11 Creative Ways to Write About A Simple Guide: Free Real Time Break-Even Point (BEP) Calculator For Auto Dealerships..!!!

A simple guide for Auto Dealership to know their Break-Even Point (BEP)

|Break-Even Point Analysis|

Many people talk about what is the break-even point of a business, but not many people know how to calculate it. This article give you the formula and the real time simulator to calculate your own break even point

# How To Calculate Break Even Point click below to go to Real time BEP Calculator

Don't worry its safe & secure but before going to simulator please read blog completely

BEP Calculator is a simple google spreadsheet that can help you to calculate the number of cars or vehicles you will need in order to reach a certain level of sales. 

The break-even point is that level at which sales revenue equals total costs. 

When it comes to open or maintain car or auto dealership, the most common thing people think about is how much they can afford to spend. While cost is definitely important, understanding your break even point for sales is equally as important. 

The break-even point for sales refers to the number of units that have to be sold in order to cover fixed costs and generate a profit.

The break even point formula takes into account all expenses associated with running a business and dividing it by the price of your product or service. This figure can be used to know what amount of cars or vehicles you need to sell each month, quarter, or year in order to stay afloat and pay your employees and other expenses.

Break-even analysis is a tool used to determine the point in which sales revenue equals cost. Break-even analysis can be applied to an individual product or company, and it involves determining the sales volume required for the company to cover all of its costs and start generating a profit. This is important because it helps businesses understand at what level of sales they will begin making a profit, and how much they need to sell in order for that break-even point to occur.

list of things require to calculate

1. Volumes (in Nos)
2. No.of Sales Executive
3. Average Sales Price per Vehicle
4. Average Dealer Margin per Vehicle
5. Discount per Vehicle
6. Finance Penetration* (% of total Sales)
7. Finance Income per  case
8. Insurance Penetration (% of total Sales)
9. Insurance Income per case
10. Extended Warranty Penetration* (% of total Sales)
11. Extended Warranty Income per case
12. Accessories Sales per Vehicle
13. Accessories Margin (in %)
14. Handling Charges per Vehicle Net
15. OEM incentive  per vehicle
16. No. of Employees (For Sales)
17. Monthly salary 
18. Monthly incentive to sales department (% NRI)
19. Fixed Cost
20. Variable Cost per vehicle
21. Inventory (in no. of days of sale)*
22. Rate of Interest

note*

Penetration :

If your wondering what is penetration. Then let us tell you that if you are selling 200 no. of cars and 80 of them are through Car loan so that means 40% is your penetration. same way for extended warranty & Insurance

Inventory (in no. of days of sale)

The inventory holding period shows the number of days on average that a business holds inventory

How to Use BEP Calculator

(Sample data is used for better understanding)

Step 1

Read Instructions

	Please follow these instructions:
1	Please fill all the details in the designated space (marked in light yellow)
2	The BEP Simulator consists of 2 segments i.e. The present scenario, Break Even Point
3	All the data to be filled in present scenario = (Avg. monthly performance of last three months)
4	Hence, the simulator would generate the data for the present scenario of your company and also the Break even for current scenario
5	BEP Simulator sheet will give you the result what is your Break even point (BEP)

Step 2

Fill the data as per the list marked in light yellow color

Key Assumptions for the Month	Values Per Month
Volumes (in Nos)	4
No.of Sales Executive	5
Average Sales Price per Vehicle	723500
Average Dealer Margin per Vehicle	22615
Discount per Vehicle	10000
Finance Penetration (% of total Sales)	30%
Finance Income per case	1500
Insurance Penetration (% of total Sales)	30%
Insurance Income per case	500
Extended Warranty Penetration (% of total Sales)	30%
Extended Warranty Income per case	200
Accessories Sales per Vehicle	5000
Accessories Margin (in %)	15%
Handling Charges per Vehicle Net	3000
OEM incentive per vehicle	1000
No. of Employees (For Sales)	15
Monthly salary	10000
Monthly incentive to sales department (% NRI)	0.00%
Fixed Cost	20000
Variable Cost per vehicle	3000
Inventory (in no. of days of sale)	45
Rate of Interest	14%
Interest Cost per vehicle	12265
No. of vehicles sold per Sales Executive	0.88

Step 3

You will get the BEP result

    

   

BEP CALCULATOR
	YOUR BREAK EVEN POINT
	NUMBER OF VEHICLES
	102

     

 

Step 4

Addition to the BEP number you will also get a Profit & Loss statement for Present & BEP scenario

	Present Condition / Scenario		Break Even Point
Particulars	Value	Per Vehicle	Value	Per Vehicle
Turnover	3195458	723500	74018178	723500
Dealer Margin	99883	22615	2313644	22615
Net Handling Charges	13250	3000	306917	3000
Discount	-44167	-10000	-1023057	-10000
Net Margin	68966	15615	1597504	15615
Finance Income	1988	450	46038	450
Insurance Income	663	150	15346	150
Extended Warranty Income	265	60	6138	60
Net Accessories Income	2880	652	66721	652
OEM Incentives	4417	1000	0	0
Net Retained Income (NRI)	79178	17927	1731746	16927
Staff Cost
Fixed Salary	150000	33962	150000	1466
Incentive	0	0	0	0
Total Staff Cost	150000	33962	150000	1466
Fixed Cost	20000	4528	20000	195
Variable Cost	13250	3000	306917	3000
Total Overheads	183250	41491	476917	4662
EBIDTA	-104072	-23563	1254829	12265
Interest	54173	12265	1254829	12265
Cash Profit	-158244	-35829	0	0

Conclusion: In the end, calculating your break even point for vehicle sales will help you make a better decision about whether or not to make major investment decision or run the dealership in the future. We've provided you with some useful information on how to calculate this figure and what it means for you, so be sure to check out our blog post today!

We hope this article helped you know about "How to calculate your Break Even Point (BEP) analysis for your dealership?"

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