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BRZ Second-Gen (2022+) -- General Topics General topics for the second-gen BRZ |
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11-27-2021, 02:01 PM | #15 |
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1500 under MSRP. Ordered 8-28. Getting on 12-11. I have bought 9 cars through them though.
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11-27-2021, 04:03 PM | #17 |
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that is a smoking deal, good for you that you have a strong relationship with the dealer. but man, that really reveals just how much profit there is to be made by a dealer even just selling at MSRP...
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11-27-2021, 04:17 PM | #18 |
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At MSRP the dealer gets approximately $2700-$2800.
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11-27-2021, 04:32 PM | #19 |
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Ya the whole "cars are expensive so dealers must make a lot" myth has been around a log time. As you know dealers make their real money on volume, add ons, service and financing not on the individual car itself.
Even the manufacturers make far less per unit than people think. For them it all volume. As far as the places making it up that is simple supply and demand so good for them if anybody pays it but these "inspection" fees are just plain shady business.
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11-27-2021, 04:36 PM | #20 |
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That would not be "profit". Cash flow yes but not profit. The profit on the car comes after all the operating costs are removed. There is going to be very little "profit" from a car.
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11-27-2021, 04:48 PM | #21 |
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Is that a general rule of thumb, or is that specific to the BRZ/86? I always thought that these cars had a lower margin than most (as they are a niche/smaller volume car).
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11-27-2021, 05:08 PM | #22 |
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Ya, I was like “so you guys pay someone 2k to look at the car when it comes off the truck? Are you hiring for that job?” They weren’t thrilled.
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11-27-2021, 07:15 PM | #23 |
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Aye... A healthy business operates on around a 6% margin after all expenses, taxes, etc.
If the dealer buys the car for $30K from Toyota and then sells it for $32K, assuming a 6% margin, that would be $120 dollars in cash profit for the owner of the dealership. But, assuming the amount of work is the same, if they can sell the car for $36K, the margin might increase exponentially and wind up being $2K or more in profit, depending on a lot of different factors. But having a car like this is typically a rare situation. Most dealers make their money selling $20~50/mo warranties on both new and used cars, flipping used cars, kickbacks from banks when they get someone to finance the car for 7+ years at 8% APR, kickbacks from the manufacturer for selling at a certain volume, and selling accessories or getting Bob or Jane to spend $3K on a brake job they don't need. The dealer could part with a BRZ for under MSRP, but if the sales manager does squeeze someone for that much over invoice, it might count towards his commission, assuming they aren't all salaried which I think a lot are anymore. |
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11-27-2021, 08:28 PM | #24 | |
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Quote:
Before the current market conditions, yes dealers made up more profit on deals with financing, maintenance plans, warranties, and the protection packages like wear and tear protection and paint protection. Sometimes the profit from those were more than profit from the car. Honestly when a dealer pledges MSRP I always feel like there’s a catch. Especially if I’m paying cash or not planning to buy anything in the finance department. That’s why I have multiple deposits and back ups.
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11-27-2021, 10:42 PM | #25 |
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I ordered a Limited first week of Nov. Put down a $1K deposit to order it. Sticker is $32K. I was willing to pay MSRP but they insisted I pay $499 for a "Dealer Prep Package". I said fine drop the purchase price $500. He did. Total cash price with TTL and $1K destination is right about $36K.
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11-27-2021, 11:01 PM | #26 | |
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Quote:
In general, the more expensive a car is, the more profit there is (and correspondingly, more you can negotiate off MSRP). If you get a grand off a low-end car you are doing pretty well. To answer OP's question - paid $500 under MSRP. edit: actually $1000 off total because they got me the $500 cash bonus as well and just set up financing thru a bank instead of the dealers financing (same interest rate) Last edited by Rossman; 12-05-2021 at 05:14 PM. |
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11-28-2021, 02:44 AM | #27 |
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@OP, I paid over MSRP today (2k) on limited. Found a sapphire blue that the original buyer had backed out of and the dealership that I had originally reserved one with was telling me that the car was going to be 2.5k over sticker (was able to grab an unclaimed allocation in october).
Carvana's picking up my 2019 TRD (13k miles) for 1k less than what I paid for the BRZ tomorrow. Wasn't too bad, basically paying 1k + tax to go from the 2019 TRD to the new BRZ. LA/OC area. |
11-28-2021, 07:34 AM | #28 |
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Also paid MSRP for an MT Limited, but honestly didn't even haggle so not sure if I could have gotten it down some. The dealer didn't try to tack anything on, and I figured MSRP was a 'good deal' given the current supply situation.
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