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Absorption Rate

Definition for united kingdom 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.

United Kingdom Context

In the united kingdom dealer market, absorption rate operates within the context of FCA motor finance regulation and Consumer Rights Act 2015. Dealerships running Keyloop, Pinewood, Dragon2000 encounter absorption rate in their daily workflow. DealerInt captures the decision layer around absorption rate that your DMS wasn't designed to track.

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US Definition · UK Glossary

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