Different cities, different cars.......
Dec 14th 2007, 5:50 pm
#16
Joined: Mar 2003
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Re: Different cities, different cars.......
I gotta nice truck for sale ..
Dec 14th 2007, 5:51 pm
#17
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Location: TN
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Re: Different cities, different cars.......
how redneck do you think i am
Dec 14th 2007, 6:23 pm
#19
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Location: NW Chicago suburbs
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Re: Different cities, different cars.......
LMFAo
KKB is a joke. Its a book made solely to fool buyers into thinking they are getting a deal. Nobody in the trade uses it not insurance companies, dealers or salvage companies. Go get your KBB and throw it in the garbage or at least make some use of it to steady the leg of a wonky table.
Its a worthless article and way over quotes the value of vehicles....which is why dealers love it....so the punter thinks they are getting a steal but in reality a dealer is.
Think about it for a second. Look at all the huge dealerships in your area, how many cars do they sell on average a day and how much does it cost to operate that sales centre? You really believe they are going to sell you a car for a skinny $100 to $200 mark up?
KKB is a joke. Its a book made solely to fool buyers into thinking they are getting a deal. Nobody in the trade uses it not insurance companies, dealers or salvage companies. Go get your KBB and throw it in the garbage or at least make some use of it to steady the leg of a wonky table.
Its a worthless article and way over quotes the value of vehicles....which is why dealers love it....so the punter thinks they are getting a steal but in reality a dealer is.
Think about it for a second. Look at all the huge dealerships in your area, how many cars do they sell on average a day and how much does it cost to operate that sales centre? You really believe they are going to sell you a car for a skinny $100 to $200 mark up?
Last new car I bought, I had them show me the invoice. They took $200 over invoice on a brand new model.
They make a lot of profit besides that - incentives from the manufacturer, so they end up making more. I don't recall all the details, but a friend's husband worked for a dealership.
Somewhere around invoice is a fair deal.
Dec 14th 2007, 6:31 pm
#20
Joined: Mar 2003
Posts: 68,280
Re: Different cities, different cars.......
OMG the car dealers were glad to see HER coming! Paying OVER blue book???????
Last new car I bought, I had them show me the invoice. They took $200 over invoice on a brand new model.
They make a lot of profit besides that - incentives from the manufacturer, so they end up making more. I don't recall all the details, but a friend's husband worked for a dealership.
Somewhere around invoice is a fair deal.
Last new car I bought, I had them show me the invoice. They took $200 over invoice on a brand new model.
They make a lot of profit besides that - incentives from the manufacturer, so they end up making more. I don't recall all the details, but a friend's husband worked for a dealership.
Somewhere around invoice is a fair deal.
usually around 3%
Dec 14th 2007, 6:33 pm
#21
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Re: Different cities, different cars.......
I was buying a model just out. Plus they didn't have what I wanted on the lot. Had to call around and then fetch it from the next state.
So seemed a reasonable deal to me.
So seemed a reasonable deal to me.
Dec 14th 2007, 7:07 pm
#22
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Re: Different cities, different cars.......
sorry guys, but $200 over their invoice on a typical $20K car would not pay for the office paperclips - a 1% gross margin. The rent on the lot will be $20K pcm plus (100 cars worth of gross margin) let alone staff costs, insurance, you name it. I would expect their gross margin to be over 10% to give them a net of at least 5% at the end of the day.
This might be via incentives or whatever, but a 1% gross margin is not going to keep a business afloat.
This might be via incentives or whatever, but a 1% gross margin is not going to keep a business afloat.
Dec 14th 2007, 7:07 pm
#23
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Location: Pittsburgh, PA
Posts: 115
Re: Different cities, different cars.......
It's all down to supply and demand - if you're looking at something that's in short supply then you're going to end up paying more for it. I'm not talking about new cars. The number I add my $200 is the price that a private buyer could expect to receive from a dealer for a car that was perfect (or as perfect as is reasonable for the age of the vehicle).
Dec 14th 2007, 7:10 pm
#24
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Re: Different cities, different cars.......
To answer the OP - San Francisco is Prius central, plus all varieties of Saab, Volvo, BMW, Audi, Merc etc. As you head out it turns into VW, Honda and other Toyotas, only moving into American cars as you hit the boonies.
Dec 14th 2007, 7:10 pm
#25
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Re: Different cities, different cars.......
sorry guys, but $200 over their invoice on a typical $20K car would not pay for the office paperclips - a 1% gross margin. The rent on the lot will be $20K pcm plus (100 cars worth of gross margin) let alone staff costs, insurance, you name it. I would expect their gross margin to be over 10% to give them a net of at least 5% at the end of the day.
This might be via incentives or whatever, but a 1% gross margin is not going to keep a business afloat.
This might be via incentives or whatever, but a 1% gross margin is not going to keep a business afloat.
I haven't paid more than $200 over invoice for any new vehicle I've bought.
Dec 14th 2007, 7:37 pm
#26
Democracy advocate
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Re: Different cities, different cars.......
sorry Tracym, but do you really think that invoice is the real price they are paying for the car? I suspect it is a "show the customer" invoice and actually there is a seperate rebate somewhere of a couple of thousand bucks.
Dec 14th 2007, 7:40 pm
#27
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Re: Different cities, different cars.......
But, like I said, there are incentives and other stuff - I think they make more than the $200 (as they should).
But paying around "inovice" is the way to a fair price imo. If you pay lots more than that, they're getting more than they need to.
Dec 14th 2007, 7:44 pm
#28
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Re: Different cities, different cars.......
Dec 14th 2007, 7:45 pm
#29
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Dec 14th 2007, 7:47 pm
#30
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Re: Different cities, different cars.......
I doubt thye'll do that - it'd be too illegal to be worth the risk. And you can check online what the invoice prices should be like - I did.
But, like I said, there are incentives and other stuff - I think they make more than the $200 (as they should).
But paying around "inovice" is the way to a fair price imo. If you pay lots more than that, they're getting more than they need to.
But, like I said, there are incentives and other stuff - I think they make more than the $200 (as they should).
But paying around "inovice" is the way to a fair price imo. If you pay lots more than that, they're getting more than they need to.
One example of a no-margin business is HP printers - they give the printers away to make their money selling inkjet cartridges afterwards, perhaps there is a tied servicing deal on the car or something similar (financing) that allows them to make their margin that way.