What is Gross Profit per Unit?

Gross profit per unit, often called PVR or per-vehicle retailed, measures the average profit a dealership earns on each vehicle sold. Front-end gross comes from the vehicle sale itself, the difference between selling price and cost after any pack, while back-end gross comes from F&I products such as financing reserve, warranties, and protection plans. Total gross per unit combines both. Tracking this metric shows whether the store is holding margin, and it helps identify whether profitability is driven by the sales floor, the F&I office, or both. Declining front-end gross across the industry has made back-end performance and volume increasingly important. Managers use gross per unit alongside closing ratio and total units to understand true dealership health. Accurate deal accounting is essential, since misallocated costs distort the figure and mislead decisions.