Thread: Dealer Markups
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Old 05-05-2021, 08:23 PM   #14
Tcoat
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Quote:
Originally Posted by timurrrr View Post
I think they won't be able to mark up too much for too long, if they want to sell enough cars to cover the R&D costs.
These are ~$30k cars, not ~$100k.
LOL "R&D" costs.
It isn't a first run car and the costs for those changes would be peanuts (comparatively of course). They have probably wrote off concepts with far more investment in them than they have put into this update.

The other funny thing is that $100K cars may show as little actual profit as this $30K one. They don't make a pile more on the cars just because they sell for more. The more expensive car will cost more to build and develop. The car companies don't make their money on their top trims they make it on building millions of inexpensive appliance cars. It is a volume business not a high margin one.
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