KingBBinLV91 karma2023-01-21 21:00:28 UTC
Remote start or heated seats, both are my favorite options on any vehicle
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KingBBinLV60 karma2023-01-21 21:15:40 UTC
The customer has much more wiggle room now then they had a few months ago but it definitely depends on the vehicle and what selling price is being offered.
I price my used vehicles below CARFAX values so that usually helps to cut down on the negotiating aspect.
However, If I have a vehicle here for awhile and I need to move it I will come down on the price if I have to, within reason. If my price is say $20,995 and a customer offers $15,000 then I'm shaking their hand and wishing them good luck on their hunt for a new vehicle.
And anyone saying "I'm paying cash" is usually not getting a discount since when they finance we get paid extra by the bank.
KingBBinLV44 karma2023-01-21 21:08:28 UTC
New car inventory is not even close to 2019 levels, I currently have in stock and at my dealership 22 new vehicles, my store used to carry about 125 new vehicles.
Profit is hard to ballpark but i'll try. On a mid sized suv lease pre car shortage the dealership would blow out a vehicle $1000 below MSRP and make around $1000-$1300 from holdback and around $400 from manufacturer cash when sales goals were met. Now we sell the same vehicle with a $3,000 market adjustment ABOVE MSRP so the gross would be around $4000 on the front end, same holdback amount and same sales goal money from the manufacturer. These numbers do not include back end warranty and maintenance extras. Big difference but we are selling less vehicles.
KingBBinLV39 karma2023-01-21 21:58:49 UTC
Because we make a lot of money in that department. All of that stuff is optional and you do not have to purchase it if you don't want it.
I can say on my wife's current leased vehicle I have the tire package, it cost me around $300 (cost) and I've used it to cover 5 popped tires and 1 scraped rim in about 18 months. The tires are 21 inch low profile tires and would have cost me around $350 each time to replace and the rim resurfacing is around $150.
KingBBinLV36 karma2023-01-21 22:52:46 UTC
On a new car the dealership makes what's called holdback, it's money built in by the manufacturer. Dealership pays what's called invoice to the manufacturer. The amount between the invoice and the MSRP is the gross. On something like a Chevy Trax the difference is around $600 or so between invoice and MSRP and the hold back is around $800. If we hit our monthly goal set by the manufacturer we get around another $400 per car.
If it is a lease deal we get a flat $200 from the bank for doing the deal and keep the gross on any aftersale products that are sold.
On a finance contract typically the bank gives the dealer a 2% mark up on the interest rate. What that means is if we get you approved at 6% from the bank we can sell it to you at 8% and the store keeps the 2% difference as profit.
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