Dealers only make a little on car sales, I'm not having it!
Discussion
I went into Mercedes Northampton yesterday.
A really impressive building, clean as a hospital and fitted out like a four star hotel. All new stock in the showroom, about 20 cars, were the same snow white colour wrapped in a Christmas bow.
A sales meeting had finished and at least 10 people in suits came down the stainless steel and glass stairs.
There were three on reception, a guy from service helped me, I had a hot chocolate served by someone and tucked in to a pastry.
Many claim main dealers make only a couple of hundred from a new car sale and servicing is only around £250 a year. If anything goes wrong the warranty covers it and there was no oil in sight.
How can they afford to run an operation like this whilst those who work there claim margins are so low?
A really impressive building, clean as a hospital and fitted out like a four star hotel. All new stock in the showroom, about 20 cars, were the same snow white colour wrapped in a Christmas bow.
A sales meeting had finished and at least 10 people in suits came down the stainless steel and glass stairs.
There were three on reception, a guy from service helped me, I had a hot chocolate served by someone and tucked in to a pastry.
Many claim main dealers make only a couple of hundred from a new car sale and servicing is only around £250 a year. If anything goes wrong the warranty covers it and there was no oil in sight.
How can they afford to run an operation like this whilst those who work there claim margins are so low?
t again.They make hundreds, no thousands on your part ex, they make a mint from finance, they get huge dealer bonuses for volume, the margin on the car is irrelevant as its just a product to wrap other revenue generating products around.
I think many offer a great service and hope this doesn't turn into another dealer bashing thread.
I think many offer a great service and hope this doesn't turn into another dealer bashing thread.
Thankyou4calling said:
I went into Mercedes Northampton yesterday.
A really impressive building, clean as a hospital and fitted out like a four star hotel. All new stock in the showroom, about 20 cars, were the same snow white colour wrapped in a Christmas bow.
A sales meeting had finished and at least 10 people in suits came down the stainless steel and glass stairs.
There were three on reception, a guy from service helped me, I had a hot chocolate served by someone and tucked in to a pastry.
Many claim main dealers make only a couple of hundred from a new car sale and servicing is only around £250 a year. If anything goes wrong the warranty covers it and there was no oil in sight.
How can they afford to run an operation like this whilst those who work there claim margins are so low?
The glam and glitz is forced upon them by the manufacturer to maintain the manufacturers "image".A really impressive building, clean as a hospital and fitted out like a four star hotel. All new stock in the showroom, about 20 cars, were the same snow white colour wrapped in a Christmas bow.
A sales meeting had finished and at least 10 people in suits came down the stainless steel and glass stairs.
There were three on reception, a guy from service helped me, I had a hot chocolate served by someone and tucked in to a pastry.
Many claim main dealers make only a couple of hundred from a new car sale and servicing is only around £250 a year. If anything goes wrong the warranty covers it and there was no oil in sight.
How can they afford to run an operation like this whilst those who work there claim margins are so low?
As has been said, new car sales is basically to support the areas where they do make money - servicing, parts, finance, extra warranties, supaguard, RTI insurance, tyre insurance, warranty work, repairs, bodywork, etc, etc.
Even then, they're not making a fortune overall.
Sytner Group - £3 billion turnover, £66 million pre tax profit (cant even think to work that out as a percentage)
http://www.am-online.com/news/2013/2/18/record-sal...
Lookers Group - £2.464 billion turner, £43.90 million pre tax profit.
http://investors.lookersplc.com/financial-summary
dibblecorse said:
They make hundreds, no thousands on your part ex, they make a mint from finance, they get huge dealer bonuses for volume, the margin on the car is irrelevant as its just a product to wrap other revenue generating products around.
I think many offer a great service and hope this doesn't turn into another dealer bashing thread.
Even on those margins their overheads are huge.I think many offer a great service and hope this doesn't turn into another dealer bashing thread.
Thankyou4calling said:
How can they afford to run an operation like this whilst those who work there claim margins are so low?
Not at all unusual to find a dealership making only 1% on sales at the end of the year, and all of that coming in the form of bonuses for one thing or another. For instance,- Vehicle sales total
- Parts sales total
- Holding the full stock of parts
- Holding an appropriate fleet of demonstrators
- Customer satisfaction
Thankyou4calling said:
How can they afford to run an operation like this whilst those who work there claim margins are so low?
The great screenwash scandal...http://www.pistonheads.com/gassing/topic.asp?h=28&...
etc
Yamahadivvyrider said:
According to my mates who works in car sales profit is not good on new cars.all the money's in 2nd hand and finance...
Motabilities the thing to be in, but noone wants the gig because of the, ahem, clientele. New tends to be less dreamers apparantly, but a bit 'soulless' . Bloody stupefyingly boring job if you ask me, but each to thier own. Gassing Station | General Gassing | Top of Page | What's New | My Stuff