Front-End Gross
Front-end gross is the profit a car dealership earns from selling the vehicle itself — the margin between cost (including pack) and the sale price.
Front-end gross profit is the margin a dealership earns on the sale of a vehicle, calculated as the difference between the sale price and the vehicle's cost basis (invoice plus pack and other variable costs). Front-end gross does not include F&I product revenue, which is called back-end gross. The sum of front-end and back-end gross is total gross per vehicle retailed (PVR). Front-end gross is the first casualty of pricing overrides — every dollar given away at the desk is pure margin loss that cannot be recovered in F&I.
Category: Finance
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