Feature guide
Dealership finance tracking and profit per unit
Track reconditioning costs, VAT margin and true profit on every vehicle. Learn what dealers should capture and how Lotra does it automatically.
TL;DR
Dealership finance tracking means recording every cost tied to a vehicle — purchase, transport, prep, advertising — and calculating true gross profit at the point of sale. Lotra attaches costs to the vehicle record so profit per unit is always accurate.
What finance tracking covers
Dealership finance tracking is the discipline of attaching every cost to the vehicle it relates to. Purchase, transport, valeting, mechanical prep, MOT, warranty, and advertising all reduce your gross margin — and they all vary by car.
Why profit-per-unit matters
Averages hide problems. A £1,200 average gross tells you nothing about which cars made £2,000 and which lost money. Per-unit tracking exposes the pattern so you can buy better, price better, and prep smarter.
The VAT margin scheme
Under the UK VAT margin scheme, a used-car dealer pays VAT only on the margin between purchase and sale price, not the full sale price. HMRC requires a stock book with dated purchase and sale records per vehicle. Lotra's stock records satisfy that requirement.
How Lotra tracks it
Every cost is logged against the vehicle record as it happens. When you close a deal, Lotra calculates gross profit, VAT under the margin scheme, and net-to-you in one view. Reporting rolls those numbers up across the whole forecourt.
Frequently asked questions
What costs should be tracked per vehicle?
Purchase price, transport, valeting, mechanical prep, MOT, warranty, advertising fees, and any finance interest. Everything that reduces gross profit belongs on the vehicle.
What is the VAT margin scheme?
The VAT margin scheme lets UK used-car dealers pay VAT only on the margin between purchase and sale price, not the whole sale price. Accurate records per vehicle are required.
How is gross profit calculated?
Gross profit is sale price minus purchase price minus all reconditioning and selling costs. Lotra does this automatically the moment you mark a vehicle sold.
Can Lotra produce reports for my accountant?
Yes. You can export sales, costs and margin scheme data in accountant-friendly formats.
Does Lotra replace bookkeeping software?
No — Lotra tracks dealership operational finance. Your accountant still needs a bookkeeping tool such as Xero or QuickBooks for full accounting.
Related guides
What is a Dealership Management System (DMS)?
The foundational guide to DMS software, its core modules, and why independent dealers need one.
Switching from spreadsheets to a DMS
A step-by-step migration plan for dealers moving from Excel and Google Sheets to Lotra.
Vehicle inventory management for car dealers
How modern inventory management works — from auction purchase to sold, without spreadsheets.
See it inside Lotra
Lotra is the operating system for independent dealerships. Inventory, CRM, finance, listings and AI insights in one workspace.