Delivering profit from your fleet
Dealer Car Manager provides car dealerships with the opportunity to derive profit from their courtesy and demonstrator vehicles. The principle is simple. Customers can pay a £10 administration fee to have their courtesy car or test drive fully covered by Aviva. Depending on the dealership's insurer and location, dealers pay between £4 and £6 a day for the insurance. In addition, once a vehicle has been insured for 12 days in a month, it is free for the remainder of the month.
The following figures illustrate how much profit your dealership could be making.
Providing profit with courtesy cars
| Average number of working days in the month (including Saturdays) |
23 |
| Average efficiency for utilisation with insurance |
75% |
| Total chargeable days |
17 |
| Income calculation: 17 x £10 = £170 - maximum charge (12 days insured @ £5) |
£110 per vehicle |
| No. of courtesy vehicles |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| Monthly profit |
440 |
550 |
660 |
770 |
880 |
990 |
1100 |
| Average efficiency saving |
|
130 |
130 |
130 |
130 |
130 |
130 |
| Savings on hidden cost |
80 |
100 |
120 |
140 |
160 |
180 |
200 |
| Savings from risk management |
100 |
120 |
150 |
175 |
200 |
225 |
250 |
| Total annual benefit |
7440 |
10860 |
12720 |
14580 |
16440 |
18300 |
20160 |
| DCM one-off installation fee |
500 |
500 |
500 |
500 |
500 |
500 |
500 |
| DCM monthly license fee |
90 |
90 |
90 |
90 |
90 |
90 |
90 |
| Total DCM first year cost |
1580 |
1580 |
1580 |
1580 |
1580 |
1580 |
1580 |
| Total profit |
£ 5,860 |
£ 9,280 |
£ 11,140 |
£ 13,000 |
£ 14,860 |
£ 17,720 |
£ 18,580 |
Providing profit with demonstrators
| Phone calls to database per week for one salesperson |
30 |
| Conversion to demonstration |
5% |
| Weekly volume |
1.5 |
| Conversion to sale |
30% |
| Income per unit |
£ 1000 |
| No. of salespeople |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| Phonecalls to database/week |
120 |
150 |
180 |
210 |
240 |
270 |
300 |
| Conversion to Test Drives |
5% |
5% |
5% |
5% |
5% |
5% |
5% |
| Weekly volume |
6 |
7.5 |
9 |
10.5 |
12 |
13.5 |
15 |
| Conversion to sale |
30% |
30% |
30% |
30% |
30% |
30% |
30% |
| Income per unit |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
| Total monthly income |
7800 |
9750 |
11700 |
13650 |
15600 |
17550 |
19500 |
| Total annual income |
93600 |
11700 |
140400 |
163800 |
187200 |
210600 |
234000 |
| Annual insurance cost |
1560 |
1950 |
2340 |
2730 |
3120 |
3510 |
3900 |
| Less existing sales rate |
31200 |
39000 |
46800 |
54600 |
62400 |
70200 |
78000 |
| Total profit |
£ 60,840 |
£ 76,050 |
£ 91,260 |
£ 106,470 |
£ 121,680 |
£ 136,890 |
£ 152,100 |