Web Based Dealer Management Software Estimated and Actual Profit Reports

If you have ever been at an auction this will feel familiar. Imagine you see the car coming in the driveway. You think it has great potential. The price tag seems a bit high. You start to wonder if you should bid on it anyways. All sorts of things come to your mind. Can I sell that Honda for a bit more? How much is my inventory worth? How long do I plan on keeping that Kia? How much limit to I have left with my floor plan? Not to worry! Carsinia is here to help. And you can even check the answers to your questions from your phone.

We have just introduced a number of features that culminated in our new estimated profits report. Here are a few of them:

  • Floor Plan Limits: You can now set the limits for your inventory loan lenders. Our DMS will keep track of your sales and payments and tell you in a pinch how much limit you have left.
  • Estimated Reconditioning Costs: You can now set estimated costs for your repairs before they are completed. You can then enter the actual costs. Employee spent hours are still tracked separately.
  • Vehicle Price Points: You can now enter cash and wholesale price points for your vehicles along with MSRP (invoice price), marketing price and website special price. They are all used in profit analysis.
  • Default Sales Commissions: You have a custom logic for calculating sales commissions? No problem. Carsinia can now calculate sale commissions based on your formulas. They are shown as default in your deals and you can always override the default commissions.
  • Default Reserve Payment and Commissions: Backend revenue and profit calculations vary so much from lender to lender. Usually the lender will give you the reserve or participation amounts but we can now calculate a default number based on your formulas. This allows you to be able to quickly check what you should expect from the lenders approximately.

Estimated Profits Report

This new analysis tool is much more than a report. It allows you to check certain scenarios. All revenue and cost components are calculated automatically. The pass through numbers like taxes are not included. Purchase price and fees are automatically included. Here are the metrics you can analyze:

  • Floor Plan Costs: The report will show you the invoices for the floor plan. The actual costs vary based on when you sell your car. You can make your own adjustments based on your expectations of the turn time.
  • Reconditioning Costs: If no reconditioning plan is entered for the vehicle, it will use initial estimated reconditioning cost. Otherwise it will use the actual or estimated costs from the reconditioning plan. You can override estimated value if you want.
  • Other Costs: We include entered transportation and marketing costs here but you can add other items as necessary.
  • Sale Price: Carsinia will show the marketing price by default if entered - otherwise will use MSRP coming from our VIN decoder. It will show you the 5 price points outlined above. You can override it based on your expectations.
  • Sale Commission: Carsinia will show the default sales commission based on your formulas. You can override it if you think it will change.
  • Backend Revenue: The report does not include after market products but you can add them if you like in the formulas. Usually this is only the reserve payments. You can update it based on your expectations.
  • Backend Costs: Again, after market products are not included by default but can be added in formulas. Usually this is only the participation commissions. You can update it based on your expectations.

Actual Profits Report

Estimated profits are complicated but actual profits are not so easy either due to the complexities of back end revenues. We already have our sales report that shows your actual profits so far (front end and back end profits). We can also show the back end profits independently in participation payments report. We do not have complicated loan payment scenarios yet but they can be approximated with back end revenue formulas. All in all, these reports provide a great profit management system for car dealers.

Contact us for more info.

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