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In-house vs. Outsource On-the-lot Services

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Example Store Size

Assume an average of 100 vehicles sold per month

Estimated In-House Expenses

  • $3,000 avg. per month expense for an employee (wages, benefits if applicable, taxes, deductions, etc.) to perform photography, videography, etc.
  • $75 - $100 per inventory (average) vehicle cost per day for the expenses related to vehicle floorplan, marketing / advertising, recon / prep / detail, etc. The dealer cannot mitigate these expenses by outsourcing lot services; however, the faster they can deliver a vehicle, the lower this daily expense becomes for an individual vehicle. 100 vehicles x $75 / day cost = $7,500 / day cost for the entire inventory or $225,000 gross vehicle cost for a single month! Reduce this gross monthly expense by even 3% and the dealership’s net profit could increase by $6,750.

So… the internal expenses for a dealership to “do it themselves” are on average:

  • The dealer’s personnel costs for them to do-it-themselves equates to $30.00 per vehicle per month ($3,000 for a single employee / 100 vehicles in inventory).
  • And we could (especially for large organizations with many dealerships) make the argument that they should also factor in approximately 15% extra cost each month for employee turnover, vehicles not photographed (that then reduce sales opportunities), material costs like window stickers & Buyers Guides labels they will have to purchase themselves.

Average Expenses to Out-source to AutoUpLink Tech

Now compare these estimated dealership costs to “do-it-themselves” to AutoUpLink Tech’s average pricing:

The average monthly gross payment to AutoUpLink Tech by a dealer = $1,300 -$1,600 per month. For 100 inventory vehicles this equates $13.00 per car - $16.00 per car, and this cost includes all materials (e.g. window labels, etc.) and this also includes the $99.00 - $199.00 per month software integration fee.