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Take a look at this invoice. v.Denali


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Posted

Equating dealer expense items to "it's OK" to charge them back is just plain wrong. Does Walmart add back the pro-rata cost of the "Greeter"? Best Buy add back the cost of cleaning services? Any time any business adds expense items back they are doing it "to profit". Adding them on at the end of negotiations is pushing ethics....they know that many will pay since you they already decided to buy.

Invoice is not dealer cost, dealer cost is not even dealer cost. There is a factory Holdback-up to 5% to cover expenses including advertising-dealer always gets some unused holdback refunded. Factory promotions like the current Black Friday sales that can be passed on to customers, shared, etc. Volumn or sales quota bonuses, parts discounts based on exceeding sales target, model year change over discounts up to 5%, and the list goes on. Trying to understand Dealer Cost is virtually impossible since some things are vehicle specific and some relate to other general sales activities. All businesses have expenses but few try to recover them by adding them back at the end of the sale.

As another post mentioned Auto Dealers have numerous other profit centers...parts and Service along with Finance and Insurance are two big ones. Extended warranty, fabric protection, exterior protection, credit life ins, finance participation, accessories, used car profit are some individual items that can be very profitable in a well managed dealership.

IMO, those that add back expense items or monkey with markup are using questionable sales tactics and I avoid them. What's next-requiring a tip for the salesman to help pay his salary?

Posted

I cannot post pictures of my truck sales receipt but the MRSP price is and was my FULl price with canadian taxes on. 50,190.00 dollars Window Sticker.

I knew the Dealership Owner.

Posted

WOW!! this was my first new vehicle to purchase and didn't pay attention to that fee...looking back at my invoice mine is 444.45(each) for the "Dealer IMR" & LMA group" contribution!!

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