rexmitchell wrote:
Lantley wrote:
rexmitchell wrote:
I’d venture to guess that a majority of a dealerships profits come from service and not new sales. I can see them selling at a lower price and making it up on the back end with service.
Your correct there is variation and different margins, however $2000.00 gross a unit seems awfully low for the dealership is to be profitable.
Sure, I wasn’t speaking on a specific $ figure. For lower end units a 2k profit would be plenty. For the higher end units that number is probably closer to 5k.
You really need to look at it in percentages vs. an arbitrary $$ figure. If dealer cost is 50% of MSRP than dealer needs a gross profit of at least 20% to survive. Maybe if all goes well dealer can net 10 %
