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Smart Shopper How Much Profit Should A Car Dealer Make?
677 messages, Last post on Jun 16, 2009 at 12:34 PM
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Replying to: jipster (Jun 12, 2009 7:31 am) Three years later, I'm still sure I didn't miss anything. I'm not advising that process for every buyer, of course; I'm simply pointing out that the salesperson can be of value in the process depending on individual buyers' circumstances.
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Replying to: kirstie_h (Jun 12, 2009 10:55 am) |
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I love the people who insist on driving three different cars, take long and creative test drives, ask countless questions and then spend two hours grinding out a deal. Finally a deal is struck, we shake hands and all of a sudden they look at their watch and tell me they HAVE to be out of there in a half hour! |
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Replying to: isellhondas (Jun 12, 2009 12:58 pm) 
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Replying to: isellhondas (Jun 12, 2009 12:58 pm)  That aggrevates me more then anything. |
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A dealer should charge the highest price that a buyer is willing to pay under no duress. Plain and simple. Allow the laws of supply and demand dicate the price of the vehicle. As far as talking out the middle man (dealerships), that's simply not how the market for automobiles works. BTW if you could purchase direct from the manufacturer for a discount, who in their right mind would buy from the dealership? And if all of the dealerships are out of business, how is that a discount?
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Replying to: hondaluvcrv09 (Jun 12, 2009 8:03 pm) You just answered your own question. Mfr sells to public for what dealers pay. Same profit to Mfr. I would like to know when Mustangs became so expensive. I looked at TMV and saw a V8 Mustang a/t,a/c whatever for $36k. That is supposed to be the car anybody with a decent job can afford. At least that is what I grew up believing. I was 14 in 1964 and saw the first one unveiled by Lee Iacoca in April 1964. It cost less than $2k. What happened? Even figuring in all the techno/safety adds that is way more than price adjustment. Profit is out of hand on those puppies. Sure I can find a guy in trouble after 4 or 5 payments and step in with cash, but the dummies usually have the title tied up with some extravagant amount of over profit causing me to wish him lotsa luck. That's my new word...OverProfit. A vehicle has 2 values. Wholesale and retail. Assign wholesale and add a reasonable profit and you have retail. The way dealers have it set up it's not fair to anyone and may be their undoing. I will use an anti-salesman next time. A big boy like Steven Segal to voice my offers to the salesman. After he drags the SM out from behind the secret curtain by his necktie we'll find a sale (or not).
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Replying to: mako1a (Jun 13, 2009 8:29 am) The 1965 Mustang's that were introduced in April of 1964 were the result of Iacocca's marketing genius. All they were was a cheap Falcon in reality. The ones that were under 2000.00 were pretty austere. 170 cubic inch six cylinder with a three speed manual transmission. No power steering or anything else. Today, it seems, people have to have EVERYTHING on the cars they buy! Can you imagine someone buying a car with crank windows? Nope, we have to have it all and the federal mandated safety equipment and emission controls add to the price. Then we have had this little thing called inflation. Back in 1964, if a person made 10,000 a year, they were doing pretty well. |
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Replying to: mako1a (Jun 13, 2009 8:29 am) So do you think because the price is $36k on a Mustand that you saw, that most if the money goes to profit? The way dealers have it set up it's not fair to anyone Well they have it set up exactly like you want them to: wholesale plus profit = retail. |
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Replying to: mako1a (Jun 13, 2009 8:29 am) 
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