Why Is My Demo Vehicle Showing a Loss? FAQ

Why can a demo deal show a loss even when it should not?

A loss usually appears because the manufacturer bonus or demo support payment has not yet been applied to the vehicle's standing cost. Navigator calculates profit based on the cost currently held against the chassis; if that cost is still at full wholesale value, the margin will appear negative.

What is the most common cause of a demo loss?

The most frequent cause is that the support money is sitting in a "holding pot" or a separate nominal ledger account and has not been moved to reduce the specific vehicle’s net standing value.

Which figures should I focus on in Profit Analysis?

You should focus exclusively on Actual Sale and Actual Cost. Note: Always ignore Retail and Expected figures when diagnosing a profit and loss discrepancy, as these are often just placeholders.

Does Profit Analysis include VAT?

No. Profit Analysis uses net figures only. VAT is handled as a separate tax element and is never included in the individual profit lines.

What should I compare to confirm the issue?

Compare the Net Standing Value (after support) found in your source system or bonus workbook against the Actual Cost shown in Navigator. If Navigator is displaying the pre-support net cost, your profit figure will be understated by the exact amount of the missing £ support.

What should I do before changing anything?

Before adjusting any values, you must confirm the correct accounting treatment with the person responsible for bonus allocation. You need to verify if the support is intended to reduce the vehicle standing cost directly or if it should be handled as a separate credit at month-end.