There isn't as much markup on new vehicles as people like to think at the dealership level. Most new vehicles have about a 5%-7% markup between invoice and MSRP. These huge discounts are losses to dealerships. And for the people that think thats a good thing, most of the tax dollars and economy of some of these small to midsized towns come from these same dealerships.

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Posted by doublecutter

Hear & Their

Member since Oct 2003

6604 posts

Posted on 10/31/23 at 2:16 pm to BRL79

quote:
Most new vehicles have about a 5%-7% markup between invoice and MSRP

An old friend from high school is the CFO of a dealership group. He once said the there are two invoices for every vehicle. One is the delivery invoice that everyone refers to and there is another invoice that they receive that goes into the safe and very few people at a dealership ever see. The one in the safe is the real invoice. And he said that the dealerships are offered incentives by the manufacturer that. For instance if they sell 250 units of a particular model in the next 60 days, they would get a rebate back of a $1000 per unit. And he said that a dealership has a tremendous amount of overhead, they could not survive on making 5 % margins.

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Posted by Big Scrub TX

Member since Dec 2013

33642 posts

Posted on 10/31/23 at 2:19 pm to BRL79

quote:

There isn't as much markup on new vehicles as people like to think at the dealership level. Most new vehicles have about a 5%-7% markup between invoice and MSRP. These huge discounts are losses to dealerships. And for the people that think thats a good thing, most of the tax dollars and economy of some of these small to midsized towns come from these same dealerships.

My thing is who cares what the "invoice" is when there's a shortage. I'm amazed at how communist the average baw is on here. They appear to be vastly butthurt that a business did not give them free money.

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