- First Name
- Brian
- Joined
- Jul 16, 2021
- Threads
- 5
- Messages
- 117
- Reaction score
- 395
- Location
- Grand Haven, MI
- Vehicle(s)
- 1966 International Scout, 2012 Jeep Grand Cherokee
- Your Bronco Model
- Badlands
I have a degree in Automotive Marketing and come from the Automotive business world mostly wit dealerships. I can't speak to the manufacturer world but can offer some insight on the dealer world.
Bottom line is they don't make nearly what they used to and don't typically survive on new car sales. They typically make more on used cars, parts, service, and body work than new cars. The margins have gotten pretty thin and most rely on all tge other aspects including warranty work to survive. Volume as others have mentioned is the key to extra incentives from.the manufacturer.
A Small dealer selling 10 cars a month will make less per car even If selling at higher markup amounts than a large dealer selling more cars at less markup. It's true that invoice is not true cost to the dealer but it is quite involved on actual dealer cost due to Volume discounts, incentives, floorplanning (dealer financing through manufacturer), etc. As we learned with the Bronco, dealers allotment and cost) varied by other factors such as how many X (in this case Bronco Sports) the dealer also sells. By the way, this is across the board and not just Ford. The manufacturers ideal dealership sells vehicles across the board with a mixture of high and low end vehicles but especially does so at volume.
Hope this helps a bit.
Bottom line is they don't make nearly what they used to and don't typically survive on new car sales. They typically make more on used cars, parts, service, and body work than new cars. The margins have gotten pretty thin and most rely on all tge other aspects including warranty work to survive. Volume as others have mentioned is the key to extra incentives from.the manufacturer.
A Small dealer selling 10 cars a month will make less per car even If selling at higher markup amounts than a large dealer selling more cars at less markup. It's true that invoice is not true cost to the dealer but it is quite involved on actual dealer cost due to Volume discounts, incentives, floorplanning (dealer financing through manufacturer), etc. As we learned with the Bronco, dealers allotment and cost) varied by other factors such as how many X (in this case Bronco Sports) the dealer also sells. By the way, this is across the board and not just Ford. The manufacturers ideal dealership sells vehicles across the board with a mixture of high and low end vehicles but especially does so at volume.
Hope this helps a bit.
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