Dealers, when the OP goes away for the weekend:
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“Honey they want $659/month for the A220”
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Let’s be honest, the Aztek is the daddy of virtually every Crossover/CUV we see on the road today. It died for their sins. I fondly remember my dad’s, moreso than his subsequent Buick Rendezvous.
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Yall gotta start including links to the threads with these posts. I’m missing too much of the meta
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I took a little editorial liberty here, see also
FWIW most dealerships make their money in service, then used car sales. New car sales is most of the top-line revenue, but barely contributes to net profit.
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Ha, exactly!
More money in new car sales than used. More money in service than both.
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Definitely more revenue, but if there is more gross in new cars than used, it might be time for a new Used Car manager.
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No, used cars have always been less profitable (in every dealership I’ve ever worked in). Competition causes margin compression.
Every store makes substantially more on new with almost all brands (there are 2/3 exceptions).
If you aren’t making money selling used cars, why bother. The used car factory doesn’t force them down your throat like the new car factory
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For industry wide numbers, @jeisensc is correct.
You can check the annual reports of the publicly held auto dealer companies
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Used cars are much bigger thing in the midwest vs major metropolitan areas.
We still make money, just not nearly as much.
The real profit from used cars is from service charging sales full retail for reconditioning.
And the factory doesn’t shove cars down our throat, even pre-pandemic we had to beg for allocation.
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This is the game of the dealer sucking the profit out before it hits the lot, giant packs and overcharging for recon, less gross to pay out commissions on. Now this thread is sounding like /askcarsales…lol
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Here’s a breakdown of how much an unnamed store I’ve worked for in the past would profit (before expenses)
New Car Sales
$1.1M - $1.3M / month
Used Car Sales
$200k - $400k / Month
Service
$3.0M - $3.5M / Month
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So this is why my local GMC dealer is hiring a new service advisor promising “up to” 120k yearly…
Service Advisors make bank. There were some master techs at my store making ~350k annually.
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Someone explain what that is after SoCal adjustment please!
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