Car and bike sales commission?

[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.