Deal or No deal - Real world ADM - Being Transparent

[laxmike32]

this is why dealers have to charge adm in this market. Here is a invoice for a 37pkg truck. Profit margins are slim in comparison to other vehicles in this price range. BMW,Audi,Mercedes etc

When was the invoice available, I assume when the sticker was available?

 

[jjm047]

80% of Dealer profits come from financing and service. The profit model has switched over the years. They are Marking these up because is easy to get people to pay for it. Hell, they are marking up Honda civics right now.

This is true. Dealers actually typically LOSE money when they sell a new car. They make money on used cars, service, financing, etc.

 

[GTTXRAP]

this is why dealers have to charge adm in this market. Here is a invoice for a 37pkg truck. Profit margins are slim in comparison to other vehicles in this price range. BMW,Audi,Mercedes etc

Wrong.

Invoice is not actual dealer cost--they want you to think that. Dealer has hold back as well, plus incentives from Ford (often called trunk money) on volume and a host of other things depending upon vehicle.

 

[SilverBolt]

this is why dealers have to charge adm in this market. Here is a invoice for a 37pkg truck. Profit margins are slim in comparison to other vehicles in this price range. BMW,Audi,Mercedes etc

Don't forget the dealer hold back, and other incentives. No flooring cost since it's a sold unit. That invoice is only part of the story.

 

[2slo4u]

this is why dealers have to charge adm in this market. Here is a invoice for a 37pkg truck. Profit margins are slim in comparison to other vehicles in this price range. BMW,Audi,Mercedes etc

You think that so called "invoice" shows actual costs and actual margins?

It's all a game - from the suppliers to the final buyer -- nothing more, nothing less.

 

[EMY92]

If my dealer tries to change the deal we agreed upon, I'll walk away.

I also know where many of the extremely well qualified and motivated leads that my salesman comes from and I will let that group know what happened.

 

[Honeybadger_Zero]

this is why dealers have to charge adm in this market. Here is a invoice for a 37pkg truck. Profit margins are slim in comparison to other vehicles in this price range. BMW,Audi,Mercedes etc

4.5k is a decent enough profit, plus that does not include other spiffs the dealer gets such as the holdback and ad sharing

 

[spizike9]

This is true. Dealers actually typically LOSE money when they sell a new car. They make money on used cars, service, financing, etc.

Ha ha ha ha Dealers don’t typically LOSE money on new car sales.

 

[melvimbe]

Dealer is responsible for making sure he gets enough profit from the deal, not the customer. Dealer isn't going to be looking out to make sure the customer isn't overpaying either.

 

[CoolrainRaptor]

"Dealer profits per new vehicle sold – which includes gross profit from the vehicle plus the profit from finance and insurance – have more than doubled year-over-year in June, to a mind-boggling all-time high of $3,908 per unit."