Benchmarking is key to improving your overall business performance. The dealership operation is benchmarked in many key areas, throughout all departments; the benchmarks represent performance being achieved by the top performing dealers in the country. To achieve benchmark suggests that you are performing at the industry best standard. Throughout the dealership we benchmark about 50 different items – how does your dealership compare to the best in the industry?
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To achieve benchmark is not the end, however, as benchmarks are reviewed constantly and changed as appropriate. To have achieved benchmark in a period does not guarantee achievement in the future. Benchmarks represent a “stretch” target, something that your dealership is measured against. Benchmarks represent an obtainable target and if you are not achieving benchmarks you must understand why and take corrective action. The benchmarks displayed on this page are for general use. The information has been prepared with reasonable care and derived from sources believed to be accurate. No responsibility or liability is accepted by AutoTeam Australia Consulting or any of its affiliations. Copyright AutoTeam Australia Consulting.
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| LIQUIDITY & CASH |
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| TOTAL DEALERSHIP | | Working Capital Ratio | 1.1 : 1 |
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| Benchmark | | Debtors Parts & Service (Credit Sales) | 45 days outstanding |
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| NPBT % Revenue | 2.5% | | Inventory |
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| Gross % Sales | 15.5% | | New Vehicle: |
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| Expenses % Sales | 13% | | Days Carry | 45 |
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| Gross per Employee | $11,000 | | Stock Turns | 8 |
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| Expense per Employee (excl admin) | $5,500 | | Return on Investment | 30% |
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| Selling Gross per Employee | $5,500 | | Used Vehicle: |
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| NPBT per Employee | $2,500 | | Days Carry | 50 |
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| Parts and Service Absorption | 57.5% | | Stock Turns | 7 |
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| | Return on Investment | 50% |
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| | Parts Inventory: |
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| ADMINISTRATION | | Days Carry | 45 |
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| Benchmark | | Stock Turns | 8 |
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| Rent and Property Expense % of Gross | 8% | | Return on Investment | 175% |
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| Total Administrative Expenses % Gross | 25% | | New Car: |
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| | Break Even Days | 40 days |
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| | Carry Costs per Day | $45/day |
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| FINANCE & INSURANCE | | Used Car: |
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| Benchmark | | Break Even Days | 45 days |
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| New Vehicle Penetration Rate | 32% | | Carry Costs per Day | $45/day |
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| Used Vehicle Penetration Rate | 30% | | Expense % of Gross |
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| Finance Income $PNVR | $600 | | Salaries / Commission incl Technicians | 70% |
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| Finance Income $PUVR | $550 | | Floor Plan Interest | 70% |
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| Insurance Income $PNVR | $150 | | Advertising | 70% |
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| Insurance Income $PUVR | $200 | | Internet Usage |
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| Total F&I Income $PVR | $700 | | Sales Originated through Internet | 25% |
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| F&I Gross per Employee | $45,000 | | Dealer Response Time for Email enquiries | 1 hour |
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| F&I Selling Gross per Employee | $30,000 | | Enquiries Sent per Customer to Dealers | 2.1 |
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| USED | | NEW |
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| Benchmark |
| Benchmark |
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| Retail Gross $PUVR | $2,600 | | Retail Gross $PNVR | $2,800 |
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| | Fleet Gross $PFVS | $1,600 |
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| Unit Sales per Salesperson (incl Manager) | 10 | | Unit Sales per Salesperson (incl Manager) | 12 |
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| Gross per Salesperson (incl Manager) | $25,000 | | Gross per Salesperson (incl Manager) | $30,000 |
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| Remuneration % Gross | 40% | | Remuneration % Gross | 33% |
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| Variable Expenses % Gross | 14% | | Variable Expenses % Gross | 20% |
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| Fixed Expenses % Gross | 50% | | Fixed Expenses % Gross | 45% |
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| Selling Gross per Sales Employee (incl Manager) | $8,000 | | Selling Gross per Sales Employee (incl Manager) | $10,000 |
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| Return on Investment | 50% | | Return on Investment | 30% |
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| PARTS | | SERVICE |
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| Benchmark |
| Benchmark |
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| Parts Sales per Employee (excl drivers) | $75,000 | | Ratio Chargeable : Non-chargeable | 1.5 : 1 |
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| Parts Gross per Employee (excl drivers) | $19,000 | | Percent of Available Hours Sold | 97.5% |
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| Gross % Sales | 27% | | Labour Sales per Chargeable Employee | $14,000 |
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| Salaries % Gross | 32% | | Ration Customer Parts to Labour Sales | 0.75 |
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| Total Department Expenses % Gross | 37.5% | | Labour Gross per Chargeable Employee | $10,500 |
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| Selling Gross per Parts Employee | $10,000 | | Salaries and Payroll On Costs % of Gross | 40% |
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| Return on Investment | 175% | | Total Direct Expenses % of Gross | 50% |
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| | Selling Gross per Chargeable Employee | $6,000 |
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| | Selling Gross per Department Employee | $3,000 |
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