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Originally Posted by ltd_on20s
man this conversation is going in circles. i dunno how many poeple on here own their own business but yes. they run big margins. their operating costs are built into that profit margin from that 10-12k they pay overheads, wages, servicing etc. anyone here know how much it costs to run a dealership? its not ur local deli where all overheads are small so profit margins can be small as well. as u get to pricier and pricier goods, the profit margin goes up.
look eeryone has their own opinion and im sure some people on this forum work for dealerships and ford. im sure if they wanted to they could shed some light. if im wrong ill eat my own left nut  : |
I would start sharpening the knives and preparing a sauce,as your new nickname is about to become lefty.
Most dealerships have a profit margin of about 10%(in new car's),plus factory incentives which can sometimes take the margin out to about 20%.But due to the competitive nature of the market the retained profit is usually around 5% on average.You would be surpised to know that the current average retained profit across the board (in Sydney atleast) is around $500-$1200 per car including PD.(pre delivery)
The manufacturers then pay the dealer's a holdback after the car is delivered,but that is usually no more than $1500.The new car dept of dealerships havent made money for a long time and usually rely on Finance kickbacks,aftermarket,used cars then make the cream from parts and service.
Dont you think if they did pay say 15k for a brand new Commodore that some dealers would advertise them for say 16k drive away.?I know I would and just clean up the market,relying on the huge numbers I would do and pump the finance etc.