Dealer glossary
Back gross
The profit made in the finance office: F&I products, and the dealership share of the finance reserve.
Definition
Also called back-end gross, F&I gross
Back gross is everything the deal makes after the car itself. Service contracts, GAP coverage, and the dealership participation in the finance rate all land here.
For a lot of independent stores back gross is the difference between a profitable month and a flat one, which is why the finance office is where deals are won even when the vehicle was sold on price.
Front and back gross are usually reported together, per deal and per salesperson, because either one alone gives a misleading picture of how the store is actually performing.
Related terms.
Front gross →
The profit on the vehicle itself: selling price minus what the store has in the car.
F&I →
The finance office: arranging the customer financing and presenting the products sold alongside the vehicle.
Dealer reserve →
The portion of a financed deal the dealership earns for arranging the loan, based on the difference between the lender rate and the contract rate.
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