How much money do car dealers make on any Hackr worthy deals, considering a minimum of getting the car for 1% MSRP?
As mentioned by @Jon in another post they make money on the following
It does not matter to a dealer if it’s a purchase or lease. They still get paid for the vehicle. If a dealer sells for below their cost, they make up the money via different ways: add-on items, doc fees, warranty packages, marked up interest/MF, used car sales, service dept, bonus money from Corp for hitting targets/quotas, etc.
If i refuse to pay for the VIN etching, nitro tires, any additional polishes, take any warranty packages (all lease warranties are covered under12k/36 or 15k/36), service dept (most of the economical and big 3 luxury car provide serving or they can be negotiated to provide free servicing for the term of the lease), marked up MF, where else can a dealer make money on a hackr worthy deal?
You may simply not get your deal at all. But the answer (at least partial) is in the quote you used: “bonus money from Corp for hitting targets/quotas, etc.”
This might be partially true in my opinion. Dealers came back to me after few days when i asked them to absorb the add-on costs, but it might be an one off since they can be desperate trying to meet the quota.
I find this a funny question. I mean honestly who cares. I have had more than one salesman try the “I am not making any money on this deal,” It is a disruptive negotiation from a buyers prospective. If I never do business with them again that is fine. Now they on the other hand are the ones that want to establish the relationship and need to make me happy for that to happen. I think this is a negotiation point too many people forget. Always be willing to walk away.
There’s no way to determine how much a dealer makes on all deals. Some deals have a lot of lease support from the manufacturer, so the dealer provides less $$ and can make more money. Other deals are on cars which have been sitting on lots for a while, so while the dealer might lose money on the lease deal, they can move the unit. Hitting targets can make up for a small loss on a sale as well.
I think 1% is just an obtainable number for most cars. (Always some exceptions) It doesn’t always mean a good deal. It really depends on incentives and the vehicle etc. I mean if someone came to the group with a 1% deal on a Volvo S90 everyone would be losing their minds about how bad a deal it was.
While true, it’s not going to cover your infotainment screen, or the air conditioner that decides to stop working. Powertrain would be beneficial, no doubt, but not a full saving grace.
On a macro level, this is easily googable. It’s covered in the financial media and dealer corporations like Autonation are publicly traded. The short answer is that their business models no longer rely on per-unit profits from the sale of a new car. It’s mostly service, parts, F&I products and used sales
Most sales people make the minimum commission on any new car once it’s discounted any significant amount(cars in demand would be the exception). Used cars are a different story, no invoice on those to figure what the dealer paid. I heard Honda dealers make allot of money Accord Touring Hybrid’s…
