DealersEdge Professional Forums

Just about each one of the 6 different brands in our auto group has a different formula to calculate service absorption. Is there ONE universally accepted formula? If so, please share.

Thanks!

The way NADA does it in the twenty group books should be as close to a standard as anything is in this biz.

That's (Parts GP+ Service GP+ Body Shop GP)
divided by total dealership fixed overhead.

Fixed overhead is defined as all dealership expense EXCEPT variable selling expense for new and used car sales.