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SVTPerformance's Chain of Restaurants
The Market
Vehicles For Sale
Shelby GT500 Buy/Sell
Axzd plan pricing on new 2008 gt 500's
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<blockquote data-quote="Streetpwr281" data-source="post: 8041691" data-attributes="member: 55660"><p>Really some incredibly misinformed folks in this thread. Dealer markup on New Cars is typically minimal (as a % of MSRP) ranging from $700 - $2500 in real dollars. Most Sales Associate pay plans offer a commission equal to 25% - 40% of the gross profit dependent on that Associates volume for the month. Therefore a Sales Associate earns between $100 (mini-deal) and say $625 on the very high end for selling a new vehicle. New vehicle sales is necessary but not very lucrative for the Dealer. Sales drives Finance and Service/Parts departments where more gross profit is earned. In most cases, especially given the internet information age, a dealer has limited room for negotiation on a new vehicle. Rebates/Incentives go to the buyer on top of any negotiated price. Its a profitable business but only if expenses are managed very tightly and sales/service volume is strong relative to the overall cost structure of the store.</p><p></p><p>Long and short, there are some unfavorable views towards dealers in this thread which I feel are not warranted. Local dealerships employ a good number of residents and while they are certainly in business to make money most are owned by fair minded individuals who aim to treat all their customers in an honest manner and hopefully earn a living off the cumulative profits from higher volume sales/service.</p><p></p><p>My $.02.</p></blockquote><p></p>
[QUOTE="Streetpwr281, post: 8041691, member: 55660"] Really some incredibly misinformed folks in this thread. Dealer markup on New Cars is typically minimal (as a % of MSRP) ranging from $700 - $2500 in real dollars. Most Sales Associate pay plans offer a commission equal to 25% - 40% of the gross profit dependent on that Associates volume for the month. Therefore a Sales Associate earns between $100 (mini-deal) and say $625 on the very high end for selling a new vehicle. New vehicle sales is necessary but not very lucrative for the Dealer. Sales drives Finance and Service/Parts departments where more gross profit is earned. In most cases, especially given the internet information age, a dealer has limited room for negotiation on a new vehicle. Rebates/Incentives go to the buyer on top of any negotiated price. Its a profitable business but only if expenses are managed very tightly and sales/service volume is strong relative to the overall cost structure of the store. Long and short, there are some unfavorable views towards dealers in this thread which I feel are not warranted. Local dealerships employ a good number of residents and while they are certainly in business to make money most are owned by fair minded individuals who aim to treat all their customers in an honest manner and hopefully earn a living off the cumulative profits from higher volume sales/service. My $.02. [/QUOTE]
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SVTPerformance's Chain of Restaurants
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Shelby GT500 Buy/Sell
Axzd plan pricing on new 2008 gt 500's
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