50/50 SPLIT BETWEEN PARTS AND SERVICE

[JOHN H]

I NEED TO FIND SOME INFORMATION TO INFORM
THE DP GM AND OFFICE MANAGER THAT THERE IS INDEED A 50/50 SPLIT BETWEEN PARTS PROFIT
SOLD TO SERVICE. THE LAST TWO DEALERSHIPS I
WORKED AT THIS WAS THE POLICY. I TOOK OVER AS PARTS MANAGER IN A SMALL TOWN DEALER.
JUST TRYING TO GET THINGS UP TO DATE. OR I
COULD BE TOTALY WRONG ABOUT IT, BEING A
GENERAL MOTORS ACCOUNTING CHANGE. I KNOW A
DEALER CAN SET THERE OWN POLICY ON THE ACCOUNTING SETUP. THANK YOU FOR ANY INPUT.

[jazdale]

John,

Be careful. Each franchise has its own calculation of how much parts profit rolls into the service department.

Someone correct me if wrong, but I believe GM retains the first 25% profit of parts and the remainder goes to service.

I believe some of the European franchises use the 50/50 split.

You should be able to build these calculations into your mid-month DOC.

Dale

[unregistered]

At our dealership, we used the 25% policy until recently. We now split the parts gross on customer pay 50/50 which is GM's policy. It has had a positive impact on the parts department gross profit.

[partsguy]

Talk about bringing up a hot topic! WHEW...

Unfortunately, GM standards are that the parts and service depts share the gross 50/50. This is an outdated policy from the days when service depts weren't making any money. GM had talked about changing the policy last year, but ended up leaving it to the dealers discretion...

Partsguy