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Sedans Midsize Sedans 2.0
13361 messages, Last post on Dec 08, 2009 at 4:13 PM
You are in the Sedans Forum. Your Hosts are pat & karens
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Replying to: mickeyrom (Jun 29, 2008 4:46 am) Also I question whether the ONLY place in the world you can get Kia OEM spec coolant or transmission fluid is from a Kia dealer, what with all the buying opps available through the Internet. |
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Replying to: m6user (Jun 27, 2008 12:06 pm) You are correct. New car sales are not what keeps a store going. Parts and service are. Plus used car sales as well. |
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Replying to: aviboy97 (Jun 29, 2008 7:56 am)
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Replying to: bhmr59 (Jun 29, 2008 11:02 am) Its about volume. The super-dealers like Longo Toyota or the guy who helped bring the smart Car make it on volume. Razor thin margins, games with floor plans and hold back, financing and incentive programs all play into it. If you are only making a few bucks on each car, you had better sell a lot of cars. |
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Replying to: bhmr59 (Jun 29, 2008 11:02 am) You know it's just like home builders. Tract home builders do it on volume, a little bit on each home. While luxury custom builders do less volume but make a lot of profit on each one. It's a matter of marketing strategy. It also depends on your market which can sometime dictate your strategy. |
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I don't disagree about the volume sales aspect. But don't both your posts indicate that dealers can make a good profit on the sales of new cars? (Someone posted earlier that the dealers don't make money-or make very little-on selling new cars.) My point was that dealers can and do make a good buck selling new cars.
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Replying to: bhmr59 (Jun 29, 2008 5:36 pm) Since the advent of the internet and the ability for the consumer to access invoice data and the expectation to pay that or less, dealers find it harder and harder to make much off new cars. I personally think that is part of the reason for all the rip offs you see and hear about in the service area.
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Replying to: m6user (Jun 29, 2008 6:13 pm) Invoice information has been available from Edmunds for decades, before us ordinary people had access to the internet. Dealers invoices may or may not include he questionable "advertising fee" depending upon the dealer. Volume alone cannot make up for $1500-$2000 below invoice (before rebates).
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Replying to: bhmr59 (Jun 29, 2008 7:16 pm)
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Replying to: akirby (Jun 30, 2008 4:19 am) It's a legitimate business expense. That's why it should be a part of the dealer's gross profits. It shouldn't be added on as a customer pay fee on top of dealer gross profit. I don't pay an advertising fee when I buy frozen dinners at Krogers. Somehow dealers keep trying to come up with a way of adding on extra profit to their sale on top of their gross profit in the deal. Same thing for shop fees on repair work. Pay for it in the gross. If you're not making enough net then increase the gross.
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