Car and bike sales commission?

[soundbeltfarm]

am in the process of buying a new hilux for the farm and cant believe the difference in price im getting from all the dealers i have rung.
how do car dealers get their comission? is it a set price on a vehicle or is it a ramping sort of comission so the more they get for the ute the more comission they get.
would love to know as i have a difference of 7k from the cheapest to the most expensive.
and is it the same with new bikes?
the bike dealers tell me their not much profit in new bikes are they all shit or for real?
cheers
Karl

[Edbear]

Bike's do carry less margin. When I bought the C50T, they were going for $15,500 plus ORC, I got mine for $14,600 on the road and when I told another dealer he was very surprised and said I'd got a very good deal.

If you are GST registered, you can get a better deal as well, and I've heard of some huge discounts for fleet sales and run-out models. If you get together with a couple of others you may be able to get fleet discount.

Mates in business amaze me at times with the deals they have got.

[soundbeltfarm]

yeah im gst reg and have been offered 15 to 23 percent off just for being gst reg.
not sure why that is.

[Laava]

FWIW, I am GST reg and when I bought my new Hilux, they gave me 14% apparently. For comparison, $42G 4x4, TD, extra cab with galv 2.4m tray. I was hard on the local stealership and got them to match the best quote I got. Albany Toyota. 23% sounds bloody good tho! What is that in $?

[The Pastor]

what has gst reg got to do with anything?

[soundbeltfarm]

sorry i should have said that the 23 percent was with all the extras on the ute.
just the extras are about bloody 5k.
although thats heavily discounted because they said they can give me much bigger discounts off the extras more so then the ute itself.
i not sure what being gst reg has got to do with it.
the local dealer who i want to deal with will give me money i want for my current ute which is same as on my books and then take extra off the new ute.

[JimO]

being gst registered means you qualify for fleet discount, i just bought a ex demo hilux D4D dc 4x4 auto,canopy,towbar,tufdeck, expensive bull bar, mags.$ 48000 a mate just got a new nissan stx auto, canopy, tuffdeck, towbar..$51.500

[Headbanger]

I had 11 grand knocked off the price of my Hilux, before extras were even selected.2WD SR5.

[Laava]

And you used the money to buy warehouse shoes instead of a bike! Shame!;)

[Headbanger]

I currently own more then one bike, How many and what they happen to be is my business and none of yours.

[JimO]

I currently own more then one bike, How many and what they happen to be is my business and none of yours.

tetchy.........:girlfight:

[Laava]

I currently own more then one bike, How many and what they happen to be is my business and none of yours.

Errr........You do realise that I was joking don't you?

[The Pastor]

like everything, they make the money when they buy the bike/car/whatever. so usally if they get a good deal,then you can get a good deal as well.

[Headbanger]

Errr........You do realise that I was joking don't you?

Now that you have told me, Of course I do.

[Headbanger]

My guess is its due to trade-ins being worthless, They instead offer straight up discounts to GST registered companies.

They offered me $1500 for my 96 Fairmont, and she was sweet.

And they offer the biggest discounts in the month leading up to the field days.

Its a good policy, we bought 3 of them.:2thumbsup

[Grub]

The way it all works (speaking of the car biz) is something like this
- Dealer margin is around 14%
- Fleet discount is up to (rarely) 14% depending on fleet size
- Dealers make f/a on new vehicles straight purchase
- Margins on Accessrioes, fitment & extras as part of the sale can be as high as 100%
- They make money on the "deal" So a low trade on your old one + their maybe discounted margin on the new + accessories is how they make a living.

Some make a reasonable living, many go broke. Having a new car franchise helps a little because they get high traffic, lots of service and warranty work and hopefuly loyalty to the brand so that they'll sell you another one in 18 months.

[Laava]

So in my case, the dealers [3 of them] were prepared to offer me a 14% discount with no trade in? Sorry, Grub, but AFAIK they don't sell vehicles at cost! The 14% was prob a discount on retail price, they were prob still making 14% min on their cost price, if not more.

[98tls]

So in my case, the dealers [3 of them] were prepared to offer me a 14% discount with no trade in? Sorry, Grub, but AFAIK they don't sell vehicles at cost! The 14% was prob a discount on retail price, they were prob still making 14% min on their cost price, if not more. I sold cars for seven years..5 years at a Toyota franchise and 2 at a Ford,i can promise you that they will or at least used to sell them at not only cost but below cost if it meant another unit out the door,any loss was retrieved from japan.Someone posted that theres no money in new cars..in my day the profit at start of negs was 12% but any muppet could get it way less than that,the most profitable part of any franchise was the used cars..2nded by the workshop.They work in 1/4s and the best time to buy a new car was anytime approaching the end of a 1/4.

[scott411]

.They work in 1/4s and the best time to buy a new car was anytime approaching the end of a 1/4.

this is the best advice here,

alot of the new car dealers are on bonus schemes which come in quarters, they will get a bonus aver the last 3 months so if they are a few cars short at the end you will get them cheaper. also run out models can be the go,

the gst registered companies normally fall into group buy dicounts thought some large organisation, be it a trade group or something.

neither apply to new bikes in the same way.

[Laava]

I sold cars for seven years..5 years at a Toyota franchise and 2 at a Ford,i can promise you that they will or at least used to sell them at not only cost but below cost if it meant another unit out the door,any loss was retrieved from japan.Someone posted that theres no money in new cars..in my day the profit at start of negs was 12% but any muppet could get it way less than that,the most profitable part of any franchise was the used cars..2nded by the workshop.They work in 1/4s and the best time to buy a new car was anytime approaching the end of a 1/4.
Ok, that is interesting! I had no idea that things were that tight for them. I had heard about the 1/4's thing before but my car salesman mate assured me that is a myth! He must have been trying to sell me something!

[98tls]

Ok, that is interesting! I had no idea that things were that tight for them. I had heard about the 1/4's thing before but my car salesman mate assured me that is a myth! He must have been trying to sell me something! That was a few years back know and am just assuming its the same these days,also that was in a dealership and i guess things would be different in say a privately owned second hand yard.