Currently in the Chicago area there is a $900.00 cash back promotion from Toyota. Destination charge in the Chicago area is $565. Invoice cost of the Limited I'm looking to buy is $33,748. Add $4,508 of options, add $565 destination charge and subtract $900 Toyota cash back and the total is $37,921 not including tax title and registration. The dealer gets 2% on base MSRP dealer hold back, in my case base MSRP is $37,795 and 2% of $37,795 is $755.90. If I buy the 4Runner at invoice and don't let the dealer charge me for any BS items like advertising fees, does the dealer have any other source of income other than the $755.90 dealer hold back?
Dealer Profit
- Thread starter Boxie
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krosno3
New member
I tried that kind of calculation and it didn't work. I used www.carbuyingtips.com website to figure out how much I should pay for my car and how big dealer's profit would be. However when I went to them with that price, all of them said NO..... Eventually I got mine 300 below invoice and I bought it over the Internet. Before I started looking around for best price I thought they wouldn't let me go out of the door because they want to sell car no matter what.... Well...I was wrong. After 2 weeks of searching I bought mine at Elmhurst Toyota and from my calculation looked like dealer made almost 5% profit. It was the lowest price I found on Sport Titanium at that time and I think it wasn't that bad.
My advice...Try everything... Also contact dealers via Internet because usually they offer the best price.. Try Schaumburg Toyota over the Internet...Guy over there was really nice to deal with...Give yourself some time and check few dealers..After all that You'll buy it from dealer that will sell it for You for lowest price.. Also it is a different story if You buy it from dealer's stock or if You want to order it..
Good luck and I hope looking for You new 4Runner will be a lot of fun for You..I know it was for me...
: and it will be much easier for me to buy my next car (4Runner of course....
) after this one reaches 200 000 miles.....
Also we are planning Chicago/Illinois Meet in March so I hope You will get it by then and You will join us to show You new 4Runner.....:arrow:
My advice...Try everything... Also contact dealers via Internet because usually they offer the best price.. Try Schaumburg Toyota over the Internet...Guy over there was really nice to deal with...Give yourself some time and check few dealers..After all that You'll buy it from dealer that will sell it for You for lowest price.. Also it is a different story if You buy it from dealer's stock or if You want to order it..
Good luck and I hope looking for You new 4Runner will be a lot of fun for You..I know it was for me...
: and it will be much easier for me to buy my next car (4Runner of course.... ) after this one reaches 200 000 miles..... Also we are planning Chicago/Illinois Meet in March so I hope You will get it by then and You will join us to show You new 4Runner.....:arrow:
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Dealers BS everyone into thinking they make nothing on new cars, the typical dealer is making 4000-10000+ on new vehicle sales, it ranges from dealer to dealer and how they rate with the Corporation, invoice is just a number they came up with to make the customer happy.
Before I bought my 4Runner I knew they made about 5000 off the sale and the salesman got 1000.
Just look at your local Toy dealer, the average cost to run that place could not be done selling cars with a profit margin of 50-500 dollars, but I always get a laugh at of the salesman who's like your killing me I only make 50 bucks on the sale:arrow:
Before I bought my 4Runner I knew they made about 5000 off the sale and the salesman got 1000.
Just look at your local Toy dealer, the average cost to run that place could not be done selling cars with a profit margin of 50-500 dollars, but I always get a laugh at of the salesman who's like your killing me I only make 50 bucks on the sale:arrow:
fastlif306
New member
Edge,
You are wrong, dealers do not make that kind of cash flow with each 4runner they sell. What they pay, and how much they make on profit is not 5k on a new 4runner, and most salesmen get 10-20% share of final dealer profit, after paying for Toyota advertising, yes those nice commercials you see are paid by each sale, so if you do the math, they still would not get 1k on each runner sale. I know first hand from experience let me say on invoice and profit of 4runners, lets just keep it at that.
Be careful what you preach about when its obvious you know little about selling NEW toyotas. This is a public forum where now people will see this and go beat the crap out of their dealer saying they got screwed when in fact they got a legit deal.
Expensive it is to run a dealer, cost to run it come from more than just new car sales though.
Invoice is a number that the dealer uses to see how much they are financing for that vehicle thru Toyota. Like it or lump it.
You are wrong, dealers do not make that kind of cash flow with each 4runner they sell. What they pay, and how much they make on profit is not 5k on a new 4runner, and most salesmen get 10-20% share of final dealer profit, after paying for Toyota advertising, yes those nice commercials you see are paid by each sale, so if you do the math, they still would not get 1k on each runner sale. I know first hand from experience let me say on invoice and profit of 4runners, lets just keep it at that.
Be careful what you preach about when its obvious you know little about selling NEW toyotas. This is a public forum where now people will see this and go beat the crap out of their dealer saying they got screwed when in fact they got a legit deal.
Expensive it is to run a dealer, cost to run it come from more than just new car sales though.
Invoice is a number that the dealer uses to see how much they are financing for that vehicle thru Toyota. Like it or lump it.
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charlier180
New member
fastlif306 said:
Actually for many auto dealerships the profit source breakdown is something like this:
- New Car Sales = 25%
- Used Car Sales = 25%
- Parts & Service = 50%
