[mramella]

Originally Posted by crackerjack15

The dealer I worked with tried to tell me they only have a 5% markup, and that was the GM telling me that. I only got 4% off, which i was ok with because another dealer offered 6% but their doc fee was higher so it was only $800 difference in the end and 1st dealer had car we wanted in stock.

But what i should have said to the GM is... so with the buidling, maintenance, electric, lawn care, front desk, salespeople, insurance, profits. Your only making 1% on a 70k car? Sure. Hahahaha.

Yeah, I've heard and have read conflicting messages on what the true dealer profit is on a new BMW. Apparently, BMW did away with dealer holdback several years ago, so there's no ability to pull from holdback. I'm guessing they do, however, receive a monthly / quarterly / yearly factory-to-dealer rebates based on volume sold, so guess they could in theory pull a percentage or two from that... Not sure... I don't understand is how one dealer can do 8% off MSRP, while others cannot...

[TurtleBoy]

Originally Posted by mramella

Yeah, I've heard and have read conflicting messages on what the true dealer profit is on a new BMW. Apparently, BMW did away with dealer holdback several years ago, so there's no ability to pull from holdback. I'm guessing they do, however, receive a monthly / quarterly / yearly factory-to-dealer rebates based on volume sold, so guess they could in theory pull a percentage or two from that... Not sure... I don't understand is how one dealer can do 8% off MSRP, while others cannot...

There are holdbacks and bonuses. The invoice is about 6.5% less than MSRP. Holdback is around 5% of MSRP and various bonuses.

[Bigface]

Originally Posted by mramella

Yeah, I've heard and have read conflicting messages on what the true dealer profit is on a new BMW. Apparently, BMW did away with dealer holdback several years ago, so there's no ability to pull from holdback. I'm guessing they do, however, receive a monthly / quarterly / yearly factory-to-dealer rebates based on volume sold, so guess they could in theory pull a percentage or two from that... Not sure... I don't understand is how one dealer can do 8% off MSRP, while others cannot...

Some just don’t want to do that. Who doesn’t want to max profit if they can? Some dealer have a large volume so they more likely to give a deeper discount to move units.

[Bigface]

Originally Posted by crackerjack15

The dealer I worked with tried to tell me they only have a 5% markup, and that was the GM telling me that. I only got 4% off, which i was ok with because another dealer offered 6% but their doc fee was higher so it was only $800 difference in the end and 1st dealer had car we wanted in stock.

But what i should have said to the GM is... so with the buidling, maintenance, electric, lawn care, front desk, salespeople, insurance, profits. Your only making 1% on a 70k car? Sure. Hahahaha.

Of course they make much more than 1%. As a consumer of course I would that % be as much as possible. It is their decision such % makes sense or not.

[crackerjack15]

Originally Posted by Bigface

Of course they make much more than 1%. As a consumer of course I would that % be as much as possible. It is their decision such % makes sense or not.

I hope they are making at least 10% doesn't seem worth it if not.

[TurtleBoy]

Originally Posted by crackerjack15

I hope they are making at least 10% doesn't seem worth it if not.

New car sales is not where dealers make their money, that is just a way to get customers. Most profit comes from service.