Ordering a new truck is frustating
It bothers me as to what options can't be ordered with other options. I understand some options require things like axle ratio with HD towing, but some of the other limitations frustrate me.
Forum Discussion
harmanrk wrote: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.
While I am sure that makes great logic to you, it is not accurate. Again, the dealer stocks what sells. Simply ordering more equipment to create more "potential" profit would be a very silly idea. In a highly competitive market where people walk for a hundred dollars, how stupid would it be to price yourself out of the market adding accessories. The true way a dealer adds profit is through financing, warranties, add on accessories, etc...not by increasing their carrying costs stocking more expensive individual units.
The reason I can say these things very assured I am right are the tens of thousands of units I sold as a new car dealer for 40 years. My people ordering units would not have lasted long if they tried to build potential margin rather than following the guidelines of what sells in volume.
