OT: Gas Tax Holiday Wont Work

The refineries are not in Alaska.

$30K includes the cost of the gasoline itself. I thought that was obvious from the context.

Dimitri

"Mike hunt" wrote in news:soGdneigD_cHtarVnZ2dnUVZ snipped-for-privacy@ptd.net:

You don't really need me to tell you what kickback car dealers get, do you? Kickbacks from distributors, makers, lenders. Or did you think the car dealer really paid "invoice" for the car?

I don't think the do I KOW they do, and they must pay it within seven days of the sale!

"Mike hunt" wrote in news:QLednbyc2qCD9aXVnZ2dnUVZ snipped-for-privacy@ptd.net:

??

FWIW, I bought a GMC Sierra 1500 in Poway - I paid 10K less than the sticker price and 3K less than "invoice". The dealer still made money on me I can guarantee you that. Like I said, they get kickbacks from the maker, distributor and lenders.

In message news:Xns9AA896A34D978dewey3kNOSPAMgmailco@130.133.1.4, theBZA burned some brain cells writing:

How's that different from YOU not paying "Manufacturer's Suggested Retail Price"?

What you slur as a "kickback" is in reality an INCENTIVE. Something foreign to worshipers of government and government-created monopolies such as yourself. But something known to all real people who work in real jobs because they have real skills.

Does the term "Rebate" have any meaning to you? Rebates, that you "give back" to the dealership to reduce YOUR cost reduces the dealers net "cost" to sell it at invoice, but he still must pay the invoice price. "Kickbacks" are not legal in franchise law in the US.

Let's say you trade a vehicle with a Kelly trade value of 15K, on a 40K vehicle, with an invoice of 34K and a holdback of 1K that the dealership agrees to sell at the invoice price of 34K. (Dealers generally use the Kelly book because it is generally wholesale and 15% lower than NADA trade price). The manufacture offers a rebate of 6K.

The dealership gets your TRADE and 19K from you, in the form of cash or the receipts from you finance source plus the REBATE. Your total cost of that

40K vehicle, before taxes and interest is 34K. The gross to the dealer is 40K in the form of cash, your trade and 6K when he redeems the rebate. After he pays the 34K invoice he has capital LOSS on the sale of 13K! The difference in the 28K short fall to cover his invoice cost and a used car stock 15K depreciating assent.

Hopefully he will sell the used vehicle without another trade, at the NADA retail of 22K and end up with a gross profit on 9K. After commissions he may make 7.7K net profit and IF his floor plan interest does not off set his

1K holdback, too much, he may make 8K. God help the salesman if he misread the rebate eligibility rules and he is charged back the 6K rebate.

In most cases there will be several trades on the previous trades and like the average new vehicle trade, it will take six months to a year before a dealership realizes it true profit on that sale ;)

Many people do not understand that invoice price does not equal dealer cost.

"Mike hunt" wrote in news:C--dndtVT7Yx4KXVnZ2dnUVZ snipped-for-privacy@ptd.net:

Totally irrelevant. I didn't get any "rebates" but the dealer did get kickbacks.

SMS wrote in news:VkJ_j.2123$ snipped-for-privacy@flpi148.ffdc.sbc.com:

Or even approximate it.

In message news:VkJ_j.2123$ snipped-for-privacy@flpi148.ffdc.sbc.com, SMS burned some brain cells writing:

How often do you pay MSRP for a car? A couch? ANYTHING?

In message news:c9982cf1-b094-4ebd-8460- snipped-for-privacy@l42g2000hsc.googlegroups.com, " snipped-for-privacy@yahoo.com" burned some brain cells writing:

And the dollar's fallen by half against the Euro (.82 in October 2000; $1.57 today), so the net price is only a slight premium to the US.

They're stupid. No wonder they're YOUR friends.

They are paying about the sanme for gas, it is the taxes that are different... Germany they are paying about $3 per gallon in health care taxes.

=====================

(talking per liter here)

when looking at the price of fuel before taxes, Canada, at 79.1 cents, isn't too far away from the high end, trailing Italy (91.5 cents), Japan (90.9 cents), Spain (87.2 cents) and Germany (83.6 cents).

Canada's tax as a percentage of total cost, is about 28 per cent. The same metric in Germany, the U.K., Italy and France is above 55 per cent. In the U.S., however, it's just 12.3 per cent. "The before-tax prices are pretty comparable, but when you put the taxes in they're radically different. A number of countries have made a deliberate decision to raise taxes to curb consumption,"

But we're talking about invoice, not MSRP. Many vehicle buyers believe that the invoice price is the same as the net dealer cost, and are thrilled to buy a car "at invoice" or a few hundred below invoice. The last two Toyotas I bought, I paid significantly under invoice (more than $1500 under). I'm sure the dealer made out just fine--obviously they aren't going to sell at a loss. They just made less of a profit than they get from buyers that pay invoice. When a vehicle is in essentially unlimited supply they don't lose anything by selling at a small mark-up, then moving on to the next sale where hopefully they can sell a vehicle for a higher price, along with a bunch of WAOs (worthless add-ons).