For those of us that believe in market based pricing for new and used vehicles, this no doubt negatively effects the front end gross. We have to consider the remaining profit oportunities: under evaluate the trade, switch to leasing and optimize F&I. ISMs will work their payplan. Further consideration has to go to how this marketing approach will effect the three major variable expenses: Salesman Compensation and Incentives, Interest Floor Plan and Advertising.
I know that at my former stores, the Internet department maintained a higher average total gross profit than the floor. There is one large, public group that has adopted this philosophy over a year ago. It is interesting is to watch their financial reports.
I know that at my former stores, the Internet department maintained a higher average total gross profit than the floor. There is one large, public group that has adopted this philosophy over a year ago. It is interesting is to watch their financial reports.