re: Car salesman can SMD

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Wasn't this how Saturn operated... well, before they went out of business?

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Saturn went out of business because of management, not customers.

From basically the second year on, GM management carefully looked at every single thing that was different about Saturn, and that customers were fanatically loyal to, and destroyed it.

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I can guarantee that you're wrong.


You've got to be kidding me. You are saying that every dealership in the country manipulates POI on deals?

Do you realize how ludicrous of a statement that is?

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I absolutely know how ludicrous that sounds. That's why I didn't say it.

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This does not happen anywhere


I can guarantee that you're wrong.

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Might be the perfect job for you

The only real thing I got out of this thread was to stay away from any and all Ford dealerships so I don't by chance run into that LSUFord guy.

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There's only about a 6-8% gap between the fake internet invoice and MSRP, which is certainly not enough to pay for dealers' overhead and profit.

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Irish, that's really not too far off for some manufacturers. I'd say it's very close on your 50k cars, and it is a little high on the base model cheap shite.

As somebody stated earlier, the manufacturer has closed the gap between "invoice price" and MSRP. Invoice price is quoted bc the auto industry continues to hide more of the money as the consumer becomes more knowledgable, and invoice price isn't really what the dealer is going to make.

Ex of where the money comes from:

Invoice: $40,000
MSRP: $41,500
Bump Sticker aka Dealer Addons: $2,000

New Retail Price: $43,500
Holdback: $1,984 (hidden profit if they move the unit fast enough)
Rebates: $3,500

Let's say that you buy the car for $37,500 the day after it hits the lot. Great job! The dealer only made $1,000 over invoice.

$1,000 plus
$1,984 (in holdback) plus
$750 (bonus from the manufacturer for hitting his monthly quota) plus

[Assume you financed through the Manufacturer's Finance Company, who happens to be giving bonuses at this time]

$500 (per deal finance bonus) plus
$1,100 (finance reserve...a kickback from the finance company for the 2% added to your buy rate) plus
$1,300 (profit from the gap, warranty, life insurance, tire and wheel, etc) plus
$200 (doc fee)

That $1,000 "profit" just turned into a $6,834 profit deal for the dealership. Unfortunately, your salesman hates you, bc his commission isn't based on all that hidden money. Hell, at some dealerships, he might have even only made a mini deal, which would have put around $100 in his pocket. Luckily, our dealer pays a little extra for back-end products, so our salesman makes like $125. The business model says to blame you for not letting him feed his family, and the meetings involve discussions about the greedy arse customers that come in to frick the dealership.

So, when sweet little trusting grandma comes in on Wednesday afternoon, our salesman has only made $125 for working 26 hours this week. Well, that leads to granny getting bent over the table and pounded...a 4 pounder to be precise. She doesn't fight back, because our salesman is a sweet boy and she knows his aunt. Instead of making a good/decent profit off of sweet granny, the dealer busts that bitches arse any way that he can to make up for the "@ssholes" that nickel and dime him to death. Granny's dumb, trusting @ss gets fricked on the car, the warranty, the gap, the credit life, the window etch, the scotch guard, and pays the doc fee. Some managers even "accidentally" frick up the sales tax. Hopefully, they send you the difference when they discover that your address was outside the city limits and they calculated sales tax on you based on your living in the city like you said. However, sometimes people forget. Luckily, forgetting isn't illegal. (this one is rarer than some of the others)

Little does our GED having salesman know that the first customer wasn't the reason he only made $125. The industry's common business model and his owner were the main reason that he only made $125 in the first 2.5 days of the week. It's ok though; he just got granny for a 4 pounder on a used car and put a $1000+ in his own pocket.

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The only real thing I got out of this thread was to stay away from any and all Ford dealerships so I don't by chance run into that LSUFord guy.

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I'd probably stay away from Chrysler too...and any dealership that deals with a lot of bogues.

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The only real thing I got out of this thread was to stay away from any and all Ford dealerships so I don't by chance run into that LSUFord guy

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Good thinking.

Can you run your numbers on a truck? I bought a 2016 F150 4x4 last February. It had a sticker of $51k from manufacturer, and was $53,700 from the dealer.

I paid $37,500, and I still think they made good money off of me. It seems the difference between cost to build and MSRP on SUV's and Trucks is different than cars.

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Stupid salesmen, a green sheet is an easy sale, u have to do no work, just listen and show the guy what he wants. And he will bring in more freinds and family for easy sales.

People don't go to dealerships with a green sheet to shop around, they go to buy.

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So, salesman should be happy to keep getting "easy" deals that they make probably $125 on? That's fantastic!! Hopefully I can sell 30-40 of those so that I can put food on the table and pay my electric bill.

Well for one I hope it's not the same goons running the joint when I was there.

Cash deals normally get blowback because they are not getting anything in the back from financing. So when I was there it took forever for the Finance Manager to take the deal. Always put special financing first (what they do to those people is downright criminal).

Just hit him lower than what you are wanting and he will hit you with a home run figure. Counter. Do not respond for a few days. They WILL call you lol.

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No they didn't unless they made it in the finance office.

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I did not finance. OK, I feel better overall. I try to guess as to the cost to manufacture and what the dealer really makes on the deal, and in my thinking I still feel like the dealer makes a couple of grand on every deal they make. Intersting, if that's not true. Thanks for the reply.