Wednesday, February 17th, 2010
What kind of discounts can I anticipate during a blowout sale of the 2008 Nissan Altimas when they start stocking the ‘09 models?
The MSRP is around $21,000 now before their big sales. What would be your best guess as for the price asked for then and how much I could knock off that price while negotiating?
Thanks in advance!
The best guess will be invoice minues the rebates, which if you try hard enough you could get invoice right now, prices are set on new cars, dealers cant really do anything "spectacular" to make them any cheaper.
Just go in to the "blow out sale" and tell them you will pay invoice minus the rebates and thats it. Be open about the car you take, they will be more willing to do invoice if you take one thats in stock.
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Posted in new car sale | 1 Comment »
Saturday, February 6th, 2010
there is the msrp price. and invoice price.
however the dealer has to get the car way below invoice, right?
Because if the sales guy gets a commission. and the deal needs to make money.
so what do car salesmen make on a car sale?
Each dealer has their own pay plan. MSRP and INVOICE have nothing to do with it, so the first two answers here, are basically not an answer at all. On a new car, car dealerships hardly make any money. On used cars, they have to sell the car quickly in order for their profit to stay high.
A dealer I used to work for was 30% of the GROSS profit on the car, was what we were paid, and there was a minimum of $250 per new car, and $150 per used car. That sounds like a lot, but when you’re selling a new car that is so heavily discounted, the dealer loses money to sell it, or only make $400-500, you’re actually better off getting your $250 minimum. On used, where a car might have $2000 profit in it, you can make $600 or so on some cars.
People have a misconception that dealers make tons of money on new cars, and used cars are a steal. In all honesty, most dealers lose money on new cars, and make money on used cars – if they do it right.
Some dealers that are "one price" or "non-negotiable" on their pricing, they have a pay plan based on the number of cars they sell. This is what my dealership does. As a salesman, I get paid a flat-fee per car that I sell, and then there is a bonus scale at the end of the month based on the number of cars I sell. So, I dont care if I sell a $3000 beater that some kid buys, or a $40000 SUV, it makes no difference. If we have a car that we’re losing $1000 to sell because we’ve had it on the lot for 8 months, I dont care. A car is a car, and it’s just another checkmark on the board for my pay.
Lets say I get $250 per car, and I sell 15 cars. That’s $3,750 in commission, plus 15 cars gets me another $1,000 bonus. We get some bonuses for financing, warranties, etc, but that’s maybe $30-$70 per car. So if I sold 15 cars, I’d expect to make around $6000-6500 depending on how the bonsues work out that month.
Believe me, unless you’re REALLY good at this….it’s actually not as lucritive of a job as many people think it is.
Technorati Tags: Bonus, Car Car, Car Dealerships, Car Sale, Car Salesmen, Car Sounds, Cars Dealers, Checkmark, Gross Profit, Honesty, Invoice Price, Misconception, Msrp, Msrp Price, new car, new cars, Sell Car, Tons Of Money, Two Answers, Warranties
Posted in new car sale | 2 Comments »
Saturday, November 14th, 2009
I know it’s more on used than new but how much for each? 15% profit on a new car sale and 30% off a used is my guess.
The profit margin on new cars has been getting smaller and smaller over the years. The manufactures do not want to raise the MSRP as much as they do the invoice cost, so the dealer is squeezed more each year.
There are also other costs to consider. The dealer has a physical location that he has to pay for (cost of buildings, utilities, maintenance). He also most likely has to borrow the money to pay for the cars that he has on the lot (this is called a floorplan). The manufacturer is paid for the car as soon as it is delivered to the dealer. Most dealers to not have the money to pay for 50-200 cars that they keep in stock, so they must borrow that money.
On a normal new vehicle (and this depends on market conditions, supply and demand) a dealer will be lucky to have a gross profit of $600. Used cars have a bit more profit, but they are closer to $900.
If there was 15% profit in each new car, and 30% in used cars, I would be a much richer person!
Technorati Tags: Borrow Money, Car Dealer, Car Sale, Floorplan, Gross Profit, Guess, Lot, Lucky, Msrp, new car, new cars, Physical Location, Profit Margin, Stock, Supply And Demand
Posted in new car sale | 3 Comments »
Friday, November 13th, 2009
My boyfriend works at one and I’m just wondering (he’s not too sure, he just takes the $ they give him). **Dealerships have their markups but used cars are a much better profit because he gets around 40% comm**. So with new cars the dealership buys them from Dodge etc, and resells them an barely makes $. How much do you think they mark it up?
My boyfriend makes 20% regardless and I’m just wondering if anyone knows the appx markup value to the MSRP.
Mark-ups are different depending on the company. A general rule of thumb is 12-15% This can vary alot. edmunds.com has invoice prices for new cars – but make sure to include every equipment package and option before he accuses his work of screwing him! Some vehicles by the way have VERY SMALL profit margins so even if he sells those at full price, there isn’t much in it for him. Most base model entry level cars and light trucks fall in this category.
Technorati Tags: Base Model, Cars Trucks, Comm, Dodge, Invoice Prices, Light Trucks, Mark Ups, Markup, Markups, Model Cars, Model Trucks, Msrp, new cars, Profit Margins, Rule Of Thumb, Ups
Posted in new cars | 4 Comments »
Tuesday, November 10th, 2009
On an average it is about 5 to 10 percent of what it buys the car for. MSRP is what the Manufacturer wants to sell the car for. You should never pay MSRP always negotiate.
Technorati Tags: Autodealer, Car Sale, Msrp, new car, Sell Car
Posted in new car sale | 3 Comments »
