Comp 101

Question 1

Payable Gross for New Vehicles

Answer 1

Sales amount less invoice, sales pack, detail, aftermarket accessories, fuel cost, dealer trade costs, and cost adjustments from the manufacturer.

Question 2

Payable Gross for Used Vehicles

Answer 2

Sale amount less original ACV, sales pack, reconditioning costs, fuel cost, limited warranty, auction fees, and other purchasing costs.

Question 3

Weekly pay cycle

Answer 3

The work week is Sunday through Saturday and earnings are paid on the following Friday.

Question 4

Minimum wage guarantee

Answer 4

The minimum wage calculation for all hours worked in the month ensures total wages are greater than the minimum wage per clocked hour. If clocked hours at minimum wage are greater than total monthly earnings the difference will be paid as a minimum wage guarantee

Question 5

How is PTO for sales reps calculated?

Answer 5

PTO is calculated at a temp rate and is paid in addition to other earnings. A temp rate will be calculated using the previous year’s gross earnings (excluding base pay) divided by a standard 2080 working hours in a year. If employed less than one year the rate will be the minimum wage.

Question 6

How is sick time paid for a Sales Rep?

Answer 6

Sick time will be paid in the period in which the time off was taken. Sick time is calculated at a sick rate and is paid in addition to other earnings. The sick rate will be calculated using the previous 90 days’ gross earnings divided by the total number of hours worked in the full pay periods of the prior 90 days.

Question 7

What is a booked Repair Order?

Answer 7

A Repair Order is booked when the employee has completed the job but the Dealership has not been paid in full on the transaction nor has all related paperwork been properly completed and approved for payment by the Customer, Manufacturer and/or warranty provider.

Question 8

What is the benchmark for Service Personnel Expense?

Answer 8

33%

Question 9

What is the benchmark for Parts Personnel Expense?

Answer 9

20%

Question 10

What is the Parts Advisor Productivity benchmark?

Answer 10

$169K

Question 11

What is the Service Advisor Productivity benchmark?

Answer 11

577 Flat Rate Hours

Question 12

How can the ELR be manipulated be a Service Advisor?

Answer 12

The advisor can choose to write the high-hours jobs and lower ones get passed up for someone else

Question 13

F&I Gross

Answer 13

The total gross sales revenue of the aggregate selling price of all after-market products, including but not limited to, F&I products minus (a) the specific dealership’s stated Base Value of the product from the supplier, vendor or distributor, whether or not associated with the dealership or its affiliates (which may not be the ultimate net cost from the supplier, vendor or distributor whether or not associated with the dealership); (b) costs related to commitments made by the dealership to the customer at the time of the sale for additional equipment, accessories or alterations or repairs; (c) bank and finance fees; (d) management fees; (e) the cost to install dealer-installed aftermarket or factory products; and (f) good-will adjustments made to obtain the closed sale or to maintain the sales as a closed sale; (g) compensation to personnel who split commissions on a closed sale; and (h) any charge-backs or adjustments.

Question 14

What does MIS stand for?

Answer 14

Management Information System

Question 15

What is variable profit?

Answer 15

VP is all of the gross income in the sales department less all the selling expenses

Question 16

What is department profit?

Answer 16

Department profit is all of the gross income in the department less all of the selling, personnel and semi-fixed expenses.

Question 17

How is an employee paid off the store performance, PTO paid out?

Answer 17

The PTO and Sick Time accrued balance will be reduced by the hours taken and the total earnings for the period will not be prorated by any approved time taken.

Question 18

Is Sales Variable Profit above or below the gross line?

Answer 18

Below, because it gross less selling expenses?

Question 19

Will a Sales Manager’s PTO or Sick time be paid in addition to total earnings?

Answer 19

NO

Question 20

What is an example of a selling expense?

Answer 20

Salesperson Salaries, F&I Salaries, Flooring Interest, Sales Advertising and Delivery Expenses

Question 21

Are CIT charges above or below the Sales Gross line?

Answer 21

CIT over 15 days is above the sales gross line

Question 22

Where does DOC fee land on the MIS?

Answer 22

Above Sales gross

Question 23

What is our compensation philosophy?

Answer 23

Our department is designed to support the companies vision, mission and values and to align incentives and rewards with the execution of our business strategy.

Question 24

What is Pack money?

Answer 24

Is the money that the GM charges the sales department for preparing a car for sale. It reflects the overhead expenses with running a dealership