Profit and accounting
What is back gross?
Also called: back-end gross, F&I gross
Back gross is the profit from the finance and insurance office: lender reserve plus what you make on service contracts, GAP and other products.
On a lot with a decent F&I process, the back end often carries more margin than the car does. That is normal, not a trick, as long as everything is disclosed and priced honestly.
It is also the part most exposed to chargebacks. A customer who refinances early, or a contract cancelled in the first months, claws money back after you already counted it.
Handle this automatically
Loturn tracks every cost against the VIN and shows live profit on every car, with real dealer accounting built in.
Related terms
Front gross
Front gross is the profit on the vehicle itself: sale price minus total vehicle cost minus pack, before any financing or product income.
Chargeback
A chargeback is F&I income clawed back when a customer cancels a product or pays the loan off early, after you already booked the profit.
Reserve
Reserve is the dealer's share of the finance charge when a retail installment contract is assigned to a lender, the difference between the buy rate and the contract rate.
General information for US dealers, not legal advice. Rules change and vary by state, so confirm specifics with your state agency or counsel.