New Vehicle Gross Per Unit: How to Measure It
New vehicle front gross per unit is the new department's gross profit divided by the new units retailed, before F&I. The Pocket20 benchmark for a franchised store is about $2,250 a unit, with stronger stores at $3,300 or more. Because trucks, SUVs and cars carry very different gross, a store should also be measured by body style.
The formula
New front gross per unit = new vehicle retail gross ÷ new units retailed
Use the year to date. Leave F&I out; it gets its own measure (see F&I per vehicle retailed).
Why body style matters
A store that sells mostly full-size pickups should gross more per unit than a store that sells mostly compact cars. Measuring every new unit against one number hides a soft SUV line behind a strong truck line. Pocket20 grades each body style against its own floor (domestic brands):
Trucks: $2,500
SUVs: $1,775
Cars: $1,250
Import, luxury and ultra-luxury brands carry their own floors.
How to find it on the statement
New vehicle detail pages list units and gross by carline or model line. Group the lines into cars, SUVs and trucks, add up units and gross for each group, and divide.
Example (hypothetical round numbers): 300 new SUVs retailed year to date at $1,400 a unit. Against the $1,775 floor that's $375 a unit, or $112,500 in missed gross, even if the store's overall new average looks fine because trucks are carrying it.
Watch days' supply alongside gross
Too much new inventory pushes gross down and floor plan cost up. The Pocket20 benchmark for new vehicle days' supply is about 45 days, with 30 to 60 days the healthy range.
Related
See it on your own statement
Pocket20 reads every carline on your statement, splits cars, SUVs and trucks, and shows what each gap is worth in dollars. Get a free read or see a sample read.