How much does a Ferrari/Lambo dealer make on a new car?

How much does a Ferrari/Lambo dealer make on a new car?

Author
Discussion

Mosi

2,040 posts

215 months

Saturday 30th April 2011
quotequote all
Drclarke said:
No, don't forget this is pistonheads.

Every (St)ealer has £10k profit in every car to discount to a buyer otherwise they will "just walk away"
They have to make some bloody profit, do we all think those multi million pound corporate look dealerships that the manufacturers make them build (or face losing their franchise) are free?!!

If you chose to buy from a Main Dealer (its our choice) then accept that they need to make a decent margin to remain in business. Indi's are often cheaper as they dont have the overheads

We all like to make profits in our businesses, why should they be any different ?

I dont begrudge a penny a good business makes out of me

northo

2,375 posts

219 months

Saturday 30th April 2011
quotequote all
Mosi said:
They have to make some bloody profit, do we all think those multi million pound corporate look dealerships that the manufacturers make them build (or face losing their franchise) are free?!!

If you chose to buy from a Main Dealer (its our choice) then accept that they need to make a decent margin to remain in business. Indi's are often cheaper as they dont have the overheads

We all like to make profits in our businesses, why should they be any different ?

I dont begrudge a penny a good business makes out of me
Well said.

Porkchops_mint

7 posts

75 months

Friday 5th January 2018
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OLD TOPIC, BUT ID SAY AROUND 30-50K AS WAS LOOKING at a 458 spider retailed by aston martin newcastle just before the xmas 2017 period it was retailed £200k 2 weeks ago they knocked a cool £18k off the price, yes £18k, rang them to inquire and they said open to negotiation by another 10-15k so should give you a incite in what sort of profits they're were workin on if it had sold for £200k!

its the white on ebay with 10k miles, Black/ red sport seats!!!!

Edited by Porkchops_mint on Friday 5th January 11:47

pidsy

7,989 posts

157 months

Friday 5th January 2018
quotequote all
Porkchops_mint said:
OLD TOPIC, BUT ID SAY AROUND 30-50K AS WAS LOOKING at a 458 spider retailed by aston martin newcastle just before the xmas 2017 period it was retailed £200k 2 weeks ago they knocked a cool £18k off the price, yes £18k, rang them to inquire and they said open to negotiation by another 10-15k so should give you a incite in what sort of profits they're were workin on if it had sold for £200k!

its the white on ebay with 10k miles, Black/ red sport seats!!!!

Edited by Porkchops_mint on Friday 5th January 11:47
Christ.

You haven’t been mis sold an X6m50d or blown up an RS focus recently have you?

MDL111

6,941 posts

177 months

Friday 5th January 2018
quotequote all
pidsy said:
Porkchops_mint said:
OLD TOPIC, BUT ID SAY AROUND 30-50K AS WAS LOOKING at a 458 spider retailed by aston martin newcastle just before the xmas 2017 period it was retailed £200k 2 weeks ago they knocked a cool £18k off the price, yes £18k, rang them to inquire and they said open to negotiation by another 10-15k so should give you a incite in what sort of profits they're were workin on if it had sold for £200k!

its the white on ebay with 10k miles, Black/ red sport seats!!!!

Edited by Porkchops_mint on Friday 5th January 11:47
Christ.

You haven’t been mis sold an X6m50d or blown up an RS focus recently have you?
It is really sad that I know what you are referring too .... both of them (and I have no particular interest in either of those cars, so no reason to know this other that\n spending way way too much time reading pointless stuff)

pidsy

7,989 posts

157 months

Friday 5th January 2018
quotequote all
MDL111 said:
pidsy said:
Porkchops_mint said:
OLD TOPIC, BUT ID SAY AROUND 30-50K AS WAS LOOKING at a 458 spider retailed by aston martin newcastle just before the xmas 2017 period it was retailed £200k 2 weeks ago they knocked a cool £18k off the price, yes £18k, rang them to inquire and they said open to negotiation by another 10-15k so should give you a incite in what sort of profits they're were workin on if it had sold for £200k!

its the white on ebay with 10k miles, Black/ red sport seats!!!!

Edited by Porkchops_mint on Friday 5th January 11:47
Christ.

You haven’t been mis sold an X6m50d or blown up an RS focus recently have you?
It is really sad that I know what you are referring too .... both of them (and I have no particular interest in either of those cars, so no reason to know this other that\n spending way way too much time reading pointless stuff)
yep - agreed. PH is starting off in an unusually nobby way this year.

Beni997

390 posts

111 months

Friday 5th January 2018
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I was told by Ferrari they made between 20-25% profit on each car on average.

Helicopter123

8,831 posts

156 months

Friday 5th January 2018
quotequote all
sone said:
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.
Audi discounts of 20 - 25% are readily available on most mainstream models.

RamboLambo

4,843 posts

170 months

Friday 5th January 2018
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Dealer can make a variable margin on any used car that they dictate the purchase price of in the first place but new cars have a fixed % discount from the manufacturer plus retrospective target related bonuses and standard bonuses.
Most new car supercars have 15% max margin included bonuses in them so I think some people are dillusional on here if they think its more on a new car.
Occasionally a dealer may want to offload an overage or oddball unit at a loss but on the whole they need to make a reasonable profit to stay in business.
Easy to get carried away with discount speculation or hearsay on the internet but the reality is the margins are small and its not the sports direct approach of 80% off where its clearly the wrong RRP in the first place.

Must admit there are plenty of overpriced USED cars out there at the moment where I'm betting the trade bid was significantly less than the retail but the dealer is accounting for a long holding period before the village idiot eventually turns up to buy it

cayman-black

12,646 posts

216 months

Friday 5th January 2018
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Helicopter123 said:
Audi discounts of 20 - 25% are readily available on most mainstream models.
Really? Diesel?

anonymous-user

54 months

Friday 5th January 2018
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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! wink
What does the bold mean to a simpleton like me?

Helicopter123

8,831 posts

156 months

Saturday 6th January 2018
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cayman-black said:
Helicopter123 said:
Audi discounts of 20 - 25% are readily available on most mainstream models.
Really? Diesel?
Petrol as well - have a quick look at Broadspeed. Some cars are nearer 30% off.

HTP99

22,552 posts

140 months

Saturday 6th January 2018
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garyhun said:
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! wink
What does the bold mean to a simpleton like me?
Up front and guaranteed margin of 7-10%, if you hit targets, dealer standards and customer satisfaction scores then there is back end money/margin/bonus too, to make up a total margin of 14%, if you trade using the back end money/margin/bonus but don't hit targets or your cs score is below the required percentage then you won't get that back end money so you will be selling cars at a loss.

I don't know about supercar dealers, however I do sell more mainstream cars and there are dealers out there who will trade using backend money, in the hope that they hit their targets, if they hit target then fine they are quids in, if they don't then they are stuffed, however it is extremely bad practice and many of these dealers are living hand to mouth, constantly chasing targets and invariably always end up going bust or being bought out.

andyvdg

1,536 posts

283 months

Saturday 6th January 2018
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What about options - same margin/bonus or different?

akadk

1,499 posts

179 months

Saturday 6th January 2018
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same - the overall margin paid is on the total sale price

however OEM's will often use options in tactical campaign's .. such as 50% saving on options for stock cars, free metallic paint etc ... the dealer doesn't need to pass these on if they don't want to, so can pocket it ... but equally, could use it as intended and give you 50% off options and no/little discount on the base price ...