Quote:
Originally Posted by bigdaddy
I'm in the car business... went from sales, to fleet, to sales manager, and now Finance director...
Average profit from a new car... (excluding holdback, incentives, etc) just the gross profit salesman make... -$300 to $1200 ( $2000 is a homerun) All new cars have the same starting point - Factory invoice. We can all find that info on the internet...
Average profit from used: $1500 - $4500 used cars have different starting points... so you never know how much they're in it for. Two identical models, mileage, color, everything... and the cost can vary by thousands...
When you sell cars... you're taught first thing is... there's money in used...
Before I got into the car business... I thought all salesman were scum bags...
I still kind of do... alot of them are... but when you sell cars.. you meet a lot of scum bags as customers also... vice versa... tit for tat...
it's a vicious cycle... salesmen would be so shady if buers weren't so difficult... buyers wouldn't be so difficult if salesmen weren't so shady...
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Well I am talking about from the standpoint of the lease option. Dealers can offer a lease option on any new car and make basically pure profit and on top of that sell it used and make some profit again. It would make sense the profit margin is higher but I would assume that if they have a 70K vehicle on the lot it would be more of a burden on the dealership just because they spent more to purchase that new car, and at times they may not have funding to get some other models. And your telling me you make only $400-$2000 dollars on a used car???A buddy of mine told me they are making $3000 grand on the Si selling it at 22K. He said he would give me $917 off because he is a top salesman which he did. Also there is much more room for negotiation in a used car which is obvious, so if you start with a $5K profit margin, it would be less of problem to reduce that by $3K just because you know used cars come and go. How often does a Si show up on lots? Not very often. When it does come it sells, and the dealer can't cut off to much from the stickier just because they know it will sell and they can sell it for full MSRP. The fact that used cars come and go allows for more sales, but pure profit is questionable.