{"version":"1.0.0","episode":{"title":"#09 - Monday Minute | How to Build a Dealership Proforma That Actually Works","url":"http://getcarcurious.com/episodes/09-monday-minute-how-to-build-a-dealership-proforma-that-actually-works","audioUrl":"https://anchor.fm/s/8164a88/podcast/play/116187309/https%3A%2F%2Fd3ctxlq1ktw2nl.cloudfront.net%2Fstaging%2F2026-1-28%2F419012164-44100-2-6cb3f75b732c8.mp3","description":"Welcome to the Monday Minute, brought to you by Podium — your weekly reset to lead better, think clearer, and build your dealership with intention.Before you buy a single car or hire your first salesperson, build your dealership on paper. In this episode, Luke and Jeff break down why a proforma is not optional — it is your blueprint. If you do not know your numbers before you start, you will lose control after you start. Markets change, expenses shift, and grosses move. Disciplined dealers do not gamble. They calculate.Review this week's Sunday newsletter at TheIndependentDealer.com for the full theme and exercises. Not subscribed yet? Sign up now. Let's build this together.SPONSORED BY PODIUM: www.podium.com\n"},"annotations":[{"startTime":59.0,"endTime":65.1,"type":"term","title":"pro forma","url":"/glossary/pro-forma","quote":"It's the pro forma is an optional, it's your actual blueprint of what you're going to do. So too many dealers just open with excitement and optimism and not enough math.","canonicalId":"term:pro-forma","priority":0.9,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"A pro forma in automotive sales is a financial projection or blueprint that outlines expected revenues, expenses, and profits for a dealership or seller. It helps dealers plan and manage their business by estimating how many cars they can sell, their gross profits, and associated costs.","simplifiedExplanation":"A pro forma is like a plan that shows how much money a car seller expects to make and spend. It helps them know if their business will work before they start selling cars."}},{"startTime":87.3,"endTime":93.0,"type":"term","title":"front-end gross","url":"/glossary/front-end-gross","quote":"What is the true average front-end grossed? And what are you actually going to make, right? Like what's my back-end income?","canonicalId":"term:front-end-gross","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Front-end gross refers to the profit a car dealership makes from the sale of a vehicle itself, before considering additional products or services. It is a key metric in dealership profitability.","simplifiedExplanation":"Front-end gross is the money a car seller makes just from selling the car, not counting extra things like warranties or services."}},{"startTime":93.0,"endTime":100.9,"type":"term","title":"back-end income","url":"/glossary/back-end-income","quote":"And what are you actually going to make, right? Like what's my back-end income? What's my front-end income? What are my warranty products I'm going to sell?","canonicalId":"term:back-end-income","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Back-end income in car sales refers to the profit made from additional products and services sold after the vehicle purchase, such as warranties, financing, and insurance. It complements the front-end gross to determine total profitability.","simplifiedExplanation":"Back-end income is the extra money a car seller makes by selling things like warranties or insurance after you buy a car."}},{"startTime":97.7,"endTime":100.9,"type":"term","title":"warranty products","url":"/glossary/warranty-products","quote":"What are my warranty products I'm going to sell? And then you would want a realistic outline of all your fixed expenses.","canonicalId":"term:warranty-products","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Warranty products are additional service contracts or extended warranties sold by dealerships to cover repairs beyond the manufacturer's warranty. They are a source of back-end income for dealers.","simplifiedExplanation":"Warranty products are extra protections you can buy for your car to help pay for repairs after the normal warranty ends."}},{"startTime":171.1,"endTime":177.1,"type":"concept","title":"retail dealership","url":"/glossary/retail-dealership","quote":"Yeah, Jeff, actually, I spent time this week doing this modeling a retail dealership because we're kind of moving into doing that. And so, you know, most people go wrong here because they don't do the research they need.","canonicalId":"concept:retail-dealership","priority":0.9,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"A retail dealership is a business that sells new or used cars directly to consumers, often involving various operational and financial considerations such as inventory management, marketing, and financing.","simplifiedExplanation":"A retail dealership is a place where people buy cars. They sell cars directly to customers and have to manage things like advertising and money carefully."}},{"startTime":182.0,"endTime":187.2,"type":"term","title":"charge backs","url":"/glossary/charge-backs","quote":"They assume every car they sell is going to be all run. They underestimate recondition, they forget about charge backs, they ignore marketing.","canonicalId":"term:charge-backs","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Charge backs are fees or penalties that a dealership may incur when a sale is reversed or a financing deal falls through, impacting the dealership's revenue.","simplifiedExplanation":"Charge backs happen when a sale gets canceled or a payment doesn't go through, and the dealership has to pay a fee or lose money."}},{"startTime":182.0,"endTime":187.2,"type":"concept","title":"reconditioning","url":"/glossary/reconditioning","quote":"They assume every car they sell is going to be all run. They underestimate recondition, they forget about charge backs, they ignore marketing.","canonicalId":"concept:reconditioning","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Reconditioning refers to the process of repairing, cleaning, and servicing used cars to prepare them for sale, ensuring they meet quality standards and appeal to buyers.","simplifiedExplanation":"Reconditioning means fixing up a used car to make it look and work better before selling it to someone else."}},{"startTime":194.5,"endTime":199.2,"type":"concept","title":"buy here, pay here store","url":"/glossary/buy-here-pay-here-store","quote":"You know, and in a buy here, pay here store, you'll talk about cash flow. Cash flow is way more important than gross profit because you can get in trouble quickly.","canonicalId":"concept:buy-here-pay-here-store","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"A buy here, pay here store is a type of car dealership that offers in-house financing to customers, often targeting buyers with poor credit by allowing them to make payments directly to the dealer.","simplifiedExplanation":"A buy here, pay here store is a car dealer that lets people buy cars and pay for them directly to the dealer, which helps people who might not get loans from banks."}},{"startTime":199.2,"endTime":204.0,"type":"term","title":"cash flow","url":"/glossary/cash-flow","quote":"You'll talk about cash flow. Cash flow is way more important than gross profit because you can get in trouble quickly.","canonicalId":"term:cash-flow","priority":0.9,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Cash flow refers to the amount of money moving in and out of a business, crucial for day-to-day operations and financial health, especially in dealerships where timely payments affect sustainability.","simplifiedExplanation":"Cash flow is the money a business gets and spends regularly. It's important because it helps the business pay bills and keep running."}},{"startTime":199.2,"endTime":204.0,"type":"term","title":"gross profit","url":"/glossary/gross-profit","quote":"Cash flow is way more important than gross profit because you can get in trouble quickly.","canonicalId":"term:gross-profit","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Gross profit is the money a business makes after subtracting the cost of goods sold but before other expenses, giving insight into sales performance but not overall profitability.","simplifiedExplanation":"Gross profit is the money a business makes from selling things after paying for those things, but before paying other bills."}},{"startTime":204.0,"endTime":209.7,"type":"term","title":"third party lenders","url":"/glossary/third-party-lenders","quote":"And if you use the third party lenders, you got to understand all of their fees if they charge back.","canonicalId":"term:third-party-lenders","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Third party lenders are external financial institutions that provide loans to car buyers, separate from the dealership, often involving fees and specific terms that dealers must understand.","simplifiedExplanation":"Third party lenders are banks or companies outside the car dealer that give people loans to buy cars."}}],"speakers":[{"id":"s1","name":"Jeff Watson","role":"host"},{"id":"s2","name":"amp; Luke Godwin","role":"host"}],"transcripts":[{"url":"http://getcarcurious.com/episodes/09-monday-minute-how-to-build-a-dealership-proforma-that-actually-works/transcript.vtt","type":"text/vtt"}]}