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Old 12-15-2007, 04:27 PM
Cliffy1 Cliffy1 is offline
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Default Re: Reasonable dealer profit on Used Truck

What's reasonable and who gets to define it? Better yet, who cares? If a dealer gets the vehicle for free and sell it for fair market value, is that unreasonable? There are times we stumble on to amazing wholesale deals on vehicles. Other times, we bury our used car department so deep in trade-ins that they can't possibly make a profit. None of that impacts what a customer is willing to pay and therefore, what the market will bear.

Quote:
If so, disagreements can occur if the buyer knows the avg selling price and the dealer refuses go below it or close to it.
If that happens, one of two things are going to happen. Either the customer buys the car and thereby raises the average or the dealer sits on his inventory because nobody is willing to pay his price. A dealer who refuses to sell at a consumer defined price is gambling that the customer in front of him is wrong about the value of the product in the marketplace. If he's right, he'll not care if you made a low offer because he found a customer willing to pay his price. If he's wrong, you'll get a call in a few days offering to accept your price and then its in your court to decide if your ego is willing to return.

Used cars is a pure market driven system. New cars is not, but its close. New cars is driven more by manufacturer wholesale prices and incentives. There are certain levels that a dealer just will not sell a car, even if the market will not pay more. With used cars, its probably the best example of a supply and demand dynamic. Profit is totally irrelevant.
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I've moved dealers again. Hopefully this is the last one. I'm at Rosner Toyota in Fredericksburg VA. Call 540-898-7900 and ask for Steve Clifford... they will not know who "Cliffy" is.
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