From: "Amy Young Leith" <alyoung@kiwi.ucs.indiana.edu>
Subject: Re: Dealer Profit on Small Imports?
Organization: Indiana University, Bloomington
Date: Fri, 21 Aug 1992 15:06:30 -0500

In article <1992Aug20.150847.17086@uwm.edu> greis@csd4.csd.uwm.edu writes:

>While I won't tell you what invoice is on the Colt, I assure you, the
>markup isn't that much. If you don't believe me, go to the library and look
>at what the markup is yourself. People seem to have lost sight of what
>sticker prices are in the first place. The sticker price is the price of
>the car. 

It is the price of the car (meaning what the car is worth in metal and
workmanship) plus the dealer markup which includes their profit share,
etc).

>Invoice is what the dealer paid for the car (barring DCIs).
>The dealer is in a wholesale situation, you're in a retail situation.
>Auto prices in Europe are 30-40% higher than in the US, while interest
>rates are approaching 15%. While most people feel that salesmen are slime,
>do you work strictly on commission, only to have everything after several
>hours fall through? (Because a customer shopped you, and felt they got a
>better deal by $50!!!) 

I never forced anyone to work as a car dealer.  =)  And if I can save
$50 on the car, I'll do it, as long as I don't spend that money in gas
going to get the car.  Otherwise, for the types of cars I am
interested in, that's about four tanks of gas... 

>Why do you feel you should be able to buy a car
>for wholesale? 

Because I know EXACTLY what I want.  Color, make, engine type,
accessories... I don't need a salesman to talk me into chicken shit
straps or a more expensive radio to up his cut.  

>Do  you really think that you are that special?

Why not just avoid the middle man if you don't need him? 

>When a car is with minimal markup so you don't have to dicker, you still
>want to make life hard. Arrrgh.

That's because MOST, and that's a big MOST, dealers DO mark up a large
amount.  No one is used to just walking in and going, "Oh, ok, that's
the price."  My dad was told that the manager "Couldn't go any lower"
on the 1991 Toyota Corolla they were looking at, however strangely
enough, the price they paid for that car was over $2500 less than that
first "rock bottom" price.  At the same dealership. 

>[=Useless rantings and ravings that fall upon deaf ears mode off now,
>  because anyone reading this also feels that they should buy something
>  for nothing and that someone trying to make a living is slime wouldn't
>  understand anyway, and would do anything to make the salesman miserable.=]

My husband used to work in commissioned sales.  If he was nice he made
little.  If he talked people into buying things they didn't really
need, he made a bundle.  I think when I buy a car, I should pay for
the worth of the car plus enough for the company that made it to
continue good service, give employees good benefits, etc.  I DON'T
think I should have to pay some smuck who hangs over me while I try to
decide if I want to settle for the car they have on their lot which
has a lot of shit I don't want, plus DOESN'T have a few things I do
want.  I don't *need* that, and if there was an option, I wouldn't do
it.  

amy