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TOY4TWO said:
Any dealers willing to comment on how much they pay for their cars and how much they make by selling at MSRP?
Several variables determine the gross margin between dealership invoice cost and MSRP. Dealership state, equipment/options, programs, and advertising assesments all factor in.

Much of the information is available all over the internet. Use it properly and you can get real close to the number.
 

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TOY4TWO said:
Any dealers willing to comment on how much they pay for their cars and how much they make by selling at MSRP?
Not counting any hold back (which I think is somewhere around 2.5% of MSRP) or incentives back from GM, the difference between invoice and MSRP on an almost loaded (no On-star, or satalite Radio) is about $1700.
 

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For whatever it's worth, if you just calculate according to dealer's cost
(from Kelly www.kbb.com) and spread with MSRP, the dealer's profit for a no option Solstice was, as I remember, around $1500, and if the buyer selected every single option, the profit was around $2000. Kelly's shows the markup for each individual option. Now you see the reason why dealers don't like to sell a car at MSRP ans then watch the owner resell and make two or three
times the profit the dealer did. And people on this blog have actually
griped about dealers charging over MSRP but not those buyers who resell.
 

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"Not counting any hold back (which I think is somewhere around 2.5% of MSRP) or incentives back from GM, "
The one car that I can GUARANTEE you GM is not giving dealer incentives on is the Solstice. Nor will they do so for the Saturn Sky either.
 

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FloridaSol said:
....the difference between invoice and MSRP on an almost loaded (no On-star, or satalite Radio) is about $1700.

Not a bad guess. But high by as much as $600 for some situations.
 

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kingarthur said:
For whatever it's worth, if you just calculate according to dealer's cost
(from Kelly www.kbb.com) and spread with MSRP, the dealer's profit for a no option Solstice was, as I remember, around $1500, and if the buyer selected every single option, the profit was around $2000. Kelly's shows the markup for each individual option. Now you see the reason why dealers don't like to sell a car at MSRP ans then watch the owner resell and make two or three
times the profit the dealer did. And people on this blog have actually
griped about dealers charging over MSRP but not those buyers who resell.
Actually we gave gripe to them too. The Mods had to hose down several threads from resellers. We're looking out for the little guy! :devil:
 

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If you want a good price go to edmunds.com

It will give you invoice and MSRP based on the options you choose. I have found the numbers to be very accurate (within a buck or two of what the dealers have).
 

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Not counting the secret stuff between GM and my dealer...
The invoice on my car with destination charges was $22,495. My MRSP with destination ($575) is $23,685, a "profit" of $1,190.
 

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FloridaSol said:
If you want a good price go to edmunds.com

It will give you invoice and MSRP based on the options you choose. I have found the numbers to be very accurate (within a buck or two of what the dealers have).
Too bad edmunds.com doesn't buy or sell cars.
 

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It's so weird seeing such a small profit margin coming from another area of the sales spectrum where we get 30-60% margins.
 

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Of course all that dealer "profit" comes before:
Office expense
Sales commission/other staff
Utilities
Finance charges
Taxes
Advertising
....

I wonder what a dealer really nets on a car after considering all their overhead.
 

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Well, before you feel too bad for them, keep in mind that they rarely actually pay full invoice, and rarely sell for anywhere close to MSRP. Slap on some "standard" $600 paint protectant, $250 undercoating, $200 dealer prep/handling fees, $50 for the dealer sticker and plate holder... not to mention the automatic $1000 they tack on just to see if the impulse buyers will do it, and I don't feel bad at all that I have paid withing $200 of invoice for every single new car I've ever bought. They make most of their money on people who don't use the internet to do some actual research, which happens to be the majority of the customers.
 

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10% markup over MSRP!


J/K


:lol: :devil:



:leaving:
 

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My guess is that most of their money is made in parts, service, and in a good market, used cars.
 

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Regardless of the maker, if you can be satisfied paying X-amount for a certain car then what does it matter how much they are making?
 

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tweety said:
Regardless of the maker, if you can be satisfied paying X-amount for a certain car then what does it matter how much they are making?

:agree: There is always the "value" of the vehicle to consider.

Unfortunately the Solstice, as well as most other Pontiacs, have a very low profit margin. You can sell them full sticker and only make the dealership a thousand, maybe two thousand. I believe, not hardly defending them, that is the reason you are seeing the 3-4000 over MSRP. I am not justifying the dealerships that are doiong this, but I can see their side of it. It is frustrating to have a car that everyone wants and we make as little as we do.

I personally think the Solstice is an incredible value at MSRP. Better than any car I have ever personally witnessed. I would buy the car if it cost 28,000 personally.
 
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