Quote:
Originally Posted by TVonthe80
Quote:
Originally Posted by JK479
Have you though about the cash they save by not holding 300 cars on a lot?
Volume sales are now a distant memory that no one will have to go back to. Just my 2 cents too- I could be wrong but GM's have told me they like this model of msrp, order and lists.
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Depends on the dealer and their original business model. A high volume dealer with a lot of real estate, sales staff, support systems in place to move large volume aren't going to do as well as a smaller dealer who's volume might not have moved much but now their margin is 10-15k better per unit.
Also different between luxury and mainstream manufacturers. Luxury brands will do better as their customers are less price sensitive, they are already smaller volume, and cover greater territory. A typical Ford/GM store might be doing great or might be struggling in the new world depending on how well they're managed and their local market.
On average i believe same store profits and manufacturer profits are both up in total $ and in margin, but it's not universal across dealers |
Focusing just on BMW and other German brands- lists and orders at msrp and higher negates inventory which is producing massive profit.
They way they see it- it's a win.
Also- mundane, over looked cars at Ford, Toyota now sell for msrp. No one wanted a Ford Escape in 2019- now it sells because it's there.
COVID cars too- lack options. Making a small 150.00 credit on a usually standard option saves massive money.
