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Old 07-27-2005, 09:33 PM
flbm flbm is offline
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Most car dealerships rely on the service and reimburments from the manufacturer for warranty work. I worked at a Ford dealership in Central Florida for a few months in 2002 and they sold over 400 vehicles per months in those two months. Even then 75% of their revenue was coming from service and parts!!

So I am sure there are dealerships especially high end who do very few cars per year.
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Old 07-28-2005, 06:16 PM
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phantom701 phantom701 is offline
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Maybe unrelated. In my experience living in SF Bay Area, it seems to me that turnover rate at dealerships are very high. When I go test drive vehicles, I usually ask them how long they have been selling at this dealership. Most of them said, two or three months and that they just came from so-and-so dealership.

Is that common even at BMWs and MBs?
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Old 07-28-2005, 07:58 PM
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Originally Posted by LA X3
I'm not calling you a liar at all, nor challenging your information. If you read my post carefully, you'll see that I'm saying car salesmen who claim to be making $15 on a deal are most probably lying. At 100 cars per year, such a dealer would have a net income of $1500/year. Again, I'm not challenging you, I'm calling out the absurdity of a car dealer who claims to be making $15 on a $40,000 car.

You'll notice I talked about msitrusting car salesmen, not mistrusting webmasters. If you review my posts on this board, you'll find I have never insulted another poster, nor would I. Please be more careful before shooting off about other people shooting off.
I can show you several deals were we've made a profit of $15, $100, etc. I can show you many deals were our profit is a negative number. On the flip side, I can show you deals where we made several thousand in profit. The big thing is your average, and your overall gross. You are totally correct that a dealership with a $15 average gross is in big trouble. But, even the dealers averaging $1000, $2000 or more per car have deals that have minimal profit, or even some losses.

Dealers make most of their profits from all the other stuff that they do besides new cars-- used cars, wholesale cars (if the dealer is good-- this can also be an area that can cripple a dealer if they are not good), service and parts, body shop, etc. The new car department is often there just to create business for the other (very) profitable departments.
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Old 07-28-2005, 08:54 PM
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Moderato Moderato is offline
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I think with the internet getting more and more common everyday that the traditional "car sales" position will be either phased out or drastically changed. As the years go buy the internet and it's use will be just as common place as the television. With the amount of information available to the average person about invoice price & the going prices for cars around the country it makes it harder for a salesperson to convice a person to pay more then they have to for a car.
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Old 07-28-2005, 10:36 PM
hunter399 hunter399 is offline
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Originally Posted by James
I guess I read his comment differently. If the dealer makes so little on each car and sells so few how do they pay the bills? From an outsider's perspective something doesn't add up. Maybe I should read the linked article .

Service dept. is where the money is made...
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