Backend Gross
Definition
Total profit generated in the finance office per retail unit, including products and finance reserve.
Why It Matters
Backend gross is often the most profitable department in a dealership, frequently exceeding new and used vehicle gross combined. Maximizing backend gross while maintaining compliance is the core objective of elite F&I management.
Examples
- A dealership selling 100 vehicles with $1,500 PVR generates $150,000 in monthly backend gross
- Backend gross typically represents 40-60% of total dealership gross profit
Related Terms
PVR (Per Vehicle Retail)
The total average gross profit generated per retail unit, combining front-end and back-end income.
PRU (Products Per Retail Unit)
The average number of F&I products sold per vehicle, calculated by dividing total products sold by total retail units delivered. A PRU of 2.0 means you are selling an average of 2 products per car.
Finance Reserve
Profit earned from marking up the lender's approved buy rate before presenting the contract rate to the customer.