Current New Vehicle Market

13COBRA

Resident Ford Dealer
Established Member
Premium Member
Single Barrel Sirs
Joined
Jun 4, 2012
Messages
18,447
Location
Missouri
THIS! Dealerships have little qualms about a customer buying a vehicle from another dealership. They do LOVE it when a customer who bought a vehicle elsewhere makes their dealership their service center. I've done it multiple times over the years. There's a reason why that is so. Like you said, it's where the big money is. Plus, great service can mean that a future sale will be made through that dealership. The customer spends much more time over a multi-year period at the dealership service center than in the showroom.

Yeah.

Sales equates to about 2-4% (even with the crazy sale prices last year) of net income, while service comes in around 45-50%.
 

Green99

Active Member
Established Member
Joined
Sep 26, 2003
Messages
162
Location
Hattiesburg MS
U
Yep. As a fixed-ops director I'm not paid on car sales but bring that car in for service you bought somewhere else, we will work on it.

As a Toyota dealer we get paid more on Toyota Care maintenance than we can charge customer pay. Also, warranty pays full pop on parts and labor. Bring it on!
 

SHOdown220

Well-Known Member
Established Member
Joined
Feb 6, 2006
Messages
1,711
Location
North Carolina
Came across a listing for a Pilot identical to the one I bought my wife back in september. Same year, color, trim level, options and accessories. Hell it's at a sister store so basically the same dealership. Only difference is hers had 11k miles and this one has 24k miles. It's $6,000 more expensive than ours was. Crazy times
 

Weather Man

Persistance Is A Bitch
Established Member
Premium Member
Joined
May 18, 2012
Messages
18,964
Location
MN
Inside EVs
Inside EVs

GM Threatens To Cut New EV Allocation For Dealers Applying Markups​

Dan Mihalascu - 6h ago

© Motor1.com Copyright
1642881098939.png

Automaker says it will take action against dealers that apply markups and use brokers who promote new GM vehicle allocation.​

General Motors wants to deter its dealers from applying markups to its upcoming range of electric vehicles.
Following Ford’s example, GM has issued a warning letter to dealers tempted to request additional markups from customers. Posted by the Silverado Evolution forum, the letter sent by GM North America president Steven Carlisle via email is pretty straightforward, with the main takeaway being that the automaker will not tolerate such practices.
After mentioning upcoming product launches like the Chevrolet Silverado EV, GMC Hummer EVs, GMC Sierra EV, and Cadillac Lyriq, for which GM is working hard to meet customer demand amid the semi-conductor shortage, the executive issued a clear warning to dealers tempted to profit from the short supply and apply markups.
"Unfortunately, it has come to our attention that in connection with some of these announcements and launches, a small number of Dealers have engaged in practices that do not support a positive sales experience for our customers. This puts our collective interest at risk and generates negative press that reflect poorly on GM’s brands and your dealerships.
Specifically, it has come to our attention that some dealerships have attempted to demand money above and beyond the reservation amounts set in GM’s program rules and/or have requested customers to pay sums far in excess of MSRP in order to purchase or lease a vehicle."
The letter continues with Steven Carlisle reminding dealers of their obligation to "ethically and lawfully sell GM products," as stated in Article 5 of the Dealer Sales and Service Agreement (DSSA). He also speaks against dealers that work with brokers who promote new GM vehicle allocation, which is a breach of the GM DSSA.
Carlisle ends the letter by threatening action against dealership markups and use of brokers, like redirecting their vehicle allocation.
"GM will be forced to take action if it learns of any unethical sales practices or brokering activities that undermine the integrity that customers expect from the Chevrolet, Buick, GMC, and Cadillac brands. For the small minority of bad actors that are engaging in the conduct identified above, this letter serves as a notice that GM reserves the right to redirect your vehicle allocation or take other recourse prescribed by the Dealer Sales and Service Agreement."
Now that we know GM's official stance on additional dealer markups, it will be interesting to see if the letter will be enough to put an end to such practices.

Check out these stories on additional dealer markups​

Source: Silverado Evolution
 

tones_RS3

I like members members.
Established Member
Premium Member
Joined
Jan 29, 2016
Messages
18,817
Location
MA
Inside EVs
Inside EVs

GM Threatens To Cut New EV Allocation For Dealers Applying Markups​

Dan Mihalascu - 6h ago

© Motor1.com Copyright
View attachment 1735184

Automaker says it will take action against dealers that apply markups and use brokers who promote new GM vehicle allocation.​

General Motors wants to deter its dealers from applying markups to its upcoming range of electric vehicles.
Following Ford’s example, GM has issued a warning letter to dealers tempted to request additional markups from customers. Posted by the Silverado Evolution forum, the letter sent by GM North America president Steven Carlisle via email is pretty straightforward, with the main takeaway being that the automaker will not tolerate such practices.
After mentioning upcoming product launches like the Chevrolet Silverado EV, GMC Hummer EVs, GMC Sierra EV, and Cadillac Lyriq, for which GM is working hard to meet customer demand amid the semi-conductor shortage, the executive issued a clear warning to dealers tempted to profit from the short supply and apply markups.

The letter continues with Steven Carlisle reminding dealers of their obligation to "ethically and lawfully sell GM products," as stated in Article 5 of the Dealer Sales and Service Agreement (DSSA). He also speaks against dealers that work with brokers who promote new GM vehicle allocation, which is a breach of the GM DSSA.
Carlisle ends the letter by threatening action against dealership markups and use of brokers, like redirecting their vehicle allocation.

Now that we know GM's official stance on additional dealer markups, it will be interesting to see if the letter will be enough to put an end to such practices.

Check out these stories on additional dealer markups​

Source: Silverado Evolution
I'm not sure how true it is as well, but GM has warned dealerships of "markups" for the new Z06 coming out.
 

Weather Man

Persistance Is A Bitch
Established Member
Premium Member
Joined
May 18, 2012
Messages
18,964
Location
MN
I'm not sure how true it is as well, but GM has warned dealerships of "markups" for the new Z06 coming out.

I don't think there is any way to stop that on the Z06. But, it would be very bad for their EV launches to stumble in any way. The Bolt is a big enough speed bump.
 

13COBRA

Resident Ford Dealer
Established Member
Premium Member
Single Barrel Sirs
Joined
Jun 4, 2012
Messages
18,447
Location
Missouri
It's against franchise agreements for OEMs to dictate pricing.

With that said. It's against franchise agreements for "dealers to act in a way that reflects negatively" on the OEM.

It would end up in court and all comes down to who has more money to fight it.

Sent from my Potato
 

598

Well-Known Member
Established Member
Joined
Apr 13, 2008
Messages
1,180
Location
Frankfort IL
It is kind of like the jackass that bought a ford GT agreeing to keep it, then selling it at a markup profit. Yes, you might be able to do it, but is it worth the reputation damage with today's internet?
 

CobraBob

Authorized Vendor
Established Member
Premium Member
Single Barrel Sirs
Joined
Nov 17, 2002
Messages
98,777
Location
Cheshire, CT
It's against franchise agreements for OEMs to dictate pricing.

With that said. It's against franchise agreements for "dealers to act in a way that reflects negatively" on the OEM.

It would end up in court and all comes down to who has more money to fight it.

Sent from my Potato
Excellent points there, Nick. Like you said, what ACTUALLY happens would like depend on which side has more money to fight it in court. Not something a majority of dealerships would want to do IMO. Wouldn't the dealer's relationship with Ford play into this as well?
 

CompOrange04GT

Anyone have a strap on my girl can use on me?
Established Member
Joined
Jul 26, 2011
Messages
6,680
Location
New Mexico
It is kind of like the jackass that bought a ford GT agreeing to keep it, then selling it at a markup profit. Yes, you might be able to do it, but is it worth the reputation damage with today's internet?

We hate Cena. But he did it….

Then he got the suicide squad movie. Now his own spin off of that movie ( which as much as I hate the guy.. the show is ****ing hilarious )

He does wipe out tv show.. are you smarter than a 5th grader tv show….

The internet don’t give a shit about someone making a profit off a car….
 

me32

BEASTLY SHELBY GT500 TVS
Moderator
Premium Member
Joined
Sep 6, 2005
Messages
17,903
Location
CA,NorCal
We hate Cena. But he did it….

Then he got the suicide squad movie. Now his own spin off of that movie ( which as much as I hate the guy.. the show is ****ing hilarious )

He does wipe out tv show.. are you smarter than a 5th grader tv show….

The internet don’t give a shit about someone making a profit off a car….
He got sued by ford and had to pay a settlement. Not sure he actually made money after legal fees and the settlement.
 

CompOrange04GT

Anyone have a strap on my girl can use on me?
Established Member
Joined
Jul 26, 2011
Messages
6,680
Location
New Mexico
He got sued by ford and had to pay a settlement. Not sure he actually made money after legal fees and the settlement.

Again who actually cares ? He got sued. Paid some money.. he’s more famous now and can buy any car he wants..

It sucks don’t get me wrong. But is what it is
 

tones_RS3

I like members members.
Established Member
Premium Member
Joined
Jan 29, 2016
Messages
18,817
Location
MA
You guys see the prices of the 2022 Porsche GT3 cars?!?!!?!?
HOLY CRAPPPPPPP!!

150k - 200K over sticker!!!!!!!
 

Deceptive

Brad's Spirit Donkey
Established Member
Premium Member
Joined
Feb 10, 2011
Messages
10,788
Location
Nashville, TN
Unfortunately, the green stupidity is real.

I love watching the poors cry about used Mustang prices. They think things are going to magically go back to 2019 prices. You try to explain why it won’t and they use the same line about their area not having emissions and the EPA doesn’t have any power there. People really do not understand.


If she vapes, she has a dildo and sucks peen.
 

Weather Man

Persistance Is A Bitch
Established Member
Premium Member
Joined
May 18, 2012
Messages
18,964
Location
MN
I love watching the poors cry about used Mustang prices. They think things are going to magically go back to 2019 prices. You try to explain why it won’t and they use the same line about their area not having emissions and the EPA doesn’t have any power there. People really do not understand.


If she vapes, she has a dildo and sucks peen.

If Ford has a choice between putting chips in a F-150 or a Mustang, it won't end well for the Mustang.
 

sonicx

Shredder N Cheddar
Established Member
Joined
Aug 14, 2011
Messages
545
Location
Minnie
I love watching the poors cry about used Mustang prices. They think things are going to magically go back to 2019 prices. You try to explain why it won’t and they use the same line about their area not having emissions and the EPA doesn’t have any power there. People really do not understand.


If she vapes, she has a dildo and sucks peen.
Agreed. However, there’s a lot used higher mileage (non FI) GT for sale that some owners think are worth 5-8K more just because when in truth there over priced.
 
Last edited:

Users who are viewing this thread



Top