How Front-End Losses Can Lead to Dealership Profits: A Case Study

A $300K front-end loss that actually made the dealership money.
A dealer group bought 540 units at auction, losing ~$600 per car on the front end. On paper: painful.

But the full picture:
→ Every car goes through service & parts — 50% gross on the RO
→ The sale generates F&I revenue and dealer fees
→ Trades from the deal become the next round of retail inventory

Front-end loss isn't failure. It's the entry fee to a much bigger profit cycle.
The dealers who win stop looking at departments in isolation and run the whole store as one company.
How is your store calculating the true value of each unit acquired?

Watch the full episode here: https://hubs.li/Q04gkrxX0

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