What Does GM Make on each Camaro sold??

[IROCanSS]

I am sorry I didn't read the whole thread but... all cars are different. A good way to tell how much "mark up" or "profit" is built into the car, look at GMS. We just bought two new vehicles... a 2010 SS and a 2009 2500 GMC Sierra diesel 4x4 4 door.

Camaro:
MSRP: $35,915; GMS: $33,315 (yes, I got GMS ) = savings of $2600 or 7%.

Sierra:
MSRP: $51,500; GMS $43,750 = savings of $7800 or 15%

GMS is much lower than invoice and slightly below supplier pricing. It is really the best you can do. I don't know how the dealers make money on GMS sales unless they get a kick back form GM....

This is b/c the R/D on the truck has been paid for, the plant has been running for years, the truck is nothing new. The Camaro is so new that even GM cant give much off on it b/c they are still rtying to re-coop the start up costs.

As far as dealers go, they make decent money on MSRP but no where near $10,000, but come on, does anyone really pay MSRP? I say that tongue in cheek but on most cars you pay well under MSRP.

Profit varies from car to car.

[Dr Jkel]

Funny thing is GM IS making money, here's 2 examples. Yesterday I received an e-mail from my dealer on a 1500 ext Silverado. Sticker 40994.00 said he would sell it now at 31246.90. This is 9747.10 difference, you tell me.

AND the biggest thing is remember when GM, Ford, and Chrysler sold at Employee pricing. I bought a 2500 hd, sticker was 48900.00 walked out the door for 38500.00. The dealer may not be making alot but someone is.

I was once told 2 things by a dealer. 1 is that GM made 10000.00 on every Tahoe that dropped at the dealer, the next was that a GM vehicle cost 87% of the sticker. Take it all with a grain of salt and make you own conclusion.

[IROCanSS]

As I keep looking, you are all asking questions with no answers...

Just a simple question, a car msrp's for 30k, on average, what does it actually cost GM (or any car manufacturer) to make this vehicle?

Depends on how stramline they are... let me ask YOU a question. If you could build something that the "going price" of the competition was $10 an you could make it for $1... woulg you sell it for $2 and make 100% profit or for $10 and make 1000% if thats what the competiton is priced at??? MSRP is set by the competion in a way.

[67 Convertible]

Originally Posted by jrhaus76

I am sorry I didn't read the whole thread but... all cars are different. A good way to tell how much "mark up" or "profit" is built into the car, look at GMS. We just bought two new vehicles... a 2010 SS and a 2009 2500 GMC Sierra diesel 4x4 4 door.

Camaro:
MSRP: $35,915; GMS: $33,315 (yes, I got GMS ) = savings of $2600 or 7%.

Sierra:
MSRP: $51,500; GMS $43,750 = savings of $7800 or 15%

GMS is much lower than invoice and slightly below supplier pricing. It is really the best you can do. I don't know how the dealers make money on GMS sales unless they get a kick back form GM....

This is b/c the R/D on the truck has been paid for, the plant has been running for years, the truck is nothing new. The Camaro is so new that even GM cant give much off on it b/c they are still rtying to re-coop the start up costs.

As far as dealers go, they make decent money on MSRP but no where near $10,000, but come on, does anyone really pay MSRP? I say that tongue in cheek but on most cars you pay well under MSRP.

Profit varies from car to car.

You misunderstand my question. I don't care what the dealer is paying for the vehicle. The question is, what did it cost the car manufacturer to make the vehicle? Years ago when I was in district manager in retail, there was a 50% mark up on soft goods. In other words, It cost the manufacturer $20 to make a pair of shoes. They would sell them to the retailer for $40 and the retailer would sell them to the customer for $80.

[Jim Thompson]

Originally Posted by CamaroScotty

The DEALERSHIP does.....I make $100 - when you're selling Vettes at $1500 under invoice....give or take a buck...

yep

[IROCanSS]

Originally Posted by Dr Jekel

Funny thing is GM IS making money, here's 2 examples. Yesterday I received an e-mail from my dealer on a 1500 ext Silverado. Sticker 40994.00 said he would sell it now at 31246.90. This is 9747.10 difference, you tell me.

AND the biggest thing is remember when GM, Ford, and Chrysler sold at Employee pricing. I bought a 2500 hd, sticker was 48900.00 walked out the door for 38500.00. The dealer may not be making alot but someone is.

I was once told 2 things by a dealer. 1 is that GM made 10000.00 on every Tahoe that dropped at the dealer, the next was that a GM vehicle cost 87% of the sticker. Take it all with a grain of salt and make you own conclusion.

Your truck offer includes rebates too. I was quoting just GMS. With rebates we actually got the truck for a hair under $39,000, for a $52,000 truck, $13,000 off... so there must be some heavy mark up on it... They are not in the business to give cars away. There may be $10,000 in a Tahoe. Thats was there bread and butter. You think it takes $62,000 to build an excalade...

[67 Convertible]

Originally Posted by jrhaus76

As I keep looking, you are all asking questions with no answers...

You are right, there are no answers. Only the bean counters at corporate know the answer. But it is a curious question isn't it?

[ArkySS]

FYI mark up on the Camaro is roughly about 3%. SUV's and trucks is about 10% I believe. Will not reveal my source :P

[IROCanSS]

Originally Posted by 67 Convertible

You are right, there are no answers. Only the bean counters at corporate know the answer. But it is a curious question isn't it?

Someone knows somewhere, the average profit, sure, but they ain't tellin...

[gred04]

Originally Posted by jrboyd_1980

WTF? Invoice pricing = what you pay for an item.. So how would a dealership make 2K if they sold it for what they bought it at. So your saying if I buy a stick of gum for $0.25 and sell it for $0.25 I'm making money? And people wonder why our school systems are in so much trouble....

LT Camaro's dealer makes about 925.
SS Camaro's figure 1200-1800

I guess maybe that might happen if there were rebates, hold backs, and marketing incentives.

There could also be sales tax savings when customers buy from one county and live in another in the same state. Ditto city to city within the same county. Dealer may not share that.

Not to mention the dealership income tax savings if a item were actually sold for a loss.

Let's not forget that if some add-on services or parts sold there is much higher profit margins in that. Another reason to sell at invoice.

[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

[MontyCarlo]

Based on working in a company built around engineering and manufacturing, I'd go with a ballpark figure of 5% profit (when you include the non-recurring expenses of the design phase). I'd be surprised to see a profit margin higher than 10% on anything but super luxury bragging rights cars, or extremely simple and cheap mass-production econoboxes.

[Dr Jkel]

So let me ask this, remember when the Camaro first went into production, it was posted how much each car would cost. MSRP, Invoice and GMS I think, there seemed to be about 2900.00 on the 2SS. This is more than 3%. When I got mine dealer told me they made 2850.00 before anything came out. There was no advertising, only PDI and Sales commission. I paid sticker.


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.

I saw one dealer say the sell Vettes at 1500 under invoice and money is still being made albeit not alot.

Don't get me wrong I don't begrudge them making all the money they can. My dealer told me along time ago that it was their job to make as much money as they could and mine was to pay the least I had to. There is too much information on the internet to get ripped off nowadays. Plus from what little I know about the car business it seems they make alot more money on used cars and peoples trades then they ever do off new ones.

[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...

Originally Posted by CamaroScotty

The DEALERSHIP does.....I make $100 - when you're selling Vettes at $1500 under invoice....give or take a buck...