Front-End Gross
Definition for new zealand automotive professionals.
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.
New Zealand Context
In the new zealand dealer market, front-end gross operates within the context of Consumer Guarantees Act (CGA) and Fair Trading Act. Dealerships running Pentana, Titan DMS, Autobase encounter front-end gross in their daily workflow. DealerInt captures the decision layer around front-end gross that your DMS wasn't designed to track.
Related
See the decisions your DMS doesn\u2019t track
30-day free trial. NZ$1,399/store/month. Works with Pentana.