How much do you think they make?

[Chaad32]

How much do you think the car dealer makes off one of these (say a liftback with convience package) if you paid MSRP???

[Chaad32]

I've never worked in the car dealer market but I would like to hear from those who have.

[Chris07LB]

Hummm.. good question Chad.

[fnkngrv]

My cousin's husband in the Twin Cities, Minnesota showed me that they are only making 550 bones at MSRP for this car and that is one of the reasons why they aren't working hard for people to sell them cause they aren't pulling much. This is the first year in the states so they are really trying to keep the cost low (Toyota Corp) for initial entry.

[Chris07LB]

My cousin's husband in the Twin Cities, Minnesota showed me that they are only making 550 bones at MSRP for this car.

No wonder some dealers are marking up a few hundred over MSRP then! :mad:

[Chaad32]

That makes sense because what I have been told is that these cars are intended to introduce people (young new buyers) to the product line so they will come back for an upgrade. This would also explain that when I tried to talk them down it seemed like they didn't really care and would have let me leave.

[fnkngrv]

Yup that would be it Chaad....When I found that out from my cousin-in-law:confused: if that is what you would call it, he informed me at that time to not even bother to ask to get a lower price or accessories thrown in cause they would not budge...they are almost losing money on this car this model year in the States.

[07WYarisRS]

Our local dealer told me after a week or so of hagling prices they only make $900 CND, and that was the reason they don't like to give discounts on the econoboxes like they do on bigger cars like the FJ cruiser etc.

[El Jefe]

ya i was pissed when i found out my employee discount was only $400 off msrp :mad:

[Boo]

ya i was pissed when i found out my employee discount was only $400 off msrp :mad:

It sounds like a great deal. I can get another video ipod with that money!:laugh:

[yoyoche]

My first post, but I've been reading the board for a couple of weeks. Here's my experiece.
First dealer would not budge off of MSRP. Went into second dealer. Told him I knew they didn't have much margin in these cars, but would he do anything for me. He said he would split with me which came to about $360. This was on a Sedan with the auto, cold weather, convenience package, and floor mats. Sticker price was $14100. My total price with tax and some other $147 charge (can't remember what that was for) was $14722. They did not have the colors my wife wanted so they are to trade cars with another dealer. Told me they would have it in a couple of weeks ( it has been 1 week so far). They requested $500 down.
I was happy to get that after reading so many paying MSRP

[Chaad32]

I paid MSRP for my base L/B (which I am guessing that they make even less on the base models) but I talked him up 1,000 USD on my trade from what kelly blue book said it was worth. So overall I fell I got a good deal. Just food for thought for those who are thinking of buying one.

[costaricandreams]

They make about 1k after dealer holdback. Then they make money off financing. Dealers always pay below invoice. Never believe a word that falls from their lips. Visit www.edmunds.com and you can get a good estimate.

[eight_heads]

well i got a 3dr 5spd liftback w/convenience pkg. for $12k even... so that's a little under msrp.... so i'm happy

[TrancosRt]

12even is what I agreed with my salesman. I just hope he is true to his word at the moment of truth (I haven't picked up my car yet).

[TRD_Yaris]

Well, the "invoice price" that dealers pay is NOT exactlyl true. See, back in the day (before the general public knew about INVOICE vs. MSRP), there was a $3000 + difference between INV & MSRP..but quickly "selling near invoice" became anothe "Game" the dealerships could play to make people believe they were getting a good deal.
In reality, dealerships buy cars in bulk, and when they buy (let's say) 20 cars, they get 1 free. So, not only are they paying invoice (which might be $1000 or less), but they are actually paying 1/20th less as well, since they will sell all 21 cars (20 paid + 1 free). That's why dealerships STRESS to get as many cars sold a month as possible, their cars get cheaper and cheaper the more cars they move..volume is very key to most dealership (with exception of premium brands..though they are still slightly affected but to a MUCH smaller extent since they tend to do WAY LESS sales)

anyway, it's all games. If you can't get the car for the price you want, kick the salesman in the nutz and ask again. Repeat.

[boxerboy]

It's business, That means that they will try to make as much money (profit) as the public is willing to give. If one dealer won't work with you find another.

[weeze-dog]

Don't forget that $580 "destination charge" which is just profit to the delear.

[Chaad32]

I thought they paid to have them shipped....(destination cost). I didn't know that was profit?

[costaricandreams]

Destination charges are not profit for the dealer. Hell. The thing came over from Japan. It's the documentation fees that they make some $$$ with.

[captainzerocool]

The local Toyota dealer here in Huntsville, Al has their very own $399 processing fee and $1000 prep fee.

This is on TOP of the MSRP!

[Chaad32]

wow...mine had a $179 fee for processing

[Chaad32]

no prep fee

[TRD_Yaris]

again. kick them in the nutz. Ask again. repeat as necessary until you get ATLEAST MSRP or less...

[seriousfun]

My brother sells Toyotas for a living, a few hundred miles away from where I live.

He told me to buy it down here! He showed me just how much the dealer paid, and how much he would make on this one car. I didn't bargain at all with the salesman, but the finance manager probably walked funny for a while after I got done with him...

[fnkngrv]

The local Toyota dealer here in Huntsville, Al has their very own $399 processing fee and $1000 prep fee.

This is on TOP of the MSRP!


dude...wtf is a prep fee????

[Chaad32]

dude...wtf is a prep fee????

I think it is a quasi-hidden fee that they charge to prep the vehicle. Most dealers I have seen don't have it and the ones who do usually take it off the price to make the customer feel like he talked them down.

[makelikemorning]

I signed the paperwork on a Barcelona Red sedan with the convenience package, automatic transmission and floor mats last night. It MSRPed at $14,100.00. I was initially told by the salesperson that they would not budge on the price; I was going to pay MSRP or not at all. As my fiancee was busy feeding our infant son, we couldn't just up and leave, and really, this worked to our advantage as we had an excuse to hang around for reasons other than interest in the car.

The salesman returned with someone else from his team: The negotiator. He handed me an invoice right off the bat. It was consistent with the one I'd pulled from Consumer Reports: $13,270.00 not including their $251.00 holdback (which was actually in the fine print on the invoice... I was impressed). In addition, there was a charge for advertising in the amount of $125.00. I understand from what I've read and Edmunds that this is legitimate and reflects an actual expense on their part. So, their invoice is $13,395.00. I took my time reviewing it. I asked a couple questions I knew the answers to already just to waste a few more minutes. I offered invoice. He immediately countered at $400.00 over invoice without even blinking. That's $13,795.00. I repeated myself: Invoice. I told him that he hadn't yet beat the deal another dealer had given me. This technically wasn't true as I hadn't discussed pricing with another dealer yet, but I was trying to save myself the trouble of going through this process more times than necessary.

The negotiator left for a few minutes - presumably to talk to his sales manager - and returned with a counter of $200.00 over invoice. I offered $100.00 over invoice. He steamed off, using an explicative. A few minutes later, the general manager himself showed up to play the good cop. I tried to haggle with him a little... I told him another $100.00 off and we'd have a deal. He wouldn't budge, so I walked.

The next day - the last day of the month - I get a call from the salesperson I originally talked to. I asked him one last time whether or not he could work on the price. He claimed he couldn't, so I accepted and signed the paperwork that evening.

Here's what I paid:

$13,595.00 + $195.00 "administration fee" = $13,790.00. That's $505.00 below their original asking price ($14,100.00 MSRP + $195.00 "administration fee" = $14,295.00).

Holdback considered, their cost for acquiring the vehicle was $13,144.00 (that's an invoice of $13,395.00 - $251.00). I'm guessing that 50% of the "administration fee" reflected actual expenses and the other 50% was profit, so let's add the $97.50 expense to that figure, making it $13,241.50.

So... $13,790.00 - $13,241.50 = $548.50 margin, but as someone else said, there are volume discounts and other hidden ways the dealers reduce their cost.

The point is: If you're asked to pay MSRP - and certianly if you're asked to pay over MSRP - keep searching. Shop on the last day of the month if you have to. Of the three dealers we visited, two would work with us (one even went $96.00 lower than the price I paid, but they only had black, which I really, really didn't want) and another wouldn't budge off of MSRP, choosing to let me walk instead.

[tomjasz]

Sedans are eay to get and there are quite a few on the ground here, liftbacks are sold BEFORE they are unloaded in Las Vegas. That being said my time is more valuable than pissing around with a dealer for a few hours over a couple of hundred dollars.

All things are not equal between regions!

[makelikemorning]

That didn't seem to be the case at all here. I've been finding two or three liftbacks on the lot for every sedan I could locate. At one point, I even suggested to my fiancee that we take one of those because they were so much easier to find, but we have a child, making the sedan a better choice. Furthermore, I had to buy my sedan sight-unseen - like you said, before it even unloaded.

I'm guessing that you're either independently wealthy or that you make at some outrageous amount of money to be able to state that a few hours' time isn't worth a couple of hundred dollars to you, but if that's the case, I'm wondering why you decided to invest in such an inexpensive car as a Yaris. Simple math reveals that it's many times over worth it for me; I would have sat there all day for a couple of hundred dollars. Besides, playing the game with dealers is a rush once you get a handle on it.

[tomjasz]

I'm guessing that you're either independently wealthy or that you make at some outrageous amount of money to be able to state that a few hours' time isn't worth a couple of hundred dollars to you, but if that's the case, I'm wondering why you decided to invest in such an inexpensive car as a Yaris. .

I've worked very hard and am near retirement. I've had 9 Toyota vehicles in 15 years. The last, before the Yaris, was a paid for 2005 Tundra TRD 4DR. I decided I would retire at 55 and in order to do that and still be able to play and travel as I've become accustomed to, I'd have to downsize somewhere. When I ran the numbers I can save 3200USD/year just on gas by driving a Yaris. I still have another 9 months to work and I do get paid quite well, but I also work very hard at my craft. The hours that I would waste at a dealership could be spent on consulting jobs which earn a substantial side income. I actually moved to Las Vegas 22 years ago from the Caribbean and drove here in a Toyota Liftback sporting a ponytail. I intend to leave as I came, in a bottom of the line Toyota, but with a somewhat balding ponytail. Interesting how life progresses and regresses.... that being said I predict the Yaris will be the peoples car of the decade, and it's the right thing to do. :evil: :evil: nough kids have died for oil!:evil: :evil:

[tomjasz]

I'm guessing that you're either independently wealthy or that you make at some outrageous amount of money to be able to state that a few hours' time isn't worth a couple of hundred dollars to you, but if that's the case, I'm wondering why you decided to invest in such an inexpensive car as a Yaris. .

I've worked very hard and am near retirement. I've had 9 Toyota vehicles in 15 years. The last, before the Yaris, was a paid for 2005 Tundra TRD 4DR. I decided I would retire at 55 and in order to do that and still be able to play and travel as I've become accustomed to, I'd have to downsize somewhere. When I ran the numbers I can save 3200USD/year just on gas by driving a Yaris. I still have another 9 months to work and I do get paid quite well, but I also work very hard at my craft. The hours that I would waste at a dealership could be spent on consulting jobs which earn a substantial side income. I actually moved to Las Vegas 22 years ago from the Caribbean and drove here in a Toyota Liftback sporting a ponytail. I intend to leave as I came, in a bottom of the line Toyota, but with a somewhat balding ponytail. Interesting how life progresses and regresses.... that being said I predict the Yaris will be the peoples car of the decade, and it's the right thing to do. :evil: :evil: enough kids have died for oil!:evil: :evil:

[makelikemorning]

I've worked very hard and am near retirement.

Yeah; it sounds like we're in radically different economic situations! Though, I was really surprised by how little time the negotiation process took me. We're talking about the time it took a four-month-old to consume a six-ounce bottle. I'm guessing that I just caught the dealer right where I needed them. They were busy as all get out, and it was month end. They obviously needed the sale, but didn't have the time to invest in getting the money out of me they wanted by jerking me around.

Congratulations on your purchase!

[tomjasz]

For a childless (by choice) couple feeding an infant COULD seem like an eternity. :iono:Hope you and yours also enjot the ride. You've done very well!!!!:bow:

namaste

[why?]

Ok guys, an entire thread on this and no links? lol.

www.edmunds.com
www.kbb.com
http://www.nada.com/

All these sites will list "invoice prices."

After invoice, dealers get a kickback for each car they sell from the manufacturers, which is usually 2-3%. This money is usually kept by the dealership owner. Also, as was listed above, dealerships get bulk discounts of some type, depending on the manufacturer.

[thefan]

seems like no one got a good deal ut of a small car. I was told that to. Some of the dealers wouldnt budge except but when i told them i was serious about purchasing a car they just sat and listened.

YRX YARIS HATCHBACK AUTO 5 DR

car rrp 22090 down to 20081.82
metallic paint 195.45
mats 95

other
rego 259
ctp 335
dealer delivery 1540.90
stamp duty 657

[Chaad32]

Thats how it goes on these cars.

[fantabulousbaby]

fyi if u buy msrp they make bout 700.. and there r no incentives 2 work with right now. for details on the great deal i got on my yaris 's', read my thread titled 'thx 4 all ur help.

[tomjasz]

fyi if u buy msrp they make bout 700.. and there r no incentives 2 work with right now. for details on the great deal i got on my yaris 's', read my thread titled 'thx 4 all ur help.


Are you driving this great deal yet?