As they say in the car business, you are in the new car business to be in the 
used car business. In other words, there are very little margins on new cars. A 
dealer may make a few hundred on a new car. They hope to get good trades to 
make the real money on. Plus there is the service business and the finance. On 
the used cars there are most often very large margins. Most dealers are going 
to make 2-4k per copy, plus they would get another trade usually to make money 
on, plus they make money on the back in in the F&I. Maybe many many years ago 
there were large margins on new cars but that simply is not the case these days.

Sent from my iPhone

> On Jul 27, 2014, at 8:33 PM, Dwight Giles via Mercedes 
> <mercedes@okiebenz.com> wrote:
> 
> Curt  keep your BS detector turned on. My brother spent 30 years in car
> business.  It is a game. Don't budge. It is near end of month & they need
> to meet quota. When they calln tell them you have checked  & can no longer
> offer 25 but you could see paying 23. That will keep them on their toes.
> You'd be amazed at margins.
> On Jul 27, 2014 9:23 PM, "Curt Raymond via Mercedes" <mercedes@okiebenz.com>
> wrote:
> 
>> Trip #3 to try out new trucks took us to a Mazda dealership that had a
>> 2010 Chevy Silverado and 2010 Ford 150. We decided we liked the Ford better
>> but it was a crew cab (and $28k).
>> 
>> We don't need a crew cab full size so we decided to go over to the Ford
>> dealer who actually persuaded us that it made more sense to look at a new
>> truck than used. We drove a 2014 F150 STX access cab, which is I guess
>> pretty much the base model, cloth seats, rubber floor mat, 5.0l v8. Its
>> still pretty fancy, 6spd auto, satellite radio, AC blows ice cold :) 4wd
>> with electronic locking rear diff.
>> 
>> Sat down to do the numbers, they're giving a base price of $36,600 and the
>> first deal came down to $30,000 which with taxes and fees is something like
>> $33k. That includes $500 for our ranger plus something like $2,000 in
>> loyalty money. I decided we couldn't pay that much and he came back with
>> "Well what would close the deal today?" So I said $25,000. They came back
>> with $28,000.
>> 
>> We left saying we still wanted to try the Dodge. I expect they'll call
>> this week at least to thank us for going in but I'm wondering if they'll
>> except my offer. They tried to tell us that when the 2015s come out (with
>> the new aluminum body panels) that the 2014s will get scarce and they'll
>> stop the incentives. That seems to not make sense to me, surely the 2014s
>> get cheaper. This is my first time looking at new and I feel like I'm
>> flailing in the dark...
>> 
>> -Curt
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