B-NewExp

Holdback income

Holdback/FPA income

Holdback, floor plan assistance (FPA), SFP, FES etc. payments from factories/distributors should be included in this section. You are required to separate reporting franchise payments from those paid by other franchises.

Selling expenses

Selling expenses are those variable and semi-fixed expenses involved in making new vehicle sales including the promotion, display and advertising of new vehicles, delivery and department maintenance costs.

Variable expenses

Commissions and incentives (sales people)

Commissions, prizes, gifts and bonuses paid to new vehicle sales consultants.

Commissions and incentives (sales managers)

Commissions, prizes, gifts and bonuses paid to new vehicle sales managers.

Commissions and incentives (aftermarket people)

Commissions, prizes, gifts and bonuses paid to aftermarket staff dedicated to the new department.

Pre-delivery

Expense of preparing new vehicles for delivery including car cleaning/detailing wages, service pre-delivery charges, petrol and freight.

Free service

Expenses related to providing free service offered with the purchase of new cars.

Maintenance and policy work

Any costs incurred relating to stock and yard maintenance as well as goodwill/policy

also include any other variable costs that cannot be categorized into the above categories in this line.

Total variable expenses

The input sheet will automatically add all the above variable expense totals.

Semi fixed expenses

Salaries (sales people)

Salaries paid to or accrued for new vehicle sales people i.e. retainers

Salaries (sales managers)

Salaries paid to or accrued for new vehicle sales managers

Salaries (aftermarket people)

Salaries paid to or accrued for aftermarket staff dedicated to the new department

Salaries (other)

Salaries (and commissions) paid to or accrued for other new vehicle staff including cleaners/detailers, stock controllers, specific clerical staff etc.

Sick and holiday pay

Sick and annual leave entitlements paid to all new vehicle staff

Training

Training expense for new vehicle department staff

Advertising

Advertising and sales promotions represent a direct expense of the new vehicle department and includes third party media coverage, direct mail campaigns, promotional banners, sponsorships, showroom displays etc.

subsidies received should be netted against this expense

Demonstrator expenses

Company car expenses which include the cost of maintaining demonstrator vehicles in a presentable and saleable order such as cleaning, minor repairs and petrol

vehicle write-down or write-backs should also be allocated here
also include any other semi-fixed costs that cannot be categorized into the above categories in this line.

Floorplan interest

Gross amount of interest expense and charges paid or accrued in respect of bailment’s outstanding on new vehicles.

Total semi fixed expenses

The input sheet will automatically add all the above semi fixed expense totals.

Additional information

New vehicle inventory information should be recorded by the 5 ageing category groups (0-30 days, 31-60 days, 61-90 days, 90-120 days, 120+ days). If your trial balance presents inventory as a single account, this will often be mapped to the total stock held cell, however we request you to manually split these figures by age.

Value of new vehicles on hand

The dollar value of all new vehicle stock on hand at the end of the period, this includes demonstrator vehicles included in the new vehicle inventory account

also include the dollar value of new vehicle accessories that have already been fitted to a new vehicle.

Units on hand

The number of vehicle units that relate to the above dollar figure (do not include the number of vehicle accessories here).