Dealership pissed me off! Weird!
you were cutting into the many thousands of $ made on new cars !!
Actually no. Not on new cars. I worked for a Toyota dealer many years ago, not as a salesman but as a inventory control specialist. I handled all orders on lot cars and any special orders. I can tell you this, on a say 50,000 dollar car, the factory, whether that's GM, Ford, Dodge etc, is going to get at least 47,000 or roughly 95 %, that leaves the dealer 3,000 in which the salesmen get their stipend. Now this is where it gets a little tricky, but of that 47,000, once the car sells, 30 days later, the factory will issues a bonus check to the dealership, usually 1-2 percent of the price. So take a salesmen's pay, usually 3 to as much as 5 %, a bonus of 1-2 percent and you're looking at maybe making 2 or 3,000 profit dollar profit. Course that's not counting the dealer and document fees they tack on (which i can't stand) and you can probably push that number to 4-5k.
Now, this will really make you mad:
USED CARS.
Everyone now a days say to not buy new and to buy used.....yeah as a consumer you're gonna save money but as a dealer, they WANT, they LOVE, they go to bed at night praying you buy used. Why, well back to math:
Using a 50,000 dollar car. That is the retail value of the car when new. Say it's a 2013 model, low miles, good condition, needs no freshening or mechanical work. So resell retail is say 42,500. Dealers operate on what's called nada black book, not blue book which you always hear about. I can explain the differences but that's another lesson. What they give on trade in would probably be 65 to 75%(for vehicles within couple years of new in excellent shape, obviously the worse shape or more work it needs, this figure will drop to as low as 25% of the resell value or even go wholesale which is worse yet) of the resell retail value. Most of what I saw was they started at the 65% mark in negotiating. So we're run with that. so roughly 27,500. They would then set a price, near that top dollar resell retail value, but they'll stay 1-2 grand under it for a couple reasons, 1, it gives them the line, we're advertising already under book value, you'd be surprised the number of people this line stops from asking for a lower price, and 2, this allows them to tack on those extra dealer fees and still get a bank to approve it quickly and easily (banks don't like approving vehicle much over resell value).
So now we're at say 40,000 for that vehicle, paid 27,500 for it. 12,500 difference, now say it sells for 39,500, leaves us 12,000, remember that figure, salesmen gets their 3% of the sale price(1200ish), now we're done to 10,800, now the dealer tacks on a 1000 dollar doc fee, back to 11,800. That's all profit to the dealer as the factory gets nothing on a used car sale. That's where the dealer makes their money.
I left that business after I learned all that, dealers pay their employees crap wages, almost as bad as walmart, I had it figured out once, my hourly rate being 9.25 an hr(not ban while I was in college that year), the number of cars i processed a day, accounted for roughly 35 cents a car, dealer had 32 hourly staff, 11.20 a car is what the dealer was out.
And if you really want to get even more upset, ask me about how they rape customers on the parts and service side.........its even worse. Car dealerships are pure rip offs, I'd rather go to a local one than a franchise dealer