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Model specific boards => Golf mk5 => Topic started by: barlimow on 08 July 2007, 16:42

Title: What's "cost-price" to a dealer?
Post by: barlimow on 08 July 2007, 16:42
Anyone know what mark-up the dealer makes on a GTi / Ed30 / R32?

Thanks :smiley:
Title: Re: What's "cost-price" to a dealer?
Post by: TeddyKGB on 08 July 2007, 16:52
Too much..
Title: Re: What's "cost-price" to a dealer?
Post by: Rhyso on 08 July 2007, 16:57
i reckon about 20-30%  :undecided: i think BWM at least try to run with this line of profit margin  :undecided:

sickening really  :sick:

Title: Re: What's "cost-price" to a dealer?
Post by: illyun on 08 July 2007, 17:30
i reckon about 20-30%  :undecided: i think BWM at least try to run with this line of profit margin  :undecided:

sickening really  :sick:



What do you base that figure on?  If trues its is rather sickening as I have been told by dealers that they don't really make much money from selling new cars nowadays.  Its the part-ex's, servicing, finance, options and things like Autoglym Lifeshine that they get the money from.  Apparently VW has them on a tight leash as regards to selling price and profit margins on new cars which is why they are notoriously difficult to get discounts from.
Title: Re: What's "cost-price" to a dealer?
Post by: Rhyso on 08 July 2007, 17:45
i reckon about 20-30%  :undecided: i think BWM at least try to run with this line of profit margin  :undecided:

sickening really  :sick:



What do you base that figure on?  If trues its is rather sickening as I have been told by dealers that they don't really make much money from selling new cars nowadays.  Its the part-ex's, servicing, finance, options and things like Autoglym Lifeshine that they get the money from.  Apparently VW has them on a tight leash as regards to selling price and profit margins on new cars which is why they are notoriously difficult to get discounts from.

there was an article in Evo a few months back about the new Mini and how BMW was reducing costs as it wasn't making as big a margin other BMW cars and from what i remember it said BMW run at around 20-30% margin.  I'll try and dig out the article to see if I'm right lol
Title: Re: What's "cost-price" to a dealer?
Post by: illyun on 08 July 2007, 17:50
i reckon about 20-30%  :undecided: i think BWM at least try to run with this line of profit margin  :undecided:

sickening really  :sick:



What do you base that figure on?  If trues its is rather sickening as I have been told by dealers that they don't really make much money from selling new cars nowadays.  Its the part-ex's, servicing, finance, options and things like Autoglym Lifeshine that they get the money from.  Apparently VW has them on a tight leash as regards to selling price and profit margins on new cars which is why they are notoriously difficult to get discounts from.

there was an article in Evo a few months back about the new Mini and how BMW was reducing costs as it wasn't making as big a margin other BMW cars and from what i remember it said BMW run at around 20-30% margin.  I'll try and dig out the article to see if I'm right lol

Does this profit go to BMW or their dealer network? Taking into account the fact that the Mk5 is being produced at a relatively high cost compared to say the Ford Focus and I wonder whether dealers make more than 10% if that on the cars they sell.  That would translate to about £2000 on a standard GTI which is around the figure that a couple of dealers have told me.  BTW I'm not trying to defend Stealers - they aren't called Stealers for nothing.   :grin:
Title: Re: What's "cost-price" to a dealer?
Post by: Rhyso on 08 July 2007, 17:53
think i may have mis-read the topic title........ :embarassed:

but I'm not entirely sure to be honest; most likely to BMW directly  :undecided: so you're probably right when you say that the DEALER makes around 10% on the sale of the car  :undecided:
Title: Re: What's "cost-price" to a dealer?
Post by: Peskarik on 08 July 2007, 18:16
I got a 9% discount on my Ed30 (my boss at work has contacts). The dealer will still make about the same. So 15-20% markup is there for sure.
Title: Re: What's "cost-price" to a dealer?
Post by: illyun on 08 July 2007, 20:05
I got a 9% discount on my Ed30 (my boss at work has contacts). The dealer will still make about the same. So 15-20% markup is there for sure.

So they are lying barstewards  :angry:
Title: Re: What's "cost-price" to a dealer?
Post by: Rhyso on 08 July 2007, 20:07

So they are lying barstewards  :angry:

wouldn't be the first time  :angry: :laugh: :laugh:
Title: Re: What's "cost-price" to a dealer?
Post by: illyun on 08 July 2007, 20:58

So they are lying barstewards  :angry:

wouldn't be the first time  :angry: :laugh: :laugh:

I feel like I've been violated.   :rolleyes:  I know why they don't give discounts - its because they know that the Golf GTI has a large enthusiast and almost cult following in the UK and they want to milk us to the max for it.  Its really cynical and disgusting - but its also the law of supply and demand so I suppose I can't begrudge them too much  :sad:  -  barstewards.
Title: Re: What's "cost-price" to a dealer?
Post by: Hully on 14 July 2007, 09:09
Having used to sell cars in a previous life, many years ago now, the dealer markup used to be around 7%.  However, it was manufacturer dependant.  The dealer also gets incentives for selling new vehicles, for example I used to get loads of M&S vouchers, can you believe that!!  :shocked:  If you are getting large discounts that will be the manufacturer passing down bigger discounts to the dealer perhaps on slow selling models, or old stock that they want to get rid of.  Believe me, in terms of pure cash, the markups are much more on used cars, (can be well in excess of 20%).  :nerd:
Title: Re: What's "cost-price" to a dealer?
Post by: illyun on 14 July 2007, 14:26
Having used to sell cars in a previous life, many years ago now, the dealer markup used to be around 7%.  However, it was manufacturer dependant.  The dealer also gets incentives for selling new vehicles, for example I used to get loads of M&S vouchers, can you believe that!!  :shocked:  If you are getting large discounts that will be the manufacturer passing down bigger discounts to the dealer perhaps on slow selling models, or old stock that they want to get rid of.  Believe me, in terms of pure cash, the markups are much more on used cars, (can be well in excess of 20%).  :nerd:

Well thats what the dealers have told me - so maybe they aren't all lying bar-stewards at all.  :rolleyes: