last month, only 4,744 cars were sold.

of those, only 2700 were G sedans.

only 4700 cars total in the whole country.

how do dealerships offer $500 below invoice, and still stay open?

 

Dealerships really don't make much money from car sales, most of it comes from service

 

labor is a biatch
if you dont have warranty like me
like my infiniti dealership wanted $180 to change my 3rd brake light behind my window.!!
but thanks to my fellow G members who told me on how take the light out, i took it out and changed it myself in 1 min..stealership FTL!

 

I heard the dealership incentive is currently $2500, so if they sell a car for 500 below invoice they would be making at least 2k from Infiniti, but there is prolly, other stuff baked in they are making money on, also they should make money on the trade in's more than most probably do.... oh yeah and the service is crazy

 

nah. i'm talking about $500 below invoice BEFORE incentives.

with incentive, $3000 below invoice.

everyone should be able to get at least 10% off msrp on an infiniti before incentives.

 

Profit margin for new cars is far below what it is for used cars. More used cars the dealership sells the better it does.

 

Actually, I think the article stats are for all North America so it's countries not country. link
I guess that makes it seem even worse.

 

Some dealerships require maybe 5-6 cars to be sold per month to stay alive with their current staff and as some stated, it comes from the service mostly. A lot of people buy stuff for their car (lights, lowering kits etc...) and don't know how to install them or don't want to mess with it so they go to their local dealership and pay the 'Arm and a Leg' labor to install them. That's my guess / theory.

 

Parts and service

 

+1 we used to own a few dealerships in south america and even though the profit margins on car sales are better overseas than in the US due to the lack of competition, most of the money comes from parts and service usually scrapes by.

 

well that's the trick really, most dealerships operate in the red.

like any retail business, they're trying to sell you the service. (and the buying and selling of used cars)

they'd never make money on just new stuff..

 

- end of the month and quarter kickbacks (not shown on invoice)

- used car sales = major profit centers. figure 2k-5K profit on our cars EACH

- service. 100% markup on parts over nissan prices, 150% over aftermarket.

dealer wanted 53 bucks to "install" navigation update DVD. my understanding is installation amounts to inserting the DVD into the slot.

still, many dealers are hurting. they don't talk about it to the public because it's an image thing, but sales person turnover is very high and you can hear it in their voices. they are very touchy on deals because they have to make every deal count and they are simultaneously afraid of losing you as a customer and wanting to extract as much profit/comission as possible from you.

it's like when the price of gold drops and you don't want to sell you huge stash of bullion at a loss, but you are still paying somebody to store it, guard it, insure it, etc. makes your pants a little tight. (i picked gold as an example we could all relate to, right??? ha!)


amp

 

Im not happy with my Infiniti dealership at all! My speakers on the left side of the car is not working and I took it in (still under warranty). They told me they need to order a new head unit and it will arrive in 6-7 days. I called back 2 weeks later, and they told me it has never been order and that I have to take the car back in again. I told them why dont they just order the part, and when it arrives they can fix it. They said no, and they have to inspect it again. Bunch of waste of time!