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

Discussion in 'General Motoring' started by grape, Aug 24, 2005.

  1. grape

    grape Guest

    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?
     
    grape, Aug 24, 2005
    #1
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  2. grape

    sylvain Roy Guest

    you got to tell me what kind of subaru your dealling ,
    am in quebec and it,s olmost !! the same reallity here
     
    sylvain Roy, Aug 24, 2005
    #2
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  3. 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
     
    Carl 1 Lucky Texan, Aug 24, 2005
    #3
  4. grape

    y_p_w Guest

    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.
     
    y_p_w, Aug 24, 2005
    #4
  5. grape

    David Betts Guest

    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
     
    David Betts, Aug 24, 2005
    #5
  6. grape

    grape Guest

    so what he said is true?!

    where'd you get the online deal anyho>?? ebay? in Canada here cars are all
    went thru dealership.
     
    grape, Aug 24, 2005
    #6
  7. grape

    David Betts Guest

    Probably, yes, but then he's bound to plead poverty as part of the
    negotiation.
    On-line car dealerships in most of the world.....not in Canada? Try
    Googling.

    David Betts
     
    David Betts, Aug 24, 2005
    #7
  8. grape

    Frank Guest

    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.
     
    Frank, Aug 24, 2005
    #8
  9. grape

    B a r r y Guest


    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.
     
    B a r r y, Aug 24, 2005
    #9
  10. grape

    grape Guest

    forester basic non-turbo w/o extra , autob tranny
     
    grape, Aug 25, 2005
    #10
  11. grape

    Lorraine Guest

    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/
     
    Lorraine, Aug 28, 2005
    #11
  12. grape

    David Betts Guest

    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
     
    David Betts, Aug 29, 2005
    #12
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