Dealership Holdback for IS350?
#16
Lexus Champion
Join Date: Mar 2004
Location: So Cal
Posts: 1,810
Likes: 0
Received 0 Likes
on
0 Posts
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 . . .
#17
Pole Position
iTrader: (6)
Join Date: Nov 2006
Location: NY
Posts: 266
Likes: 0
Received 0 Likes
on
0 Posts
its good to hear people in the car game being honest about how they do business, its a respectfull profession. Sadly there are alot of scammers and dealers that promote that behaviour.
So based on the information posted, how much does a dealer make off each sale? including holdback, kickbacks and quotas ect.
So based on the information posted, how much does a dealer make off each sale? including holdback, kickbacks and quotas ect.
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.
#19
Pole Position
Join Date: Oct 2006
Location: Virginia
Posts: 209
Likes: 0
Received 0 Likes
on
0 Posts
From what I've read, holdback is 2% of MSRP...
#20
Lexus Test Driver
iTrader: (2)
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.
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.
I just am a firm beliver that once you put someone on a commision strictly income basis it provides an environment for dishonesty.
#21
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.
#22
Lexus Test Driver
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.
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.
#23
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.
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.
#24
Pole Position
iTrader: (6)
Join Date: Nov 2006
Location: NY
Posts: 266
Likes: 0
Received 0 Likes
on
0 Posts
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.
Thread
Thread Starter
Forum
Replies
Last Post