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  #21  
Old 12-05-2019, 06:55 PM
2catch1 2catch1 is offline
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Originally Posted by WallyWarrior View Post
This is a lot like “magic”. How can so many people be involved and no one know the answer? I’m going to bet that margins are much higher on high ticket vehicles such as trucks than they are with opening price point cars. I’d bet that a 15k car generates 500-1000, but getting into trucks and high ticket SUVs you’re looking 2500 at minimum. Of course through negotiations at the right time a dealer would be willing to sell below expected margins, but that’s not the norm. Ford cut out its US car line because they could not compete and be profitable with others coming in. I’ve seen reports where Ford is making upwards of 10k on a new truck, there has to be some of that in wiggle room at the dealership.

Also mentioned above was someone who paid 12k less than sticker. You think the dealership did this out of the kindness of their heart?

Parts and service do generate a ton of income and a lot of pure profit. The same battery replacement done at a Walmart for the price of the battery ($100-150), costs $300 or more at the dealership. Price tires out at a dealership and compare it to tire places around town. It’s insane. They live off the old timers that think everything their vehicle needs has to be done at the dealership. A lot of it is downright robbery by deception.


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After working at a dealer for almost 20 years and now an independent for 2....you're way off. At the gm dealer I worked at anyhow. Batteries, tires and brakes are often cheaper at the dealer. If they are trying to give you a 300 dollar battery it's likely an AGM and the knockoff at Walmart isn't. The tires from dealer and independent I work for now come from the exact same supplier along with costs. They are 45 minutes from each other. 12k off sticker is old model year.....IE Silverado just got a make over....so the old body/new trucks got blown out the door CHEAP.
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  #22  
Old 12-05-2019, 08:14 PM
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mcbreth mcbreth is online now
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I worked in dealerships for several years. We aimed to gross about $500 over invoice per new car on average. The invoice is what the dealer pays, if you know how to read it. There is holdback, but that is really a rebate to the dealer to cover their financing fees (dealers typically finance their inventory). The finance dept usually has a bogey of $1000 per car.

There are also volume and other incentives paid from the manufacturer to the dealer.

There are so many option package discounts and consumer rebates and programs that it is impossible to judge if $xxx off sticker is a good deal or not.

On high demand cars dealers often charge above MSRP (I once sold an 20th Anniversary Trans Am (new) for $10000 over sticker). Special packages like fancy Waldoch or A&J trucks are hugely profitable.

25% of the gross typically is paid in commission to the salesperson or a flat fee ranging from $100 to $500 per vehicle. They then get bonuses for volume, selling “lot queens” or other targeted vehicles from the dealer and sometimes the manufacturer.

The typical dealership relies on the service department and body shop t cover their fixed costs. The finance department is the real money maker....

Used cars are total voodoo. You have trade ins, program cars, lease returns and auction cars so there is no way to estimate what an average profit is....
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  #23  
Old 12-05-2019, 09:46 PM
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Dave in Walker Dave in Walker is offline
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I once bought a F150, for $500 cheaper then the ford employee price. It seems to be a very good well kept secret, that few know.Do your homework. get the best deal you can and go with it
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  #24  
Old 12-05-2019, 10:06 PM
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Baseline Baseline is offline
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I have no idea what the profit margin is on new vehicles and other income streams of new car dealerships, but the guy who is the majority owner of all the Ford dealerships in my area has a Beechcraft Jet, a home in Palm Springs and lives in about a $2 million dollar shack on a lake just down the street from me.
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  #25  
Old 12-05-2019, 11:11 PM
ol guy
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I don't know anything on dealer profit margins ,
But i bet nobody can get a better deal than my neighbor.
Thats what he tells me anyways Evey time i buy something.
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  #26  
Old 12-05-2019, 11:41 PM
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WallyWarrior WallyWarrior is offline
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Quote:
Originally Posted by 2catch1 View Post
After working at a dealer for almost 20 years and now an independent for 2....you're way off. At the gm dealer I worked at anyhow. Batteries, tires and brakes are often cheaper at the dealer. If they are trying to give you a 300 dollar battery it's likely an AGM and the knockoff at Walmart isn't. The tires from dealer and independent I work for now come from the exact same supplier along with costs. They are 45 minutes from each other. 12k off sticker is old model year.....IE Silverado just got a make over....so the old body/new trucks got blown out the door CHEAP.


I have no behind the scenes knowledge to base my car sales margins on so i will give you that. I was just guessing.

On the other hand, I have first hand knowledge on the tires and batteries. The batteries, AGM w same or better specs and same warranty, is 149 through Wal-Mart installed. I’ve seen the estimates from the dealerships. Of the last couple I remember, one was a Durango and estimated at $360, the other was a an equinox quoted at just over 300. Two different dealerships.

Tires, you can get just about every tire ordered through Wal-Mart at the counter with exception of some Bridgestone/Firestones. $48 for the lifetime mount and balance of 4. I’ve had multiple quotes that come in over $300 higher from the dealership. Yes, every Wal-Mart service center is different and management/team will dictate quality and speed. The tire centers such as discount tire are a lot closer, but still higher.


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  #27  
Old 12-06-2019, 07:21 AM
onetimedave onetimedave is offline
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Talking $$$$$$$$$$$$$

What makes he difference on how much the dealer makes on a sale? If both you and dealer are both happy on deal then it is good for both.
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  #28  
Old 12-06-2019, 07:27 AM
Derwood Derwood is online now
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Originally Posted by onetimedave View Post
What makes he difference on how much the dealer makes on a sale? If both you and dealer are both happy on deal then it is good for both.
I was just curious.
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  #29  
Old 12-06-2019, 07:31 AM
REW REW is offline
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Simple -

As much as possible.

A good deal of a dealer's profit comes from flipping the trade in vehicle.
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  #30  
Old 12-06-2019, 07:35 AM
Derwood Derwood is online now
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Quote:
Originally Posted by REW View Post
Simple -

As much as possible.

A good deal of a dealer's profit comes from flipping the trade in vehicle.
So how much is that Mr. Simple? Cuja splane it to me?
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