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Car Forum / Subaru Cars / August 2005dealer constantly tells me how little he own on each car he sales...
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? you got to tell me what kind of subaru your dealling , am in quebec and it,s olmost !! the same reallity here >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 [quoted text clipped - 5 lines] > own indeed and how much goes into his boss? and really really curious that > how much did they get from subaru factory? forester basic non-turbo w/o extra , autob tranny > you got to tell me what kind of subaru your dealling , > am in quebec and it,s olmost !! the same reallity here 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 > 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 [quoted text clipped - 5 lines] > indeed and how much goes into his boss? and really really curious that how > much did they get from subaru factory?  Signatureto reply, change ( .not) to ( .net) > 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 [quoted text clipped - 5 lines] > 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. 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. > 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. >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 [quoted text clipped - 5 lines] >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 davidb@motorsport.org.uk so what he said is true?! where'd you get the online deal anyho>?? ebay? in Canada here cars are all went thru dealership. >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 davidb@motorsport.org.uk > 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/ >> 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. 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 davidb@motorsport.org.uk |
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