Analytics for Car Dealers: What Should You Be Tracking
To improve your processes and grow revenue, you first need a clear and accurate understanding of how your dealership is performing. Data provides objective insight, which is why more dealerships are adopting analytics and business intelligence tools to gain a competitive advantage. This article explains what car dealer analytics are, why they matter, and which metrics have the greatest impact on performance and profitability.
What are car dealer analytics
Car dealer analytics transform raw business data into clear, actionable insight. Dealership performance can vary significantly depending on brand mix, used vehicle operations, and internal processes. Analytics help remove uncertainty by showing exactly what is working and what needs improvement.
With access to reliable data on sales performance, revenue per vehicle, and team productivity, dealership leaders can set realistic goals and track progress over time. Analytics also allow for deeper visibility into individual and team performance.
For example, understanding which salespeople consistently outperform others enables targeted coaching and training. This approach supports higher productivity across the entire team rather than relying on assumptions.
Consider a dealership owner in Sydney who discovers that only a small percentage of customers are securing finance through the dealership. By setting clear finance related KPIs and tracking performance, the owner can measure improvement over time, adjust strategy, and increase profitability. Analytics remove guesswork and replace it with informed decision making.
Why business intelligence software matters
Many dealerships still rely on spreadsheets or whiteboards to track performance. This approach increases the risk of errors and limits visibility, particularly when data is stored across multiple files or systems.
Business intelligence software built for the automotive industry centralises data from sales, finance, service, and administration. This creates a single source of truth that all stakeholders can access. It also ensures consistency, improves accuracy, and enables role based access to sensitive information.
With the right platform in place, dealerships gain clearer insight into performance and can act faster with confidence.
What should dealerships be tracking
While every dealership is different, certain metrics consistently drive stronger outcomes when tracked correctly.
Dealership, team, and individual KPIs
KPIs provide clarity around performance at every level of the business. Tracking dealership wide, team based, and individual KPIs allows leaders to identify shortfalls early and take corrective action. Clear KPIs also help employees understand expectations and stay accountable.
Return on investment
Return on investment provides a clear view of financial performance and operational efficiency. By monitoring metrics such as days in stock and profit per vehicle, dealerships can optimise inventory management and improve overall profitability.
Aftermarket revenue per vehicle
Aftermarket products present a strong opportunity to increase gross profit. Tracking projected and actual aftermarket revenue per vehicle helps dealerships set realistic expectations and identify opportunities to lift post sale profit.
Extended warranty performance
Extended warranties deliver additional margin while encouraging customers to return for future servicing. Tracking warranty penetration helps dealerships assess how effectively these products are being presented and sold by the team.
Improving performance with car dealer analytics
Car dealer analytics play a critical role in improving efficiency, transparency, and profitability. Automotive business intelligence platforms such as SalesLogs are purpose built to support these outcomes.
SalesLogs has been developed using direct insight from dealerships and is trusted by more than 1,500 automotive businesses.
Key capabilities include a centralised platform that consolidates data from all departments, fast and intuitive data analysis through SalesLogs DataGrid, KPI dashboards for performance tracking, live data feeds to monitor operational efficiency, and multi level permissions to control data access.
To see how SalesLogs can support your dealership and improve decision making, book a free demo today.
