How much are we getting ****ed?
- Thread starter Clarke673
- Start date
lol i was goin to give him a big ole neg rep....but i got rushed andforgot to put it on neg. oops!
the amount of mark-up on automobiles is one of the largest misconceptions in the industry. i am a former ford/lincoln/mercury and toyota dealer with years and years of experience and would like to share some information with you. the mark-up from the manufacturer to the dealer is not disclosed to the dealer but i will tell you that it is outrageous. this is where the money is made on the sale of the vehicle. the difference between the MSRP amount and the invoice amount is usually based on a small percentage (usually less than 10%). for people that arent in retail, 100% is the industry average for mark-up. the term is called keystone and nearly anything you buy for $100 was sold to whomever you bought it from for $50, including OEM parts from the dealer. these figures of several hundred percent are not even close to reality. also, keep in mind that the dealer has nothing to do with the MSRP (MANUFACTURERS suggested retail price). Next, the manufacturers are also in control of rebates, incentivized interest rates, loyalty discounts and so forth. none of these things are determined by the selling dealer. i am not trying to be an advocate for dealers, and i know there are a ton of terrible ones out there, but there are also a lot of good dealers out there too. most dealers are more than happy to sell a new vehicle at invoice minus rebates. hell, Ford Motor Company even posts invoice pricing on their website. just be upfront about it and fulfill your end of the bargain. this keeps a little money in the dealer's pocket in the form of holdback (which is an even smaller percentage than the MSRP vs. invoice mark-up). then, they will probably try to make a little money by arranging financing for you or selling you an extended warranty, maintenance agreement, etc. these are called back end products and are usually offered in the finance and insurance office. they have to try to keep the lights on somehow. again, when i was sitting at the sales desk, i was happy to take an invoice deal and hopefully get a shot at the financing and/or back end products. this would allow me to sell the vehicles at invoice and still have a chance to make enough money to pay my the sales staff. used vehicles are quite a bit different because they can be obtained through various avenues (trade-in, street purchase, auctions) and no two used vehicles are the same. even standards that are used to help determine used vehicle pricing vary from guide to guide, area to area, etc. when in the market for a used vehicle, check values from NADA, Kelly Blue Book and Manhiem auto auctions. these sources will at least five you some facts on vehicle values. i could go on and on about the inner workings of the industry but i don't want to ramble. if anyone out there has a particular question, though, let me know and i would be happy to help.
Big part of the problem right there. A news article the other day said that for every car made by the big three, $3500 goes towards medical. For Toyota it's $900 because they don't hire union workers.
Check out this video about Ford's plant in Brazil. Towards the end, the newscaster says something like "They would build one here in the United States, but the UAW won't let them." WTF is that? One more reason not to bail them out - destroy the unions.
http://info.detnews.com/video/index.cfm?id=1189
He gave me neg rep that says...."I farted"
WTF?
It would be a waste of water to flush this little turd!
S
shortstop20
Well-known member
The price of new vehicles is absolutely insane, no question about it.
It's BS that somebody that lives in the Midwest that makes $40K a year has to pay the same amount for a pickup that a person that lives in Mexifornia making $80K has to pay.
Let's just say 50% of your wages go to needed things(just throwing out numbers), no luxuries, just bills, food, clothes, shelter, etc. So if you live in the midwest you have 20K left over, now the other guy in California(Mexifornia
) has $40K left of his salary. Hmmmmm, who's gonna be able to pay off that pickup faster? The price of vehicles is setup for city people living in high wage areas.
Just doesn't make sense to me.
It's BS that somebody that lives in the Midwest that makes $40K a year has to pay the same amount for a pickup that a person that lives in Mexifornia making $80K has to pay.
Let's just say 50% of your wages go to needed things(just throwing out numbers), no luxuries, just bills, food, clothes, shelter, etc. So if you live in the midwest you have 20K left over, now the other guy in California(Mexifornia
) has $40K left of his salary. Hmmmmm, who's gonna be able to pay off that pickup faster? The price of vehicles is setup for city people living in high wage areas. Just doesn't make sense to me.
S
sortastock
Member
Yeah. a mass produced product can cost 50 grand. They can also cost a million, or 10 million. And I don't think you have even the slightest idea how much engineering goes into a truck, ( i know I don't) especially compared to a house.
And what the hell does buying American mean? Buying a product who's corporate headquarters is in the US? The hell does that matter? I'll bet more of a tundra is built in the states than a silverado.
And Liberty engines are assembled in Wisconsin of foreign and domestic parts.
C
Clarke673
Somewhere between too dumb to quit and flat earth
I guess I wasn’t clear enough with what I was trying to say.
Most parts on a vehicle have already been designed. Every time they roll out with a new truck they are not going to the board and drawing up new designs specific for each customer. There is nothing custom in our trucks that cost 1/3 what completely custom houses built exactly how you want them with 3000+ square feet.
Almost every nut and bolt was designed year and years ago. Nothing is very new. Nothing is right off the design board. All the parts on the vehicles have long since paid for they design work in them im sure 1000 times over. All the work and money that goes into it now is just the copy and paste option in some computer.
A VERY limited amount of parts are made fresh for each vehicle. Obviously body work is custom tailored to fit just that new design as well as the interior and that hardly counts considering that after they design it that the vehicle could be in production for 5 years selling thousands of units.
GM, Dodge, Ford, Toyota, they all are greedy bastages. Selling cars to America is the equivalent of going to a rich city in the desert, taking all they’re water and liquids away, and selling them water at $10 a gallon. IT sells it’s self because it is a necessity, but do they really have to gouge us so bad?
The worst part is that after many of them have been ****ING America over for 100+ years, they are asking for billions of dollars just so they can keep taking our money.
Are the companies in trouble? Hell yeah they are and for one reason only. Instead of paying workers the way they should, they have managers with million dollar budgets who fly around in jet airplanes all day. Those guys are not going to loose they’re job and if they do then I feel sorry that they are blessed with more money a year than most Americans make in they’re whole lives.
I wonder if they will manage?
Most parts on a vehicle have already been designed. Every time they roll out with a new truck they are not going to the board and drawing up new designs specific for each customer. There is nothing custom in our trucks that cost 1/3 what completely custom houses built exactly how you want them with 3000+ square feet.
Almost every nut and bolt was designed year and years ago. Nothing is very new. Nothing is right off the design board. All the parts on the vehicles have long since paid for they design work in them im sure 1000 times over. All the work and money that goes into it now is just the copy and paste option in some computer.
A VERY limited amount of parts are made fresh for each vehicle. Obviously body work is custom tailored to fit just that new design as well as the interior and that hardly counts considering that after they design it that the vehicle could be in production for 5 years selling thousands of units.
GM, Dodge, Ford, Toyota, they all are greedy bastages. Selling cars to America is the equivalent of going to a rich city in the desert, taking all they’re water and liquids away, and selling them water at $10 a gallon. IT sells it’s self because it is a necessity, but do they really have to gouge us so bad?
The worst part is that after many of them have been ****ING America over for 100+ years, they are asking for billions of dollars just so they can keep taking our money.
Are the companies in trouble? Hell yeah they are and for one reason only. Instead of paying workers the way they should, they have managers with million dollar budgets who fly around in jet airplanes all day. Those guys are not going to loose they’re job and if they do then I feel sorry that they are blessed with more money a year than most Americans make in they’re whole lives.
I wonder if they will manage?
wow, there is some serious hate twards the unions here. I have worked on both sides of this one, remember.....the union is just a group of guys trying to get the most they can for what they do. the company has always had the right to say no. if gm did not think they could squeeze the market for a 50k truck they would not have tried. people bought them for those huge prices....whos fault is that? the company is tring to get every penny they can, the union is no different.
if you want to hold anger, hold it against the managment, they sign the checks and say yes or no.
unions brought us the 40hr week and better treatment and pay, but there is a lot of abuse that has come into play in the last 20 years. many companies simply ousted them cause they were getting smothered since the huge increase in cheap labor from illegal help. I work for a company that is union, but they are very happy to have the skilled help we bring. to them it is worth the $$. they do not however stack todays bills on tomarrows profit, that is what is killing the big 3. it sure sux for my inlaws who are all gm retirees and were promised all this blah blah blah, and now sit without any pension or medical. who's fault is that? the unions for making too much $$ or the company for not managing its business.
let em' fall!!
if you want to hold anger, hold it against the managment, they sign the checks and say yes or no.
unions brought us the 40hr week and better treatment and pay, but there is a lot of abuse that has come into play in the last 20 years. many companies simply ousted them cause they were getting smothered since the huge increase in cheap labor from illegal help. I work for a company that is union, but they are very happy to have the skilled help we bring. to them it is worth the $$. they do not however stack todays bills on tomarrows profit, that is what is killing the big 3. it sure sux for my inlaws who are all gm retirees and were promised all this blah blah blah, and now sit without any pension or medical. who's fault is that? the unions for making too much $$ or the company for not managing its business.
let em' fall!!
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