These days, the manufacturer rebates range between 3% and 5%. This means that a $35,000 car sold at "dealer invoice" has between $1050 and $1750 built into the bottom line.
I know this because my Wife works for Chrysler and we buy new Chrysler products for cost minus rebate and she can see the rebate percentage for any Chrysler product. She can even see the exact rebate by VIN! This also prevents us from trading in because the dealership can only afford to offer true wholesale trade-in for your used car. In other words, if I were the one driving in a minivan (previous example), I'd get maybe $300 trade in value. Thanks, Tom Hargrave www.kegkits.com 256-656-1924 -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Ed Booher Sent: Thursday, April 10, 2008 8:46 AM To: Mercedes Discussion List Subject: Re: [MBZ] Gave in... WAS: Must... resist... temptation On Thu, Apr 10, 2008 at 9:24 AM, <[EMAIL PROTECTED]> wrote: > I agree, you got a car you desired and payed a very resonable price. Its > a win-win. > > I just don't think that the dealer "Lost Money". > > Pete > The dealer *never* loses money. That's like going to a casino and expect the house to never win. If you drove off the lot with the car, then the dealer made the money they wanted to make. Period. Every dealer adds pack to the invoice, in fact the invoice price that even places like NADA list includes the pack. If you buy a car at the listed invoice price, the dealer makes money. If you buy a car at "below invoice price" I guarantee, without a doubt, there was an *unlisted* rebate from the manufacturer that the dealer just used "for you" The floor plan of a dealership does *not* belong to the dealership, it belongs to a bank that the dealership is linked through (GMAC for GM dealers) and don't you believe for a minute that bank is going to let the dealership take less than needed for a car just to get it off the lot to make room for another to lose money on. Pack, by the way, is the minimum amount of money the dealership needs to make per car to "keep the lights on." Now, I will believe that you got the car for pack, and when you do this the salesman doesn't make a dime off the sale. Not one. Pack goes to the dealer, everything past that goes into the percentage bucket which gets paid out to salesman, pit boss, general manager, etc. Also, the numbers game always makes it look like they gave you more for your trade in than what it is "worth" in a Blue Book situation. "Secret" rebates also get applied there, money that is coming from the bank (who is charging you such a lovely interest rate by the way) to bump the price of a car down on paper to get you to sign, oddly enough, gets added into the figures of the trade in so the rebate doesn't ever have to show up on paper. Yes, I used to be an evil, soul sucking, new car salesman. However, I was *never* a *used* car salesman. Those guys are just sadistic! EdB -- "I'm a Night Elf Mohawk!" - Mr. T. _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com No virus found in this incoming message. Checked by AVG. Version: 7.5.519 / Virus Database: 269.22.11/1368 - Release Date: 4/9/2008 4:20 PM No virus found in this outgoing message. Checked by AVG. Version: 7.5.519 / Virus Database: 269.22.11/1368 - Release Date: 4/9/2008 4:20 PM _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
