They also make a ton on used car sales. So pushing new cars puts used cars on their lots.

 

You folks are so naive!

 

Interesting opinion.

Prove it.

 

You have know clue how the game is really play then. I have 25 years plus of sale experience in a simular field and personally know a few owners of dealerships in several states. Plus some of my family members are directly in the automobile business from corporate to sales person for several different brands.
I have the knowledge and real life experience, what do you bring to the table?

 

Just my spelling and grammar suck on this thing.....lol

 

That's not proof brah

 

It absolutely floors me that people still have no idea how any dealership works...

 

Alot of folks don't realize this. When I was selling new and used for a Chevy dealer we got a $200 flat rate for any new vehicle we sold. Used, however, was 25% commission on gross profit. It was nothing to make $1500+ commission on one sale.

I can verify that invoice is not dealer cost. At least on chevrolets, the markup varies depending on the vehicle. Cobalts didn't have much markup. Maybe $800-1000 between dealer cost and invoice. Silverados had much more markup between dealer cost and invoice. Invoice is a good starting point for negotiation. The ford dealer I used sells trucks for $100 under invoice before giving the rebates. I can assure all of you that they are not starting out $100 in the hole on every new truck sale. If a dealer is not making money on the sale, they won't sell it.

As far as saying invoice is dealer cost being a fraudulent statement... It is no more fraudulent than sales ads with "keys" to a "grand prize vehicle" that never existed, or sales ads with cars for $99/month. Sure, I can put you in a Yukon Denali for $99/month with good credit and $45,000 down.... Can't tell you how many times borderline "fraudulent" ads and statements by sales managers got us cussed out by customers or threatened with lawsuits.... These are a few of the reasons I got out of car sales.

As for the statement about service being the big moneymaker? That is 100% TRUE. That and extended warranties. We also made commission ($100 if I remember correctly) if the finance manager sold an extended warranty to our customer.

But then again, I'm just some guy on the Internet with no definitive proof that I ever sold cars or even exist for that matter. Lol

 

Not sure how the dealer LIED about X-PLAN pricing. should have asked for the invoice which shows x-plan pricing....so, its nothing that's hidden.

sometimes, there are extra rebates for x-plan pricing. I got an additional $750 Ford rebate.

 

ADMIN FEE for x-plan is $100 flat fee. Dealer can't charge a doc fee.
$100 is the only "fee" you pay.