Message-ID: <36E8CCAB.4B5A@ibm.net>
Date: Fri, 12 Mar 1999 00:13:31 -0800
From: ralph <124c41@ibm.net>
Organization: grey lensmen
X-Mailer: Mozilla 3.04 (Win16; I)
MIME-Version: 1.0
Newsgroups: rec.autos.misc
Subject: Re: invoice prices - a sham?
References: <199903090041.BAA02298@mail.replay.com>
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
NNTP-Posting-Host: 32.100.225.111
X-Trace: 12 Mar 1999 05:10:50 GMT, 32.100.225.111
Lines: 33
X-Notice: Items posted that violate the IBM.NET Acceptable Use Policy
X-Notice: should be reported to postmaster@ibm.net
X-Complaints-To: postmaster@ibm.net
Path: news.jprc.com!dca1-feed2.news.digex.net!dca1-hub1.news.digex.net!digex!newsfeed.cwix.com!165.87.194.248!newsfeed.us.ibm.net!ibm.net!news1.us.ibm.net!32.100.225.111
Xref: news.jprc.com rec.autos.misc:31224

Anonymous wrote:
> 
> I got a dealer-friend drunk Friday night and he confessed something to me
> in confidence.  (I'm sorry I have to remain anonymous).
> 
> On a typical entry-level car like the Toyota Corolla LE with an MSRP of
> $14,868, he said dealers have a margin of as much as $7,000.  This is
> incredible to me because I just purchased an LE for $200 under invoice and
> the sales guy was groaning all the while that he was losing money on the
> sale.  My dealer friend said that the Toyota dealer still made a profit of
> at least $5,000 on the car I bought.
> 
> Could this indeed be true????????
> 
> My friend said that if I didn't want to take his word for it, I could
> contact car manufacturers pretending to be interested in setting up a
> dealership and at their orientations I would learn about the true profit
> margins.  I might do that if there are no application fees involved.  The
> enterprising ones among you should probably try this too.
> 
> If dealers make $5,000+ margin on a Corolla LE sold at $200 below invoice
> then Consumer Reports, edmunds, carpoint and others (who ask us to
> negotiate not on the basis of MSRP but on invoice price) are taking us for
> ONE BIG RIDE.  They are in fact hand in glove with the car companies and
> dealers.  And are just as big cheats because they're misleading the public
> en masse.
> 
> Hope someone on this NG investigates and posts their findings here.
Doubt it. More like $500 or $1000. That has to cover a lot besides raw
profit. 
-- 
Fast as lightning, slick as glass.
Out from Hell on a three day pass.
