Availability really isn't the issue now... more the profit margin to the dealer... there's isn't much room to manuver.
Have your seen the factory manufactures cost, some place, I'm not talking the dealer invoice. There's got to be some markup. They couldn't stay in business.
The profit for the dealer, as always been the same on this car, from the very beginning.
I actually have seen the numbers... I don't want to say which dealer because we all know I wasn't supposed to see them. The profit on the car to the dealer is just under $300... after you leverage that against overhead to run the dealership and all the other expenses there just isn't much left. That's why all the orphans are being jacked up with options... they have to to stay in the red. Not saying I agree with it but it is what it is.
Dealers typically make a fixed amount on a car that sells at MSRP. Where most dealerships make their money is the service department (parts and repairs), extended warranties, financing, mark-ups on popular models (market adjustments), marketing incentives from the factory and other gimmicks. The ForTwo tends to sell at MSRP for cash to a lot of customers, there are no finance deals or incentive kickbacks because they can sell every one they get, so the revenue streams are pretty limited. This is why some dealers tart-up the orphans with GPS and other toys and jack up the price.
I actually have seen the numbers... I don't want to say which dealer because we all know I wasn't supposed to see them. The profit on the car to the dealer is just under $300... after you leverage that against overhead to run the dealership and all the other expenses there just isn't much left. That's why all the orphans are being jacked up with options... they have to to stay in the red. Not saying I agree with it but it is what it is.
How many cars, does your dealer move a month?? $300.00 is probably what the sell person makes per car. There is a factory invoice on all cars. You couldn't keep a dealership open, for $300.00 a car. Someone told me here, our dealer sells 20-30 cars a month. Our orphans here, are pretty much stock cars from what I've seen. A couple up front of the dealership have some aftermarket parts. The numbers don't make sense to run a business.
Someone told me here, our dealer sells 20-30 cars a month.
Just as a data point, the dealer where I got mine says they sell 40-50 Smarts a month. Forty cars a month is 480 cars a year minimum, but let's call it 500. Times $300 profit ($150,000). Times $84 for rubber floormats ($42,000). Times $157 for cargo cover ($78,500) Times $200 for annual oil change ($100,000). Times $100 they get if you finance the car ($50,000). Times the $150 "doc fee" for watching you complete all the paperwork ($75,000).
Convincing customers "I'm not making a dime on this deal"? Priceless.
Just as a data point, the dealer where I got mine says they sell 40-50 Smarts a month. Forty cars a month is 480 cars a year minimum, but let's call it 500. Times $300 profit ($150,000). Times $84 for rubber floormats ($42,000). Times $157 for cargo cover ($78,500) Times $200 for annual oil change ($100,000). Times $100 they get if you finance the car ($50,000). Times the $150 "doc fee" for watching you complete all the paperwork ($75,000).
Convincing customers "I'm not making a dime on this deal"? Priceless.
Not with mine. No mats, cargo cover, oil change, financing
The AutoGuide.com network consists of the largest network of enthusiast-owned enthusiast-operated automotive communities.
AutoGuide.com provides the latest car reviews, auto show coverage, new car prices, and automotive news. The AutoGuide network operates more than 100 automotive forums where our users consult peers for shopping information and advice, and share opinions as a community.
Big Red
R2-D2 42
Today
Linear Mode
