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Absorption Rate

Definition for europe automotive professionals.

Absorption rate is the percentage of a dealership's total fixed overhead expenses covered by fixed operations (service, parts, and body shop) gross profit. A 100% absorption rate means the dealership's fixed ops departments generate enough gross profit to cover all dealership overhead.

Europe Context

In the europe dealer market, absorption rate operates within the context of EU Consumer Rights Directive and GDPR. Dealerships running Keyloop, incadea, Autoline encounter absorption rate in their daily workflow. DealerInt captures the decision layer around absorption rate that your DMS wasn't designed to track.

Related

US Definition · EU Glossary

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