What is gross loss in dealerships?

Expanded explanation

Gross loss is profit that slips away due to unrecorded or unjustified overrides. Industry estimates: 2–5% of gross margin. It accumulates across hundreds of small decisions—competitive matches, manager approvals, loyalty discounts. DealerInt helps identify and reduce gross loss.

Key points

• Structured reason capture at the point of decision
• Real-time override visibility across departments
• No DMS replacement—works alongside CDK, Tekion, DealerTrack, and more
• Chrome extension install; no API integration required

Benchmark data

Margin recovery after implementing structured capture: 19.9% average within one quarter. Recovery rates varied 16–24% by region.

Recovery rates improve with consistent policy and visibility. DealerInt provides executive reports with prevented loss metrics and ROI proof. See the Dealer Profit Index for regional and segment breakdowns.

Case study

“Our auditor wanted reason codes. DealerInt delivered in a week. Every waiver and rate exception is now captured.” — F&I Director

Implementation steps

1. Install DealerInt as a Chrome extension alongside your DMS. No integration required.
2. Define override policy: thresholds, approval limits, reason codes.
3. Train staff on reason capture. The prompt appears only when an override occurs.
4. Review dashboards weekly. Override volume by reason, department, location.
5. Use data for policy refinement and training—not blame.

References

• Dealer Profit Index
• How to stop dealership discounting
• How to track F&I overrides
• Compare DealerInt
• Blog