April B/S thread
Lead Driver
Joined: Jul 2007
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hey guys.
dave, i dont know about the auto dealers, but our truck dealership will cut a truck loose at cost if it has been sitting on the lot long and we know it will be serviced at our shop. the service dept is keeping our dealership afloat and has been for a few years now. they recently sold 3 trucks for a $9,000 loss just to get them off the lot and free up the funds to invest in something more profitable (or pay bills). if a vehicle sits on the lot it is losing you money.
dave, i dont know about the auto dealers, but our truck dealership will cut a truck loose at cost if it has been sitting on the lot long and we know it will be serviced at our shop. the service dept is keeping our dealership afloat and has been for a few years now. they recently sold 3 trucks for a $9,000 loss just to get them off the lot and free up the funds to invest in something more profitable (or pay bills). if a vehicle sits on the lot it is losing you money.
Lead Driver
Joined: Jul 2007
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another note about trades- my dealer will take a trade on pickups if they already have a buyer for it (usually another dealer). the buying dealer is asked "what will you pay us for this?" we then come back and offer the customer $2000 less, and if they go for it we just made 2k without doing anything.
Diesel Van Enthusiast
Joined: Jul 2008
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From: ~ Qatar ~
Hi AaronWhen I worked at Harley-Davidson in Stratford the trade-in was taken under similar terms.
If it was not an H-D then they checked with the wholesalers first.
If it was an H-D then depending on its age & condition they would take it for their own used line-up, or they would would try and see if it could be wholesale off, and also if it was sort of a 'classic' then they'd ask the mechanics if they wanted to make an offer on it for their own side-line restorations.
Moderator
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From: Greenfield, MA
I just read it...and...was considering my response. I find it interesting that folks who "used" to sell cars are always giving people advice about buying cars. There are a whole bunch of people who "used" to sell cars...it generally means that they weren't good enough at it to make a living.
In general the sales department of dealerships haven't made money in years. An automobile dealership is an incredibly expensive business to operate. The car/trucks on the lot are...in the vast majority of cases...financed...there are salaries...taxes...insurance...property up keep...etc that add to expenses. One dealership that I know of pays approximately $150,000 per month for their floor plan interest!!!
Every deal is worked to maximize dealership profit...just like any business. I'm sure that the supermarket that you shop at makes a profit...as does the service station that you buy your gas at...as does the utility that you buy your electricity or natural gas from. I don't think there is another industry that is as closely scrutinized as the automotive business...our vehicle costs are published in many sources. When was the last time you saw the actual invoice price for the living room set you were looking at.
Profit is not a swear word...caveat emptor. Keep your negotiations professional...don't let emotions get involved. You can not be an effective negotiator unless you are willing to walk away from the deal.
I've been making a living selling new and used cars and trucks for more than 26 years now. Just a wild guess...but...I must be doing something right!!!
Lead Driver
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Lead Driver
Joined: Jul 2007
Posts: 5,715
Likes: 1
Every deal is worked to maximize dealership profit...just like any business. I'm sure that the supermarket that you shop at makes a profit...as does the service station that you buy your gas at...as does the utility that you buy your electricity or natural gas from. I don't think there is another industry that is as closely scrutinized as the automotive business...our vehicle costs are published in many sources. When was the last time you saw the actual invoice price for the living room set you were looking at.
Profit is not a swear word...caveat emptor. Keep your negotiations professional...don't let emotions get involved. You can not be an effective negotiator unless you are willing to walk away from the deal.
Moderator
Joined: May 2007
Posts: 158,670
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From: Greenfield, MA
The dealer who acquired our dealerships 4 1/2 years ago has approximately 5-6 million dollars invested...and...is facing the prospect of building a new facility...sooner rather than later. That should cost around 3 million +/-...as I said...car dealerships are incredibly expensive businesses to operate.
Lead Driver
Joined: Jul 2007
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nice! what are you using for bait? i was never good at fishing, too impatient and never caught anything. i tried live worms, corn kernals, hot dog pieces, the only way i could catch one was to snag it.
Diesel Van Enthusiast
Joined: Jul 2008
Posts: 5,147
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From: ~ Qatar ~
In the creek & rivers around us, it works on the native Brook Trout and the Bullhead Catfish.
I have used canned kernel corn packed in water up there and have been successful with that on my rig.
Down here in Connecticut I found that the same setup would got me some pan fish, bass and pickerel.