I am wondering how much a dealer makes on a GEN III prius when he sells it at MSRP. I am sure the larger the package the more profit. Does anyone know?
For a model 3 base, I *think* the invoice is $22,411 and the MSRP is $23,750. If that's true, then $1339, or just under 6% of invoice.
Total MSRP less total invoice plus dealer holdback (2% of the base MRSP). P.S. You can find the invoice prices on www.edmunds.com
OK, thanks for the info. I wanted to know because I did a "cash for clunkers" deal a 95 previa 140k miles for a genIII pkg3 And the dealer has called me 3 times to come down and fill out paper work so he can get his $4500.00 from the government. He seems very nervous about the delay in payment. they keep kicking back the paper work for little things. I can see from what you are saying that not only is this 4500 his profit he is also in the hole for the prius that I now have. I see why he is sweating it.
Welcome to the world of government run privately owned business. Hence the reason over 200 NY state dealers dropped out of the CFC program today...most have received only 5-10% of their CFC rebates from the government. In a business like auto sales I don't blame them...good reason to be worried about getting their money from the government.
I was told by a fairly reliable source that profit can range from a few hundred dollars on a package II up to a few thousand for a package V with the works. I was also told that one the package I comes out, profit will be measly, possibly less than $200.
If talking about profit @ MSRP, your source saying a few hundred dollars for a Prius II isn't very reliable. Edmunds.com - 2010 Toyota Prius Car Pricing Guide
Why didn't the dealer have you do all the necessary paperwork before you took delivery of the new car? Once you sign over the title for your clunker and you take delivery, they can submit for reimbursement. It seems like everyone is blaming the government for mismanaging this program. In my experience, the dealers share at least part of the blame for not submitting the paperwork correctly in the first place (yes, the I's need to be dotted and the T's need to be crossed). Every time one submittal gets kicked back because it's wrong, it puts them that much further behind. And what about NADA? They lobbied for months to push C4C through; one would think they would have made sure their member dealers would be better prepared for it.
How much profit does the dealer make on the packages that come with whatever model you've decided to get? For instance, the owners reward package, the $600 thing with floormats and invisible film. Did the dealer pay $600 for that or do they make money on that too?
Don't confuse the $4500 as part of his profit. That's simply the government paying for part of the car instead of you. It's not "profit" per say. The Prius II was priced to compete with the Insight as Toyota simply cut the MSRP without lowering the Invoice an equal amount. The dealers don't make near as much on a II as they do a V and it's not just because the V is loaded. I can see why some dealers (regions) were not interested in the base models being available with the SR options. The profit would be only in the options rather than the car. For the OP's question this is looking at MSRP only. The "add on" options from the dealership or port are typically marked up pretty high. Not necessarily the mats and tangeable items you buy, but the protectants (paint, fabric) and misc warranties some offer (tires, road hazzards, etc) as well as extended warranties are large profit items, thus they push them. The maintenance plans in some cases seem like a break even item to those that purchase it, but the they get their money upfront and then if you don't follow through with all the purchased services they pocket the money for nothing. Sorta like getting a $100 gift card and only using $90. When you don't use that last $10, someone gets to pocket it.
They make lots of money on that stuff. Edmunds doesn't have prices for those items and it probably varies in regions depending on their supplier. You might ask why pay them $400 for tint if you can get it done for $250. Some like the convenience that comes with having it in your cost to finance. Also it whould be something then that has dealership backing on the warranty. The question then is it worth it?
Wow, if $4500 is the dealer's profit, then you must have paid about $2000 over MSRP. $4500 is what the government give you, it is your money from the C4C. In addition, don't forgot to account for the value of your Clunker.
Without C4C, the Previa van probably worth about $1000. Of course with C4C, it is only scrape value but in real life, you are getting $4500 - $1000 = $3500 from the government.
Sources of profit 1) Car itself = Selling price - invoice, holdback, sales volume bonus targets 2) Financing 3) Warranties / add-ons 4) 'Dealer fees'
See this very up front post by DianneWhitmire. This should answer your question. Dianne is a Fleet Sales Director for a dealer.
If one goes to www.truecar.com, they show $22,005 as the Actual Dealer Cost, $22,465 as Factory Invoice and $23,750 as Sticker Price.
