The ACAR Report

I am looking for a way to cut expenses while increasing profits. How can ACAR help me?
 
Each month provides unique opportunities to generate profits and cut expenses. Once the month is closed, any opportunities that were not fully exercised result in lost profits. Our goal is to help you squeeze every last dime out of your market. We not only want to help you minimize expenses, but we want you to maximize your gross and control your inventory. The ACAR Report includes the information necessary to assist you in making the decisions necessary to maximize your profitability. We think that if you incorporate the ACAR Report into your management style, it will be one of the most profitable decisions you will ever make.

I'm busy selling cars and putting out fires.  How will I find time to look at the financials?
 
The ACAR Report is the quickest and easiest way to review all financial aspects of your dealership. The right hand side of the report has year-to-date variances, tables and simple graphics you can review in minutes. Action Items, which highlight all unusual variances, allow you to effectively review your entire operation. Then, when time allows, you have all of the information necessary for a detailed analysis.

How will using the ACAR Report save me time?

The ACAR Report summarizes your ENTIRE dealership into one quick and easy report. Our clients have described how convenient it is to carry the ACAR Report with them to every dealership and on trips. They say they can review and make notes regarding each area of their dealership "right in their lap".

I have one dealership and sell fifty cars a month.  Why do I need the ACAR Report?

There are no small fish in the ACAR pond. We have a number of clients that sell less than fifty retail units per month. The main focus of the ACAR report is to compare yourself to your own trends. With the ACAR Report, you can compare yourself to industry guides, ACAR+ groups, and your own goals. Because of this, you will be well equipped to optimize all phases of your operation.

Do I need to sign a contract?
 
No!  We are confident you will be happy with your ACAR Report. However, if for any reason you do not think you are benefiting from the ACAR Report, just give us a call. You may cancel at anytime.
                                                                                                                                          
How will you receive the information necessary to complete my ACAR Report?

After closing each month, your controller will either fax or e-mail the manufacturer financial statement along with a specifically designed supplemental.

How long will I have to wait each month for my ACAR Report?

The PDF file will be e-mailed to you as soon as 2 hours within receiving your information, no later than the next day and the bound copy will be sent UPS for next business day delivery! The purpose of the ACAR Report is to allow you and your managers to react to the numbers as soon as possible! In order to help you reach your goals, we promise the quickest possible turnaround time.

My financial information is extremely confidential. How will ACAR handle my confidential information?

We understand how important it is to maintain a high level of security with financial information. We use the utmost care in the transfer of information from authorized personnel in your dealership to us. Your reports will be sent directly to you and will always be labeled as "confidential."   We have been preparing ACAR Reports since 1992, and our success depends strongly upon our integrity.

I am in a Twenty Group. Why do I need the ACAR Report?

Thirty percent of our clients are in "Twenty Groups". A "Twenty Group" is an excellent source for ideas and comparisons, but with the ACAR Report the main focus is on the trends within your dealership in an easy to read format. The ACAR Report is customized for your dealership and includes Action Items to highlight successes and areas of concern for your department managers. Charts, graphs, benchmarks, and more are also included in the ACAR Report. 

I have a used car outlet. What can ACAR provide?
 
The ACAR Used Report is specifically designed to monitor your used car outlet in the same format as the ACAR Report. In addition, if you have another used or new dealership you can compare them in the ACAR Multi-Dealer Report.

I have Toyota, Chevrolet and Subaru dealerships, so we often have problems making comparisons at our manager's meetings.  How does ACAR handle these kinds of differences?

Our supplementals are designed to bridge all variances from manufacturer statements, as well as differences in accounting between dealerships.

I have two Dodge dealerships and I would like each of their ACAR Reports to include the other dealerships current operations?

No problem! We can include the other dealerships current operations in the "+" column or in the same month of the prior year column in your ACAR Report.

How is the ACAR Group Report different from the ACAR Report?

The ACAR Group Report is designed to compare dealerships. It follows the same layout as the ACAR Report while including more percentages and different graphs and rankings designed to generate comparative discussion. 

How many dealerships does the ACAR Group Report hold?

There are three versions of the ACAR Group Report. We have a Group Report perfect for any group, whether you have two dealerships or forty. We have specially designed a Group Report for operations with more than nineteen dealerships. It follows a slightly different design based on our tables and includes less graphical analysis.
 
I meet with my five general managers by the seventh of each month. Can I use the ACAR Report for this meeting?

Yes, the Paul Miller Automotive Group in New Jersey has bound copies of their reports on the second working day of the month.  Our quick turnaround allows you to quickly have a "Twenty Group" meeting in your organization.   The ACAR Group Report provides an excellent tool for your general manager meetings. It will provide the basis for generating discussions and help you build to a healthier bottom line. In addition, the ranking provides an excellent tool for promoting competition between your dealerships.

We need a better budgeting process. It seems like we spend too much time developing our budgets and not enough time using them. Does the ACAR Report have a simple and effective tool for budgeting? 

The Profit Planner is a comprehensive, yet simple Excel template which you can use to budget and test various scenarios, while comparing to historical performance.  We can budget the entire year in just a few minutes.  We have found that by simplifying this process dealers can measure their actual performance against their own goals, and therefore focus on maximizing profits.  The Profit Planner page in the ACAR Report compares month-to-month and year-to-date variances along with presenting a quick review of your entire forecast.

My gross is excellent, but my bottom line isn't.  Can ACAR help me?

It sounds like you are a "Maker", but you also need to be a "Keeper."  Each is a key attribute of our most successful dealers. The ACAR Report breaks out all of your expenses in total, as a percent of gross, in relation to retail units and in relation to productivity. As you apply each of these areas to your expenses and compare them to the "guides" and "+" dealers, it can immediately isolate your weaknesses and show you where to improve.

When we completed our parts inventory last year, we had an $84,000 write down.  Can ACAR keep this from happening in the future?
 
Every month we compare the balance in your parts counterpad to the general ledger balance. If this variance continues to grow over a three or four-month period, then you can take immediate action to resolve the cause for the variance. Your counterpad and G/L balance will never equal, but the variance over a period of time should be consistent. In addition, we monitor the aging of parts inventory so you can react more quickly if your inventory starts to become over aged.

I have 50 employees and am making $50,000 per month.  Do you think I can improve?
 
Yes. Our guide is $2,800 net profit before tax per employee per month, so we think you should be able to make $140,000 per month. Approximately 20% of our dealers exceed this guide, but it is a reasonable guide that we think all dealers can attain. The ACAR Report provides the basis to build your dealership to this level of profitability.

My service manager wants to hire an assistant.  How do I know if this decision is justified?

What is your service compensation as a percent of gross? You can easily compare your current percentages to the guides, indicating what is acceptable and expected. Then you can better determine if another employee is to be hired.

I have set benchmarks in my dealership which my managers try to reach.  Do you utilize benchmarks in the ACAR Report?

When we set up your ACAR Report, we analyze your dealership along with other similar dealers to establish your initial guides. We encourage you to adjust the guides according to your management style. These guides can be set according to NADA guides, information from your manufacturer or twenty group, or according to your personal preferences. By setting your guides, your managers will be able to measure their performance according to your specific requirements.  The new ACAR Guide Calculator creates comprehensive interactive guides in minutes.

Do you have a standard guide for F & I gross per retail?

Yes, we can give you an overall guide by industry, manufacturer or any other group, but remember guides are just a standard. Each dealer works in a different market, even if they are only five miles apart. Do not limit yourself by another's guides. Attain your benchmarks and then take them to the next level.

When I look at my statement, finance income per contract includes lease income, insurance income, alarm income and charge backs. I can't manage my dealership without greater detail, how do you handle this? 

We track all of that information with your supplemental. Since F & I is a key to your success, we track a number of products in the ACAR Report.  There are four variable products, which you can change to match your dealership.

I want to see a three-year trend of my operations. Can the ACAR Report do this for me?

Yes, each department has one or two four year tables with trends by month and quarter. We have found these four tables to be fantastic in monitoring prior period performance.

I see that the ACAR Report compares our performance from past months and years.  Why do I need to worry about past performance?
 
The ACAR Report is designed to generate discussion. "Why is this low?"  "Why is this high?"  "How do we improve?" "How do we sustain this success?"  If you know where you are now and where you have been, you can continue to build. The ACAR Report provides an owner's manual to achieving and maintaining a fine tuned dealership.

I was comparing my Escape gross per unit in the ACAR Report to the gross per unit on my statement and it didn't match. Why was this?
 
If we notice anything abnormal, we call your controller.  If there is an error, we then make the correction to your ACAR Report. With the ACAR Report, we are able to monitor your dealership in a way that is unavailable to your controller.  Because of this, we can provide a higher level of accuracy for your management team.

I often see Variable Selling Gross (VSG) throughout the report. What is VSG?

The VSG is the gross amount the manager is accountable for. Department gross less selling expense builds the Variable Selling Gross (VSG). The owner, general manager and controller are responsible for the overhead expenses.

I run a new and used combined department, but my statement breaks it out. Can ACAR help me?

The ACAR Report has a New & Used Department page that combines both departments. It can be much easier to look at them combined, since compensation and advertising may not be allocated appropriately.

I have a Chrysler piggyback on my Ford dealership, but the Ford statement groups the Chrysler parts and service sales in "other sales". I want to see these broke out by customer, warranty, and internal. How would this look in my ACAR Report?
 
Each category in your parts, service and body shop department will include sales, gross, and repair orders for all lines; we will work with your controller to optimize your tracking.

I have Nissan and Kia grouped on the same financial statement, how do you handle this?
 
We would use the Nissan statement as the main statement, but then incorporate page 4 and 5 of the Kia statement to track vehicle sales and separate parts and service departments if you would like to track them separately.  The vehicle sales page and the CSI page of your ACAR Report will be designed to include the detail for all of your other franchises. We also track other franchise sales in the new and used vehicle department and provide inventory information in a format that will be easier to review. 

Since my financial statement goes to the factory we have several items that are adjusted.  Can ACAR show the actual statement?

Yes! We can rearrange anything on your financial statement. The ACAR Report is your information arranged in the most beneficial way. If you want to redistribute a management fee or reallocate gross, just let us know.
 
LIFO messes up my financial statement.  How does ACAR handle this?
 
We omit LIFO from the ACAR Report net profit, unless otherwise requested. We provide the reconciliation from ACAR Profit to your financial statement profit, under "Other" in the Action Items in the back of the report.

What are ACAR+ and Toyota+?

"ACAR+" is an average of ACAR Dealers included on each line in your ACAR Report. We have several "+" averages to compare your dealership to. In our standard ACAR+ we average six of our best import and domestic dealers. An ACAR+ of our best small market dealers is also available. The Toyota+ and Lexus+ are also available in addition to a few others.