The New Lexus Financial Statement
A Change for the Better
Last year, we introduced the new Lexus Financial Statement, expanding the document from six to nine pages. Many dealers thought, “Will this be more work to submit?” or “Will it reveal more detail than necessary?”
Good news for the Parts Department! The new financial statement dedicates an entire page to the business intelligence you need to identify your parts sales opportunities.
What’s in It for You
While the expense account pages in the new financial statement remain largely the same, the sales and gross explanation pages have been expanded. Here’s a look at how the changes benefit your wholesale parts business.
Previous Lexus Financial Statement
The Parts Department sales and gross lines on the previous statement consisted of 22 lines on the last page. With such a small amount of real estate dedicated to the Parts Department, determining the parts opportunity was a challenge. Seven of the 22 lines are devoted to accessory sales. Many Lexus Dealers did not use the accessories lines. If their accessories sales were minimal, they often just combined them with other customer retail accounts. The rest of the sales and gross accounts were left to larger accounts with no separation in subaccounts.
A single line was provided for each of the following: customer mechanical sales, tire sales, counter retail, and wholesale parts. Line 51 of the old statement, “Parts – Wholesale – Lexus”, included wholesale sales to Collision Repair Shops, Mechanical Shops, and Online Sales. This lump sum metric did not give Parts Managers any insight into where their wholesale sales were going and no means to identify opportunities.
The New Lexus Financial Statement
The new Lexus Financial Statement dedicates a whole page to the sales and gross from the Parts Department! You’ll find it on Page 9, the last page of the statement. It has expanded from 22 lines to 51 lines, with plenty of room for future expansion. There are three lines dedicated to Lexus wholesale sales:
- Line 7 – Wholesale Mechanical Parts
- Line 8 – Wholesale Collision Parts
- Line 9 – Wholesale Online Parts
You may notice that there are also ten new lines in the category of “Other” Parts sales (lines 13-23). These fields refer to parts that the other brand sells in a dual dealership. Since most Lexus dealerships are standalone franchises, many will not use these lines.
Now, you can easily compare performance in all areas of wholesale parts sales. You may do well in wholesale mechanical sales but have an opportunity to grow in collision parts sales. Or perhaps the prospect is in online sales. No matter the gap, the new Lexus Financial Statement gives you clear evidence of wholesale parts sales potential.
Learn to Use This Powerful Tool
To leverage the power of the new Lexus Financial Statement, it is essential that you correctly complete each line item. To ensure that your department’s wholesale expenses and income are correctly reported, please consult with your business office.
