Ordered!
Been racking my brain between a Chevy 3/4 ton 6.6 gas or another 1500 5.3 with the NHT tow package but found out you can get the 1500 with the 3.0 Duramax this year with the NHT package. So we have a ...
Forum Discussion
nickthehunter wrote:
So am I understanding this correctly or am I missing something?
He’s buying a brand new truck and the dealer and salesman are not getting a dime.
Assuming it's similar to chrysler...invoice really isn't invoice.
Father-in-law worked for chrysler so I could get the employee price which was "invoice minus holdback".
"Invoice" was basically a piece of paper the manufacturer would provide to the dealer to use in sales tactics to make buyers think the dealer was making little or no profit.
Then at the end of the year, the manufacturer would cut a check for the "hold back" to the dealer based on total sales. If I remember correctly, it was an additional 3%. With typical cars running $35k that's about $1,000 on the holdback and for trucks of $50-80k, it's $1500-2400. The average dealership sells around 1000 vehicles per year, so even at $1k each, that's a $1mil to the gross profits.
And all of this is separate from any rebates and special deals which the dealer may or may not pass on to the buyer...and if they hose you on the trade in value of your old vehicle.
Of course, new car sales are not the primary profit center for most dealers. It's repairs and warranty work where they make the bulk of profits.
