Originally posted by dealer502:
according to my last weeks auction report, the average price paid for 95 contours was 2275, with a high of 2600 and a low of 1900 and a total of 11 sold at my local auctions. assume that he paid the average and i guarentee since it is a contour, he had to make repairs so he has around 2500,2600 in the car,what do you feel is a fair profit? my dealership has an overhead of 11,000 a month and i sell 12 to 18 cars on average a month. i do not finance and sell my cars for less than retail, sometimes less than tradein. i make at least a thousand on each sale if everything goes as it should. like i said, he should sell for around 3500 to make any money at all. the high price he initially quoted is for people with poor credit who have limited choices of ways to finance. they have already screwed someone out of their money buy getting a car repossed so now they have to pay the big bucks to get someone to take another chance on their sorry loser ass. jave needs to offer cash or arrange his own financing to get the fair price. 
I told him $3K cash, OTD and I could have cash or bank draft in 60 minutes.
No Sale.
Like I said, gave him my card.
I know he is in business to make money. But I'm not operating a charity, so if he bought a car wrong (has too much in it) then why is it my job to bail him out?
He's not going to bail me out if the roles were reversed!
Nothing against dealers or any other businessman. I don't agree with the posters who said 5K profit is robbery because noone holds a gun to any buyers head and says buy this or die.
If he can get $6,900 for it, then grab it. If a shopper agrees to pay that, how is it robbery?
On the other hand, I don't owe it to any dealer to guarantee him a profit.
Dealer502, did you pay full list (MSRP) for your computer? Or did you wait for it to go on sale? I'm in the computer business, I deserve a profit too!
See how it sounds?
It's a market economy. What you pay is not a crime. There is no such thing as too much profit. High profits are not criminal. Just don't expect every buyer to be sympathetic to the dealers profit desires. It's not really my job to worry about the dealers profit. When dealers are more concerned about getting me the best deal for my money, I'll have more concern for them. The buy-here/pay-here places are really just concerned with getting a customer into a car, and the down payment is probably most if not all they have in the car. Make your payments and it is "profit". Get the car popped by the repo man, and they simply sell it again.
It's the places like that I see that really harden my heart towards car dealerships.
The car is worth no more than $3K to me. So that's what I'll pay. Value is my #1 concern, not the dealers profit/overhead concerns.
TB
