Great response on your blog I am stunned that someone would challenge you at this point on velocity! We are having a great year in a down economy we will sell 3000 used cars this year.

The end result is I look at net profit not gross profit at the end of the day.

The auto industry is finally graded on net not gross!

If someone questions you again just let them know why your phone rings around the clock with people looking for a magical pill to fix their dealerships problems most of those calls are not for gross profit but for NET PROFIT !

Thanks for all your help

In 2007 we sold 509 used! the 3000 units we sell this year is a whole hell of a lot more fun!

Your greatest velocity fan Bill Pearson Finish Line Ford

Great response on your blog I am stunned that someone would challenge you at this point on velocity! We are having a great year in a down economy we will sell 3000 used cars this year.

The end result is I look at net profit not gross profit at the end of the day.

The auto industry is finally graded on net not gross!

If someone questions you again just let them know why your phone rings around the clock with people looking for a magical pill to fix their dealerships problems most of those calls are not for gross profit but for NET PROFIT !

Thanks for all your help

In 2007 we sold 509 used! the 3000 units we sell this year is a whole hell of a lot more fun!

Your greatest velocity fan Bill Pearson Finish Line Ford

Please follow my math.

Our four stores currently average 15.46 turns per year. We are selling 170 units per month combined. That’s up from 120 when we started with V-Auto in January. We are averaging $1,050 per car.

If we would sell every car at 42 days our turn would decrease to 8.69 turns. 365 days per year divided by 42 equals 8.69.

The average investment in our cars is $11,500. If we turn our cars 15.46 times at $1050 per car we have $15,460 in gross per car for an entire year. If we reduce the turn to 8.69 at the end of the same period we have $8,690 in total gross. Not discounting the fact that you won’t sell all your cars at the optimum 42 days. If we then multiply the difference in total gross ( $15,460-$8,690= $6,770 ) times the units we sell ($6,770 x 170 units = $1,150,900 ) at year end we will have $1,150,900 in additional gross. I might also add we won’t have an unrealized loss on our balance sheet at year end because of unrealized wholesale losses.

Send ” Bubba” to central Wisconsin. I would love to compete with him and his 42 day gross fantasy. Of course, I would be using V-Auto to look at his inventory pricing and undercut him at 41 days. So much for his big gross. He would be scratching his head looking at all that aged inventory going down in value and wondering what the hell just happened.

Please follow my math.

Our four stores currently average 15.46 turns per year. We are selling 170 units per month combined. That’s up from 120 when we started with V-Auto in January. We are averaging $1,050 per car.

If we would sell every car at 42 days our turn would decrease to 8.69 turns. 365 days per year divided by 42 equals 8.69.

The average investment in our cars is $11,500. If we turn our cars 15.46 times at $1050 per car we have $15,460 in gross per car for an entire year. If we reduce the turn to 8.69 at the end of the same period we have $8,690 in total gross. Not discounting the fact that you won’t sell all your cars at the optimum 42 days. If we then multiply the difference in total gross ( $15,460-$8,690= $6,770 ) times the units we sell ($6,770 x 170 units = $1,150,900 ) at year end we will have $1,150,900 in additional gross. I might also add we won’t have an unrealized loss on our balance sheet at year end because of unrealized wholesale losses.

Send ” Bubba” to central Wisconsin. I would love to compete with him and his 42 day gross fantasy. Of course, I would be using V-Auto to look at his inventory pricing and undercut him at 41 days. So much for his big gross. He would be scratching his head looking at all that aged inventory going down in value and wondering what the hell just happened.