What do you recommend to be a reasonable way to calculate internal labour rates?

Internal charge out rates should not be discounted for the Sales department at a cost to the Service department. The rate should be FULL normal retail or at worst, normal retail with a small 'fleet' discount.

The sales department should not be subsidised by the service department which once committed cannot sell the discounted labour whereas the sales department can choose its customer after the cost has been incurred and should always seek to maximise the profit in the deal (both new and used). Tuesday's discounted hourly rates (and hours) cannot be sold on Wednesday, they are gone - cars not sold on Tuesday can always be sold on Wednesday.

I hope this makes sense, if we can be of any more assistance please do not hesitate to contact us on 0161 493 1930

What is the benchmark for the number of sales per salesman?

The benchmark for this ratio has always been set at 150 units per annum. Broken down that is less than 4 units per week the salespeople in your business need to deliver which is very much achievable.

The taxman says I have underpaid my VAT or PAYE liabilities - is there anything I can do?

Definitely - the taxman will always paint the worst possible picture when things have gone wrong, but don't just accept what he says. We have been very successful in the past in helping our clients reduce the amount they have to pay after PAYE & VAT reviews, so before you pay anything, give us a call.

Can I get tax relief for the money I spend on building or renovating my site?

Yes, although how much relief you can get will depend upon the nature of the work you have done. If you are spending substantial amounts on work on your showrooms it will definitely pay to seek advice as to how to get the best possible tax benefits.

What stocking policy do you see in most successful dealerships you deal with?

The stocking policies vary from dealer to dealer, even the best. The majority of strong dealers operate a strict stocking policy from the day the vehicle lands with them. Asking your used car manager exactly how much each vehicle is depreciating each week should give you a good idea if they have a handle on the stocking policy operated. See our Used Vehicle Profiler as this will be able to assist you.