Quote:
Originally Posted by rstevens62
The salesperson and manager made me a little upset though, so Im not sure I want to buy the XB from them, they gave me a hard time when I told them I have my own financing squared away, they said, well, if you have a pre approval, you will need a purchase order to be created, and the car could sell in the time it takes to do that!! LOL Seriously? I couldnt believe they told me that!!
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We just had an amazing hard time buying a car with cash at the asking price listed by the dealer (the asking price was a good price according to KBB and Edmunds).....
Being a business guy i did understand the situation....my wife got angry, but I was patient. The truth of the matter is this - dealers cannot make money any longer on many (maybe most?) new cars. Profit margins on big ticket items are usually from 10% to 30% PLUS. We actually averaged higher when we sold fairly higher end big ticket stuff.
And so, the only money to be made is in all these various things
Financing
Little fees (doc, etc.)
Optional Accessories if the consumer doesn't make the dealer throw them in free.
Extended warranties of all sort (this is a BIG profit center).
Service after you buy.
Used cars they come by from trade and elsewhere
So a new car dealership is really just a license to get traffic.....many of who will end up creating profit through these and similar methods.
I feel for these dealers.....in a sense, because the whole game is all screwed up. Perhaps in the future things will change. I had hoped that Saturn was the harbinger of the new system (no haggle, etc.)....