Apparently "Invoice" means little nowadays

Rebecca Banner
Just look at Dealer Margins over the past few years. Buying at invoice is a dealers dream. I suspect there is money on the back end that is not released which makes selling at "invoice" a winner for dealerships. Looking at these stats does not lead me to believe dealers have gone from making 15% spread to a measly six percent? I seriously doubt it. The "invoice" websites are in cahoots with dealers.....I am thinking there HAS to be more backend money paid to dealers to Stay in business which means at least a 10% or more Gross profit... Selling at anything at or above "invoice" is a home run sale % GROSS PROFIT BUILT INTO THE STICKER PRICE (MSRP — Invoice Price ÷ MSRP = % Markup/Gross Profit) ACURA TL SEDAN 1994 – 15.2% 1996 – 13.2% 1998 – 10.7% 2000 – 9.8% 2003 – 8.8% 2007 – 8.3% 2008 – 8.1% 2011 – 7.2% 2012 – 6.4% Acura TSX Sedan 1994 - 14.1% 1996 - 12.1% 1998 - 10.7% 2000 - 9.8% 2004 - 8.8% 2007 - 8.2% 2008 - 8.0% 2011 - 7.0% 2013 - 6.2% Audi A4 Sedan 1993 - 15.2% 1995 - 12.1% 2000 - 11.1% 2002 - 9.1% 2007 - 7.4% 2013 - 7.1% Audi A4 Avant/AllRoad 1993 - 16.4% 1998 - 11.5% 2000 - 10.6% 2002 - 9.2% 2007 - 7.4% 2013 - 7.0% BMW 3-Series Convertible 1993 - 16.3% 1995 - 15.9% 1996 - 13.6% 1998 - 12.4% 2000 - 9.5% 2002 - 8.6% 2013 - 8.0% BMW 5-Series Sedan 1993 - 16.2% 1998 - 12.4% 2000 - 9.7% 2002 - 8.7% 2013 - 8.0% BMW 7-Series Sedan 1993 - 18.2% 1996 - 13.9% 1998 - 12.5% 2000 - 9.8% 2002 - 8.7% 2013 - 8.0% Buick LaCrosse 1993 - 12.5% 1995 - 10.5% 2000 - 8.5% 2007 - 5.5% 2013 - 4.0% Buick Regal 1993 - 12.5% 1996 - 8.5% 2013 - 4.0% Cadillac DTS/XTS 1993 - 13.5% 1995 - 8.5% 2000 – 8.2% 2007 - 6.5% 2013 - 5.5% Chevrolet Corvette 1993 - 14.5% 1998 - 12.5% 2007 - 10.5% 2013 - 6.5% Chevrolet Impala 1993 - 12.5% 1995 - 9.5% 1998 - 8.5% 2007 - 5.5% 2013 - 4.0% Chrysler 300 1993 - 12.7% 1995 - 10.0% 2000 - 8.8% 2003 - 8.3% 2005 - 7.4% 2007 - 7.0% 2011 - 5.0% 2013 - 4.6% Chrysler Town & Country 1993 - 10.4% 1994 - 9.6% 2002 - 8.9% 2011 - 6.0% 2013 - 5.2% Dodge Charger 1993 - 12.9% 1995 - 10.1% 1998 - 8.7% 2004 - 7.5% 2007 - 6.9% 2013 - 4.5% Dodge Grand Caravan 1994 - 10.0% 2002 - 9.0% 2005 - 8.5% 2011 - 5.4% 2013 - 4.8% Ford Explorer 1993 - 11.4% 1996 - 10.3% 2003 - 9.6% 2008 - 7.2% 2011 - 7.0% 2013 - 6.8% Ford Mustang 1993 - 10.4% 1995 - 10.0% 1996 - 9.1% 2002 - 8.5% 2011 - 8.1% 2013 - 7.7% Honda Accord 1993 - 16.0% 1995 - 11.6% 2000 - 11.1% 2002 - 10.0% 2011 - 9.4% 2012 - 8.6% 2013 - 8.5% Honda Civic 1993 - 15.0% 1995 – 10.3% 2000 – 9.7% 2002 – 8.6% 2011 – 8.0% 2013 – 7.1% Hyundai Accent 1993 - 9.8% 1998 - 7.4% 2000 - 6.4% 2013 - 2.9% Hyundai Elantra 1993 - 11.7% 1998 - 10.4% 2000 - 8.0% 2007 - 7.5% 2013 - 4.2% Hyundai Sonata 1993 - 12.3% 1998 - 11.9% 2000 - 10.8% 2002 - 9.8% 2013 - 6.5% Infiniti G Sedan 1993 - 20.0% 1995 - 16.0% 1996 - 15.2% 2003 - 9.4% 2007 - 8.0% 2011 - 7.7% 2013 - 7.4% Jaguar XJ Sedan 1995 - 18.4% 1996 - 15.9% 1998 - 12.6% 2007 - 8.9% 2013 - 8.0% Jeep Grand Cherokee 1993 - 9.9% 2002 - 8.8% 2011 - 6.0% 2013 - 5.1% Jeep Wrangler 2-door 1993 - 9.1% 2007 - 8.8% 2011 - 5.9% 2013 - 5.8% Lexus ES Sedan 1994 - 18.0% 1995 - 17.0% 1996 - 15.0% 1998 - 13.1% 2002 - 11.3% 2008 - 10.3% 2011 - 9.3% 2013 - 6.3% Note: Lexus also eliminated holdback on all its vehicles in Feb ’12 to squirrel away more profit dollars that you could previously identify. Lexus GS Sedan 1994 -18.0% 1995 - 17.0% 1996 - 15.0% 1998 - 14.1% 2007 - 13.0% 2008 - 12.0% 2011 - 11.0% 2013 - 7.0% Lexus LS Sedan 1994 - 20.0% 1995 - 18.0% 1996 - 16.0% 1998 - 15.2% 2002 - 13.0% 2008 - 12.0% 2011 - 11.0% 2013 - 8.0% Lexus RX SUV 2000 - 13.1% 2002 - 12.0% 2004 - 11.5% 2011 - 9.5% 2012 - 6.5% Lincoln Town Car 1993 - 15.3% 1995 - 13.0% 1996 - 12.0% 1998 - 9.0% 2003 - 8.6% 2011 - 6.2% Mazda3 Sedan 1993 - 9.9% 1995 - 8.9% 2000 - 7.5% 2011 - 6.4% 2013 - 4.4% Mazda6 Sedan 1993 - 12.9% 1995 - 10.9% 1998 - 10.0% 2000 - 8.8% 2002 - 7.8% 2011 - 7.6% 2013 - 5.6% Mercedes C-Class Sedan 1993 - 17.0% 1995 - 15.0% 1998 - 13.0% 2000 - 2013 - 7.0%. Mercedes E-Class Sedan 1993 - 17.0% 1996 - 13.0% 2000 - 2013 - 7.0%. Nissan Maxima 1993 - 13.3% 1995 - 12.5% 1996 - 11.0% 2000 - 10.1% 2004 - 8.6% 2013 - 8.4% Nissan Sentra 1993 - 11.8% 1995 - 10.8% 1996 - 9.4% 2000 - 8.6% 2013 - 6.7% Subaru Legacy Sedan 1993 - 12.1% 1995 - 10.5% 2000 - 9.4% 2007 - 7.2% 2011 - 6.8% 2013 - 6.2% Subaru Outback Wagon 1993 - 12.1% 1995 - 10.5% 2000 - 9.4% 2007 - 7.2% 2013 - 6.4% Toyota Camry 1993 - 16.0% 1995 - 13.3% 1998 - 12.5% 2002 - 11.0% 2008 - 10.8% 2013 - 9.0% Toyota Corolla 1993 - 14.0% 1995 - 12.3% 1998 - 11.4% 2003 - 9.5% 2013 - 7.3% Toyota 4Runner 1993 - 15.5% 1996 - 13.2% 1998 - 12.5% 2003 - 10.7% 2008 - 9.7% 2013 - 8.0% VW Jetta Sedan 1994 - 9.6% 1995 - 7.7% 2000 - 9.0% 2002 - 8.8% 2007 - 6.6% 2008 - 5.4% 2013 - 4.0% VW Passat 1993 - 11.8% 1995 - 10.0% 2000 - 8.1% 2007 - 7.3% 2008 - 6.4% 2013 - 4.1% Volvo S80 Sedan 1994 - 14.0% 1995 - 9.5% 1996 - 8.6% 1998 - 8.4% 2000 - 8.2% 2002 thru 2013 - 6.0% Volvo XC70 1994 - 13.6% 1995 - 9.1% 1996 - 8.3% 1998 - 8.1% 2000 - 7.4% 2002 thru 2013 - 6.0%
Tammy Anthony Baker
I think many are trying to relate that 6% to more of what you would expect from a realtor. Everyone knows and widely accepts real estate commissions are 6% so automotive is in a hustle to mimic those accepted profits. Much like homes, autos are big ticket purchases and buyers are fine with a reasonable profit. The problem to overcome is how buyers rarely offer the "asking price" for homes and instead use the offer, counter offer process, to eventually meet in the middle. If dealers more adequately disclose the property cost and even represent it like real estate agents disclose property history, comps, and the like, buyers will be more permissive of a reasonable profit. I don't think holdback, stairstep, or backend money, is not even on the radar of most mainstream buyers.
mark rask
We use a volume approach and make it up on the backend or on the trade

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