Gross Profit
Definition for canada automotive professionals.
The difference between what a dealership earns on a transaction and the direct cost of the vehicle or service. In automotive retail, gross profit is split into front-end gross (vehicle margin) and back-end gross (F&I products and reserve). Total variable gross per unit is the single most important profitability metric at any dealership. According to DealerInt's 2026 benchmark, the average dealership loses $178,000 annually to untracked gross leakage through pricing overrides — margin that disappears between the desk and the DMS without a documented reason.
Canada Context
In the canada dealer market, gross profit operates within the context of Provincial dealer licensing (OMVIC, AMVIC, SAAQ, VSA) and Competition Act — transparent pricing. Dealerships running PBS Systems, Quorum DMS, CDK Canada encounter gross profit in their daily workflow. DealerInt captures the decision layer around gross profit that your DMS wasn't designed to track.
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