Bullitt ADM's...
#121
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Join Date: November 14, 2007
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We sell a very high volume of new and used vehicles. We're a top 10 volume Ford dealer in our region (150+ dealers in our region). Most of our business is repeat and referral business, and we win all the big customer satisfaction awards, so we're treating people right. There are some months when we post a loss on new car sales, but most of the time we make a little bit of money. Certainly not enough to justify staying in business, but the used cars, service dept, parts dept, and body shop all contribute to make the store profitable enough to justify opening the doors every day.
I was reading an article in one of the industry periodicals a few days ago that shows that for the entire auto dealer body in America (all brands, foreign and domestic) that the average net profit on a vehicle sale after expenses and labor costs for a car dealership is about $250 for a used vehicle, but new vehicles average a loss of about $30 per vehicle sold. So, it isn't just where I work, or even just at Ford, but industry wide.
#122
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We sell a very high volume of new and used vehicles. We're a top 10 volume Ford dealer in our region (150+ dealers in our region). Most of our business is repeat and referral business, and we win all the big customer satisfaction awards, so we're treating people right.
There are some months when we post a loss on new car sales, but most of the time we make a little bit of money. Certainly not enough to justify staying in business, but the used cars, service dept, parts dept, and body shop all contribute to make the store profitable enough to justify opening the doors every day.
I was reading an article in one of the industry periodicals a few days ago that shows that for the entire auto dealer body in America (all brands, foreign and domestic) that the average net profit on a vehicle sale after expenses and labor costs for a car dealership is about $250 for a used vehicle, but new vehicles average a loss of about $30 per vehicle sold. So, it isn't just where I work, or even just at Ford, but industry wide.
In short, would you say that any Bullitt ADMs, were that to be a trend, would not really buy your dealership much?
#123
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Not sure which dept is the most profitable at our place (I'm only involved in the sales end of things). I'm not sure I follow your last question, but I don't believe for a minute that there will be any trend toward Bullitt ADM's. However, I think any good dealership would strive to have competitive pricing, whether it's close to invoice, close to MSRP, at MSRP, or an ADM. Make money where you can while staying competitive, and forego money where you have to for volume's sake.
#125
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Say what you will about the pricing but seems like the new Dodge is comming soon:
"The 37,995 dollars will buy you a Black, Silver or HEMI Orange car with a 6.1 liter HEMI V8 engine, numbered dash plaque and 'carbon-fiber' hood stripes."
I'll stick with the Bullit.
"The 37,995 dollars will buy you a Black, Silver or HEMI Orange car with a 6.1 liter HEMI V8 engine, numbered dash plaque and 'carbon-fiber' hood stripes."
I'll stick with the Bullit.
#127
Not sure which dept is the most profitable at our place (I'm only involved in the sales end of things). I'm not sure I follow your last question, but I don't believe for a minute that there will be any trend toward Bullitt ADM's. However, I think any good dealership would strive to have competitive pricing, whether it's close to invoice, close to MSRP, at MSRP, or an ADM. Make money where you can while staying competitive, and forego money where you have to for volume's sake.
#128
$37,995 will buy you a Challenger "IF" you can find one for that.
Rumor I hear is Dodge dealers around here want $80K for one!
I will sell our Bullitt to anyone that wants it for MSRP.
I see some dealers are saying $3K - $5K over.
Rumor I hear is Dodge dealers around here want $80K for one!
I will sell our Bullitt to anyone that wants it for MSRP.
I see some dealers are saying $3K - $5K over.
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Shelbydude, I already posted SEVERAL places on here saying "good luck getting a Challenger for MSRP", meaning your going to pay an ADM. Plus my quote you replied to, was my reply to someone who posted the original price that Chrysler announced a few days ago. All I was posting was the price off the website, not what they will ulitmately be going for.
#138
I'm slowly expanding my circle that I'm calling, all of the dealers I have talked to so far have told me at least 3k over and "they can only get one its a limited addition and they are only making a few so I better get one quick if I find one."
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#139
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Let's take X-plan, for example. If a dealership sells a Bullitt on X-plan, the X-plan price is roughly the same as the invoice total so there is $0 profit for doing this. However, Ford pays a commission to the dealer for handling the X-plan sale, but that commission is only $565.
A/Z plan is similar. A/Z plan price is about $1,200 below invoice total, but the Ford commission back to the dealership is about $1,800, so the dealership only makes about $600 selling on A/Z plan.
So, if a dealership can only get a couple of Bullitts, and there are customers OK paying MSRP (which is about a $2,200 profit over the invoice total), which would most dealers choose to do?