Corolla vs. Elantra Dealer Markups

majorloser

majorloser

Moderator
:rolleyes:

I sold 15 cars last month. $60820 in front end gross. $90750 total gross front and back. You do the math. Yes dealers are really hurting. :rolleyes:

At least your dealership can't be hurtin' too badly. You haven't had much time to waste here on the forums :)
 
mazersteven

mazersteven

Audioholic Warlord
Can you or would you expand on this? What is it and difference?

Front end gross is the gross profit made directly with the sale of the car from the dealers cost.

Back end gross is the profit made in the finance department from products and services sold.
 
majorloser

majorloser

Moderator
So what part does the salesman get his commission from? Is "back end" all dealer profit?
 
mazersteven

mazersteven

Audioholic Warlord
So what part does the salesman get his commission from? Is "back end" all dealer profit?
Most salesmen get commissioned off front end. Some stores offer a small percentage from the back end.

Pay plans are different from store to store.


So most likely the Toyota sales guy made nothing to take home to him family. Based of the OP's $200-$300 over invoice statement.
 
MUDSHARK

MUDSHARK

Audioholic Chief
I thought you just bought one in December. Just jesting, anyway.
 
mazersteven

mazersteven

Audioholic Warlord
Nope, getting ready to buy a car very soon. Just want to take of the saleman yet screw the dealership. :D
I have connections in just about every store. Just let me know what you need and I will refer you to someone.

I still haven't forgot about you Mud. :D
 
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Exit

Audioholic Chief
Maybe I should more correctly say the dealers are "dealing" right now whether they are hurting or not. I wouldn't wait for year-end closeouts.
 
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Audioholic Chief
Just an interesting footnote. The last new car I bought American (Chrysler Sebring Convertible) and it was built in Mexico giving Mexican workers jobs. This time I bought Japanese (Toyota Corolla) and it was made in California giving American workers jobs. It kind of gives new meaning to buying American if your goal is to support fellow American workers. According to a coworker taking economics, in this case supporting Mexican jobs contributes profits to America's Gross National Product while supporting American workers contributes profits to Japanese Gross National Product. I guess keeping American workers employed is more important since so many jobs are being outsourced and our national debt has few prospects of slowing any time soon. I think the last time the national budget was balanced or reduced was back in the Clinton era, but then again you can't equate national budget with personal budget because the country seems to have endless borrowing ability.

Also, I don't think I helped the "total gross back" because I didn't buy an extended warranty and my financing was 0 percent for 3 years. It was basically my offered price divided by 36 to get the monthly payments because I had zero down payment too.
 
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mazersteven

mazersteven

Audioholic Warlord
Just an interesting footnote. The last new car I bought American (Chrysler Sebring Convertible) and it was built in Mexico giving Mexican workers jobs. This time I bought Japanese (Toyota Corolla) and it was made in California giving American workers jobs. It kind of gives new meaning to buying American if your goal is to support fellow American workers. According to a coworker taking economics, in this case supporting Mexican jobs contributes profits to America's Gross National Product while supporting American workers contributes profits to Japanese Gross National Product. I guess keeping American workers employed is more important since so many jobs are being outsourced and our national debt has few prospects of slowing any time soon.
Your big on supporting the US worker. Just not the local car salesman. :rolleyes:
 
majorloser

majorloser

Moderator
Your big on supporting the US worker. Just not the local car salesman. :rolleyes:
Why does the price of an automobile have to be negotiable? Why can't the buyer get the best price when they walk in the door?

Call me strange, but the price of almost every other piece of merchandise we buy is inclusive of all overhead and operating expenses. :confused:
 
mtrycrafts

mtrycrafts

Seriously, I have no life.
.... I think the last time the national budget was balanced or reduced was back in the Clinton era, but then again you can't equate national budget with personal budget because the country seems to have endless borrowing ability.
.
Yes, but unfortunately that was a short lived one or two year blip on the national debt scope:mad:
And, that endless borrowing can and will lead to bankruptcy, just as an individual will experience after too much borrowing.
That interest on the $9.5T is a huge millstone on the economy and get nothing for it, no services, no roads, nor power plants here, nothing.:mad:
 
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Audioholic Chief
The price of an automobile is not negotiable at Scion and Saturn dealerships I am told, so if you don’t like to deal with a dealer, you can go there and rest assured nobody gets a better deal than you do. In most dealerships price is a negotiable item. Has been since the days of horse trading. Each party tries to achieve his best results and if they can’t come to an acceptable agreement, the buyer walks away and tries someplace else. The dealer has many tricks in getting money out of a buyer. The buyer can offset this by reading the April issue of Consumer Reports each year to see what cars are reliable and what scams dealers are likely to pull (i.e. like extended warranties). I wasn’t going to be undignified and quibble over price with the dealer. I simply said this is what I am willing to pay and he accepted it. If he had not, I would have walked out and tried another dealer. Then I was going to shop on the internet to get my price.

The first new car I tried to buy was a 1978 Honda Accord. It was about four to five thousand with a $1000 dealer additional markup and a six month waiting list. So sometimes the market is like that where the dealer makes excess profits and sometimes it is like it is now where you can get a good discount. You just have to know when it is a good time to buy and I am suggesting now is a good time to buy. I am sorry if the salesman did not make much money this time, but they have in the past and they will again in the future. In fact the first Hyundai dealer I went to used bait and switch with his newspaper advertising and had the cars on the lot padded with pin striping and other useless dealer add-ons to the tune of an extra $1000 on the price. So hopefully there is extra profit under invoice where the salesman get his percentage.
 
MUDSHARK

MUDSHARK

Audioholic Chief
I have connections in just about every store. Just let me know what you need and I will refer you to someone.

I still haven't forgot about you Mud. :D
No hurry Steven. June July will be fine. I just wanted you to have time to keep your eyes open for me.

I am totally glad you are having a good sales month.:D
 

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