Much of the 7-Wrap-Up screen is dedicated to showing details of your vehicle costs and the calculation of a profit on the sale.
The cost figures are taken directly from the Vehicle Details screens, and the deal price and cost figures come directly from the Process Deal sections. Scroll down to find out more about how these fields are calculated.
Editing Cost Fields
Depending on your individual dealership settings, many of the cost figures as well as the boxes labeled Dealer Incentives, Actual Cash Value, and Dealer Rate can be changed directly on this screen.
Caution: Changing vehicle cost information on this screen may not update the cost information on the vehicle itself. This is a feature provided solely for the convenience of dealers who wish to enter different information to conform to special in-house business rules. It is not recommended that you change these figures.
Note: If you can not edit vehicle costs on this screen, check settings in the 'Maintenance' tab located in the top horizontal tool bar. Click on 'Dealership Maintenance', then select the 'Deal Entry' tab. There is a check box labeled 'LOCK Inventory Costs for Deals'. Selecting this box disables the editing feature in the 7-Wrap Up screen.
Calculating Front-End Profit
The front-end profit is the profit calculated in the top portion of the screen:
➢It is the selling price of the vehicle minus the immediate costs of the vehicle.
➢Compensation you receive in the form of dealer incentives and the net value of the trade-in vehicle is also included.
➢The trade-in value is calculated by taking taking the difference in the amount you gave the customer for the trade (Trade Allowance) and the amount the trade is actually worth (Actual Cash Value).
➢The values for the Trade Allowance, Actual Cash Value(ACV), Base Cost, Repair Orders, Option Costs, PAK, and Other Costs come from entries made in 1-Financial Calculations tab.
Calculating a Back-End Profit
The back-end profit is the profit calculated in the bottom portion of the screen:
➢It is the amount of money made from the sale of optional items such as a warranty or GAP insurance.
➢The Sale Price column lists the amount for which you sold each of these items, and the value in each box of this column will come from the deal entry screens.
➢The Cost column will need to be filled in by you directly on this screen. Some of these fields may fill automatically, but check the accuracy before finalizing the deal.
➢The system can also calculate a reserve on the finance charge when the deal is financed. Enter your dealership's buy-rate for the financing into the box labeled Dealer Rate. The system will then calculate the amount of reserve owed to you based upon information you supplied when setting up the finance source used for this deal. If you wish, you can type a dollar amount for your expected reserve directly into the system and override the system's calculations. Simply type this amount into the Override box.
➢You can also keep track of when this deal was actually funded by the bank by typing the funding date into the Funding box located in the bottom center of the window.
Calculating the Expected Gross Profit
The expected gross profit is the sum of the front-end profit and the back-end profit.