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re: Help buying a new truck.
Posted on 11/29/12 at 3:07 pm to GREENHEAD22
Posted on 11/29/12 at 3:07 pm to GREENHEAD22
Cars.com or autotrader.com can tell you the invoice price. Start from there, then figure out what the dealer holdback is and subtract that (the only way I know how to see the holdback is through that link I showed - there may be a free way to see it but I wouldn't know).
Even after you subtract the holdback from the invoice, there will still be some profit built in for the dealership, likely in rebates or incentives or something - but invoice minus holdback is a good place to start.
Ignore the MSRP, it's a made up number
Even after you subtract the holdback from the invoice, there will still be some profit built in for the dealership, likely in rebates or incentives or something - but invoice minus holdback is a good place to start.
Ignore the MSRP, it's a made up number
This post was edited on 11/29/12 at 3:07 pm
1
Posted on 11/29/12 at 8:50 pm to NaturalBeam
I used to be a CFO for a fairly large automotive corporation.
Profit margin on new vehicles are low. Depending on make, the average is about $1200 per vehicle. Dealerships make most money from co-op money from franchises. More inventory they move, more back end money from factories.
So, if you want the rock bottom price for a new vehicle - go to the largest dealership in your town or next town on the last day of the month, on the last hour. Dealers have extra incentivized rebates in their desk drawers for such customers (app. $1000-$1500). Depending how close they are to their annual quota, they can dig deep into their profit margin (I've seen plenty of $5000 losses on deals).
Now if you're looking for a used vehicle - don't go to a franchise dealership. Used car profit business is the icing on the car at a franchise store. Buy from an individual and never ever buy from an auction. Wholesalers know how to cut corners and make check engine lights disappear without doing the service work.
Profit margin on new vehicles are low. Depending on make, the average is about $1200 per vehicle. Dealerships make most money from co-op money from franchises. More inventory they move, more back end money from factories.
So, if you want the rock bottom price for a new vehicle - go to the largest dealership in your town or next town on the last day of the month, on the last hour. Dealers have extra incentivized rebates in their desk drawers for such customers (app. $1000-$1500). Depending how close they are to their annual quota, they can dig deep into their profit margin (I've seen plenty of $5000 losses on deals).
Now if you're looking for a used vehicle - don't go to a franchise dealership. Used car profit business is the icing on the car at a franchise store. Buy from an individual and never ever buy from an auction. Wholesalers know how to cut corners and make check engine lights disappear without doing the service work.
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