Why Is My New Car Showing Too Much Profit? FAQ

Why is my profit too high on a new car deal?

This is usually caused by one of two things: either the Sale Value and the On-The-Road (OTR) total have been misunderstood, or the costs for specific options have not yet been posted and allocated to the deal.

Which figures matter in Profit Analysis?

You should focus exclusively on Actual Sale and Actual Cost. Note: Retail and Expected figures are merely planning values and do not represent the final financial outcome of the deal.

Where do I check the true deal total?

Open the View Sales Order screen and check the On-The-Road (OTR) price. You must confirm that the base vehicle price plus all selected options equals the final deal total agreed with the customer.

Can dealer options inflate profit?

Yes. If options (such as accessories or protection packs) are added as sales lines but their associated costs are not posted and allocated, the system sees 100% margin on those items, making the total profit look artificially high.

What should I check for service plans and protection packs?

Always confirm whether these items carry a cost to the dealership. If a cost exists, you must ensure it is posted to the ledger and then allocated to the corresponding dealer option line within the deal.

What is the quickest fix order?

To resolve inflated profit, follow this sequence:

1. Correct the Sales Order totals to ensure the OTR price is accurate.

2. Add and allocate any missing option or accessory costs.

3. Re-check the Profit Analysis screen to verify the £ margin is correct before finally closing the deal.