What else might dealers do to fine-tune their organization?
Look at salaries, as Ive suggested, which also includes the commission structure, etc, and at employee benefits. Id also look at miscellaneous, which goes overlooked, though a lot of expenses get dumped in that category that should rightly be allocated elsewhere. An example might be policy costs, for expenses where you repair a car as a goodwill gesture, for instance. The other area to watch is, of course, interest costs. And thats interest on everything from potential debt that store might have to floor plan costs and the costs to manage that inventory, both new and used. Dealers can lose a lot of money by not properly managing their new car inventory. They carry excessive stock, which has a significant interest impact. On the used car side, if you have a used car floor plan, that cost can get to be pretty exceptional as well, but a lot of dollars are lost in used cars in their wholesaling. We have a policy that no money can be lost in the wholesale of used cars. We operate on a 60-da
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