'Dacks Trip Thread...2021!!!

[theprogram4]

1 minute ago, Schif said:

What is the breakdown in term of percentage of profit that goes to the dealership vs the manufacturer? Is that exclusively based on how much a salesman can sell a car for? 

New cars bring in very little money, the profit is in pre owned cars.  For instance, an ST Explorer I just finalized after 2 weeks of doing nothing, has a sticker price of $59,000 and invoice (what the dealer purchased it from Ford for) is about $57,000.  Pretty much every dealership is selling at invoice nowadays due to competition, so the only money the dealer will make is holdback, which for a $59,000 vehicle is about $1,100.  Keep in mind you lose holdback on dealer trades, so if you have to locate a vehicle like I did, there is no holdback money.

[theprogram4]

16 minutes ago, GrilledSteezeSandwich said:

You mean like the last 5-6 weeks?  Do you call people who came in for test drives or to shop but never bought?

Correct.  I will keep calling til they tell me to stop calling lol.  After a month I’ll give up

[JFskiDan]

12 minutes ago, theprogram4 said:

New cars bring in very little money, the profit is in pre owned cars.  For instance, an ST Explorer I just finalized after 2 weeks of doing nothing, has a sticker price of $59,000 and invoice (what the dealer purchased it from Ford for) is about $57,000.  Pretty much every dealership is selling at invoice nowadays due to competition, so the only money the dealer will make is holdback, which for a $59,000 vehicle is about $1,100.  Keep in mind you lose holdback on dealer trades, so if you have to locate a vehicle like I did, there is no holdback money.

I bought three trucks, right before Christmas.  2 Freightliners, and a Ram, from various parts of the country.  Every one of them told me "i'm selling you this truck below my cost".  I hate that fucking line.  everybody tells me that.  Is that the first line they teach you in auto sales?  I so want to say "then dont sell me the truck" after they tell me how much they are losing on it.  

We do buy extended warranties on all of our trucks, and its my understanding they make a good buck there.  

[GrilledSteezeSandwich]

@theprogram4 doesn’t the dealership receive extra money from the manufacturer if they sell a certain number of units?  Also aren’t options on cars like sunroofs and leather interior more profitable as well. 

[theprogram4]

Just now, JFskiDan said:

I bought three trucks, right before Christmas.  2 Freightliners, and a Ram, from various parts of the country.  Every one of them told me "i'm selling you this truck below my cost".  I hate that fucking line.  everybody tells me that.  Is that the first line they teach you in auto sales?  I so want to say "then dont sell me the truck" after they tell me how much they are losing on it.  

We do buy extended warranties on all of our trucks, and its my understanding they make a good buck there.  

I was taught that line my first week lol.  It’s deceiving because they aren’t mentioning the holdback.  Now the holdback is small for the overall price of the truck, but it is something the dealer gets (assuming it wasn’t a dealer trade).  There are rare times when a dealer loses money selling a vehicle, but that is only in special circumstances such as needing to meet a manufacturer quota ( dealership gets a bonus from the manufacturer for a certain amount of new vehicles sold, last day of the month they sell 2 vehicles at a loss to reach that quota, but immediately make that money back from the manufacturer for making their goal).  It’s not so much they are losing money (they aren’t) but that an $1,100 margin seems incredibly small for a $59,000 truck.  You are right about the warranties, dealers clean house with those and make more money just from selling warranties for a new vehicle than they do from simply selling a new vehicle.  Another way dealers make money on new cars is financing kick backs from the bank.  People think cash is king, but it’s actually the opposite 

[GrilledSteezeSandwich]

Don’t dealers make a lot of money off of their parts and service departments along with financing as well?

[theprogram4]

Just now, GrilledSteezeSandwich said:

Don’t dealers make a lot of money off of their parts and service departments along with financing as well?

Oh yea for sure.  Service departments print money for dealerships.  Sales exist as a way to get people to come to your service department.  And yes in financing, that and warranties is how dealers make good money on new vehicle sales.  

[GrilledSteezeSandwich]

2 minutes ago, theprogram4 said:

Oh yea for sure.  Service departments print money for dealerships.  Sales exist as a way to get people to come to your service department.  And yes in financing, that and warranties is how dealers make good money on new vehicle sales.  

Do you guys have a popcorn machine for customers?  At ciocca Subaru they do.  

[trackbiker]

4 minutes ago, theprogram4 said:

Oh yea for sure.  Service departments print money for dealerships.  Sales exist as a way to get people to come to your service department.  And yes in financing, that and warranties is how dealers make good money on new vehicle sales.  

A friend who sells cars told me that they make the the most money off of leases.

Edited February 10, 2021 by trackbiker

[theprogram4]

2 minutes ago, GrilledSteezeSandwich said:

Do you guys have a popcorn machine for customers?  At ciocca Subaru they do.  

Pre-Covid we did, but not right now as having self serve food could cause an issue.  What I really miss is our Otis Spunkmeyer easy bake oven in the waiting room.  Those cookies are incredible, and 90% of them are eaten by employees lol.

[toast21602]

Just now, theprogram4 said:

Pre-Covid we did, but not right now as having self serve food could cause an issue.  What I really miss is our Otis Spunkmeyer easy bake oven in the waiting room.  Those cookies are incredible, and 90% of them are eaten by employees lol.

those cookies seem to be standard in dealership waiting rooms. love the PB cookies.

[theprogram4]

4 minutes ago, trackbiker said:

A friend who sells cars told me that they make the the most money off of leases.

I was under the impression it was the opposite, but I could be totally wrong.  I know my managers get more mad at me for leases than they do for cash deals lol.  The Toyota dealership down the street does 5 year leases and makes bank

[GrilledSteezeSandwich]

20 minutes ago, trackbiker said:

A friend who sells cars told me that they make the the most money off of leases.

I bet and then they resell the cars coming off leases that only have 30,000 miles on them for only like 30% below MSRP when they factor the cars to depreciate at 40-50%. Still nice to get a car with zero due at signing and much lower monthly payments than financing and under warrenty the entire time you own the car.  

[GrilledSteezeSandwich]

17 minutes ago, theprogram4 said:

I was under the impression it was the opposite, but I could be totally wrong.  I know my managers get more mad at me for leases than they do for cash deals lol.  The Toyota dealership down the street does 5 year leases and makes bank

Wow I never heard of a five year lease.  I’ve only ever done 36 month leases.  I used to do 12k miles a year but now only 10k.  I’m only at 20k miles in like 2 years and 3 months but have barely been on the road for work due to Covid. 

[theprogram4]

5 minutes ago, GrilledSteezeSandwich said:

I bet and then they resell the cars coming off leases that only have 30,000 miles on them for only like 30% below MSRP when they factor the cars to depreciate at 40-50%. Still nice to get a car with zero due at signing and much lower monthly payments than financing and under warrenty the entire time you own the car.  

I can’t speak for other manufacturers, but Ford uses a third party leasing company for their leases.  Thus, when a lease ends, the vehicle does not come to the dealer to re-sell, but goes to the third party leasing company.  If the dealer wants to keep one of the lease returns, they have to purchase it from the third party leasing company.

Edited February 10, 2021 by theprogram4

[GrilledSteezeSandwich]

6 minutes ago, theprogram4 said:

I can’t speak for other manufacturers, but Ford uses a third party leasing company for their leases.  Thus, when a lease ends, the vehicle does not come to the dealer to re-sell, but goes to the third party leasing company.  If the dealer wants to keep one of the lease returns, they have to purchase it from the third party leasing company.

My car lease is through chase auto financing.  I know it’s a 9% tax instead of 6%.  Atomic Jeff said leasing three BMWs(high residual value) for 36 months each works out to the price of buying one new BMW.  My first ever lease was a 1999 Jetta and was only 250 a month with no money down..actually 36 payments.  All my other cars have been 3something a month..this one almost $400. Still to finance a car like mine would be $500something for 5 years and last two years aren’t under warranty.  

[trackbiker]

Atomic Jeff will disagree with me but a lease is the most expensive way to own a car. The interest rate is much higher than financing.

[poconoceancity]

3 hours ago, GrilledSteezeSandwich said:

Are they doing zero percent financing on any other models?  Atomic is probably the only one here who thinks $56k is a pretty good deal on an SUV.  TP4 does your dealership tack on marketing fees?  I’ve seen that before. 

It is a good deal. Have you seen pricing on foreign cars or full size SUVs lately?

[Shadows]

Im gonna owe 6,000$ more than the truck is worth at the end of my lease if I want to buy it. Either that or pay 200$ per 1000 miles over terms. either way the minimum I pay if 6,000$. fuckin dumb purchase.

2 years, 12,000 miles per year. I just finished the first year and Im at 23,000 

Edited February 10, 2021 by Shadows

[GrilledSteezeSandwich]

1 hour ago, poconoceancity said:

It is a good deal. Have you seen pricing on foreign cars or full size SUVs lately?

No I have not. 

[GrilledSteezeSandwich]

1 hour ago, Shadows said:

Im gonna owe 6,000$ more than the truck is worth at the end of my lease if I want to buy it. Either that or pay 200$ per 1000 miles over terms. either way the minimum I pay if 6,000$. fuckin dumb purchase.

2 years, 12,000 miles per year. I just finished the first year and Im at 23,000 

Just take the option to buy and finance that. For now enjoy the warranty and lower payments. Plus every month you pay your lease on time improves your credit 

Edited February 10, 2021 by GrilledSteezeSandwich

[GrilledSteezeSandwich]

@saltyantI bet Blue had better snow this last weekend than Whiteface. 

[saltyant]

9 minutes ago, GrilledSteezeSandwich said:

@saltyantI bet Blue had better snow this last weekend than Whiteface. 

The snow was amazing at both... I couldn't say one was better than the other

[GrilledSteezeSandwich]

11 minutes ago, saltyant said:

The snow was amazing at both... I couldn't say one was better than the other

So does that mean Blue is better than Vermont. 

[saltyant]

24 minutes ago, GrilledSteezeSandwich said:

So does that mean Blue is better than Vermont. 

I've heard Vermont has the best Perder, so that must mean Vermont's best. Some day I'll make it up to Jay Peak, Smuggler's Notch, Stratton, Mad River Glen, maybe even Okemo.