Hi Everyone, I read an article a couple of days ago about the average profit margins in the car industry. I was surprised at how low the actual profit seems by the retail prices on some of these cars. Does someone know the average ball park of where the profits in a ferrari purchase are? 1. What would ferraris margin be when the order is shipped? 2. What is the average dealer margins on a new sale? It would seem to me as if ferrari has a good profit comsidering the price tags on some of the options (yes, I mean the cupholder...). I am trying to educate myself on the industry and would appreciate any input or knowledge
Rough operating margins for some car companies: Ferrari: 15% Porsche: 18% Ford: 3.5% Daimler: 6.5% Just go to Google Finance and look at margins for related companies. Don't take them as scripture, but should give you a good idea of major manufacturer margins. https://www.google.com/finance?authuser=0&q=f&hl=en&ei=9-PiU9jlGoTLqAG3vYCQAQ
With respect to #2, about how much below MSRP is dealer invoice on a V8 Ferrari like the 458? I know the cars sell at MSRP but I was always curious how much the dealers make on selling new Ferrari cars.
There are some threads on this, try search...most "guesses" and other input was along the lines of *most* car dealers...somewhere in the "teens percentage points".
