Metrics

Back-End Gross

The profit generated from financing, warranties, and other products sold in the F&I office.

Definition

Back-end gross profit refers to the revenue generated after the vehicle price is agreed upon. This includes the markup on interest rates (reserve), proceeds from selling extended warranties, service contracts, gap insurance, and other aftermarket protections. As front-end margins shrink, back-end gross has become increasingly vital to overall dealership profitability.

Related Terms

Front-End Gross

The profit made on the sale of the vehicle itself, excluding finance and insurance products.

F&I (Finance and Insurance)

The dealership department responsible for vehicle financing, loan processing, and selling aftermarket products.

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