What Does GM Make on each Camaro sold??

[Monetcat]

Originally Posted by BLKnCHRME09Deluxe

$2000.00 sounds extremely LOW..I would think more like if they M.S.R.P. was $37,000.00 they probably got it for about $27,000.00...$10,000.00 to the dealer...I had buddies in the car business and every time they sold a brand new car they always got a nice commision check for thier sale. Whats the point of selling a $40,000.00 car just to make a little ol' $2,000.00 ....Nope doesn't sound right...

As a former sales manager at a Chevy Store, I can tell you that you carry New cars to sell other things like parts/service/used cars. Here is what I would guess a dealer would approxamatly make on a Camaro (and it ain't a lot).

About 4% if the car is sold at full sticker (37,000 car about $1480 in profit)
Dealer Hold back from Factory around 2-3% (lets say 2.5% $724 in profit)
If Financed the bank might pay between 1-3% (let's say 2% $803 in profit if the whole ball of wax was financed)
Dealer sells a warranty $400-$800 in profit ( we'll split it at $600)

There are of course other things the dealer could sell to make money, but those are the biggies.

That equals $3,607.00 of Gross profit.

The dealer still needs to pay all dealership expenses out of this. If a vehicle sits on the lot for an extended period of time, then the dealer must start paying flooring cost, which can eat a dealer alive! (not that Camaro's sit too long....yet.)

So in short... the dealer isn't making a killing on new cars.

[Jim Thompson]

Originally Posted by sigma_1966

So their selling the vettes for $1500 less than what they paid ?.. plus pay you $100 .... no wonder GM is in trouble.

I own my own business and understand that businesses have to make money. I also know that mark up to retail is al ot more than 3% or 5% business could not survive on that kind of mark up. But maybe thats why GM is in trouble...

its not just GM. go to www.edmunds.com and search almost any manufacture and then take a look at invoice versus MSRP. in general no new vehicles have much profit these days

[jrboyd_1980]

Originally Posted by Dr Jekel

JR you are right that includes rebates, but the rebate come from GM correct? If they were not offering a 6000.00 rebates that would be an increased profit of 6000.00 which is 85.5% of the sticker and I think that they are still making a profit on the truck.

Rebates do not affect dealership profit. Let's make this easy to understand. Rebates are from GM not the dealer. IF GM gives 3,000 rebate, that is 3000 that comes out of GM's pocket not the dealer.. So the dealer would payback the invoice pricing minus the 3000 rebates.

Dealers don't make much off selling new cars, as been stated before. Selling a used car yes, a dealership makes money, used no.

[Thrillz]

Dont know what dealers or salesmen make but i make cars for a living and can tell u its pays extremely well but its all changing very quickly. I personally have never done it but when things were good guys at work were pulling in over 100k a year. Guys used to bitch it was never enough and they seem to think everyone makes this kind of money as non skilled labour with just high school education. Those days are long gone now and when the dust settles i wouldnt be surprised if i make half what i used to. If it does i might just have to change careers and join Scotty on the floor

[Lt16spSS]

At the auto show when the Camaro was introduced as a concept, Bob Lutz said for the car to turn a profit for GM, they have to sell 100k units for the first 3 to 5 years. The Corvette is prime example to look at, look how long the style last on that car before Chevy gets a new one. At 30k plus units a year, it will take a while before that car pays off for the amount of time and $$$$ that is spent in developement.

[madmaxx18]

Thanks for basicly calling me stupid! Look I highly doubt buying a car at invoice would mean the dealer makes no money. I gave a rough estimate as to what I believe a dealer makes selling car at invoice. I estimated about 2000 grand because you have to take into account that not just the saleman makes money off a sale but the manager and owner has to make profit off the deal aswell. There is no way in hell a dealer would ever sell for invoice if they didn't make money. Don't work for dealerships so I really don't know but, my guess would be that it would be bad for buisness. What the other guy said is more as to what I was trying to get at but didn't add to what I said and that is the rebates you get that drop the car down to invoice pricing still gives the dealer a couple grand profit. So I should have added that into what I said and explained that as the reason as to why I said the dealer still makes his 2 grand when he sells a car at invoice my bad.

[Y2Breeze]

Originally Posted by madmaxx18

I estimated about 2000 grand

2000 grand = 2 000 000

I would LOVE to sell Camaro then

[madmaxx18]

oops 2 grand

[MightyT]

Originally Posted by Jim Thompson

ok first off I have absolutely no idea what GM makes on a vehicle.

however since we have ventured into the sales side of it...that I can answer for you!


although each dealership will be a little different, most are about the same.

I am paid 30% of any profit above invoice, minus a few admin fees, or a flat $100.

So if I sell a car for $31,000 with an invoice of $30,000 I make $300. If I sell the same car for 29,000 I make $100. If I sell that car for $32,000 I make $600. On a new car profit is very rare. It's just too competitive to try and hold any. If I sell a car at true Supplier or true GMS I make $250.

On average I make more on a used vehicle than on a new vehicle. this is because not every tom dick and harry has the exact same vehicle and are willing to sell for less.

I am also paid a very small percentage of warranties and am eligible to get unit bonuses and we have monthly sales contests.




The money can be good and as Scotty said it is stress free and not a hard job. I don't work a lot of hours (although I do work saturdays) and these days spend most of my time working deals over the web and not on the lot. so all in all it aint bad

GEEZ ... Is it me or is this getting embarrassing? .... It's one thing to question what GM makes, but another to ask a working salesperson to explain his/her personal income. Do we all now have to justify our incomes publically online?

I get why you and Scotty would share this based upon character, but feel bad that you felt the need to. Says a lot, but feel like an apology is in order ...

As for GM, in my personal opinion Ultimate Factories impacted me enough to realize it takes good people and technology to bring us the Camaro. If it were not worth it, we all (OK most of us) wouldn't be craving one and expert reviews would not be as positive. When I compared the cost of my Camaro to a new Accord (my old car) I realized the cost was very much in line with others.

[DrumDawg]

Originally Posted by talwell

One thing to remember is that GM spent hundreds of millions of dollars just building the plant in Oshawa to build these cars. Not only this, but I am sure they spent over $100 million to develop, engineer, test and build just this single model. So with that in mind - I am sure that any profit that is seen by GM is factored out based on forward facing sales figures. Initially and for long to come I am sure that the actual realized profit is $0.00 per car.

Dang! Did the camaro bankrupt GM all by itself?

[Jim Thompson]

Originally Posted by MightyT

GEEZ ... Is it me or is this getting embarrassing? .... It's one thing to question what GM makes, but another to ask a working salesperson to explain his/her personal income. Do we all now have to justify our incomes publically online?

I get why you and Scotty would share this based upon character, but feel bad that you felt the need to. Says a lot, but feel like an apology is in order ...

thanks for that brother. I don't have an issue with it or wouldnt have posted it. course no one ever believe us anyway

[cliffy]

I have to agree with many on here that I hope everybody is making money, including dealers and salesmen. Lord knows we all need to keep a roof over our heads and families fed. I would hope that my salesman who sold me my car made at least $250-300 and the dealer made a couple grand to keep the lights on


One thing I will say though is dealers must be starving off what they make on me in the service dept. My family has bought 10 GM's in the last 20 years and I bet you we haven't spent $3000 combined in service. Not that much goes wrong with cars these days that isn't covered under the initial warranty.

[jrboyd_1980]

Originally Posted by madmaxx18

Thanks for basicly calling me stupid! Look I highly doubt buying a car at invoice would mean the dealer makes no money. I gave a rough estimate as to what I believe a dealer makes selling car at invoice. I estimated about 2000 grand because you have to take into account that not just the saleman makes money off a sale but the manager and owner has to make profit off the deal aswell. There is no way in hell a dealer would ever sell for invoice if they didn't make money. Don't work for dealerships so I really don't know but, my guess would be that it would be bad for buisness. What the other guy said is more as to what I was trying to get at but didn't add to what I said and that is the rebates you get that drop the car down to invoice pricing still gives the dealer a couple grand profit. So I should have added that into what I said and explained that as the reason as to why I said the dealer still makes his 2 grand when he sells a car at invoice my bad.

Seeing as how I myself am a dealer. NOw if you are talking the holdback.. Holdback on a Camaro is only like 800 or so dollars, and guess what the Salesman doesnt make any money off that. And just sold a IOM SS/RS and guess what MArk-up was $1,665. What you fail to realize is that the dealerships make their money of CSI. But I'm tired of these conversations.
Theres an old saying that some people should take advice from..

"Better to keep your mouth closed and be thought a fool than to open it and remove all doubt"

[jrboyd_1980]

Originally Posted by Jim Thompson

thanks for that brother. I don't have an issue with it or wouldnt have posted it. course no one ever believe us anyway

lol Jim Know the feeling.. This customer yesterday believed that the dealership had $10k mark-up on every car. He was trying to tell me that an AVEO really only costs $3k. I explained to him that if I had $10k Mark-up I wouldn't be driving an 08 Cobalt around.....