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2013-14 Shelby GT500
To ADM or not, that is the question!
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<blockquote data-quote="Chris!" data-source="post: 11610593" data-attributes="member: 20497"><p>Couple things:</p><p></p><p>1) if the dealer is only getting 1 car this year that $1k fee isn't getting spread around, it's a direct expense of that one car.</p><p></p><p>2) if you buy the car at MSRP and it's a base car there will be (using 2012 as an example) $4500 in gross profit. Take out the $1k fee. Take out the prep cost ($200). Take out about $900 in salesperson commission. Take out $450 in sales manager commission. That leaves about $1850 in profit...before paying the light bills etc. the dealer isnt getting rich at MSRP. I'm sorry but selling a $55k, and making $1850 on it isn't exactly a great deal. (before someone says dont forget floodplain costs! Chances are most of these cars won't last on dealers lots more than 30days, making that amount a non point)</p><p></p><p>3) the options only make the dealer a couple hundred per option.</p><p></p><p>4) yes- ford is going to build as many GT500s as people want to buy. That doesn't mean that every dealership is going to get as many as they want to sell. Your Galpin Ford's Ocala Ford's and other big Ford dealers all will get a large number of GT500s. Your local small dealer that doesn't sell any mustangs usually, will get the 1 car they certify for and MAYBE another. </p><p></p><p>5) and finally- the average dealer gross profit per new vehicle was about $900/car last year. By the time you pay your staff, and your bills, there isn't much left over. Finance office is where the dealer makes money on new cars, along with warranty service. Used cars can be where the money is (if you buy the right cars at the right price)</p></blockquote><p></p>
[QUOTE="Chris!, post: 11610593, member: 20497"] Couple things: 1) if the dealer is only getting 1 car this year that $1k fee isn't getting spread around, it's a direct expense of that one car. 2) if you buy the car at MSRP and it's a base car there will be (using 2012 as an example) $4500 in gross profit. Take out the $1k fee. Take out the prep cost ($200). Take out about $900 in salesperson commission. Take out $450 in sales manager commission. That leaves about $1850 in profit...before paying the light bills etc. the dealer isnt getting rich at MSRP. I'm sorry but selling a $55k, and making $1850 on it isn't exactly a great deal. (before someone says dont forget floodplain costs! Chances are most of these cars won't last on dealers lots more than 30days, making that amount a non point) 3) the options only make the dealer a couple hundred per option. 4) yes- ford is going to build as many GT500s as people want to buy. That doesn't mean that every dealership is going to get as many as they want to sell. Your Galpin Ford's Ocala Ford's and other big Ford dealers all will get a large number of GT500s. Your local small dealer that doesn't sell any mustangs usually, will get the 1 car they certify for and MAYBE another. 5) and finally- the average dealer gross profit per new vehicle was about $900/car last year. By the time you pay your staff, and your bills, there isn't much left over. Finance office is where the dealer makes money on new cars, along with warranty service. Used cars can be where the money is (if you buy the right cars at the right price) [/QUOTE]
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2013-14 Shelby GT500
To ADM or not, that is the question!
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