Car Dealer Profit -2

It ahould come as no surprise that there is allot of money to be made in car sales. Like everything else are allot of variables but it is done. New car sales are interesting. Have you ever seen a car dealership which only sells new cars? Know why? In the car world the real profit, the obscene profit is in the used car. BUT don't ever let a salesman tell you they are not making any money on a new car.

I saw a televison ad recently from Ricart Ford in Columbus in which they posted the invoices of their cars on a wall, and all you needed to do was chose your invoice. The implication being you were paying for the car what the dealer did. WRONG!!!

When I worked for Mathews Ford I was given a password and login name for FMCdealers.com. On that site it is made clear there are not 2 prices, sticker and invoice ... but three!!! Sticker, invoice and dealer cost. Thats right .... the dealer did not pay invoice for the car, they paid dealer cost which is $1000.00 or more LESS than invoice. So they are making money. Now Mathews is selling over 200 cars a month. Even if every car was sold at invoice that is over $200,000 profit in one month! But that is chump change!!

The real money is in the used cars, the trades .... and by the way the deal is written up! Oh and just when you think the deal is settled and the deal is sent back to finance .... get ready to pay big time!! They need to eat also .... this and more is coming!