Dealer Profit on 40,000 MSRP car ?
- Thread starter 91svtbird
- Start date
someone on here said invoice will probably be somewhere between 35 and 39
probably about 37k
probably about 37k
The way things are loking now and days id say Ford is losing money on everycar..
Historically, MSRP is around 8% above Invoice. So, I would guess that the dealer would make around $3,200 "plus" any Ford programs afforded to the dealer.
mrGT said:
Considering these cars are going to be ordered and delivered immediately with no cost to finance while it don't sit on the lot.....MSRP leaves the dealer with a nice profit and a happy customer who will come back......Steve
Last edited:
needspeed,
Yes it will, but the volume isn't going to be much with most dealers only getting 2 maybe 3. This will be the only car on the lot selling for MSRP. Now if they could sell every car for MSRP, the dealership might make a decent profit for the year.
Yes it will, but the volume isn't going to be much with most dealers only getting 2 maybe 3. This will be the only car on the lot selling for MSRP. Now if they could sell every car for MSRP, the dealership might make a decent profit for the year.
mrGT said:
Pretty close. I was in the business and saw all the numbers. IF they sell at full retail (rare nowadays) 8-9% from invoice to retail. 10-11% from dead cost (invoice less holdback) so not as much as people think.
invoice on a $40000 truck is about $5k. on a car it will be a little less. so the dealer will pay about $36k for the gt500. after the car is sold the dealer will then recieve a 3% holdback of the msrp from ford as well. so the dealer would make a little over $5k for every gt500 they sell at msrp. remember the dealer then needs to pay the salesman, the finance man, the prep guys, advertising cost, etc... you get the point, everyone will get thier slice of the pie.
ON D BIT,
You forgot the SVT costs.....for a dealer to keep his SVT status, I've been told they spend around $8-10,000 a year on training, tools, and stocking parts. I know a dealer that is not SVT, and he told me to that to qualify for a Shelby, he would have to certify thru Ford....at a cost near $12,000. He said he would have to pass that cost along to whomever bought the Shelby, so he wasn't going to do it unless he found someone willing to pay $10,000 over MSRP.
You forgot the SVT costs.....for a dealer to keep his SVT status, I've been told they spend around $8-10,000 a year on training, tools, and stocking parts. I know a dealer that is not SVT, and he told me to that to qualify for a Shelby, he would have to certify thru Ford....at a cost near $12,000. He said he would have to pass that cost along to whomever bought the Shelby, so he wasn't going to do it unless he found someone willing to pay $10,000 over MSRP.
I cannot imagine that dealers survive an a few cars that they can take advantage of to stay in business over the long haul. They make money via repeat business and loyal customers as well as in the service department.
I buy a new car almost every year and one for my wife every three. I can’t believe a dealer does not want loyal people like me over time as opposed to taking someone for $10k over sticker once never to see them again.
If SVT is not producing enough products to justify their fees then I doubt that they will charge these fees in 06 since as mentioned above it would not be in any dealers interest to do so.
As cool as I think a GT500 is I would never pay 50K for it. I know this sounds bad but I can pick up a C6 for less and all around it is a better car. I still need to get value for the money I spend and in the end its a mustang with a big assed motor in it.
As others have said I might as well find an 04 mod it up and kick mostly anyones ass and not feel bad about the money spent.....Just my .025 cents
I buy a new car almost every year and one for my wife every three. I can’t believe a dealer does not want loyal people like me over time as opposed to taking someone for $10k over sticker once never to see them again.
If SVT is not producing enough products to justify their fees then I doubt that they will charge these fees in 06 since as mentioned above it would not be in any dealers interest to do so.
As cool as I think a GT500 is I would never pay 50K for it. I know this sounds bad but I can pick up a C6 for less and all around it is a better car. I still need to get value for the money I spend and in the end its a mustang with a big assed motor in it.
As others have said I might as well find an 04 mod it up and kick mostly anyones ass and not feel bad about the money spent.....Just my .025 cents
Last edited:
mrGT said:
yet another reason i am not fond of svt.
:beer:
Let me educate some of you on dealers. You see all these new fancy dealers popping up everywhere. Want to know where the $$ comes from?? In this order of profits every month..............
1) Parts Dept - huge profits
2) Service Dept
3) Bodyshop
4) Sales - is always last.
I've been in so many mgmt meetings, this is how it is........the parts mgr walked out every month with a smile.
Let me educate some of you on dealers. You see all these new fancy dealers popping up everywhere. Want to know where the $$ comes from?? In this order of profits every month..............
1) Parts Dept - huge profits
2) Service Dept
3) Bodyshop
4) Sales - is always last.
I've been in so many mgmt meetings, this is how it is........the parts mgr walked out every month with a smile.
I think you omitted a big money maker......Used Car Sales. It will rival the Parts Dept for profit.R1Lello said:
But getting in and staying in business is a treacherous game.....if that were not so, everyone would be in the business.
I seriously doubt that the dealer you are about to dump will feel the impact of your leaving.....unless, you live in a very small town. And with only a couple of Shelby's to sell at $10K over MSRP, he can only piss off two customers. Unless, you would still be pissed off at him for doing so because you thought he should have sold it to your for MSRP.needspeed said:
I buy a new car every other year and the Ford dealer I left 10-12 years ago because I bought another brand, is still in business. In fact, I started out at his place looking for a Shelby. You know what, he wasn't pissed at me for buying somewhere else.....but he did tell me that he had several "regular" customers ahead of me that wanted the Shelby and they were "willing" to pay above MSRP.
PS: I would not pay $50K for the Shelby either, but I wouldn't hold it against a dealer if he could....that's just business. Keep in mind, if he were to sell it at MSRP, you might not be the one that got it any ways. I'd bet that the dealer always has a friend or two ahead of everybody.
mrGT said:
:uh oh:
True, forgot that one.........assuming they have good inventory, but most people nowadays know the asking price in uncontrolled on used vehicles but they also negiotiate much more if it's considered 'used' because more often, there is more room to play. $$$
mrGT said:
Actually the dealer I am with now is a very good dealer and I am not going to dump him since he has been honorable since I first went there. He is happy to sell me a GT500 at MSRP and has committed this in writing.
needspeed,
So does this dealer have room for one more? If so, PM me his name, phone number, and contact name....I'll give them a call.
So does this dealer have room for one more? If so, PM me his name, phone number, and contact name....I'll give them a call.
Users who are viewing this thread
