Quote:
Originally Posted by micosilver
You keep posting about $500 over being a "winning deal" or a "good deal" for the dealership, but how does it make sense giving away spots for cars lot yet built without any profit? Sure, once we have a few of those on the floor - then we can deal in volume, but why would dealers give them away, and ending up with no cars for people that are willing to give them some profit?
There will be people knowlingly willing to pay more for a car in stock, instead of waiting 2-3 months to save $500. You might not be one of them, but they also deserve a chance to get what they want.
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There are 2 buyers in this world: the educated and the no-clue-how-to-negoitate. I'm guessing you are a CA, so you should already know this.
Bob (a bimmerpost member) walks into your dealership. He grabs the sales manager and offers 500 over invoice minus incentives to order the car. You spend 40 minutes on the credit check, ordering, etc. and are done with Bob. The car comes in, Bob picks it up and you spend no money on floor space, financing, etc.
Net profit from Bob: 500 + CSI (~2500 on a 328). You most likely got your min. though I would assume, but hey do more of these and you'll get a volume bonus.
Donald "the dumbass" walks on the lot. "Oh hey that 328 with the two tone modern line interior is way cool". Of course Don wants a test drive, wants to look things over, get his wife in there to see it, and take up your time. You end up spending hours with Don the "dumbass". Will Don end up buying from you...maybe...maybe not (not as sure as Bob that's for sure).
Say Don the dumbass does decide on buying. Well he likely knows nothing about rebates and such forth so you milk him. $1800 over invoice and keep the credits.
Net profit: 1800 + CSI + creds (if apply)
On the other hand, he took up hours of your time and was not a guaranteed sale like Bob. Plus that car sat on your lot for quite some time eating up sales profit. Who is the better bet, well I guess neither or both depending on how you look at it. Less money for a quicker and sure deal or more money for a time consuming gamble at best. Got to prepare and cater to both crowds.