Re: OT: how much do stealerships mark up new cars by?
 

John Davies wrote:
> On Sat, 14 May 2005 00:29:56 -0700, "Doug" <pigdos@nospamcharter.net>
> wrote:
>
>
>>I was just wondering how much the markup was from say, the cost to actually
>>manufacture the vehicle (labor and parts but not R&D).
>
>
> Well, the dealers don't get that profit, the manufacturers do. And
> they don't make any profit on some cars - the MSRP for the Prius
> hybrid is something like $5000 LESS than they cost to build. The
> manufacturers make up for this loss with highly profitable SUVs.
>
> John Davies
About a month ago we got a new truck at work. 2005 Ram SLT. The window
sticker that was on it was for $32,000 CDN MSRP. We paid $24,000
through GE Fleet/Capital. The dealer said they onl make $150 on each
vehicle they sell that goes through GE fleet. I don't know if this is a
standard markup but I'm sure the average Joe couldn't get that truck for
the $24,000.

Mort

Re: OT: how much do stealerships mark up new cars by?
 

Doug proclaimed:

> I was just wondering how much the markup was from say, the cost to actually
> manufacture the vehicle (labor and parts but not R&D).
>
By the dealer, not that much. By the manufacturer, considerably more,
but why one would exclude R+D from the cost is a bit mysterious and
unrealistic. It isn't a non-profit, at least not on purpose.

Re: OT: how much do stealerships mark up new cars by?
 

Doug proclaimed:

> I was just wondering how much the markup was from say, the cost to actually
> manufacture the vehicle (labor and parts but not R&D).
>
By the dealer, not that much. By the manufacturer, considerably more,
but why one would exclude R+D from the cost is a bit mysterious and
unrealistic. It isn't a non-profit, at least not on purpose.

Re: OT: how much do stealerships mark up new cars by?
 

Doug proclaimed:

> I was just wondering how much the markup was from say, the cost to actually
> manufacture the vehicle (labor and parts but not R&D).
>
By the dealer, not that much. By the manufacturer, considerably more,
but why one would exclude R+D from the cost is a bit mysterious and
unrealistic. It isn't a non-profit, at least not on purpose.

Re: OT: how much do stealerships mark up new cars by?
 

Doug proclaimed:

> I was just wondering how much the markup was from say, the cost to actually
> manufacture the vehicle (labor and parts but not R&D).
>
By the dealer, not that much. By the manufacturer, considerably more,
but why one would exclude R+D from the cost is a bit mysterious and
unrealistic. It isn't a non-profit, at least not on purpose.

Re: OT: how much do stealerships mark up new cars by?
 

Mort wrote:

> But look at how much they would have made if they had sold it to average
> Joe. He's have to dicker them down $8,000 to get the same price. I've
> never seen a dealer drop $8,000 on a vehicle in that price range.

Are you kidding? They were offering $10,000 off of Chevy trucks in the paper
here locally, recently, and $8000 off Fords. That's rebates and all, which
is exactly what that dealership gave that company. The fleet program is
nothing magical. With a company on a fleet program, they buy lots of
vehicles, which is basically buying in bulk. They have to sign up with the
fleet program with the manufacturer, and the manufacturer, therefore, gives
them a break and compensates the dealerships a little. The purchase price
is still above the actual bottom dollar cost to the dealership. There is up
to $4500 in rebates on that truck - $3500 on regular cabs and $4500 on Quad
Cab.

With the fleet program, they usually pay more than the manufacturer's
employees do, which is usually within $1000 of what the average Joe can buy
the thing for. A friend recently bought a Chevy truck, and tried to get the
GM discount because his uncle was GM, but he didn't qualify. He was put
off, but I told him at invoice he'd be less than $1000 more, and at
$24,000, it wouldn't make much difference on the monthly payment. It ended
up costing him $14 more a month, not qualifying for the GM discount, which
is a bit less than the fleet program. Normally, dealerships sell fleet
vehicles at invoice less rebates and the fleet discount. I believe when I
sold, GM's fleet discount was something like $650 less than what the
dealership charged, and he could charge whatever he could get out of the
car. Therefore, a fleet customer couldn't walk into a Ford dealership and
get a Ford GT for less than invoice. He gets whatever the dealership sells
it at, less the fleet discount the manufacturer gives.


--



Registered Linux user #378193

Re: OT: how much do stealerships mark up new cars by?
 

Mort wrote:

> But look at how much they would have made if they had sold it to average
> Joe. He's have to dicker them down $8,000 to get the same price. I've
> never seen a dealer drop $8,000 on a vehicle in that price range.

Are you kidding? They were offering $10,000 off of Chevy trucks in the paper
here locally, recently, and $8000 off Fords. That's rebates and all, which
is exactly what that dealership gave that company. The fleet program is
nothing magical. With a company on a fleet program, they buy lots of
vehicles, which is basically buying in bulk. They have to sign up with the
fleet program with the manufacturer, and the manufacturer, therefore, gives
them a break and compensates the dealerships a little. The purchase price
is still above the actual bottom dollar cost to the dealership. There is up
to $4500 in rebates on that truck - $3500 on regular cabs and $4500 on Quad
Cab.

With the fleet program, they usually pay more than the manufacturer's
employees do, which is usually within $1000 of what the average Joe can buy
the thing for. A friend recently bought a Chevy truck, and tried to get the
GM discount because his uncle was GM, but he didn't qualify. He was put
off, but I told him at invoice he'd be less than $1000 more, and at
$24,000, it wouldn't make much difference on the monthly payment. It ended
up costing him $14 more a month, not qualifying for the GM discount, which
is a bit less than the fleet program. Normally, dealerships sell fleet
vehicles at invoice less rebates and the fleet discount. I believe when I
sold, GM's fleet discount was something like $650 less than what the
dealership charged, and he could charge whatever he could get out of the
car. Therefore, a fleet customer couldn't walk into a Ford dealership and
get a Ford GT for less than invoice. He gets whatever the dealership sells
it at, less the fleet discount the manufacturer gives.


--



Registered Linux user #378193

Re: OT: how much do stealerships mark up new cars by?
 

Mort wrote:

> But look at how much they would have made if they had sold it to average
> Joe. He's have to dicker them down $8,000 to get the same price. I've
> never seen a dealer drop $8,000 on a vehicle in that price range.

Are you kidding? They were offering $10,000 off of Chevy trucks in the paper
here locally, recently, and $8000 off Fords. That's rebates and all, which
is exactly what that dealership gave that company. The fleet program is
nothing magical. With a company on a fleet program, they buy lots of
vehicles, which is basically buying in bulk. They have to sign up with the
fleet program with the manufacturer, and the manufacturer, therefore, gives
them a break and compensates the dealerships a little. The purchase price
is still above the actual bottom dollar cost to the dealership. There is up
to $4500 in rebates on that truck - $3500 on regular cabs and $4500 on Quad
Cab.

With the fleet program, they usually pay more than the manufacturer's
employees do, which is usually within $1000 of what the average Joe can buy
the thing for. A friend recently bought a Chevy truck, and tried to get the
GM discount because his uncle was GM, but he didn't qualify. He was put
off, but I told him at invoice he'd be less than $1000 more, and at
$24,000, it wouldn't make much difference on the monthly payment. It ended
up costing him $14 more a month, not qualifying for the GM discount, which
is a bit less than the fleet program. Normally, dealerships sell fleet
vehicles at invoice less rebates and the fleet discount. I believe when I
sold, GM's fleet discount was something like $650 less than what the
dealership charged, and he could charge whatever he could get out of the
car. Therefore, a fleet customer couldn't walk into a Ford dealership and
get a Ford GT for less than invoice. He gets whatever the dealership sells
it at, less the fleet discount the manufacturer gives.


--



Registered Linux user #378193

Re: OT: how much do stealerships mark up new cars by?
 

Mort wrote:

> But look at how much they would have made if they had sold it to average
> Joe. He's have to dicker them down $8,000 to get the same price. I've
> never seen a dealer drop $8,000 on a vehicle in that price range.

Are you kidding? They were offering $10,000 off of Chevy trucks in the paper
here locally, recently, and $8000 off Fords. That's rebates and all, which
is exactly what that dealership gave that company. The fleet program is
nothing magical. With a company on a fleet program, they buy lots of
vehicles, which is basically buying in bulk. They have to sign up with the
fleet program with the manufacturer, and the manufacturer, therefore, gives
them a break and compensates the dealerships a little. The purchase price
is still above the actual bottom dollar cost to the dealership. There is up
to $4500 in rebates on that truck - $3500 on regular cabs and $4500 on Quad
Cab.

With the fleet program, they usually pay more than the manufacturer's
employees do, which is usually within $1000 of what the average Joe can buy
the thing for. A friend recently bought a Chevy truck, and tried to get the
GM discount because his uncle was GM, but he didn't qualify. He was put
off, but I told him at invoice he'd be less than $1000 more, and at
$24,000, it wouldn't make much difference on the monthly payment. It ended
up costing him $14 more a month, not qualifying for the GM discount, which
is a bit less than the fleet program. Normally, dealerships sell fleet
vehicles at invoice less rebates and the fleet discount. I believe when I
sold, GM's fleet discount was something like $650 less than what the
dealership charged, and he could charge whatever he could get out of the
car. Therefore, a fleet customer couldn't walk into a Ford dealership and
get a Ford GT for less than invoice. He gets whatever the dealership sells
it at, less the fleet discount the manufacturer gives.


--



Registered Linux user #378193

Re: OT: how much do stealerships mark up new cars by?
 

Ruel Smith wrote:
> Mort wrote:
>
>
>>John Davies wrote:
>>
>>>On Sat, 14 May 2005 00:29:56 -0700, "Doug" <pigdos@nospamcharter.net>
>>>wrote:
>>>
>>>
>>>
>>>>I was just wondering how much the markup was from say, the cost to
>>>>actually manufacture the vehicle (labor and parts but not R&D).
>>>
>>>
>>>Well, the dealers don't get that profit, the manufacturers do. And
>>>they don't make any profit on some cars - the MSRP for the Prius
>>>hybrid is something like $5000 LESS than they cost to build. The
>>>manufacturers make up for this loss with highly profitable SUVs.
>>>
>>>John Davies
>>
>>About a month ago we got a new truck at work. 2005 Ram SLT. The window
>>sticker that was on it was for $32,000 CDN MSRP. We paid $24,000
>>through GE Fleet/Capital. The dealer said they onl make $150 on each
>>vehicle they sell that goes through GE fleet. I don't know if this is a
>>standard markup but I'm sure the average Joe couldn't get that truck for
>>the $24,000.
>
>
> They made about $150 from the buyer (yes, that's from actual, bottomline
> cost), but DaimlerChrysler probably sent them a check for about $450 more
> through the fleet program.
>
But look at how much they would have made if they had sold it to average
Joe. He's have to dicker them down $8,000 to get the same price. I've
never seen a dealer drop $8,000 on a vehicle in that price range.