socalJD

Are you certain about this ? Seems very low to me. I know that Acuras have a 3% holdback based on Msrp, so for a 40k Acura - the holdback is 1,200. And yes, dealers are very reluctant to even discuss holdback, let alone give any of it up . . .

Smoky350

iTrader: (6)

That depends on a dealership one dealership I worked in we averaged $6,200 a deal with mostly used cars, and a much bigger dealership I work in now we average about $3,500 a deal with mostly new cars. A dealership I worked in once we lost over $4,000 on a deal just to sell the car and hit the quota. We got $1,500 for each new car from the manufactuer, and if we wouldn't hit the quota we would only get $750.

A lot of people say that dealers are scammers but they're not much different than any other businesses out there. They have to make money to pay for employees, bills, attorneys. Just to use a franchise name like Toyota for example it costs about $27,000,000. Also whenever someone trades in, or pays off a car within the first 3 to 6months (depending on bank) the dealership gets charged back by the bank that financed your car for the interest that they got paid on when they sold you the car. Plus the advertising is crazy, we spend about $120k a month just for advertising.

Smoky350

iTrader: (6)

I'm not 100% sure but that what I was told by a person I know from a Lexus dealership, and that what it was for most manufactuers I worked for.

homer4598

From what I've read, holdback is 2% of MSRP...

kilo6_one

iTrader: (2)

I can imagine the overhead, its a cuthroat business...........
I just am a firm beliver that once you put someone on a commision strictly income basis it provides an environment for dishonesty.

Soda

I work for Toyota, and we HAVE to keep a 2500 average per deal, that's front and back of course. I think Domestic's have larger profit due to bigger rebates and manufacturer to dealer cash. Also the customer base is ALOT different. Now, there is many times we just give a car away and even lose money, INC holdback..but there are also times we've had deals (not very often) upwards of 10-12k for one deal. And quite a few more at 5-6k. There are so many factors that go into the deal, interest rate, we can mark it up 2.50pts on a 60 mo term, and so on. But not on subvented (special) rates like 3.90 and so on. Plus warranties, alarms, accessories and etc. they make money on. But don't think all car people are out to get everyone, of course we like to make money, that's why we all work. I'm wondering if eventually, cars will no longer be negotiable. Like Saturn and Scion. If you purchase a new Scion it's MSRP only and the rate isn't negotiable yet we can't mark it up. Everyone pays the same, same warranties cost, everything. And it's posted so everyone can see.

kilo6_one

iTrader: (2)

i really actually enjoyed working with toyota when i bought my Tc, i was in and out, no games. Of course i had outside financing, but there was no BS. When i bought my IS it was the same, but i got it through a broker who does fleet sales for our family's business, same thing. I think it pays to have a good relationship with a dealer.......
But sadly i have heard of people screwing there own family over, one of my employees cousin raped him hard on a altima lease, he got an extra 3500 out of him once the math was done, it was really sad.

Soda

I've seen it happen. I always take care of my friends and family, would want them to do the same for me!

Smoky350

iTrader: (6)

I try not to sell cars to friends, or family members because if anything goes wrong or they find a car cheaper they will complain. But I do help them with purchases in other dealerships and tell them what to look for when they buy cars.