Car margin calculator: the true net on a car
Gross profit flatters. Put in what the car really cost you, including the days it sat in stock, and see the net profit you actually made, as a dollar figure and a margin.
Why net per car matters
Gross hides the slow cars
Two cars can show the same gross. If one sold in 12 days and the other sat for 75, the second cost you weeks of floor plan interest, yard space and price drops. Net per car is the only number that tells you which stock to buy again.
Comparing consigned and owned cars? Consignment has no purchase price or holding cost of your own capital, so the commission is close to net. Consign or buy outright, worked through.
In the app, on every car
carassessments.com.au tracks each of these lines against the car as they happen: recon invoices, transport, auction fees, holding cost accruing daily, commission and add-on income. The net profit is there the moment the car settles, split by bought, consigned, trade-in and auction. See profit per car reporting.
Questions dealers ask
What’s the difference between gross and net profit on a car?
Gross is usually sale price minus purchase price. Net takes off everything else the car cost you: recon, transport, auction fees, the days it sat in stock, advertising, the salesperson’s commission, then adds back finance and add-on income. Many yards find a car that looked like $3,000 gross made under $1,000 net.
What should I include in holding cost?
Floor plan interest or the cost of your own capital tied up in the car, plus a daily share of yard rent, insurance and anything else that runs while the car sits. The holding cost calculator works out a daily figure.
Should I enter prices with or without GST?
Use figures excluding GST throughout so the answer is your real margin. How GST applies to each car (full GST, or the margin scheme on second-hand goods) depends on how you bought it, so check the treatment with your accountant.
How do I work out ad spend per car?
Divide your monthly advertising spend (portal listings, Facebook, Google) by the cars you sold that month. It’s rough, but it stops advertising disappearing from the margin.
Stop doing this in a spreadsheet.
The app works this out on every car automatically, from appraisal to settlement. Leave your email and we’ll show you on one of yours.
More free calculators and templates, or see pricing.