Gross Profit
Gross profit is the difference between what a dealership earns on a transaction and the direct cost of the vehicle or service. Learn how front-end and back-end gross combine.
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.
Category: Finance
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