol 4 years ago from Somewhere in Asia

Not a bad salary. I've been involved in the lending scene before and the bonuses can be nice. It is also quite rewarding when you can agree a loan for someone, or can save someone money buy getting them a better deal!

Shared, up, useful and tweeted.


Doodlehead profile image

Doodlehead 4 years ago from Northern California

Interesting---even though I 'm in finance I had no knowledge of this occupation. I thought they just plugged numbers into the computer and read them off as needed.


rcrumple profile image

rcrumple 4 years ago from Kentucky

From '93 thru '09, I was associated with the automobile industry. I held the positions of corporate training director, finance & insurance manager, and sales manager during my stay. I also trained sales forces, customer retention departments, and business development centers nationwide.

The description presented by the BLS is far from accurate. There is no college education required for the positions at all. In fact, in many dealerships, the F & I position is a prerequisite to Sales Management, and takes the more intelligent salespersons through an on the job training process. Most states require insurance licenses for the credit life insurance sales, but not all.

Salaries are unheard of in the finance or sales departments. Commission is the standard. After market product sales, warranties, and other tricks of the trade are how an F&I manager makes his or her money. The general process is the salesperson gets the customer commitment to buy, the sales manager works the deal, runs the credit, and see's what the customer qualifies for, then the F&I manager presents the after market products and contracts the customer. I trained at some huge dealerships across the United States, and have never seen separate positions of credit analysts or loan officers. If there are any, they are most certainly not the norm.

As far as the money stated is concerned, the BLS usually figures wages based on a forty hour work week. That is a rare creature in the auto industry. Most management personnel work 55-60 hours a week as most start at 8 am and don't get off work until 9 pm if lucky. The money also fluctuates greatly dependent on vehicle brand.

The BLS information is way off base on this topic. I'm wondering if perhaps they've included finance company (lending institutions) positions in their info, which have no dealership presence whatsoever. I'm not one to make bad comments in hubs, and I'm sure you researched your information through the BLS, but the reality of the situation is that it's simply not correct. My apologies. Your presentation was well done and interesting.


alocsin profile image

alocsin 4 years ago from Orange County, CA Author

It's always good to hear from a person who has actually worked in the field, rcrumple. I appreciate the facts that you brought to light, so we can compare it with the BLS info.


sara shaw 2 years ago

If anyone knows of any f&i manager jobs available in Minnesota, please contact me at sarashaw489@outlook.com. I have young kids and cannot travel. Please email me at the number I provided. Thank You,

Sara Shaw

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