DEALER'S ACTUAL COST - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

SS/GA · 11-13-2009, 12:14 PM

On this forum we've got access to some pretty slick spreadsheets quoting options pricing, supplier pricing, and dealer invoice pricing, etc. etc., but I don't see any mention of the most important pricing, and that is the "DEALER'S ACTUAL INVOICE".

"The Dealer Invoice" that they will show you is called "Invoice Price"...
But "Invoice Price" is not the the same as the "DEALER'S ACTUAL INVOICE", which is what he really paid GM for the vehicle!

So now that we have that straight, there's many other sources of Dealers Profits, here's just a few...

The "HOLD BACK" (some call it a "Spiff") is an additional 3% of the MSRP that is given back to the Dealer by GM after the sale of each & every vehicle sold... Kind of a Kick Back....

or how about Charging you for the Wash & Wax or Paint Sealant (ADM)...

or Charging you to Scotch Guard the seats (on LEATHER? huh?) (ADM)...

or "Filling Fees" to register your vehicle with the state dmv (ADM).
this paperwork usually goes to your the local courthouse and then it's sent from there off to the state. So how can the dealer charge you / me / us $189 (I've seen this amount at more than 1 dealership) for a .44 cent stamp!

So, from Actual Dealer Cost to MSRP Sticker / Plus the assorted "Spiffs" and Market Adjustments or Additional Dealer Margins (ADM) that the Dealer receives, it's not just a couple of hundred dollars profit per car like they'd want us all to believe.

ALL of these DOLLARS add up to some pretty hefty Profit Amounts that goes directly into the Dealer / Owners Pockets, and not ours.

And Yet we still have to fight for every nickle of discount or incentive that we "might get", even though most of it is GM Sponsored Monies, and not the Dealers!

So NO, I don't believe them when they say there is no profit in selling cars @ MSRP, or god forbid "under".

Think of this... Do you really believe that these Taj Mahal Dealerships / Facilities could be built and maintained if the margins were so tight at "only a few hundred dollars per car"?

I call BS!

SS/GA

linton23 · 11-13-2009, 12:46 PM

Spiffs are bonus things GM gives us on some cars most of the time Slow moving ones the last few have been on Cobalt's and HHR's to get that you had to be in the MOE program it costs the dealer up front $20000 to sign up for one franchise this year.I can give you an example if you like a 2LT RS stickers for $30510 we dont do any of those adm's you talk about invoice is $28966.43 holdback is $889.80. Best case at sticker your dealer makes $2433.37 now how long has it sat on the lot has he had to pay floorplan on it? Now for a big dealer he has alot of other costs but you figure in my store Sales pays 6 peoples salary plus electric and utilities.

11-13-2009, 12:14 PM	#1
SS/GA Drives: '68 SS396 - '98 Z28 - '10 2SS Join Date: Sep 2009 Location: Drag City USA Posts: 102	DEALER'S ACTUAL COST On this forum we've got access to some pretty slick spreadsheets quoting options pricing, supplier pricing, and dealer invoice pricing, etc. etc., but I don't see any mention of the most important pricing, and that is the "DEALER'S ACTUAL INVOICE". "The Dealer Invoice" that they will show you is called "Invoice Price"... But "Invoice Price" is not the the same as the "DEALER'S ACTUAL INVOICE", which is what he really paid GM for the vehicle! So now that we have that straight, there's many other sources of Dealers Profits, here's just a few... The "HOLD BACK" (some call it a "Spiff") is an additional 3% of the MSRP that is given back to the Dealer by GM after the sale of each & every vehicle sold... Kind of a Kick Back.... or how about Charging you for the Wash & Wax or Paint Sealant (ADM)... or Charging you to Scotch Guard the seats (on LEATHER? huh?) (ADM)... or "Filling Fees" to register your vehicle with the state dmv (ADM). this paperwork usually goes to your the local courthouse and then it's sent from there off to the state. So how can the dealer charge you / me / us $189 (I've seen this amount at more than 1 dealership) for a .44 cent stamp! So, from Actual Dealer Cost to MSRP Sticker / Plus the assorted "Spiffs" and Market Adjustments or Additional Dealer Margins (ADM) that the Dealer receives, it's not just a couple of hundred dollars profit per car like they'd want us all to believe. ALL of these DOLLARS add up to some pretty hefty Profit Amounts that goes directly into the Dealer / Owners Pockets, and not ours. *And Yet we still have to fight for every nickle of discount or incentive that we "might get", even though most of it is GM Sponsored Monies, and not the Dealers!* So NO, I don't believe them when they say there is no profit in selling cars @ MSRP, or god forbid "under". Think of this... Do you really believe that these Taj Mahal Dealerships / Facilities could be built and maintained if the margins were so tight at "only a few hundred dollars per car"? I call BS! SS/GA Last edited by SS/GA; 11-13-2009 at 12:55 PM.

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11-13-2009, 12:46 PM	#2
linton23 Drives: 1996 Honda ACE Join Date: Jun 2009 Location: Florida Posts: 66	Spiffs are bonus things GM gives us on some cars most of the time Slow moving ones the last few have been on Cobalt's and HHR's to get that you had to be in the MOE program it costs the dealer up front $20000 to sign up for one franchise this year.I can give you an example if you like a 2LT RS stickers for $30510 we dont do any of those adm's you talk about invoice is $28966.43 holdback is $889.80. Best case at sticker your dealer makes $2433.37 now how long has it sat on the lot has he had to pay floorplan on it? Now for a big dealer he has alot of other costs but you figure in my store Sales pays 6 peoples salary plus electric and utilities.