Quote:
Originally Posted by ShadMan
Hmmm...not sure if that is the true dealer invoice on that truck, unless it is a Duramax. The MSRP is usually $10k or more over dealer invoice. If it's not a Duramax, he ain't showing you the real invoice. If it's a Duramax, that's a decent deal for a base model.
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Not anymore. The difference between MSRP and invoice has been shrinking for the past 10 years. Used to be if we had an F150 with MSRP of $25,000, we had about $4,000 of markup + rebates to fool with. No longer. On a $20,000 vehicle, we have about $1,000 of profit margin + rebates to work with. On a $30,000 MSRP, we have about $1,800 or so to play with + rebates. Occasionally, you will find giant rebates, like in the winter of 2008, when business was falling off and all mfgrs were over stocked. I was selling regular cab V6 auto trans F150s that stickered for $21k for $14,500. I sold 3 F350 Duallies that stickered for $53k for $39,500. That was an anomaly, we just had huge rebates from the factory to move inventory.
If I had $10k to play with between invoice and msrp + rebates, that would make my avg profit $6,000, which would pay me $1,800 commission per truck. Times that by 10 trucks per month, that would be an $18,000 paycheck per month.
Salesman's commission on profit is 25-30%. To make any kind of decent money, you have to sell 10 trucks or more per month. I'll sell em all for invoice if I need to so that I can get my unit bonuses.
80% of my business is repeat customers/referrals, and 80% of that is commercial business.
Once again, if you question the dealer's invoice, just get a copy of the window sticker and build the truck on Edmund's or NADA.
Nobody I know would take the time to create fake invoices. You would need 2 sets of files, the real files and the fake files. LOL.