Home › Forums › Other › OT: Paging Raybarnes or others in the know… Question about holdback allowance.
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February 8, 2011 at 7:36 PM #665021February 9, 2011 at 11:55 AM #664009justmeParticipant
Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.
February 9, 2011 at 11:55 AM #664071justmeParticipantWhy does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.
February 9, 2011 at 11:55 AM #664678justmeParticipantWhy does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.
February 9, 2011 at 11:55 AM #664816justmeParticipantWhy does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.
February 9, 2011 at 11:55 AM #665151justmeParticipantWhy does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.
February 9, 2011 at 12:17 PM #664024outtamojoParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Not that I have numbers but I think you’d be amazed at how many folks get slam dunked at the dealerships.
February 9, 2011 at 12:17 PM #664086outtamojoParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Not that I have numbers but I think you’d be amazed at how many folks get slam dunked at the dealerships.
February 9, 2011 at 12:17 PM #664693outtamojoParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Not that I have numbers but I think you’d be amazed at how many folks get slam dunked at the dealerships.
February 9, 2011 at 12:17 PM #664831outtamojoParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Not that I have numbers but I think you’d be amazed at how many folks get slam dunked at the dealerships.
February 9, 2011 at 12:17 PM #665166outtamojoParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Not that I have numbers but I think you’d be amazed at how many folks get slam dunked at the dealerships.
February 9, 2011 at 12:45 PM #664039CoronitaParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Well, it depends….Some cars have rebates that push car prices well below what is “invoice”…Some cars had other hidden padding like holdbacks/such….
Also, several car purchases are financed, and while can be sold below invoice, the financing makes more then enough $$$ for the dealership….Also dealership makes money on service/support….
Since BMW isn’t offering a spring sales event (yet), and if no holdback, I’m just trying to figure out how low things can really go… On most places I asked, they weren’t able to move below $500 above invoice. This one in particular, however was able to do $100 below…The build date of the car was back in october, and since then the Manufacturer raised prices by $500 (so I’m told). I called all the S.D. dealers.Same car cost $1500 above invoice….I also called the costco purchase program..Dealer initially said $1000 above, but after back and forth they said they can do $500 above…..
Also, I guess the dealer I’m talking to wants to clear the inventory, plus I’m a repeat customer. So not sure…..I have a feeling there will be a Spring sales event in March, so maybe some games are being played here….
February 9, 2011 at 12:45 PM #664101CoronitaParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Well, it depends….Some cars have rebates that push car prices well below what is “invoice”…Some cars had other hidden padding like holdbacks/such….
Also, several car purchases are financed, and while can be sold below invoice, the financing makes more then enough $$$ for the dealership….Also dealership makes money on service/support….
Since BMW isn’t offering a spring sales event (yet), and if no holdback, I’m just trying to figure out how low things can really go… On most places I asked, they weren’t able to move below $500 above invoice. This one in particular, however was able to do $100 below…The build date of the car was back in october, and since then the Manufacturer raised prices by $500 (so I’m told). I called all the S.D. dealers.Same car cost $1500 above invoice….I also called the costco purchase program..Dealer initially said $1000 above, but after back and forth they said they can do $500 above…..
Also, I guess the dealer I’m talking to wants to clear the inventory, plus I’m a repeat customer. So not sure…..I have a feeling there will be a Spring sales event in March, so maybe some games are being played here….
February 9, 2011 at 12:45 PM #664708CoronitaParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Well, it depends….Some cars have rebates that push car prices well below what is “invoice”…Some cars had other hidden padding like holdbacks/such….
Also, several car purchases are financed, and while can be sold below invoice, the financing makes more then enough $$$ for the dealership….Also dealership makes money on service/support….
Since BMW isn’t offering a spring sales event (yet), and if no holdback, I’m just trying to figure out how low things can really go… On most places I asked, they weren’t able to move below $500 above invoice. This one in particular, however was able to do $100 below…The build date of the car was back in october, and since then the Manufacturer raised prices by $500 (so I’m told). I called all the S.D. dealers.Same car cost $1500 above invoice….I also called the costco purchase program..Dealer initially said $1000 above, but after back and forth they said they can do $500 above…..
Also, I guess the dealer I’m talking to wants to clear the inventory, plus I’m a repeat customer. So not sure…..I have a feeling there will be a Spring sales event in March, so maybe some games are being played here….
February 9, 2011 at 12:45 PM #664846CoronitaParticipant[quote=justme]Why does anyone believe in “invoice prices” in the first place?
Or believe that invoice == real cost?If you look at a big publicly traded traded auto dealership conglomerate, AutoNation (symbol AN), and look up their financials, you will see that for the last listed quarter their Gross margin was
% 425/3127
0.135913015669971or 13.6%. Does it seem reasonable that car dealers have 13.6% gross profit at the same time as they are selling cars for little more than “invoice” in many cases?
An invoice may very well be an “invoice” of sorts, but I seriously doubt that it represents what the dealer really pays for the car.[/quote]
Well, it depends….Some cars have rebates that push car prices well below what is “invoice”…Some cars had other hidden padding like holdbacks/such….
Also, several car purchases are financed, and while can be sold below invoice, the financing makes more then enough $$$ for the dealership….Also dealership makes money on service/support….
Since BMW isn’t offering a spring sales event (yet), and if no holdback, I’m just trying to figure out how low things can really go… On most places I asked, they weren’t able to move below $500 above invoice. This one in particular, however was able to do $100 below…The build date of the car was back in october, and since then the Manufacturer raised prices by $500 (so I’m told). I called all the S.D. dealers.Same car cost $1500 above invoice….I also called the costco purchase program..Dealer initially said $1000 above, but after back and forth they said they can do $500 above…..
Also, I guess the dealer I’m talking to wants to clear the inventory, plus I’m a repeat customer. So not sure…..I have a feeling there will be a Spring sales event in March, so maybe some games are being played here….
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