$94,000 Profit On Each Car

For Ferrari, I would agree with your above opinions!

S

 

It was just an example buddy

 

Ok, I just googled and found there are 27 approved Ferrari dealerships in the USA and last year I could find results were in 2016 for new Ferraris sold in the USA is 4,173 (prob over 5,000 for 2019 but that's just a guess) so that would be on average 4,173 / 27= 154 cars per store or 12 cars a month on ave. I'd think a dealer would have to make a minimum of $20+k per car just to keep the dealership running and closer to $30k or $40k per car to really make any money.

 

Thanks for providing all this info to those interested to read. I have always wondered about some of the facts/numbers of this and this is very explanatory. All the levels of detail are really good to understand just operationally. Thank you again.

 

See AMG GT 2 door just as one example to contradict your statement.

This Land Rover must be a total anomaly as carmakers like Chevy, Ford, Honda, Toyota, Mercedes, and almost everyone else does not operate on a slim 11 ish % front & back total profit per new unit at the dealer level. I would agree with you on the exotics -- Ferrari dealer cost is most likely structured as blvckintl claims LR is (i.e. there is no trunk money/volume bonuses on 812s and other models with waiting lists). But even Ferrari almost certainly is not as stingy by allowing a measly 11% to its dealers.

 

Now run the numbers for the true stand alone dealers like Risi.


Sent from my iPhone using FerrariChat

 

Yes, all dealerships operate with similar margins. I worked for Cadillac previously, and it is based upon volume bonuses as you stated previously but total combined margin usually ends up around 10-12%. You're just stubborn and ignorant. There are two people with years of experience in the industry here trying and show you the basic math of how it works, yet you (someone with 0 experience in the industry) want to sit here and tell us that we're wrong?

As pointed out in my previous posts, even with these "thin margins" dealers make astronomical returns in a strong economy.

 

How many dealerships and or brands have you worked for?

 

[QUOTE="blvckintl, post: 147173691,You’re just stubborn and ignorant. There are two people with years of experience in the industry here trying and show you the basic math of how it works, yet you (someone with 0 experience in the industry) want to sit here and tell us that we're

As pointed out in my previous posts, even with these "thin margins" dealers make astronomical returns in a strong economy.[/QUOTE]

Blvckintl, I see by your join date that you are relatively new. Get used to the know it alls here, there is always at least one to every post. Always someone that has ABSOULUTLY no experience with the subject matter being discussed and will argue with someone with direct knowledge on said subject. A lot of good people have left this sight over the years because of exactly what we are seeing here. Please, all of you in this category JUST STF UP so those that like to learn can.
Where are all of the mods in this situation?

 

Not hard to tell from your attitude that you favor authoritarianism. I can (very accurately) guess that you worship what the MSM espouses, and you vehemently disparage independent/critical thinking.

Btw, rather than silencing legitimate viewpoints you should harness your dictatorial energy to persuade the mods to end the circle-jerking & juvenile "liking" of one another's posts.

 

Two questions: Why so defensive? How many franchised brands have you owned?

 

So you aren't going to answer the question?

By the way john elway owns several stores and he couldn't tell you what the front end margin is on each brand. So nice try at deflecting.

So please. Which ones have you owned?

 

Hehehe, it’s fun pokin’ a stick at idiots....and their posts get better the further down the hole they get. Lol

 

Gladly none as the car business is virtually all sleazeballs.

Quick, now invent the number of new franchises that were part of your portfolio.

 

Proves our point that you have no idea what you are talking about.

Nothing like generalizing hundreds of thousands of people and referring to them as "sleazeballs." As I stated earlier perhaps you should stick to repairing elevators as things like basic math and logic are a bit too much for you to handle

 

That's all I needed to know.

Thanks for playing.

 

They meant Ferraris. We ALL know a Dino IS NOT a Ferrari..... no matter what Ferrari revisionist history states now.

 

It's always funny to read these: "Ferrari's are expensive!" / "Ferrari makes big profits on their cars!" type of threads.

It's as though it's some sort of new revelation that's just been discovered!

I especially find the comment about Ferrari charging $4000 for Apple play hilarious!

Ferrari aren't selling new cars to buyers who are on a tight budget, and counting the pennies to make ends meet, they're selling car to people who will happily spend $4000 on a bottle of wine or Champagne to drink in an evening, without batting an eyelid!

Ferrari makes $94,000 profit per car? - Good for them I say, and long may it continue!

 

For what it’s worth I don’t think I would ever buy a $4000 bottle of wine or champagne. But I would buy a Ferrari or similar without batting an eyelid.
I know some would but all a matter of perspective and respective values.

 

There's about 8 more stores I think in the US (just did a manual count thinking state by state), but think you're still about right. Back the the day, stores were categorized 1-3 and that drove your allocation (not sure if still case). Tier 1 would see about 100+/- cars a year, Tier 2 would see about 66, and Tier 3 would see about 33. You could get a couple extra cars because of VIPs, special editions, good behavior, Maserati sales, etc., or you could lose a few because of poor CSI, getting caught flipping, general shenanigans, etc. Only thing I think I would add as nuance is that the smaller your store, the more you rely on pre-owned. If you're a Tier 3, new cars and service might just cover the bills after Ferrari forced you to renovate again. Even worse if you had Maserati strung around your neck.