Forum Discussion
harmanrk
Aug 24, 2018Explorer
JALLEN4 wrote:
The dealer could care less what options you buy. Buying more options does not equate to making more money for them. Their profit is based on the sale price minus the cost of any particular unit.
You overlook that two are directly linked. The dealers stock cars with more options than what one might order, because it gives them the most profit potential. Every option on the vehicle adds to the invoice a certain amount, and to the MSRP a different (higher) amount. Therefore a vehicle with more options has more profit 'built in' to it from the start.
Now, you can saw that the MSRP is not the same as the sale price, which in most cases is true, but that difference is simple the amount of the potential profit, that the dealer is willing to give up, to move the unit. Its also worth noting that the vehicle with the most profit built into the MSRP, is also the vehicle that allows the dealer the most negotiating room on that sale price.
This holds true for the manufactures as well, as there is the Invoice price the sell the vehicle/option to the dealer at, then there is the 'cost' of the item from the OEM supplier to the manufacturer, and invoice is always more than cost.
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