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1
Posted on 1/30/17 at 11:17 pm to bmy
quote:
Their entire business premise is to rip off the person they buy from as much as they can and then to rip off the person they sell to as much as possible
Customers have free will, they were never forced to sell their car to the dealer or buy a car from the dealer, no one was ripped off. Every business on earth operates on the principle of obtaining their merchandise for the lowest cost possible then maximizing the profit on that same merchandise.
Posted on 1/30/17 at 11:34 pm to Fat and Happy
quote:
My dad had dealerships all throughout my youth
quote:
The dealerships profit is built in
quote:
The money you are getting off the car, is out the salesmans commission
quote:
New vehicles are normally set at a certain amount per vehicle garuntee for the dealership
I have been a consultant to new car dealerships since 1988. I can promise you that what you have stated is not true. Also use spell check.
Posted on 1/31/17 at 2:16 am to dbeck
quote:
You guys bought a timeshare? Well, yeah. Yeah. How can you all be so gullible? No, no, no, no. No, this is different, Frank. This is different. Tell him. This a-hole tried to sell us one week. We took the prick for three."
Posted on 1/31/17 at 5:36 am to DownshiftAndFloorIt
quote:
frick that. That's one-off engineered product margins.
For just passing a vehicle through inventory, like 3% is good.
What? They couldn't pay their inventory taxes off of 3% margins. Obviously work in a different industry, but we are cutting it close at 50% margins once you fully burden the income. They can make whatever they can and I'm happy with that.
I don't get mad at a dealership if they don't offer me the deal I think I can get. They may have a different structure that doesn't allow them to discount without losing money. I just go somewhere else and see if I can do better. If I can get it better, its that dealership that has to worry about staying afloat with a shitty structure. They could sell it for above MSRP to other people for all I care. Up to you to be responsible with your money.
Posted on 1/31/17 at 5:47 am to bleeng
quote:
Grocery stores run at 3%.
Are we talking 3% profit, or 3% margins? Totally different concept. And an extremely high volume "product" is not going to have the same rules.
From my understanding with cars, dealers pretty much always have ~3% built in with dealer hold back depending on the make. I just don't think a lot is going to make a killing selling everything at invoice price (although I expect to get it, that's part of the shopping experience...I want it, they don't want to give it). Now profit for the dealership is different as it is tied into used cars, service, and parts. At that pointo, I think the total markup for the dealership has to be in that 25-30% range to survive. Start paying 25-50 people 50k a year and pay off a huge facility. You need those markups fast.
Posted on 1/31/17 at 7:42 am to mouton
Profit after all of their own costs are factored in, or simple profit (X% over what they paid for said vehicle)?
Posted on 1/31/17 at 7:57 am to Dire Wolf
quote:
but no dealer owner as ever said we want to make our money via service tickets.
You've obviously never been higher than a grunt in this business. The back is making a killing at a solid dealership.
Posted on 1/31/17 at 7:59 am to Dire Wolf
And the govt gets what they pay for too. Private sector is the way to go
Posted on 1/31/17 at 8:03 am to mouton
Interesting question.
I was at a dealership yesterday evening, looking at a used truck..the get go was interesting..on their website truck was listed at 30,887..first salescokehead tells me its 31,887..I stop him and show him THEIR website with the 30,887 price..he says he was mistaken.
Get into negotiating the price, he says they can knock a couple hundred off, and he'll 'go to work for me'..comes back at 30,387. I proceed to laugh while I walk out as the sales manager chases me down.
I was at a dealership yesterday evening, looking at a used truck..the get go was interesting..on their website truck was listed at 30,887..first salescokehead tells me its 31,887..I stop him and show him THEIR website with the 30,887 price..he says he was mistaken.
Get into negotiating the price, he says they can knock a couple hundred off, and he'll 'go to work for me'..comes back at 30,387. I proceed to laugh while I walk out as the sales manager chases me down.
Posted on 1/31/17 at 8:09 am to EA6B
quote:
Customers have free will, they were never forced to sell their car to the dealer or buy a car from the dealer, no one was ripped off. Every business on earth operates on the principle of obtaining their merchandise for the lowest cost possible then maximizing the profit on that same merchandise
It's a private sector "industry" created by regulations
This post was edited on 1/31/17 at 8:14 am
Posted on 1/31/17 at 8:27 am to NYCAuburn
L-O-fricking-L at people who complain that entry level jobs don't pay enough and then claim that companies should operate on a 3% margin. fricking idiots.
Posted on 1/31/17 at 8:39 am to mouton
Dealerships have low profit margins on new vehicle sales. Annual sales volume checks from the manufacturer (for selling $X amount in dealer net, you get X% of dealer net) is where they end up making money, and this money isn't passed onto the salesmen.
Posted on 1/31/17 at 8:46 am to NYCAuburn
quote:
Service dept makes bank
quote:
Not from new cars
New cars need oil changes and basic maintenance too, and the dealers make nice margins on those services. And someone buying a brand new car is more likely to want to bring that brand new car to the dealership for those service intervals than the small mechanic shop down the street, at least while the car is still relatively new.
Posted on 1/31/17 at 8:48 am to mouton
On a new car about $500 over true dealer cost. Used cars are hard to determine because you don't know what the dealership paid for it.
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