Front-end margin is thin. Service and F&I hide the real money.
Motor trade appears to be about selling cars, but the profit is in service and finance. You'll learn front-end gross (profit on the vehicle sale — often 5-10%), back-end gross (profit on finance and extended warranties — often 20-30%+), and service absorption rate (does service revenue cover service department costs?). You'll discover why a dealership that sells 100 cars per month at breakeven but captures £2,000 back-end per car is wildly profitable.
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
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Follow this learning path to master automotive & motor trade: back-end margin is hidden profit.
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