dealer constantly tells me how little he own on each car he sales...

[grape]

I went to the subaru dealer for negotiation the price of an forester, the
dealer constantly remind me that based on the price(around 30500
CDN(including tax,air, and everything, the base model w/o extras), can't
remember exact figure though..), he will only own $500 and another $600 will
go into the dealer's boss.

I don't believe him..., so now I am so curious, how much will the dealer own
indeed and how much goes into his boss? and really really curious that how
much did they get from subaru factory?

 

[sylvain Roy]

you got to tell me what kind of subaru your dealling ,
am in quebec and it,s olmost !! the same reallity here

 

[Carl 1 Lucky Texan]

destination and perhaps advertising rebates may be different in Canada
than here - I can only assume the 3% holdback is the same.

But, you couldtry looking here; www.cars101.com to determine actual
dealer cost. (even if the sell you a car at invoice - they'll likely
make 6-7-800 dollars).

Carl

 

[y_p_w]

I went to the subaru dealer for negotiation the price of an forester, the
dealer constantly remind me that based on the price(around 30500
CDN(including tax,air, and everything, the base model w/o extras), can't
remember exact figure though..), he will only own $500 and another $600 will
go into the dealer's boss.

I don't believe him..., so now I am so curious, how much will the dealer own
indeed and how much goes into his boss? and really really curious that how
much did they get from subaru factory?

Then there are dealer holdbacks, rebates, and sales incentives.
They'll make money.

Dealers don't make that much on sales compared to higher margin
service and parts. That's what keeps them in business.

 

[David Betts]

I went to the subaru dealer for negotiation the price of an forester, the
dealer constantly remind me that based on the price(around 30500
CDN(including tax,air, and everything, the base model w/o extras), can't
remember exact figure though..), he will only own $500 and another $600 will
go into the dealer's boss.

I don't believe him..., so now I am so curious, how much will the dealer own
indeed and how much goes into his boss? and really really curious that how
much did they get from subaru factory?

Can't imagine it's that different in the US to anywhere else. Dealer
margins are tiny....and massively eroded by discounting in a highly
competitive market place. It's not as if anybody ever pays the list
price of a car, is it? Massive rationalisation taking place in the UK
with thousands of dealerships closing over the last few years. Get the
best deal you can on-line or through a motor factor, then if you still
want the local dealer to supply you can see if he will match it.

David Betts
(e-mail address removed)

 

[grape]

so what he said is true?!

where'd you get the online deal anyho>?? ebay? in Canada here cars are all
went thru dealership.

 

[David Betts]

so what he said is true?!

Probably, yes, but then he's bound to plead poverty as part of the
negotiation.

where'd you get the online deal anyho>?? ebay? in Canada here cars are all
went thru dealership.

On-line car dealerships in most of the world.....not in Canada? Try
Googling.

David Betts
(e-mail address removed)

 

[Frank]

Years ago, when my brother was service writer for a Chevy dealer, he
told me parts mark-up was 100%, i.e. they doubled cost of what they
paid for it. Also recall in an old automotive industry magazine
advertising a dealer installed sound system that dealer could make as
much off sound system as he did car. Then there are dealer added items
like detailing where profit margin is considerable. Dealer profit is
last thing I would worry about. Cut the best deal for yourself and let
him make as much profit he can from others.

 

[B a r r y]

Cut the best deal for yourself and let
him make as much profit he can from others.

The bottom line is that if the dealer isn't making a profit, they won't
sell the item. Retail is retail, don't worry about them. <G>

Long leftover, damaged, undesirable, etc... items are excluded from the
above.

 

[grape]

forester basic non-turbo w/o extra , autob tranny

 

[Lorraine]

so what he said is true?!

Nothing they say is true. They won't sell it if they're not making
money. Also, they'll make money on you if you take your auto loan from
them, or if you trade in your old car to them.

I don't know if this covers Canada but you can get item prices for new
cars from here:

http://www.fightingchance.com/

 

[David Betts]

Nothing they say is true. They won't sell it if they're not making
money. Also, they'll make money on you if you take your auto loan from
them, or if you trade in your old car to them.

Of course they have to make money. They are a business. If they do not
make money they will not survive. The point I am making is that it is
a highly competitive market place in which margins are very tight.
They are not making a lot of money and many of them don't survive.
That doesn't mean you shouldn't strive to get the best deal you can on
a new car.

David Betts
(e-mail address removed)