Dealer Recommendatin

[LSMITH]

Originally posted by parcher

Guys, I'm not against a discount here! What bothers me is the assumption that the dealer is making 15% on new vehicle sales..... NOT TRUE. The average return on investment in new vehicle inventory is ONE PERCENT. The fact is I bought my CTD used with 6,643 miles on it. I saved $9. 440. 00 off the sticker price. How do we play the game? Does the buyer ask for the best price and then keep beating the seller up for more? SEEMS LIKE IT! Keep the jabs coming, I can take it.

I have to call BS again. You are making it sound like a dealer buys a $38,000 truck and sells it for $38,400 for his 1% gain. Negative Ghostrider. The dealer may well only end up with $400 back to the bank after everything is paid for like the building share, salesman commision, light bill, water, managerial commisions and salaries and ON AND ON. If his FINAL NET PROFIT is 1% on an inventory vehicle that is pretty poor, but I suppose it could happen. The GROSS PROFIT on an average vehicle sold even after haggling is over $2500, sticker is considerably more gross profit than that. It varies by model and how long it has been on the lot, but the whole story is a lot more than 1% money is being made. 1% is not even worth opening the doors, no businessman in the world is going to do one percent average return on his money. There is also a LOT more money made on used cars that covers some of the hits in total profits taken on new cars to keep the lot full and shiny. Most of us have traded one in and went back to see it sitting there for 40%+ higher than what we were given for it.