![]() ![]() What does it measure: The average cost price of the retail vehicles that the dealership sells. Why is it important: Provides an understanding of the value of the used vehicles the dealership has available to sell.Ĭalculation: (Used Vehicle Retail & Wholesale Sales - Used Vehicle Retail & Wholesale Gross Profit) ÷ No. What does it measure: The average cost to holding a used vehicle at the dealership. being unable to sell them).Ĭalculation: Value of Used Vehicle Stock on Hand ÷ No. Why is it important: Indicates how long dealers are holding their stock (i.e. What does it measure: Measures the mix of stock based on the date they were brought into stock. floorplan interest.Ĭalculation: Value of Stock Held for 0-30* Days ÷ Value of Total Stock on Hand Consistently high days supply figures should be addressed as there is a direct correlation to stock holding costs of the dealership e.g. Why is it important: Indicates how well used vehicle stock levels are controlled. What does it measure: How many days the dealership can sustain sales for based on levels of used vehicle stock and current sales performance. If this figure is low, but 'gross per sales employee' is high - the dealership should investigate the department's expense control.Ĭalculation: (No. Why is it important: It is useful to compare this KPI to Gross per Sales Employee per Month. ![]() What does it measure: How much gross profit was retained on average by each used vehicle sales employee. Selling Gross per Used Vehicle Sales EmployeeĬalculation: (Used Vehicle Gross Profit 1 - Used Vehicle Variable Expenses - Used Vehicle Semi Fixed Expenses) ÷ No. If this figure is low, but 'gross per unit' is high - the dealership should investigate the department's expense control. ![]() Why is it important: It is useful to compare this KPI to Gross Profit per Used Vehicle Sold. What does it measure: How much gross profit was retained on average for each used vehicle sold by the dealership. Selling Gross per Used Vehicle Retailed ($PUVR)Ĭalculation: (Used Vehicle Gross Profit 1 - Used Vehicle Variable Expenses - Used Vehicle Semi Fixed Expenses) ÷ No. Often this may require a dealership to investigate the expenses of the department or the grosses required to sustain the current level of expenses. Even if a dealership manages a high level of sales volume, a low selling gross % gross figure indicates that the used vehicle department is still not that profitable. Why is it important: Selling gross % gross profit is the measure of departmental profitability in ProfitFocus reports. What does it measure: How much gross profit is actually retained by the used vehicle department. Drilling down into the particular expense categories enables effective expense management and control.Ĭalculation: (Used Vehicle Gross Profit 1 - Used Vehicle Variable Expenses - Used Vehicle Semi Fixed Expenses) ÷ Used Vehicle Gross Profit Why is it important: Observing this total figure indicates if the costs are too high in the department given the level of sales at the dealership. Note, this KPI does not reflect overheads but only those expenses that are considered directly related to the sale of vehicles i.e. What does it measure: How much it costs to sell used vehicles as a proportion of how much profit the used vehicle department makes on the same sales. Why is it important: A measure of salesperson's ability to be profitable when making vehicle sales.Ĭalculation: (Used Vehicle Department Variable Expenses + Used Vehicle Department Semi-Fixed Expenses) ÷ Used Vehicle Gross Profit 1 What does it measure: The average gross profit generated by each member of the used vehicle sales team. Why is it important: A measure of salesperson's ability to sell vehicles and indicates the level of throughput at the dealership.Ĭalculation: Used Vehicle Gross Profit 1 ÷ No. What does it measure: The average number of retail used vehicles sold by each member of the used vehicle sales team. ![]() What does it measure: Vehicle gross profit generated by the used vehicle department expressed on a per retail unit basis.Ĭalculation: No. The used cars the dealership is accepting may not have many prospects.Ĭalculation: (Used Retail Gross Profit + Used Wholesale Gross Profit) ÷ No. Why is it important: Low to negative figures for this KPI may indicate that a dealership is not getting any particular benefit from wholesaling or trade-ins. What does it measure: How much gross profit was earnt on average for each used car wholesaled. What does it measure: How much gross profit was earnt on average for each used car retailed.Ĭalculation: Total Used Wholesale Gross Profit ÷ No. What does it measure: Measures the mix of used retails vehicles sold as a proportion of all retail vehicle sales at the dealership.Ĭalculation: Total Used Retail Gross Profit ÷ No. ![]()
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