Profit and accounting

What is pack?

Pack is a fixed internal amount added to each vehicle's cost before commissionable gross is calculated, covering overhead the individual deal did not directly cause.

It is a management decision, not an accounting rule. Common figures run a few hundred dollars a unit to cover lot expense, advertising, and the reconditioning you never recover on a specific car.

Pack changes what a salesperson earns, so it belongs in writing in the pay plan. Quietly raising it is the fastest way to lose a good closer.

General information for US dealers, not legal advice. Rules change and vary by state, so confirm specifics with your state agency or counsel.