Driver Metrics Validation

VB Assumptions vs. Back-Calculated Actuals — With Greg’s Responses
Purpose

During financial model development, key operating metrics were back-calculated from historical P&L data (FY21–FY25) to validate the assumptions in the Value Builder worksheet. Discrepancies were identified that needed clarification before finalizing the forecast model.

Greg’s input ensures the Base Case forecast is built on accurate foundations.

Value Builder Assumptions

Source: VB Rapid Review Worksheet, December 2025. Greg’s additional inputs from FY2025.

MetricVB ValueNotes
Sales Department
Retail Units per Month38 units → 40Current monthly retail volume
Average Sale Price~$35,000 → $28,000Estimated average transaction price
Front-End Gross per Unit$4,000 – $6,000Gross profit on vehicle sale
Wholesale Units per Month10 unitsAuction/dealer sales
Wholesale Gross per Unit~$500 (actual 2025: $0)Minimal margin on wholesale
Lot Capacity120Current physical capacity
F&I Department
F&I Penetration50%Percentage of retail sales with F&I products
F&I Gross per Deal$1,800 – $2,200Average F&I profit per deal
Service Department
Service Bays10 baysCurrent bay count
Monthly Service Revenue~$200,000Average monthly (have done $300K)
Revenue per Bay~$20,000/monthDerived: $200K ÷ 10 bays
Technicians8 FTECurrent tech headcount
Labour Rate$155/hr → $175 (2026)Posted shop rate
Productivity75–80%Current utilization
Back-Calculated Metrics from Historical P&L

Source: Elite_Historical_Base_FINAL_2.xlsx (Verified FY21–FY25 P&L)

Scroll →
MetricFY21FY22FY23FY24FY25Method
Sales Metrics
Retail Revenue ($M)14.1613.0513.3712.3813.56Vehicle Sales–Retail
Retail Cost ($M)12.8111.7811.9811.1212.20Cost of Vehicle Sales
Retail Gross Profit ($M)1.361.271.391.261.36Revenue − Cost
Est. Units (@ $35K ASP)405373382354387Revenue ÷ $35,000
Est. Units / Month33.731.131.829.532.3Annual ÷ 12
Gross Profit / Unit ($)3,3583,4053,6403,5673,508GP ÷ Units
F&I Metrics
F&I Revenue ($M)1.571.601.471.641.39F&I Sales line
F&I $ per Retail Unit3,8924,2803,8394,6283,581F&I Rev ÷ Units
Est. F&I Deals (@ $2K)787798733819694F&I Rev ÷ $2,000
Est. Penetration195%214%192%231%179%F&I Deals ÷ Units
Service Metrics
Parts Revenue ($M)1.101.271.381.411.31Parts–Sales
Labour Revenue ($M)1.101.161.261.271.21Labour line
Subcontracts ($K)2927452822Sub Contracts
Total Service Rev ($M)2.232.462.682.712.54Parts + Labour + Sub
Monthly Service Rev ($K)186205223226212Annual ÷ 12
Rev / Bay / Month ($K)18.620.522.322.621.2Monthly ÷ 10 bays
Validation Summary — VB vs. Actuals
MetricVB AssumptionFY25 ActualStatusIssue / Question
Retail Units / Month3832.3⚠ CHECKVB is 18% higher than calculated. Is ASP wrong, or does 38 include US?
Front-End Gross / Unit$4,000 – $6,000$3,508⚠ LOWActual is below VB range. What does VB include that P&L doesn’t?
F&I Penetration50%179%⚠ ANOMALYImpossible if retail-only. F&I must include US/wholesale sales?
F&I Gross / Deal$1,800 – $2,200$3,581/unit⚠ CHECKPer-unit is higher because fewer units than VB assumes.
Monthly Service Revenue$200,000$211,928✓ OKValidates well — within 6%
Revenue / Bay / Month$20,000$21,193✓ OKValidates well — within 6%
Greg’s Responses
1
Avg Sale Price ⭐
What is the actual average sale price for DOMESTIC RETAIL units? (Not US exports, not wholesale). I assumed $35K — is this correct? THIS DRIVES ALL OTHER UNIT CALCULATIONS.
Greg’s Response
ASP for 2025 was $28K. Again this fluctuates year to year depending on market conditions, interest rates, trends and inventory availability etc.
2
Unit Count
VB says 38 units/month. Using $35K ASP, I calculate ~32 units/month from P&L. If ASP is different, units will recalculate. Does 38 include US exports?
Greg’s Response
Actual retail units sold for 2025 was 483. 40.25 per month. This is retail only. Wholesale is irrelevant, only used to rid us of unwanted unsaleable inventory.
3
Front-End Gross
VB says $4–6K gross/unit, but P&L shows ~$3,500 (at $35K ASP). Does VB “front-end gross” include holdback, manufacturer incentives, or other items not in the “Vehicle Sales” P&L line?
Greg’s Response
Retail average GP on the front end sales: $2,813. Retail average GP on the back end (F&I): $1,917.41. These are before commission payable.
4
F&I Revenue Mix
F&I Revenue was $1.39M in FY25. What portion comes from: (a) Domestic Retail? (b) US Exports? (c) Wholesale? This explains why penetration calculates >100%.
Greg’s Response
All F&I comes from retail sales only. Huge opportunity on increasing F&I gross if the % of on-site vehicles were weighted more heavily in the financeable category. TBD.
5
F&I Products
What F&I products are sold? (warranty, GAP, protection packages, tire & rim, etc.) Helps understand the revenue mix.
Greg’s Response
F&I includes mostly doc fee, warranty, life and disability, tire & rim, dealer reserve, pro pack (but not often — so big opportunity there).
6
US Export Sales
US Vehicle Sales were $3.6M in FY25. Are these exports to US dealers? Do they carry different margins than domestic retail? Is F&I sold with these?
Greg’s Response
US sales are separate to everything else, sold strictly to Spokane Auto Auction. Average GP is less than half retail with no back end money. More of a hobby for Korey the last couple years. Would have probably grossed higher if we kept some of that inventory in Canada. To be discussed further.
7
Service Revenue
Service metrics validated well (~$212K/month, ~$21K/bay). Any corrections needed, or is this accurate?
Greg’s Response
We have 10 bays, 6 journeyman techs, 2 second-year apprentices and one junior. Not all bays are used at all times but yes the average is close. Each bay should produce $2,800 per day at 100% productivity but no shop has a ratio of 1 tech per bay. There is always a couple bays available for idle jobs, overflow etc. Industry goal is 90%. This per-day amount is at our new labour rate of $175/hr. Industry GP average is 55% — we are at 49% so potential there as well.
8
Other Factors
Anything else affecting these metrics I should know about? (seasonality, one-time items, accounting treatments, etc.)
Greg’s Response
Inventory quality, post-sale comeback expenses… We spend $30–50K a year on post-sale comeback repairs. We spend another $30–40K on our “first oil change free program” with purchase, per year.
Additional Comments from Greg

2025 we wrote down $100K+ in inventory, half of which was due to poor buy-ins, and the other half to aged inventory. This is higher than a normal year for us. We have noticed a trend in new car dealers focusing more on their used car sales departments due to higher new car pricing. Thus leading to our inventory sources — which mostly consist of new car dealer trade-ins — being less available to us. The quality of inventory has suffered as a result and is much lower than it has been in the past (i.e. higher mileage, more reconditioning required, older and aged, poor colour selection). The dealers are holding on to their premium trade-ins. The majority of our inventory averages over 100K kms.

Shop note: Shop sales suffered in 2025 due to the loss of our top tech. His productivity was over 90% and efficiency was over 125% so it was a big loss for us. A shortage in available qualified techs in the workforce has made it difficult to make up the deficiency.