The Real Impact
 
 
5 Year Effect of DMS Overpayment

Monthly
overpayment

Five Year Total overpayment

Gross Profit required
to cover overpayment

# of new vehicle sales required to cover
overpayment

$100.00

$6,000.00

$85,800.00

68

$500.00

$30,000.00

$429,000.00

341

$1,000.00

$60,000.00

$858,000.00

683

$1,500.00

$90,000.00

$1,287,000.00

1,024

$2,000.00

$120,000.00

$1,716,000.00

1,365

$2,500.00

$150,000.00

$2,145,000.00

1,706

$3,000.00

$180,000.00

$2,574,000.00

2,048

$3,500.00

$210,000.00

$3,003,000.00

2,389

$4,000.00

$240,000.00

$3,432,000.00

2,730

$4,500.00

$270,000.00

$3,861,000.00

3,072

$5,000.00

$300,000.00

$4,290,000.00

3,413


The above calculations are based on NADA 2008 dealer averages
as published in Auto Executive Magazine - March 2009

   

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