How much does a Ferrari/Lambo dealer make on a new car?
Discussion
matc said:
14% including reg bonuses and maintaining dealer standards targets etc. Would probably only play around with the front end margin of between 7-10% as that's guaranteed, trading on the rest is a risky business!
Thats my un-educated guess anyhow!
Aye, I'd guestimate 10-15% of list.Thats my un-educated guess anyhow!
Shmee said:
It's not Ferrari or Lambo but Audi have a standard of 13% on list price is dealer profit margin, hence why you can typically get 7-8% off but not much more.
If you can get 7-8% discount on a 13% margin I think your doing well. At 13% gross I'd guess their down to 3 or4% net at best, after the costs of flash showrooms and well dressed staff that don't grunt etc.bromers2 said:
LamboBrum said:
Bottom line of a very good dealer group - Return on Capital Invested SUB 3%?!
Might as well stick it in the bank then - not worth the risk.Why bother ?
Besides youve got to have the cash to get your 3-4 % in the first place from the banks.
johnnyreggae said:
sone said:
Depends what dividends the directors have drawn to bring it down to net.
You sound jealous yet almost all Lambo/Ferrari/McLaren dealers are part of publicly quoted companies so you too can participate in these dividendsbromers2 said:
LamboBrum said:
Bottom line of a very good dealer group - Return on Capital Invested SUB 3%?!
Might as well stick it in the bank then - not worth the risk.Why bother ?
Pommygranite said:
Because it comes with parts and service - the real breadwinner.
The sub 3% figure is for the entire business! In a well-run business, the workshop element should absorb all the overheads, leaving the Sales Dept's profits as the creamTrust me, we make nothing like the money you might think from the outside. I sincerely wish we did...
LamboBrum said:
The sub 3% figure is for the entire business! In a well-run business, the workshop element should absorb all the overheads, leaving the Sales Dept's profits as the cream
Trust me, we make nothing like the money you might think from the outside. I sincerely wish we did...
No, don't forget this is pistonheads.Trust me, we make nothing like the money you might think from the outside. I sincerely wish we did...
Every (St)ealer has £10k profit in every car to discount to a buyer otherwise they will "just walk away"
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