Utilizing Excel to Prepare Budgets & Forecasts

 Seminar Objectives 

  • Enable attendee to become pro-active in preparing budgets
  • Allow attendee to compare budget to actual analysis in a dealer financial format
  • Benchmark historical results to assist in determining strengths and weaknesses of dealership
  • Allow dealership to prepare “What if” analysis
  • Assist dealership in determining break-even analysis
  • Provide a template for your use

How Budgets are Effective 

  • Invaluable business tool for management
  • Allow management to plan for future direction of dealership.
  • Assist in recognizing factors that are affecting the actual to anticipated results
  • Allows for financial information to be accessible to all managers of departments & assist them in growing their department.
  • Allows dealer to hold managers accountable for their department.
  • Helps the dealer to monitor expenditures throughout the year.


  • A forecast is a “what if” exercise
  • Assist with acquisition
  • Assist with financing negotiations
  • Helps with cash flow analysis

Dealerships and Budgets 

  • Are Budgets frequently prepared at dealerships?
  • Why not?

Reasons for Not Budgeting 

  • I’m too busy
  • No one follows up and compares actual to budget
  • The dealer statement is too large to perform budget
  • There is no reward or ramification for achieving or not achieving budget results
  • The department managers do not take the process seriously

The Template Solution 

  • Template is built to mirror the dealer statement to assist management
  • Allows for 6 different scenarios
    • Same as last year (2)
    • Percentage increase over prior year
    • Expenses as Other % of Gross Profit (ie 20 Group / Financial institution)
    • Expenses as NADA Benchmark of Gross Profit
    • Expenses as same % of Gross
    • Other input amount

Worksheets Within Template 

  • Dealer set-up
  • Projection scenarios
  • Projection input (this worksheet is the driving force behind the template)
  • Projected P&L ( Various sheets relating to page #’s of Dealer Financial)
  • Prior year Financial statement (Same various Sheets relating to Dealer Financial)

Keys to Changes 

  • Column Q within Projection input
    • @if Function
  • Gross Profit % columns
    • Enter your own benchmarks
  • Other Input
    • Known expenses
      • Rent
      • Depreciation
      • Contributions
  • Why no Departmental breakdown?

Let’s Experiment 

  • One Major Rule of the Experimental Phase of the Seminar.
  • If you have a question ASK
  • There are individuals present to assist.
  • Project new vehicle sales to be 15% lower than previous year.
  • What about Gross?
  • Project Customer Pay Labor to increase 10% from prior year.
  • Any Questions so far??
  • New Telephone contract? Let’s cut telephone expense by 2%.
  • Interest rates rising.!!! What to anticipate with a rate increase. Increase Floor Plan Interest by 3%
  • Any More Questions ??
  • What would you like to change?
  • Open discussion and questions.


Dawn Rosoff

Sam Longo

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