FCA Number 1 in Canada!!

Out of curiosity what do you guys think a Dealer makes on average selling a vehicle? Let's use a new Ram 1500 crew 4x4 Sport for example. After the factory incentives come off how much profit do you think is left? All Dealers pay the same price for the vehicle from the factory regardless of size or location so go ahead and give me your best guess as to profit margin on this truck. I'd like to see what the public perception is. No cheating by using Edmonds or KBB just post a number based on your experience and belief.
Not sure but this one was the end of the 2014 model year when the 2015's were coming out. They had it listed for $18K off the sticker.
 
dobalover that's a tough guess for someone not in the business. and I used to know a GM and all he cared about was units moving in and out of his lot. it was all just a tally on the board. if new ones are going out door, money is getting made.
 
don't get me wrong,,, we're still buyin em no matter what the shenanegians are :)

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Out of curiosity what do you guys think a Dealer makes on average selling a vehicle? Let's use a new Ram 1500 crew 4x4 Sport for example. After the factory incentives come off how much profit do you think is left? All Dealers pay the same price for the vehicle from the factory regardless of size or location so go ahead and give me your best guess as to profit margin on this truck. I'd like to see what the public perception is. No cheating by using Edmonds or KBB just post a number based on your experience and belief.
I have always assumed the showoom floor was a loss leader to stuff the service shop with fat, profitable warranty work.
Sales probably feeds the sales staff a bare bone at best and nothing left over to even justify turning on the lights.
In other words, on an average NET basis, zero or less. The showroom as a separate profit center runs at a loss. Unless a sales person finds a niche, as fleet sales, etc. you'll starve to death or forced out by a ruthless sales manager.
So, on the Ram... 10% on the sticker. On Darts and 200's... pay people to take them away or lose your allocations on the Rams.

That's been my observation. Right? Wrong?
 
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I told a competitive dealer I had made a purchase. he asked me what I gave for it. I told him. he hung up on me.

is that good or bad ?

:)

- saylor
 
don't get me wrong,,, we're still buyin em no matter what the shenanegians are :)

Please don't worry about offending me on what goes on in a Dealership it's an adversarial relationship between buyer and seller no question. I am just curious as to the public perceptions out there and maybe it will lead to process change.


FYI here in Canada the average margin on a new Dart SXT is $600. After cleaning fuel and paying a moron to stand beside it and say "so you wanna buy it" we make about $150 bucks. Add in the 9 months it sat on the lot of interest and 2 batteries later we lose money on it. But Ma Mopar says "If you want the good stuff gotta take the bad stuff"

Btw your close Bigblock keep guessing
 
Well since it is a sport and I think pick ups are bloated pigs I would not give .50 cents for you would think it is more but I'll have to change it to $1050, the $50 extra I'm trying to give you because much like trucking the profit margins never seems to go up.
 
FYI here in Canada the average margin on a new Dart SXT is $600. After cleaning fuel and paying a moron to stand beside it and say "so you wanna buy it" we make about $150 bucks. Add in the 9 months it sat on the lot of interest and 2 batteries later we lose money on it. But Ma Mopar says "If you want the good stuff gotta take the bad stuff"


So, I nailed it, then..
 
have always assumed the showoom floor was a loss leader to stuff the service shop with fat, profitable warranty work.

The fixed operations side of a Dealership (Parts & Service) typically pay 70-80% of the Dealership expenses (Absorption Rate) the Variable Side (Sales) pays the balance and the profit. If you are an exceptionally good operator and have your Fixed Op pay 100+% of expenses then Sales is all gravy. The factory only pays 60% of your door rate on warranty and dictates how many labor hours per job. So if it takes the poor tech 2 hours to wrestle the DEF pump out of your Cummins but the factory says only paying .8 tech is out the money. So guess how many warranty jobs techs want.....none...easier to say customer abuse and get 100% of time...that however is unethical and not typical of most techs..but you see where it can lead.
 
I have always assumed the showoom floor was a loss leader to stuff the service shop with fat, profitable warranty work.
Sales probably feeds the sales staff a bare bone at best and nothing left over to even justify turning on the lights.
In other words, on an average NET basis, zero or less. The showroom as a separate profit center runs at a loss. Unless a sales person finds a niche, as fleet sales, etc. you'll starve to death or forced out by a ruthless sales manager.
So, on the Ram... 10% on the sticker. On Darts and 200's... pay people to take them away or lose your allocations on the Rams.

That's been my observation. Right? Wrong?

You are correct... these days.... years ago service wasnt recogised as a profit center. They used to consider us a neccessary evil, now its the bigger profit maker. But Dobaluvr you have to be fair and meantion "holdback" monies... IF they suck up to all the right people and sell all the right cars and dealer CSI scores are above average... they make more money that was held back from the invoice... hence the you pay invoice lingo in sale adds. The entire thing is a rat race and the manufacturers are very good at figuring out just how little the dealer can make and stay alive. Lots of small dealers get the axe everytime they restructure... not worth anything to the manufacturer even with a long and good history. Those documentation fees, finance plans and add ons are the way they can get a little money upfront out of the deal... and options, premium options appear to pay more.

Feel free to correct anything thats changed in the last 10 years...
 
Don't feel special Dave I don't like any of them. If I had the time and energy I would build a truck similar to ThrashingCows Dodge simple straightforward, light and when you drive it you know you are driving a truck. The time I spend building that I can put my 94 Peterbuilt back on the road and have a truck that makes a living and a ying to my 85 Peterbilt's yang then I'm covered to retirement with 2 trucks. I am most likely not buying any pick up trucks because I have no need for such a vehicle both our 02 trailblazer and 04 Durango can drag my car to the track a dozen times a year, both better than my 98 1500 ram with a 360 up and down the numerous hills in western pa.
 
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I dont feel special.... If you hate the moderate truck up top you would really dislike mine. I like them dressed, I wish they didnt have all the safety stuff and the electronics on them but I like them dressed
 
"So, on the Ram... 10% on the sticker. On Darts and 200's... pay people to take them away or lose your allocations on the Rams......"

Closer to 8% including the "holdback" as Cantflip mentioned but yes you are correct about the Darts & 200's
 
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