dealer 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?

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

"grape" a écrit dans le message de news: snipped-for-privacy@mycybernet.net...

Reply to
sylvain Roy

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;

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to determine actual dealer cost. (even if the sell you a car at invoice - they'll likely make 6-7-800 dollars).

Carl

grape wrote:

Reply to
Carl 1 Lucky Texan

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.

Reply to
y_p_w

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 snipped-for-privacy@motorsport.org.uk

Reply to
David Betts

Reply to
grape

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 snipped-for-privacy@motorsport.org.uk

Reply to
David Betts

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.

Reply to
Frank

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.

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

Reply to
B a r r y

Reply to
grape

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:

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Reply to
Lorraine

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 snipped-for-privacy@motorsport.org.uk

Reply to
David Betts

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