Arthur Chandleer

The Chevrolet Configurator site lists the basic cost of a 2014 Corvette Stingray Coupe as $51,995.
Assuming no options and no trade-in:
1) What would be the dealer's profit on the sale?
2) Would a dealer in , say, Nashville make more than a dealer in San Francisco because of the lower transportation costs?

AORoads

you are joking, right? first, no one really knows what dealer's profit is. sometimes, not even the dealer until the end of the year or whatever period is used. second, you do know that transpo charges are equalized throughout the country. others will comment. I'm sure. (at myself, that is)

KenHorse

I am possession of the dealer invoice for my ordered C7, which shows about a $6K markup to MSRP

VIN666

Ken, what MSRP on your car?

JoesC5

There should be an additional 3% holdback that the dealer gets that is not shown on the "invoice" you have in hand.

$52,000 MSRP( car that the OP asked about) X 3% = an additional $1560.

KenHorse

I'm tempted to scan the thing and post it up. But I don't wanna **** off the dealer

C6Tim

So true… Anyone who thinks they have a magic formula and knows exactly what their dealer made off a sale is fooling themselves.

My "guess" is any car sold at sticker the dealer makes a minimum of 8K and I believe that number is extremely conservative.

Mike O'Daniel

Between $7k and $9k. They make money too on options and financing if you use that. They have to make a profit, just like any business.

Philr56

Dealers are entitled to profit. That is how they stay in business. The dealer's goal is best price for his merchandise. My goal as a buyer is to pay as little as possible for as much car as I can get. The fine art of negotiation determines the rest.

KenHorse

Matt26

I have 2 examples from Invoice to MSRP. These do not include any hold back.

3LT Z51
MSRP was ~$66,000
Invoice was ~$60,500

1LT Z51
MSRP was ~$56,000
Invoice was ~$51,700

Supersonic 427

On a C7 1LT Coupe with no options that retails for $51,995 there is about $4600 mark up from invoice. There is an additional 3% holdback ($1530 based on $51,000 without freight)) which would be the final dealers cost.

Total about $6000

VIN666

Why can't cars be sold factory direct. How nice it would be.
Buying a car from a dealer is like paying someone to order something from Amazon for you...
They add 0 value.

/rant

KenHorse

Local after-the-sale support for one thing

VIN666

Which they get paid for separately.

KenHorse

If the auto industry is anything like others, the amount a dealer is paid for warranty labor is a mere fraction of typical ongoing rates

proexpert

because of the NADA, a strong Washington DC lobby
(National Automobile Dealer Association)
no way to get around them, just ask Tesla

VIN666

I just don't understand how these markups can be justified.
Car dealers are even worse than real estate agents.
At least those do SOMETHING for you in the acquisition process...

KenHorse

You don't think having to floor inventory, paying for facilities, paying for utilities, paying for employees, paying for insurance is cheap, do you?

VIN666

I do not. But why should I have to pay for them if I ORDER a car.
5 k for 2 hs worth of "work" is ridiculous.

I am not a car buyer that just strolls through dealerships, zips coffee and chats it up, need "guidance" for the purchase etc.
If I could order my cars online straight from the "build your own" screen - I would.