KPI Guide - Finance & Insurance Department
Vehicles Retailed per F&I Employee
Calculation: No. of New and Used Retail Units Sold ÷ No. of F&I Employees
What it measures: Measures the size of the opportunity available to F&I employees to sell F&I.
Why is it important: If this figure is high, it may indicate that capacity for more staff to be put on at the dealership. This would be validated if the figure for finance penetration was also low.
F&I Income per F&I Employee
Calculation: (Total Finance Income + Total Insurance Income) ÷ No. of F&I Employees
What it measures: Indicates how effective the department staff are at earning F&I income - a measure of income.
Finance Contracts (New & Used) per F&I Employee
Calculation: (No. of New Finance Contracts + No. of Used Finance Contracts) ÷ No. of F&I Employees
What it measures: Indicates how effective the department staff are at writing F&I - a measure of volume.
Finance Penetration - New
Calculation: No. of New Finance Contracts ÷ No. of Retail New Vehicles Sold
What it measures: The percentage of customers who purchase a new vehicle and also purchase finance.
Why is it important: Indicates how effective the salesperson is at converting new vehicle customers into finance customers.
Finance Penetration - Used
Calculation: No. of Used Finance Contracts ÷ No. of Retail Used Vehicles Sold
What it measures: The percentage of customers who purchase a used vehicle and also purchase finance.
Why is it important: Indicates how effective the salesperson is at converting used vehicle customers into finance customers.
Finance Income per Contract - New
Calculation: Total New Finance Income ÷ No. of New Finance Contracts
What it measures: How much finance income is generated on average for each new finance contract written.
Why is it important: The higher the value for this KPI, the better the department staff are at generating new finance income.
Finance Income per Contract - Used
Calculation: Total Used Finance Income ÷ No. of Used Finance Contracts
What it measures: How much finance income is generated on average for each used finance contract written.
Why is it important: The higher the value for this KPI, the better the department staff are at generating used finance income.
Insurance Income per Contract - New
Calculation: Total New Insurance Income ÷ No. of New Insurance Contracts
What it measures: How much insurance income is generated on average for each new insurance contract written.
Why is it important: The higher the value for this KPI, the better the department staff are at generating insurance income from new vehicle customers.
Insurance Income per Contract - Used
Calculation: Total Used Insurance Income ÷ No. of Used Insurance Contracts
What it measures: How much insurance income is generated on average for each used insurance contract written.
Why is it important: The higher the value for this KPI, the better the department staff are at generating insurance income from used vehicle customers.
Finance Income per Retail Sale - New
Calculation: Total New Finance Income ÷ No. of Retail New Vehicles Sold
What it measures: The amount of finance income received on average for each sales contract written on new vehicles.
Finance Income per Retail Sale - Used
Calculation: Total Used Finance Income ÷ No. of Retail Used Vehicles Sold
What it measures: The amount of finance income received on average for each sales contract written on used vehicles.
Average Finance per Retail Sale
Calculation: (Total New + Used Finance Income) ÷ (No. of New and Used Retail Units Sold)
What it measures: The amount of finance income received on average for each vehicle sold by the dealership.
Insurance Income per Retail Sale - New
Calculation: Total New Insurance Income ÷ No. of Retail New Vehicles Sold
What it measures: The amount of insurance income received on average for each sales contract written on new vehicles.
Insurance Income per Retail Sale - Used
Calculation: Total Used Insurance Income ÷ No. of Retail Used Vehicles Sold
What it measures: The amount of insurance income received on average for each sales contract written on used vehicles.
Average Insurance per Retail Sale
Calculation: (Total New + Used Insurance Income) ÷ No. of New and Used Retail Units Sold
What it measures: The amount of insurance income received on average for each vehicle sold by the dealership.
F&I Income per Vehicle Retailed
Calculation: (Total New & Used Finance Income + Total New & Used Insurance Income) ÷ No. of New and Used Retail Units Sold
What it measures: The average F&I income received on average for each sold by the dealership.