This KPI establishes the percentage of vehicles that you have sold that have been purchased on finance that has been supplied by your dealership.
If this statistic is to have any real meaning, then it is only retail sales that should be counted and any fleet sales should be excluded. Before you jump to any conclusions, be certain of the formula of your own KPI.
Example:
A) Units Sold on Finance = 461 B) Total Units Sold = 960 C) Finance penetration = 48.02% (A ÷ B X 100)
This example shows that 48% of the vehicles sold were purchased on finance. However, the important thing to note here is the classification of total vehicles sold.
Discussion:
Results also vary between new and used vehicles due to franchise manufacturers sub-vented finance schemes or other attractive offers for new vehicles, therefore this KPI is more useful when new and used finance penetration is shown separately.
This suggested baseline of 30% should be increased to a minimum of 60% were a Business Manager is employed.