TwinTurbo.NET: Nissan 300ZX forum - only after many years of return clients and "viral" referral
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Subject only after many years of return clients and "viral" referral
     
Posted by LJZTT on April 07, 2018 at 4:38 PM
  This message has been viewed 237 times.
     
In Reply To Disagree. posted by Josher on April 06, 2018 at 07:44 AM
     
Message That is the only way, and even then it is due to sheer volume of sales when it comes to non exotic brands. The overwhelming majority, likely to the tune of 90%, earn way WAY less, more like $35-40k....and they must put in 50-60hr weeks.

Right now the way it *generally* works in most manufacturers that I am aware of:

MSRP $50,000
"invoice" $47,000

Sales person gets 20% of that "gross" = $600

That assumes the vehicle sells for MSRP which we all know no one will pay, and everyone will demand as close to the "invoice" as possible.

The dealership on the other hand, will get multiple thousands back for that car from the manufacturer based on volume of sales for the month.....and the salesperson sees none of that.

The "invoice" is a completely bogus number that is meant for public dissemination to protect dealership profits while fooling the public into thinking they negotiated the dealership down. It especially egregious with Chrysler/Jeep. They set this bogus "invoice"at sometimes as little as 3% or even less below MSRP. There is no way you can earn any sort of reasonable commission on that amount without selling bulk....much less operate a dealership on such a paltry margin.

This is how in 2008 when gas prices hit national average of $4+.....suddenly all 3 manufacturers were advertising $10-15-20K discounts on trucks/SUVs. They were not taking a loss on these vehicles, they needed to move them out of inventory and were willing to let true market prices come into play. It does not cost Ford $40k to build a $45k truck

"I torch my soul to show the world that I am pure deep inside my heart...."
--William Patrick Corgan

     
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