Back-End Gross
Definition for australia automotive professionals.
Back-end gross profit is the revenue a dealership earns from financing and insurance (F&I) products sold after the vehicle price has been agreed upon. This includes dealer reserve (the markup on loan interest rates), extended warranties (VSC), GAP insurance, tire and wheel protection, paint and fabric protection, and other ancillary products. A well-run F&I department can generate $1,500–$2,500+ in back-end gross per vehicle retailed. Like front-end gross, back-end gross is subject to override loss when F&I managers discount products to close deals.
Australia Context
In the australia dealer market, back-end gross operates within the context of Australian Consumer Law (ACL) and National Consumer Credit Protection Act (NCCP). Dealerships running Pentana, Titan DMS, Auto IT encounter back-end gross in their daily workflow. DealerInt captures the decision layer around back-end gross that your DMS wasn't designed to track.
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