Dealer profit ?? | FerrariChat

Dealer profit ??

Discussion in '360/430' started by rondm, Jul 29, 2008.

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  1. rondm

    rondm Rookie

    May 31, 2008
    9
    When a dealer has a car listed for $139K what is the probable markup or profit in the deal for the dealer?
     
  2. 360Grigiotitanio

    360Grigiotitanio Formula Junior

    May 17, 2004
    436
    Bay Area, California
    Hard to know for certain or about actual profit, but list or "asking" is probably 15% if not 20% over wholesale I think.
     
  3. MalibuGuy

    MalibuGuy F1 Veteran

    Sep 18, 2007
    5,280
    With such a general question it is really hard to say. You can call the dealer posing as a seller and find out
    what he would offer for a similar car. You can straight up ask too.

    If the dealer owns the car, I am sure the profit includes his cost of
    Capital and he probably has a pretty thick margin. Imagine the previous owner wanted a new car so the dealer says I can get you a new F430 but you sell me your old 360 for 10k less than market and I will sell it for above market cause I'm a dealer!

    If the dealer is acting as a middleman offering the car on consignment he makes a percentage and the owner has given the dealer some parameters.

    Also if this is an authorized dealer, there may be some advantages as there probably is the possibility of an inspection and some type of warranty. They may charge you, but then if something goes wrong and something always goes wrong you might have a better chance to get it fixed since they can't claim that it's someone elses oversight and problem.
     
  4. CyclingPeaks

    CyclingPeaks Formula Junior

    Jun 11, 2006
    361
    Big Island, Virginia
    Full Name:
    Hunter Allen
    Depends on the dealer and if he took the car in on trade or bought it at an auction,etc.
    I know a car that was advertised for $139 and the dealer had $133 in it(he showed me).
    And I know a dealer that had a car for $125 and he paid 110 for it.... so it varies.
    Hunter
     
  5. Matt Andrews

    Matt Andrews Formula Junior

    Dec 31, 2006
    515
    Newport Beach, CA
    also depends how long they have had it. A car they have had for a long time usually has more money in it than a fresh one simply because of the market on the cars over time.
     
  6. gmund

    gmund Rookie

    Jun 14, 2008
    7
    I worked at two dealers in the past. Acura and BMW.

    Used cars is where you make the most money.

    The margin can be incredible depending on the trade in.

    One example, we had 760 once that we took in for 19k and I sold it for 35k, we were asking 39k.

    Customer was happy with 4k discount and we grossed 16k on the car.

    Numbers like that are rare, but it happens.

    I just bought an MB S430 that the dealer took in for 40k and was asking 47. I knew the owner that traded it in and how much he got for it.

    I got if for 500 over what they paid after a lot of negotiating at the end of the month.

    Ferrari dealers I'm sure practice the same methods. I'm sure that most here on this board who wanted to trade in their cars did not get what they wanted for it, if they did, they didn't get a discount on the new one they were getting.

    Either way, the dealer made money on the deal.
     
  7. brokenarrow

    brokenarrow F1 Rookie

    Sep 25, 2006
    3,737
    Txass
    Full Name:
    Bill
    They always make money. Go in low, low as you can always go up, but never back down once you open your mouth.
     
  8. gmund

    gmund Rookie

    Jun 14, 2008
    7
    That is for sure.

    If you are looking to spend 125k, offer 115k.

    Whatever you offer, they will want more.

    I once had a customer offer me what was a 3k profit on a used car, a good deal, but the manager said go back and get another 500.

    I did, but it just goes to show how they have to get as much as possible on a deal because the deals at the end of the month may suck.

    Managers would accept deals at the end of the month that were less profit then the ones they turned down in the beginning of the month due to making their quota.

    Again, these are not Ferrari/exotic dealers but I think they work the same way.
     
  9. toshiba

    toshiba Formula Junior

    Jan 14, 2008
    725
    Full Name:
    Santa
    my guess

    10k profit on a 360
     
  10. SDChris

    SDChris Formula 3

    Mar 8, 2006
    1,840
    Sioux Falls, SD
    Full Name:
    Chris
    We normally make anywhere from $112-$155k on most cars....LOL :D































    Seriouly the margins are around 3.5%-6%..pretty much the same as a Chevy only reltive numbers...
     
  11. Cavallino Motors

    Cavallino Motors F1 World Champ
    Lifetime Rossa

    May 31, 2001
    14,143
    Florida or Argentina
    Full Name:
    Martin W.
    You should look for getting the best deal for the current market condition instead of trying to squeeze the dealer.

    Despite popular opinion the exotic car market is not in a recession and people are not hurting and selling their cars at all cost. Quite to the contrary. Best year ever as far as I can tell you from my side. Collector cars up, street cars up and race cars through the roof.
     
  12. ForzaMaranello

    ForzaMaranello Karting

    Jul 15, 2006
    234
    Louisville CO.
    Full Name:
    Robert T
    Who cares? The car is worth what it's worth. If he owns the car for $150K will you pay more?
     
  13. 360Grigiotitanio

    360Grigiotitanio Formula Junior

    May 17, 2004
    436
    Bay Area, California
    We should go easy on a guy with just one post and there could be a good reason for the question. Maybe he's trying to figure out if buying from a private party actually presents a savings or not, and if so how much. However, it is a tough question to answer the question not knowing what kind of dealer, who owns the car, what is 'profit', and what is the purpose of the question.
     

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