Dealer Profit & Expense

1. Dealer hold backs generally 2%-8% depend on the year model and trim lines ..... Camry LE and SE has different hold backs.

2. Dealer volume discount: Factory gave dealer 1-5% depend on how much dealer sold specific model, trim line. Large volume dealer has more discount than smaller dealers. Go to a large dealership is a wise choice.

PS: Dealer dont negotiate into the holdbacks and discounts, however if they want to achieve particular quota at the end of the month, you can get a killer deals. It can up to 5% of the sales price.

3. MSRP Vs. Invoice (not including the hold backs). That is very minimum unless buyer is totally lack of knowledge.

4. Junk Fees: Advertising Fee, Doc Fee etc. that is pure profit you normally pay $199-$299 depend on the car you are buying.

5. Destination Fee: That is the cost for transport car from Factory to the dealership. That is a real cost and you need pay it.

6. Dealer make killing on sell extra warranty, paint protection, Lojack etc .........

7. Believe or not dealers make more $$$$ on service than sales. If you think extra $500-3000 to dealer means something to them, you are wrong.

Now here is dealership expenses:
1. Labor.
2. Utility.
3. Trash, dumping tire, rubber, oil requires extra fees.
4. Insurance: Dealership pay insurance daily on how many cars on the lot.
5. Bank Interest: Dealership does not own the car free and clear. Bank owns. Dealer pay interests daily to the bank depend on how many cars on the lot.
6. Commission and bonus: Used car sales has higher margin than the new car.
7. Advertising Costs:
8. TAX:
9. Other costs.

Goal of business is to make profits. If you dont want them to make money, build you own car.

所有跟帖： 

• 回複：Dealer Profit & Expense -minhang- ♂ (136 bytes) () 06/14/2008 postreply 10:52:38

• 回複：回複：Dealer Profit & Expense -casinoeye- ♂ (643 bytes) () 06/14/2008 postreply 11:14:03